Our Weekend Homework - "Rollover"
To prepare for what will, most assuredly, be a wild week ahead, there is nothing quite as relaxing as some cinematic entertainment to help your minds off of things. NOT!
I only first heard of the 1981 movie, "Rollover", a few weeks ago. On page 96 of his great book "The Golden Revolution", John Butler discusses how the events depicted in this film could easily transpire today. In the film, global liquidity vanishes when the Saudis begin moving reserves out of dollars and into gold due to fears of a dollar collapse. Obviously, the plot is a bit dated but the premise is still real. Here's the wiki page for the film: http://en.wikipedia.org/wiki/Rollover_(film)
Substitute the Saudis for the Russians or the Chinese. Better yet, don't even imagine a sovereign boogeyman. Simply imagine a global liquidity event/meltdown like 2008 or, potentially, 2012.
First, if you haven't yet, please page through this presentation by the hedge fund manager Raoul Pal. If you don't think it sounds plausible, you haven't been paying attention recently.
Now, watch this brief compilation that intermingles parts of Rollover with actual news footage from 2008.
Getting nervous yet? Me, too. Now, I urge you to take some time and watch the entire film here. Maybe make some popcorn. Kick back, relax and prepare to be seriously unnerved.
Look, I'm not saying that this is what's going to happen. However, I think we can all envision a scenario where these events, as depicted in the film, can happen.
p.s. I'm off to Cabela's to buy some more ammo.