I’m afraid you don’t see the whole picture clearly.
When it comes to China, the situation is complicated given the fact China has two central banks with separate currencies – one in Beijing (The Yuan, public, debt free currency), & one in Hong Kong (The HK dollar, private, debt driven currency). HK has economic (despite no political) sovereignty.
The entire Chinese economy is a collaboration of public & private currency. But the HK central bank is actually controlled by the Bank of England.
Like or Dislike: 0 0
“the biggest asset the US has is its control over the global oil trade…”
This is true but the rest of your rationale is not supported by the facts.
Democracies rejecting oil’s denomination by the dollar is NOT true (unless you think Iran & Venezuela to be real democracies & the exception). Fact is MOST democracies accept the dollar’s denomination of oil.
Truth is, it was Saddam who got the ball rolling by rejecting the denomination of Iraqi oil by the dollar; hence, the invasion.
“Money printing is a TAX…”
The bullshit is YOUR believing ALL inflation is monetary & not commodity (oil) driven, at all.
In the late 70s, the Fed cut the money supply, but inflation continued because of OPEC’s increase in the price of oil.
But increases in oil prices result in increases in demand for dollars to buy oil. This results in more goods coming into the U.S. which competes to lower commodity prices except oil. Bernanke (unlike Volcker) supplies those dollars.
That’s no lie.
> No taxes have been raised to pay for the bailout.
Bullsh&t. Inflation numbers put out by government are a total LIE. Money printing is a TAX on wage earners and those on fixed incomes. The interest below the REAL rate of inflation paid to savers is a TAX. The cuts to government services (much more to come after the elections) are a TAX. The running up of the debt is a future TAX.
There is no free money. Don’t give me the Bernanke lie that “its not costing us anything”.
“Where do the TRILLIONS… offloaded onto taxpayers…”
No taxes have been raised to pay for the bailout. The bailout is just more borrowed money from the Fed. It only truly gets “offloaded” onto taxpayers if the government defaults on it’s debt.
Until then the government continues to borrow “privatized” currency or it issues debt free “public” currency since it is not obligated to borrow any private money, whatsoever.
But put a gold standard on it& you’ll turn it into debt currency.
But put a gold standard on it & you’ll turn it into debt currency.
“The vast majority of dollars are held by Americans…”
Only if you count dollars “above ground” & not below. Since the dollar denominates oil, it has a defacto oil (black gold) standard.
Oil reserves (billions of barrels) x $80 per bbl:
OPEC = (1200) = $96,000 billion
Total Non-OPEC minus US = (210) = $16,800 billion
GRAND TOTAL = $112 trillion
Total Assets of U.S. economy = $188 trillion
Total U.S dollars (“black gold” assets) owned by other countries = 59% (112/188).
The vast majority of dollars are held by Americans, not oil producing countries, China or Japan. By destroying its value, it is the wealth of Americans that gets destroyed. The beneficiaries of this are a few elite at the top.
Every argument I’ve ever seen from egghead economists has been twisted in favor of them handing out worthless paper.
Where do the TRILLIONS in bank gambling losses offloaded onto taxpayers, savers & wage earners through bailouts get factored into the equation?
Where do the TRILLIONS in bank gambling losses offloaded onto taxpayers, savers& wage earners through bailouts get factored into the equation?
the biggest asset the US has is its control over the global oil trade which is entirely denominated in USD. This is done by keeping despot dictators in power in oil producing countries and outright invading & seizing their resources as with Iraq & Libya.
If that were ever to end, there would be a collapse of the dollar. But I don’t see that happening anytime in the future unless there are violent revolutions in oil producing states for democracy.
the US had a good run but its over
When it comes to understanding the dollar’s defacto commodification by oil, RP is dumber than Forrest Gump & as blind as Mr. Magoo.
RP treats currency like a box of chocolates. Only he’s blind to the “chocolate”, i.e. the oil, who’s denomination by the dollar gives the dollar an exclusive purchasing power & real value. Consequently, he thinks the dollar is just a bunch of empty paper wrappers.
So, to give value to his chocolate box, Gump Magoo wants to replace the paper with gold wrappers.
“When nations that export to the US stop stockpiling our “dollars” and insist on trading with either a different reserve currency…”
No country stops trading with the U.S. until another currency replaces the dollar as the denominating currency for oil. Oil gives the dollar it’s value thru an exclusive purchasing power (other countries must hold dollars to buy oil).
So while the dollar is no longer as good as gold, it’s defacto commodification by oil makes it as good as “black” gold.
Mr. Bernanke must be replaced. He messed up a lot of times .
5:10 Ron paul smile just Finished him off lol
“By your wisdom and your understanding you have made wealth for yourself, and have gathered gold and silver into your treasuries” -Ezekiel 28: 4
Gold is an element create in the dying throes of a supernova, not money.
But that won’t stop the price from going through the roof. Just ’cause gold isn’t money doesn’t mean I won’t be owning any…
Sign up to receive free email updates from the RonPaul.com grassroots with the latest news, videos and liberty action alerts.