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Have all the years America spent antagonising and manipulating the American people into buying trillions worth of needless luxuries finally back fired on them? While consumer spending is at 70% of the total US GDP no other country in the world comes close.
So it surprising that the US dollar is on the verge of collapse when personal saving rates are the lowest they have been for 73 years and credit card debt continues to skyrocket?
Not to mention the US’s Oil extortion racket which has just about kept the USD afloat but, in truth, it’s just another dismal rip-off. More than 70% of
the world’s oil is denominated in USD; a virtual monopoly for the USA. Until last year, even Russia was using dollars in its oil transactions with Germany. Imagine a comparable deal, like the US purchasing oil from Canada in rubles?!?
Yet this is the system the US hopes to preserve so it can maintain its unique status as the world’s “reserve currency” and keep expanding its debt into perpetuity. It explains why the Federal Reserve has been able to increase the money supply by a whopping 15% for the last 6 years! Trillions of dollars are now circulating in the oil trade keeping the value of the dollar high by creating artificial demand.
The dollar’s link to oil forces central banks to maintain humongous stockpiles of USD to pay the steadily rising price of oil that keeps their industries and vehicles running. Otherwise they would have chucked the flaccid greenback years ago and converted to the more steadfast euro.
The so-called ‘global economic system’ has nothing to do with competition, free markets or private enterprise; that’s just public relations gobbledygook. In practice, it is the world’s biggest extortion racket, wherein, the “Godfather”-- Uncle Sam-- holds a gun to the heads of his subjects and forces them to use our fiat-paper to purchase the oil that lubricates their economies.
Why would anyone accept a personal check from a nation that owes the bank more than $8.6 trillion dollars?
Even Iran and Venezuela are threatening to convert to euros so is it any surprise that they are both on Bush’s axis-of-evil hit list?
Russia has already made the conversion to euros and rubles (and has considerably depleted his supplies of USD) but, of course, regime change is more difficult when a state has nuclear weapons. Instead, the mainstream media is conducting an impressive “Swift Boat” campaign against Putin, smearing him as a “Russian autocrat” who is “rolling back democracy”. At the same time, the Bush administration is threatening to deploy missile systems in Eastern Europe and ratcheting up the pressure in the former Soviet republics.
Bush would rather restart the Cold War than abandon the supremacy of the greenback. But, why? Is Dollar-primacy really that crucial to their economy?
The greenback is the baling wire that keeps the global economy in the hands of the doddering old misers at the Federal Reserve. It’s the cornerstone of the whole wretched system; a system which now includes torture, extraordinary rendition, and myriad other war crimes.
Just look at Bush’s budget for 2007-2008; $700 billion for foreign wars?!? There’s no way the US can pay off that debt through the normal means of increasing exports. In fact, Bush has already said that he plans to preserve his unfunded tax cuts whether they produce massive deficits or not.
What Bush plans to do is force the foreign central banks to hold more dollar-based assets, thus, thrusting their gigantic debt onto their trading partners. According to Bob Chapman of The International Forecaster, “US debt was up 10% to $4 trillion and accounts for 58% OF ALL THE CREDIT ISSUED GLOBALLY LAST YEAR. The US is producing more debt than the rest of the world combined.
As long as foreign lenders are willing to take their paper, Bush will keep expanding their debt. As Chalmers Johnson opined, “We are dependent on ‘the kindness of strangers’”.
Of course, if the central banks grow tired of this pyramid-scheme and dump the dollar; the world can get on with the business of addressing global warming, poverty, AIDs, Peak Oil, nuclear proliferation etc. That won’t happen as long as the dollar reigns supreme and a small cadre of unelected racketeers at the Fed continue Gerry-rig the system.
Economic justice and equitable distribution of wealth begin with greater parity among the currencies. That requires “regime change” for the greenback and a loosening of its tyrannical grip on the system.
Eventually, the markets will catch on, foreign lenders will stop buying their Treasuries, and the dollar will fall through the floor.
The laws of gravity apply to economics as well as science.
[size=7]Source for statistics = marketoracle, Wikipedia[/size]
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Originally Posted by youngdan
