Dear readers,
The End of the Dollar is really starting to hit world news. I think this will hit main stream soon and by autumn or early winter or so everyone will question the US dollar. However, this will put strain on ALL currencies, so if you have savings, NOW is the time buy some cheap gold while its still available.
Here are a few interesting headlines:
Chavez seeks Arab support for oil-backed currency
This is really important, since the “demand” for USD is often related to oil only traded in USD. I very much recommend this article by Austrian-school Krassimir Petrov:
The Proposed Iranian Oil Bourse
“The American Empire depends on the U.S. dollar. The proposed Iranian Oil Bourse
will accelerate the fall of the U.S. dollar and hence the fall of the American Empire.”“When in 1971 foreigners demanded payment for their dollars in gold, The U.S. Government defaulted on its payments on August 15. The popular spin of this default was that “the link between the dollar and gold was severed”. The proper interpretation is that the U.S. Government went bankrupt, just like any commercial bank is declared bankrupt.
However, by doing so, the U.S. declared itself an Empire. It had extracted an enormous amount of economic goods from the rest of the world, with no intention or ability to return those goods. The world was effectively taxed and it could not do anything about it: it could not force the U.S. in bankruptcy proceedings and take possession of its gold and other assets for payment, nor could it take forcefully what it was owed by declaring war and winning it. Essentially, the U.S. imposed on the world an inflation tax and collected an imperial seigniorage!
From that point on, to sustain the American Empire and to continue to tax the rest of the world via inflation, the United States had to force the world to continue to accept ever depreciating dollars in exchange for economic goods and to have the world hold more and more of those dollars, while those dollars depreciated. It had to give the world an economic reason to hold dollars, and that reason was oil.”
Also note the efforts from China to push for a New World Currency:
- Dollar falls on Geithner’s openness to China’s currency proposal
- China expands currency swaps to avoid trading in dollars
And:
Interesting times…
