The "beauty" of petrodollarsSubmitted by persona on Tue, 09/17/2013 - 17:47
To continue the analogy from a recent post, our pipe is leaking, but it's mostly leaking into our neighbors' apartments. http://www.dailypaul.com/299512/what-time-would-you-leave
This is not a joke. What follows is a horrifying view of the world and the US federal government's place in it. No American with any sense of right and wrong can celebrate it but I challenge you to contradict it.
First a little history. After WW2 the global financial system was in chaos. Heads of 44 allied nations met at Bretton Woods, New Hampshire to design a new one. They agreed that the US dollar would be backed by existing gold reserves at $35 USD per ounce of gold, and all the other nations' currencies would be backed, or tied to the US dollar at fixed exchange rates. Other nations were bound by the fixed exchange rates but the US Federal Reserve printed lots of new dollars, inflating the dollar supply. This inflation was borne mostly by everyone else and only slightly by Americans.
Ever since Bretton Woods in 1944, our federal government has been growing itself at the expense of all the other nations who have been using dollars. (Individual Americans benefitted too, but not as much as the federal government).
Sometime in the 1960's the other nations realized they were being used and the Bretton Woods agreement slowly collapsed over a period of about 8-10 years. Nixon defaulted on Bretton Woods in 1971.
Kissinger helped Nixon devise the petrodollar scheme to replace Bretton Woods. The OPEC oil crisis of 1973 provided the pretext everyone needed to accept a new global financial system.
Our federal government has taken advantage of the petrodollar system even more than they did the Bretton Woods system. Don't you ever wonder how our government has been able to grow so dramatically and though everyone says we're out of money, the growth only accelerates? No other government or military on earth is able to do what the US has done. If they tried they would quickly collapse in hyperinflation. But not the US, because our inflation is exported to the entire world.
The petrodollar system is collapsing but the US federal government is not sitting idly by. All our recent wars, except maybe Kosovo, have been launched to defend the petrodollar system. Syria? Iran? Yes, absolutely.
But don't worry, fellow Americans. When the nations of the world finally rid themselves of the petrodollar parasite, they will suffer, not us. They will be holding worthless paper, but we will have our stuff ... and their gold!
We are protected by the Atlantic and Pacific oceans and the most powerful military the world has ever known. We have the largest petroleum reserves in the world, the most productive agricultural regions. The truth is, America doesn't really need anyone else. We've gone abroad to conquer just because we could.
If the world turns against America, the federal government will draw a few more lines on the map and that will be it. Nothing and nobody goes in or out while we wait for the rest of the world to self destruct.
A full default would harm Americans too, but, once again, the stuff and the resources to start again are all here. Full employment again, no more trillion dollar bailouts of loser foreign countries, or trillion dollar foreign wars. It could work ...
I AM NOT ADVOCATING ANY OF THE ABOVE. LEARNING THE TRUTH ABOUT PETRODOLLARS HAS BEEN EXTREMELY UPSETTING TO ME PERSONALLY. I DON'T LIKE THE IMPLICATIONS AND HOPE THE FUTURE IS NOT LIKE WHAT I'VE WRITTEN ABOUT.