Reuters: U.S. has plundered world wealth with dollar: China newspaper
The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday.
The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.
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http://www.reuters.com/article/newsOne/idUSTRE49N1XX20081024














Thing is, Bretton Woods was
Thing is, Bretton Woods was only temporarily stable because the US was home to such an unprecedented share of the world economy. No region, whether China, Japan, Europe, the US, or anywhere else, will likely ever reach that level of dominance again.
As such, we will always have a multipolar monetary world. With the crazy pegging attempts and competitive devaluations that this inevitably leads to.
The only way out, is to peg to something that everyone agrees on the value of, and that can’t be competitively devalued; in essence gold. Which the ruling and financial classes will of course fight tooth and nail, as it takes the primary access advantages they have come to enjoy vis-à-vis everyone else away from them.
But, with a bit of luck, we may be at the cusp of a widespread realization that this is the only way forward. Cross Your Fingers for the yellow stuff!!
Thing is...
a good chunk of the gold that has been drained out of our economy is now in Dubai:
http://www.thedubailife.c...
http://www.mecfilms.com/u...
And who's to say that a small group monopolizing gold won't still give us in essence a "one world currency"?
I like Dr. Paul's idea of competing currencies. Imagine a currency based on green energy output? People would love to use it. One really cool thing about competing currencies would be that people would track them daily (or even to the minute), much like they keep track of useless stuff now like American Idol or sports. It would become our national pastime. That is, unless James Jaeger's (producer of Fiat Empire) vision of a society without an economy comes true based on his newfound love affair with a certain addendum...
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http://www.pyrabang.com - the Patriot newsfeed machine that will take a huge bite out of Google's ad profits and put them in your pocket!
By Official Communist Gov't Newspaper
Follow the links, it was the Official Government Communist Newspaper that printed this. Just makes it more interesting .... and more official when they change things.
Their official paper is like
Their official paper is like a printed version of our Voice of America. It's the hard line view, which doesn't necessarily mean anything.
I wonder
what the 1WC will look like?
Paulson's face on the one? Bernanke on the 20?
No doubt Rothschild will be on the 100.
Hello dominant Euro.
Hello dominant Euro.
You mean the currency
that's falling apart?
http://www.telegraph.co.u...
And despite all this chaos,
And despite all this chaos, all these dislocations and all the fortunes that will be lost and lives that will be ruined because of episodes like this; officialdom still refuses to accept the wisdom of something as simple, predictable and inherently equitable as a sound, specie backed medium of exchange.
Of course not.
There is nothing in it for them. I honestly think they would rather plummet us back into the stone age than give up advantage and control.
Don't tell me... we're about
Don't tell me... we're about to go all e-currency, and everyone will need to get a special little 'mark' on their right hand and forehead, beginning at birth...
are you suggesting
the anti-christ is German?
Maybe he's Swedish?
Maybe he's Swedish?
but in that case, wouldn't we all have
"krona(s)" instead of "marks" being implanted?
WORLD BANK owners & loans
YOU have it all wrong... It's NOT what the U.S. GOV't dealt out ...IT is what those running the FED dealt out to the world....BY the way those FED owners also loan to the rest of the World ....DID you get it yet ?PUT the blame where it belongs, PLEASE
weee
The FED works in collusion
The FED works in collusion with the US govt. DID you get it yet ?
weeeeeeeee
HYPERINFLATION here we come
.
I really hate to say it .......
But as a country, we're going to "get" our just dues for what we've dished out. Too bad the good and honest ordinary US citizens are going to have to pay the piper as well as (or instead of?) the lying theiving greedy bastards who have done this.
Terminal threat
This is the most immediate terminal threat to the US economy - the global dumping of the dollar. Decades of inflation stored in foreign banks and accounts will crash in upon us.
This also strengthens my suspicion that China is preparing to launch its own gold-backed currency to replace the dollar as the world's currency.
Interesting, but how likely?
Interesting, but how likely? My gut tells me 'not very'. The Euro would be in a better position to replace the dollar.
I believe they are talking about DEFLATION when
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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they say, "exploiting the dollar's dominance."
Plundering through inflation
After WWII, the Bretton Woods agreement established the dollar as the currency of global trade and the international reserve currency. It was backed by the US government in gold as far as central banks and foreign governments were concerned.
The US began inflating the dollar. During the 60's, with the Guns and Butter era, the inflation really took off. Because the world economy was growing, it absorbed most of the new dollars. But by 1971, the demand on US gold reserves at the pegged dollar price exceeded the available gold. Nixon cut off the gold backing. Then inflation really took off.
Since 1971 we have been inflating like crazy. But we essentially made the rest of the world eat our inflation. The US benefited from our inflation at the expense of the rest of the world in the same way that the middle class and working poor in the US pay for the benefits reaped by Wall Street and the others who get the benefits of inflation domestically.
Ron Paul talks about the inflation tax on the poor and the middle class for the benefit of Wall Street. What China is talking about in this article is the same thing on an international scale - a US inflation tax on everyone in the world that has been using dollars.
The world is now feeling the loss of all the wealth the US has plundered through inflation. Yes, the pain is being felt through a deflation at the moment. But that will be replaced by inflation, first internationally and then dramatically worse domestically. Give it about a year.
I agree with "first by inflation then deflation" as someone said
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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Inflation is the set-up
and deflation is the death blow. That's how it worked in the last depression.
I agree.
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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