
March 23rd, 2009
For all of the biting rhetoric that is thrown against the US, it is seemingly a point of embarrassment, that nearly every nation in the world is forlorn by its tie to the US dollar. The dollar is the tell-tale mark left on confrontations and wars in every continent, it is the multiplier of force for the American Empire, it is the engine for the excesses of unbridled Capitalism and it is the real invisible hand that controls the world’s markets.
There was a time when sound money existed. It protected honest commerce and restrained the hands of Kings. Gold was never made of paper, and wars could not exist without funding. Sound money was based on the use of gold as the principle medium of exchange, and this was the bane of governments who had delusions of power. The very power of gold was that governments could not control its power. Eventually though, governments colluded to make the yellow metal lose its sheen, they convinced people that paper is a match for gold, until they made the belief that paper itself was as good as gold. It ushered in a new era, where the dreams of governments could finally be fulfilled. Where the nightmare of the US could finally be played out.
In the year of 1971, President Nixon finally banished gold to the realm of being a ‘barbarous relic’, by fully abandoning the link of the US dollar to gold. The US dollar had then become the worlds de facto currency, backed up the full faith and credit of the US government. Regardless of everyone else’s proclivities, the only faith that the US held, was that of Capitalism. Insofar, that the world is only a market for US Capitalists, and that they now have even more an effective monetary instrument to achieve this.
The first recognised danger of producing money via the printing press aka counterfeiting, is that of runaway inflation. Despite the savant like abilities of monetary manipulation by the US Federal Reserve and the Wall St banking cartels, it is a die-cast rule that printing money, erodes the very value of the money being produced. Given that restraining money supply would be a drag on the American way of life, the US found a clever way of skirting around this problem – by essentially exporting its inflation abroad.
This was achieved by engineering a means to absorb excess US dollars. In 1973, through collusion with the oil cartel OPEC, it was decided that in return for tolerance of OPEC practices, the worlds most important commodity – oil – would be solely priced in US dollars. With oil being the lifeblood from which modern living is sustained, every nation would have to hold reserves in US dollars to buy oil, while oil producing nations would possess a surplus of dollar denominated reserves. Consequently, the US greatly benefits from the arrangement as the only way to use holdings of US dollars is to recycle them back through the US economy by investing them in US assets and debt, such as treasuries.
The triumph of America’s economy has been built on the exports of its depreciating dollar. Through it, it imports valuables goods, feeding manic consumerism. The never ending wars that it fervently pursues, is again only sustainable through a never ending supply of money. Even in our current times, where economies are grinding to a halt and markets sink deeper, the US continues to accrue benefit. There is no free market, just one biased to the US dollar.
Breaking the dollar dominance, would free the world of American Imperialism or at least level the playing field. The return of the gold standard would be the return of sorely missed prudence. Stability would return as inflation comes under control, and the volatility of exchange rates would vanish overnight. Economies would vie for greatness, by real production and its associated comparative advantage.
Yet, no one is willing to take up the mantle of the gold. The power of the dollar, has allowed the US to purchase current and erstwhile governments alike; who forcibly keep their nations under developed, in return for dollar ringed paychecks. The supposedly independent and liberal countries, similarly share a distinct lack of vision; whose rulers alike prefer not to court anything radical, counting the years to election, and not the welfare of their citizens.
I apologise for not posting on the blog for so long. Truth be told, I’m just bogged down with work. Not in the normal sense of ‘hey, big project deadline coming up’. No, I wish. More like ‘OMG, I’m going to lose my job, let me work my pants off’ type.
Sold as being “for their own good”, policies to assimilate Aborigines into British culture went to the extent of defining how the natives brought up their children which included forceful separation of Aboriginal children from their parents. These children became known as ‘the stolen generations’ and are still searching for their families. This British policy is now widely acknowledged as having largely contributed to the destruction of Aboriginal families and society, on 13 August, 1997 a
New and exciting kinds of funny happened on Monday. Within one country, we can find two different legal systems. Laws that would lead to the violent and brutal killing of people. Shock! Horror! What is the world coming to?! Ahh… Now it makes sense. It is in a place where people have more guns than sense.
“Uncontrolled population growth threatens to undermine efforts to save the planet,” writes
It is the validity of personal happiness linked with purchasing and possessing materials as the ultimate objective of life that I question and believe to be just another example of the many rotten fruits of capitalism. I’m not advocating that everybody should live in a block of flats and drive Skodas. Nor am I advocating that we should live grey, mundane lives in a cave with no source of entertainment.