Marin Katusa, Testosterone Pit
Source: Business Insider
Apr. 30, 2012, 8:05 PM
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There’s a major shift under way, one the US mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country’s importance in the world: the demise of the US dollar as the world’s reserve currency.
For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar’s valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for US Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon.
The dominance of the dollar gave the United States incredible power and influence around the world… but the times they are a-changing. As the world’s emerging economies gain ever more prominence, the US is losing hold of its position as the world’s superpower. Many on the long list of nations that dislike America are pondering ways to reduce American influence in their affairs. Ditching the dollar is a very good start.
In fact, they are doing more than pondering. Over the past few years China and other emerging powers such as Russia have been quietly making agreements to move away from the US dollar in international trade. Several major oil-producing nations have begun selling oil in currencies other than the dollar, and both the United Nations and the International Monetary Fund (IMF) have issued reports arguing for the need to create a new global reserve currency independent of the dollar.
The supremacy of the dollar is not nearly as solid as most Americans believe it to be. More generally, the United States is not the global superpower it once was. These trends are very much connected, as demonstrated by the world’s response to US sanctions against Iran.
US allies, including much of Europe and parts of Asia, fell into line quickly, reducing imports of Iranian oil. But a good number of Iran’s clients do not feel the need to toe America’s party line, and Iran certainly doesn’t feel any need to take orders from the US. Some countries have objected to America’s sanctions on Iran vocally, adamantly refusing to be ordered around. Others are being more discreet, choosing instead to simply trade with Iran through avenues that get around the sanctions.
It’s ironic. The United States fashioned its Iranian sanctions assuming that oil trades occur in US dollars. That assumption – an echo of the more general assumption that the US dollar will continue to dominate international trade – has given countries unfriendly to the US a great reason to continue their moves away from the dollar: if they don’t trade in dollars, America’s dollar-centric policies carry no weight! It’s a classic backfire: sanctions intended in part to illustrate the US’s continued world supremacy are in fact encouraging countries disillusioned with that very notion to continue their moves away from the US currency, a slow but steady trend that will eat away at its economic power until there is little left.
Let’s delve into both situations – the demise of the dollar’s dominance and the Iranian sanction shortcuts – in more detail.
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Related articles
- Ditching the Dollar (lewrockwell.com)
- Iran sanctions backlash (mondoweiss.net)
- Michael Krieger On The Rebirth Of Barter (12160.info)
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Stunned…………what a beautiful piece of writing you have given us today….so eloquent is your statement I must say if you are not a professional writer…you should be!….thank you.
Reblogged this on Light Worker 29501 and commented:
After 15 years in the States, I am feeling that its time to move my assets out of the country.
General post,
Santos Bonacci, an eloquent and very special human being, has on several occasions ascribed the mental constitution of the “ruling families” of Western Civilization to be somewhat “insane.” When he describes them in this fashion you get the impression that he’s referring to the effects of centuries of in-breeding that has produced the imbecilic, dimwitted cretins we have all witnessed as a bane on our existence. But, I think that it goes beyond their DNA. I believe that their affinity for “separation” has also affected their intellectual development just as well. They are disposed to much barking when ever their clumsy, stupid, and arrogant social maneuvers turn out to backfire sending plumes of noxious smoke up their nasal passages–which probably does contribute to their continued and irrepressible decline as well.
We have their darling Napolean Bonaparte. He was supposed to take the New World Order into the 1800′s; an entire century earlier than their second Grand Denizen of the West, Adolf Hitler–and they even created a very special beast in General Tojo to help him along. That didn’t work. Later in the 20th Century, It was hoped that Mao would prove to be as vicious a bondservant as could be contrived and, while he DID turn out to be murderous, the absence of Good just cannot last forever as it has no principle. He died and the Chinese people chose the path of least resistance to prosperity auguring their future with the likes of Chou En-lai and Deng Deng Xiaoping–remember him? He was the enlightened Communist Chinese leader who put a stop to the ceaseless arguing that questioned the ethics of moving toward a capitalist economy with the saying:
“Who cares if the cat is white or if it is red; as long as it catches mice!”
The panoply of degenerates spawned by these mindless morons proves that you can have the most expensive and highest quality education and still be a stupid bastard. It’s not hard to pull off and, if you pay attention to the Drunvalo flicks that our Miss Jean provides, a lot of bad things can happen to you when you use your brain to settle questions more appropriately addressed by the heart. Of course, our adversaries don’t seem to have one do they? No, I suppose they don’t. So, they’ll continue to practice their esoteric ceremonial rights of passage, their aphotic magic, their debauchery, corruption, and outrageous baffoonery.
Their best laid plans continue to implode upon them and “Why?” you may ask. It is because the rest of humanity–even those of us who are most desolate and disadvantaged–move toward an ethos intended to improve the human condition to the benefit of everyone. Those who are in service to others are connected to each other through the Unity of the ONE. The powerful presence of “Good” is always contemporary and immediate. And now, we’re witness to yet another dramatic decline and fall of yet another empire conceived in separation and implemented through contrivance and misguided assumption.
What makes anyone think that this Novus ordo seclorum (a “New” Order of the Ages) won’t soon topple into the pit of arcane, cabalistic depravity along with the rest of its antecedents?
Einstein once defined “insanity” as doing the same thing over and over again and expecting different results.” Is there anything that doesn’t meet the criteria here? Of course not.
With each passing day, brothers and sisters, I am becoming less and less cynical and more and more sanguine about this approaching “Change.” As Drunvalo advises, we really shouldn’t worry about the “mechanics” of metamorphosis. There isn’t anything to “worry” about. The only thing that we have to concentrate on is our positive deportment–although, I’ll admit, the cabal has fashioned a fate for itself the consequences of which are distressing to witness.
Love and Light,
SaS