Quote:
Originally Posted by crucifissio
no the oil is just a small part of it...the war dollar gives americans the ability to dump their inflation on the weak and take their resources for printed money...
example: can I buy YOUR house for printed out of thin air "crucifissio dollars"? no? but can I buy it if I put a gun to your head and there is no police you can call? YES!
the USA can not afford peace...forcing people to take the war dollar keeps its price artificially high, with an artificial high price americans have artificial purchasing power abroad where they buy resources for pennies, then they export and are "competitive"...the local US economy stays "Strong" and everybody else gets modern debt slavery...
america will not stop until somebody forces them to stop...there is no nice and conventional and democratic way to do this...americans will never change or give up their standard of living and there will be violent opposition to this...
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I will agree to the fact that the Dollar has been backed by the price of oil since we went off the gold standard and traded for imported oil in terms of dollars just after that fact.
But it did have a stabilizing effect on the plus side of things.
And...
Every nation we have had issues with have promoted finding a alternative to the dollar in terms of oil trade to lower our influence that brings with it.
and yes, real property value here is really based from that oil. And so purchasing power and screwed investment ratios.
It has been clear to me for over 20 years that the smartest guys on wall street can not fix these issues but that has not stopped them from trying LOL.
As Greenspan said a long time ago, if the system fails, there is always BARTER system.
And I have never doubted it would fail. just when ?
But I think you put to much weight on how much buying power is reduced when the price is low. We just had a couple of years of low prices and all I seen was a reduction of growth in the deficit. The US still has to import oil to supply it's needs and much of it comes from Canada before OPEC. Everyone needs the same expensive energy to mine/move/make/deliver products (a multiplying effect for some). It only pays if you have it in the country you need it in. It keeps your money from moving somewhere else reducing your tax base and money supply.
When the fed talks about inflation, it is never about the cost of goods and services, but the value of wages. The American worker and consumer has been taking it in the chin ever since our money has been back by oil. So it is happening, but not at a rate that anyone seems to bring alarms that it should and is how they are getting away with it.
They seem to have a goal of keeping 'real wages' here from little growth as possible while the rest of the world wages grows at faster rates till there is some sort of balance.
I doubt they will ever find that point. The greedy will not allow for it.
The writing has been on the wall, but it is interesting to see it play out. The greedy expose themselves.