UtopianRanger
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quote:
I agree with what you have written, UtopianRanger, but if you read books like "The Best Democracy Money Can Buy" and "Confessions of an Economic Hit Man" it becomes fairly obvious why the US Government has done what it has done.
Oh… I agree with you, but that’s not what got us into trouble in the first place. Like I said initially, The dollar's perpetual state of devaluation is tied to two things : Manufacturing based-non-productivity {tied in with an utterly preposterous trade imbalance} and massive debt to foreign creditors {The US is the largest debtor nation in the history of the world} .
Many of the folks reading these forums are younger than us, and a few are older. But you and I are the same age, so it’s easy for the both of us to travel back to our younger years and remember when we could go into the department stores as teenagers /kids and see that most of the tools, clothes, toys, hardware, paper goods, books, and even some of the electronics were mostly made here in America. Now almost none of the above mentioned is produced /manufactured in America.
That and the fact this government is just completely out of control spending and spending, whether it’s on war, Halliburton, the Big Dig, or a Bridge to no where in the Great White hither land. They just keep spending and spending, borrowing and borrowing – There’s no end in sight, and it’s killing us.
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Saddam Hussein, while not a particularly nice man, was not in anybodies cross hairs until he refused to enter into an agreement with the United States similar to the one we have with Saudi Arabia, to whit, a requirement that they sell their oil in US dollars. So he got invaded and presumably if the country ever gets fixed by us, they will sell their oil for US dollars. If we pull out and let somebody else fix it, I suspect it will be sold for Euros, which is one of the few relatively stable currencies on the planet at this point. Say what you want about having resolve to rebuild Iraq, but the only reason Monkeyboy gives a flying whatever about that entire country is the fear that we would have to buy the oil for something that is not dollars.
The Saudis are who they are, but they do know that if they ever try to sell their oil for something other than US dollars, they will go the way of Saddam.
Chavez, in Venezuala, has been basically sitting on his oil, refusing to borrow money from the World Bank (which would make his country a debtor nation subject to having loans called in, etc), and refusing to sell his oil for US dollars. So the media in the United States has now decided this popularly and democratically elected, and much beloved ruler is an evil man who must be overthrown.
I might have agreed with what you are saying here a few years ago…..but in light of what’s happening in Iraq, right now……the way we are getting are butt’s picked off, a few every day. And the fact that Hezbollah wupped ass on the Jews and destroyed seventy of the most formidable tanks on this planet with cold war, wire guided anti-tank missiles – No way
I would tell you right now that our performance in Iraq over the last three months is directly related to much of the dollar’s recent fall over the last couple of weeks. The world is beginning to both notice and lose confidence in our ability to wage war and be effective at it……they are very aware we have no strategy. And better yet….. this super bad-ass technologically superior military image we might have erroneously built, has been largely reduced to the same profile we had after we left Saigon.
Out citizenry is getting smarter all the time, and they’re also tired. I don’t believe the neocons can blow up another building or release small pox and blame it on Hugo Chavez or the Iranians and have us all go to war again. The people are tired and they don’t want to live in a perpetual state of war anymore – It’s ridiculous.
Wait till all kids come home and they start to get sick and feel the ill effects from the massive amounts of depleted Uranium that our government bombarded Iraq with. When the truth comes out about DU…..hopefully even the dip shits will have enough sense to say no to more wars. I’m sorry, Sinergy, but I think we are losing our ability to force our will on others
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In the United States, we no longer have a gold standard, we have an oil standard. The ultimate goal of joining our currencies with Canada and Mexico is to increase the reserve money we can use to stabilize our economy. I will use the loaf of bread analogy posted earlier to describe the problem Monkeyboy and his ilk are having with our currency.
If you have a loaf of bread as your standard, similar to gold or oil, and you print the $1.00 the loaf of bread costs. Your $1.00 bill is worth exactly $1.00 and is tied to the value of the loaf of bread. If you print $5.00 worth of money, your loaf of bread now costs $5.00 since the intrinsic value of the goods you can purchase with it remains stable.
Lets say you print $2.00 worth of currency, and loan Joe $3.00 worth of credit. Again, it now costs $5.00 to buy that loaf of bread since the standard worth holding up your currency (both loaned and printed) has remained the same.
Yes……our currency, the dollar {Now what’s known as a fiat currency}, once had a fixed parity relationship with something of tangible value to stabilize it, i.e. Gold, ala The Bretton Woods monetary system.
This is what subfever and maybe one other here have always talked about……Before 1913 we had Sovereign, organic currency. Then perhaps the biggest coup de grace ever perpetuated on this nation came along : We were indoctrinated into what’s {bait} affectionately known as the Federal reserve system / Fractional lending practice, where money is virtually created out of thin air. It’s a pyramid / ponzi scheme that works on ‘’bubbles’’ where the inherent problem is what’s known as ‘’interest’’ that just keeps compounding and can never be paid back.
- R
PS - Don't know how Ya'll do it.....these long posts are draining 
< Message edited by UtopianRanger -- 12/5/2006 6:13:06 PM >
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"If you are going to win any battle, you have to do one thing. You have to make the mind run the body. Never let the body tell the mind what to do... the body is never tired if the mind is not tired."
-General George S. Patton
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RE: Our Falling Currency - 
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