Maybe this is a naive question: In a billion dollar international trade using dollars, who or what makes money just using dollars in the trade? In other words, is there money skimmed off the top of every international deal just because dollars are used?
No, but the fact that dollars are used in the transactions means dollars are in higher demand than they would otherwise be, and are thus more valuable and have more purchasing power.
PROTOCOLS OF THE MEETINGS OF THE LEARNED ELDERS OF ZION . . . Protocols of Zion: Protocol II – Economic Wars
❝The administrators, whom we shall choose from among the public, with strict regard to their capacities for servile obedience, will not be persons trained in the arts of government, and will therefore easily become pawns in our game in the hands of men of learning and genius who will be their advisers, specialists bred and reared from early childhood to rule the affairs of the whole world.❞
have heard this same song and dance about the usa dolllar ,debt, since the 70 years i have been on this planet--the debt does not exist--it is an operating expense,nothing more,never to be repaid--it will go on until it does not-the dollar represents every asset that is in the usa and the world where 70 percent of dollars are--it represents every person in the usa,and everything a person owns---when debt blows up everything will be repriced--all pensions,retirements will be lucky to get 10 cents on the dollar--same with housing or anything tied to debt-if you have debt your screwed--the true goooooovermint debt is closer to 100 trillion not including future obligations according to the professor from the univ of michigan--he knows how to read between the lines--all they are doing is managing it--no way in can be repaid-a pipe dream--their game plan is as values of everything rises it offsets the debt ratios---another pipe dream that works until it does not--every ceo knows this and if he/she forgets they are reminded in a bankruptcy court...the usa shot it self in the head with this russian nonsense--the people in DC know all this and that is why they keep their private jets fully fueled and pilot ready....got gold?
This is an extremely difficult situation with no easy answer.
I am sure the Carter administration, I mean the current administration, will take the worst possible course of action for the long term good of the Nation.
*Seems like they are trying everything they can to sink us. We need some serious intervention. This is NOT stupidity, it's like we're being sold out by our own government.
whether the dollars decline is slow or sudden it’s still a few years away.
but it will be disastrous to kick this can down the road yet again. america needs to make some inroads into that $30 trillion in debt and raise interest rates to lower inflation and ensure our debt is still attractive. would also be a great idea to buy more gold to underpin the $. handouts are always nice—& do buy votes. but if the $ issue is ignored there will be no more handouts forever
Thanks! The Fed has really painted itself into a corner. Raising rates to combat inflation also makes it harder to pay down the debt since it raises annual interest expense. What’s needed is a major decrease in the size of government, but nothing short of an historic crisis will motivate politicians to do that. It seems a default on the debt is an eventual certainty—if not outright and explicitly, then via hyperinflation.
but as you know you can only hyperinflate away debt once. then nobody will ever lend you money again except at banana republic rates (which they will hedge by selling your currency short, creating a vicious circle problem). so inflating away debt has to be done incredibly slowly or it blows up in your face🥲agree 1000% re smaller government. and there is a moderate minority who get that. but the fed has conditioned idiots like aoc & her followers to believe that their mmt money printing bank account is bottomless. so we’ll need to go thro some shocking pain to shrink the gravy train.
frankly the scary thing for me is the shocking pain thing. i’d like to think it will lead to a rational outcome. but history says it leads to horrible “populist” governments@. who will start by stringing up all the billionaires who were dumb enough not to leave & confiscating their wealth (well, ok) and then do awful things to other “rich minorities”. not a great time to be jewish or muslim or any well off middle class minority target. ugh. i really do feel that the mmt stupidity is in danger of unraveling what’s great about america. the left wing of the democrat party is not going to like where that ends up—but they may not be able to put the genie back in the bottle.
i’ve been wanting bloomberg for president for so long he’s probably too old now. but how about begging him to take over as head of the federal reserve🤔
Excellent and thorough discussion. I still think it unlikely the dollar will be dethroned as the word's reserve currency within say the next decade. Even after that, it will still likely be the largest single holding (reserve) out of the basket or plurality of currencies. But I absolutely agree the process is underway. In 2008, the USA crashed the global economy -- except for China. The world did take notice. Early reports of dis-entanglement from the USA dollar and economy were exaggerated -- but the process continues, if slowly then still sure as erosion.
China's RMB is not a fully convertible currency. But because of China's vast and global trade network, more nations are interested in upping their RMB reserves. Likewise, if the Petrodollar monopoly ends, look out.
Finally, as you well point out, the world is wondering who will we sanction next? Reducing their dollar dependency now becomes a national security issue. I was researching this issue -- you've saved me the trouble!
There’s something of a house of cards thing going on, though, where the economic and military strength is concerned. Were it not for the dollar’s role as reserve currency, it wouldn’t be as economically or militarily strong. (Maybe it’s a chicken-or-the-egg thing!)
As for gold, I wouldn’t call it’s historical valuation arbitrary. To this day, it has many industrial and other uses that helps produce something approaching a real market price.
Thanks for your readership and your thoughts, Golfer!
what is the value of gold then? or better yet,what is the value of bite coin or any crypt toe?--my small,tiny brain tells bite coin is worth zero-have you ever held a gold 1 ounce in your hand? or a american silver eagle? it reminds me what holding my lovely woman feels like,a very nice feeling...
Maybe this is a naive question: In a billion dollar international trade using dollars, who or what makes money just using dollars in the trade? In other words, is there money skimmed off the top of every international deal just because dollars are used?
No, but the fact that dollars are used in the transactions means dollars are in higher demand than they would otherwise be, and are thus more valuable and have more purchasing power.
PROTOCOLS OF THE MEETINGS OF THE LEARNED ELDERS OF ZION . . . Protocols of Zion: Protocol II – Economic Wars
❝The administrators, whom we shall choose from among the public, with strict regard to their capacities for servile obedience, will not be persons trained in the arts of government, and will therefore easily become pawns in our game in the hands of men of learning and genius who will be their advisers, specialists bred and reared from early childhood to rule the affairs of the whole world.❞
https://cwspangle.substack.com/p/protocols-of-zion-protocol-ii-economic
have heard this same song and dance about the usa dolllar ,debt, since the 70 years i have been on this planet--the debt does not exist--it is an operating expense,nothing more,never to be repaid--it will go on until it does not-the dollar represents every asset that is in the usa and the world where 70 percent of dollars are--it represents every person in the usa,and everything a person owns---when debt blows up everything will be repriced--all pensions,retirements will be lucky to get 10 cents on the dollar--same with housing or anything tied to debt-if you have debt your screwed--the true goooooovermint debt is closer to 100 trillion not including future obligations according to the professor from the univ of michigan--he knows how to read between the lines--all they are doing is managing it--no way in can be repaid-a pipe dream--their game plan is as values of everything rises it offsets the debt ratios---another pipe dream that works until it does not--every ceo knows this and if he/she forgets they are reminded in a bankruptcy court...the usa shot it self in the head with this russian nonsense--the people in DC know all this and that is why they keep their private jets fully fueled and pilot ready....got gold?
This is an extremely difficult situation with no easy answer.
I am sure the Carter administration, I mean the current administration, will take the worst possible course of action for the long term good of the Nation.
Well done!
*Seems like they are trying everything they can to sink us. We need some serious intervention. This is NOT stupidity, it's like we're being sold out by our own government.
great analysis
whether the dollars decline is slow or sudden it’s still a few years away.
but it will be disastrous to kick this can down the road yet again. america needs to make some inroads into that $30 trillion in debt and raise interest rates to lower inflation and ensure our debt is still attractive. would also be a great idea to buy more gold to underpin the $. handouts are always nice—& do buy votes. but if the $ issue is ignored there will be no more handouts forever
Thanks! The Fed has really painted itself into a corner. Raising rates to combat inflation also makes it harder to pay down the debt since it raises annual interest expense. What’s needed is a major decrease in the size of government, but nothing short of an historic crisis will motivate politicians to do that. It seems a default on the debt is an eventual certainty—if not outright and explicitly, then via hyperinflation.
“The one aim of these financiers is world control by the creation of inextinguishable debt.” ― Henry Ford
agreed
but as you know you can only hyperinflate away debt once. then nobody will ever lend you money again except at banana republic rates (which they will hedge by selling your currency short, creating a vicious circle problem). so inflating away debt has to be done incredibly slowly or it blows up in your face🥲agree 1000% re smaller government. and there is a moderate minority who get that. but the fed has conditioned idiots like aoc & her followers to believe that their mmt money printing bank account is bottomless. so we’ll need to go thro some shocking pain to shrink the gravy train.
frankly the scary thing for me is the shocking pain thing. i’d like to think it will lead to a rational outcome. but history says it leads to horrible “populist” governments@. who will start by stringing up all the billionaires who were dumb enough not to leave & confiscating their wealth (well, ok) and then do awful things to other “rich minorities”. not a great time to be jewish or muslim or any well off middle class minority target. ugh. i really do feel that the mmt stupidity is in danger of unraveling what’s great about america. the left wing of the democrat party is not going to like where that ends up—but they may not be able to put the genie back in the bottle.
i’ve been wanting bloomberg for president for so long he’s probably too old now. but how about begging him to take over as head of the federal reserve🤔
They have to know this. Is this part of the great reset? End of US dominance.
Excellent and thorough discussion. I still think it unlikely the dollar will be dethroned as the word's reserve currency within say the next decade. Even after that, it will still likely be the largest single holding (reserve) out of the basket or plurality of currencies. But I absolutely agree the process is underway. In 2008, the USA crashed the global economy -- except for China. The world did take notice. Early reports of dis-entanglement from the USA dollar and economy were exaggerated -- but the process continues, if slowly then still sure as erosion.
China's RMB is not a fully convertible currency. But because of China's vast and global trade network, more nations are interested in upping their RMB reserves. Likewise, if the Petrodollar monopoly ends, look out.
Finally, as you well point out, the world is wondering who will we sanction next? Reducing their dollar dependency now becomes a national security issue. I was researching this issue -- you've saved me the trouble!
Thank you very much for your well-reasoned thoughts and your positive feedback. Writing this was educational for me as well!
Very very written…and very scary….
There’s something of a house of cards thing going on, though, where the economic and military strength is concerned. Were it not for the dollar’s role as reserve currency, it wouldn’t be as economically or militarily strong. (Maybe it’s a chicken-or-the-egg thing!)
As for gold, I wouldn’t call it’s historical valuation arbitrary. To this day, it has many industrial and other uses that helps produce something approaching a real market price.
Thanks for your readership and your thoughts, Golfer!
what is the value of gold then? or better yet,what is the value of bite coin or any crypt toe?--my small,tiny brain tells bite coin is worth zero-have you ever held a gold 1 ounce in your hand? or a american silver eagle? it reminds me what holding my lovely woman feels like,a very nice feeling...