reply to post by FlyingFox
I'm against what the US is doing because I think we on this planet should be working out our problems peacefully and should be committed to each
other. I think Ronald Reagan's statement about the "American lifestyle" being non-negotiable, should be adjusted to say that improving the standard of
living of everybody on the planet should be non-negotiable. Nobody's improvement should be dependant on someone else's decline. The practicality of
this in every case is highly questionable, I admit.
The following is all "gut". I'm no economic expert.
With regard to the situation of the American dollar, I don't think the controllers of the monetary policy in the United States are that concerned
about it. The Fed has been steadily devaluing the US dollar for decades. I don't think they care what the value of it is since they can always print
more anyway. As long as America controls the commodity which the dollar is based on, America will be fine.
If the world goes eventually to the "Oil Euro" the "Oil Rial" or the "Oil Renminbi" the one constant factor in the line up, oil
, will still be
controlled and priced as America wants it to be priced.
This is an essential difference between the Americans and the Saudis. The Saudis do not control the price of oil, nor does OPEC. They cannot have $500
dollar a barrel oil, though they might like that and though that might well reflect the true value of the oil. To give a highly exaggerated example,
America, on the other hand, because of its military power, could set the price of oil at 1,000,000,000 Renminbis a barrel if the Renminbi were to
become the currency in which oil was traded.
War would follow, but the point is that America can manouver around the decline of the status of the dollar.
Currency = Prestidigitation.
Governments can do whatever they want with currency. The stability consideration only requires that one not do too many tricks in a short time period.
Sensitivity to the cyles and seasons of commerce are the important factor.
Remember, the American government, at one time confiscated/expropriated all privately held gold in the country. A government like the American one can
the world it wants to live in. They can have domestic dollars, oil dollars, international trade dollars, all active at different
valuations if circumstances demand it. They could disavow all international debt if things got sticky with the Chinese.
America can do whatever it wants and is going about doing whatever it wants. This is a serious navigational hazard for other countries and a
catastrophe for the reputation of the United States, which they continually try to paper over with all the blather about exporting freedom, etc.
America is not the only moral basket case in the world but it is the leading one. The world needs America to sober up, wipe the ###-faced grin off,
and start acting responsibly again, in every sphere of endeavour.
Edit: I finished this post and went out on our balcony for a smoke and saw an opossum
galloping across the street in front of the house. Very
cute. That's a first for me. Never seen an opossum before. Is this global warming in action?
edit on 15-10-2012 by ipsedixit because: (no
edit on 15-10-2012 by ipsedixit because: (no reason given)