What's More Terrifying?
Roller coaster derailment?
US dollar loses hegemony? http://en.wikipedia.org/wiki/Fiat_money and this: http://www.globalresearch.ca/dollar-hegemony-and-monetary-geopolitics-the-symbiosis-between-global-finance-and-power-politics-2/5362357
[No, I did not post a picture of Hillary in shorts, as I refuse to let this get political . . . ]
The long article says this: “For this reason, “America’s dominant position as the sole superpower ultimately rests upon two pillars: its overwhelming military superiority and its control of the global economic system by the unique role of the dollar as the World Reserve Currency” (Clark, 2005). According to this reasoning,
“it might be considered an elemental interest of the United States to maintain the system which also includes intense diplomatic and limited military operations in order to preserve its abundant financing for as long as possible. After all, there seems to be a strong interdependence among nations. The US is dependent on cheap financing from abroad and is even willing to apply some military power to protect these interests” (Schulz, 2009).
Moreover, it cannot be denied that “the dollar’s leading role in foreign exchange transactions also is reinforced by this currency’s widespread use in the invoicing of international trade” (Goldberg, 2011). That is especially true about oil markets, given that “since oil trade was and still is noted, as well as traded in US Dollars, every nation has to purchase huge amounts of this currency for its national reserves in order to maintain its ability to purchase the required energy” (Schulz, 2009). Consequently, monetary dependence of others on the issuing country confers the latter significant geopolitical power(Cohen, 2003).
The unavoidable reasoning that arises is that “a full challenge to the domination of the US dollar as the world central-bank reserve currency entails a de facto declaration of war [on American power]” and, as a result, the United States is willing to fight wars to defend its national currency (Engdahl, 2006) because “an end to the dollar’s reserve currency status would impose material constraints on the United States to finance its deficits, and lead to a major loss of prestige and power projection capabilities” (Drezner, 2010). A possibility is that “widespread oil pricing in alternative currencies or perhaps the bartering of oil would then threaten U.S. hegemony by crimping the relative global demand for dollars” (Roby, 2010). Nevertheless, perpetual hierarchic supremacy of the dollar cannot be taken for granted:
“Sooner or later, confidence in the dollar is bound to be undermined by America’s chronic payments deficits, which add persistently to the country’s looming foreign debt […] The exorbitant privilege obviously cannot endure forever; America’s spending cannot indefinitely exceed its income. In the absence of significant policy reforms to reverse the deficits, the world’s trust in the dollar is bound […] to be eroded. Dollar accumulations will eventually dry up and could even turn into massive sales” (Cohen, 2008).”
Which of the above fears is NOT in the news? Why not?
Perception is being managed. Events occur, but WHAT gets reported and the frequency are what drive perception.
Collapse of western fiat system in general, and dollar in particular is NOT reported at all. Hence, there is no perception of anything amiss, apart from informed fringe, tin-foil wearing cultists, like ourselves.
Preparing accordingly means far more than accumulating stacks of shiny coins. One must MENTALLY prepare as well. THINK and draw conclusions! Do NOT be manipulated by headlines.
And on that note, let’s examine the perception management of the recent illegal alien stories popping up on the news here in lovely California.
Seemingly, out of nowhere, the headlines scream about children crossing the border en masse, protests, diseases, out of control border crossings overwhelmed by an invasion of brown-skinned people and mostly children.
Do NOT let emotion into the equation. Ask several questions, all up front, at once, and do not draw ANY conclusions until one has answers to each one of these questions:
(1) By WHOM is the information being presented?
Drill down, do not accept anything at face value. Look and see if the source information is credible. Look and see if it is the same story, shared on many outlets. Is the story factual, or does it paint a narrow picture not taking into account details from all angles and from all sides?
(2) WHY is this information being presented at this time, in this fashion?
(3) For WHOSE BENEFIT does the presentation of information advance? [Cui Bono?]
It is intellectually dishonest to reach conclusions without knowing, actually knowing, the answers to each of the above questions.
In many circumstances, it is not known for whose benefit the information is being presented. One must then make a reasoned inference to draw that conclusion, and that is where alternative conclusions can and must be drawn. This is intellectually a difficult challenge, as it requires RIGOROUS, disciplined, logical thinking. In today’s world of 30 second sound bites, the powers that be COUNT ON the masses being unable to apply disciplined thinking to any problem. Look at the fiat currency issue and understand that less than a handful of Americans truly understand this concept of fiat dollars created out of thin air having ZERO value except because they are forced on us as legal tender and are nothing but a confidence game!
The summer is heating up. Mr. TF has given us this amazing gift of collaboration and sharing of points of views, here, on this forum, and we should all be respectful when sharing our thoughts. No personal attacks, please, and let us all advance the discussion by weighing substantively. Thank you and have fun with this one!