How times change.
This article should be read over and over until it is understood. Google what you disagree with or what you are not familiar with.
Oh look…The Euro is losing value against the US Dollar. Why? According to the so called experts the rest of the world is rushing to the US Dollar as a safe haven.
Here we go again…
Demand for money in the global system by the subjects of the system is for the most part a constant.
In 1944, at the tail end of the 1933-1945 bankruptcy reorganization of the global economic trade system, the Bretton Woods conference was convened and the US Dollar was made the global trade medium of exchange.
Making the US Consumer and ultimately the United States of America the demand of the world…taking over from the United Kingdom and the British pound Stirling. The rest of the world of course is the supply to the demand.
In order to purchase anything outside of your economic zone…you need US Dollars…So let’s say you are post 1933-1945 Bankruptcy reorganization rest of the world and your economic zone is mostly composed of rubble piles and you require massive resources from external sources to rebuild.
You need massive amounts of US Dollars and the source of US Dollars is?
US consumers…
Ok how do they create them?
In a credit system, money is debt that is created by consumers requesting commercial banks to inflate the supply of credit.
The largest single source of or the engine of creation in the modern system is the real estate market.
A consumer needs or wants to purchase a house let’s say but doesn’t have the required amount of money…fortunately they can choose to request a commercial bank for a loan…but commercial banks don’t have the money either. They do have an accounting trick that basically pulls the future income of the consumer into the present…well not really…the commercial banks create money out of thin air and attach interest to it and get the consumer pay it all back plus interest.
Of course as the principal is paid back it vanishes back to where it came from but the interest does not and in the case of a long term mortgage the inflation of the money supply persists for the most part perpetually.
Consumers request commercial banks to inflate the money supply which is debt with more debt…The entire supply of the money of the world is debt with interest attached and the only way to service the continued existence of the money supply is by increasing the supply of debt with interest attached by an amount at least equal to the attached interest.
The entire money supply is being rented…the average interest rate is the cost to service its continued existence and since interest is a growth rate the supply must also grow by that amount and since the entire money supply is debt with interest attached…the rent that is due is hidden in the cost of everything.
Who or what is the rent owed to?
The top…you are the bottom.
Anyways the rest of the world basically needed to rebuild after the 1933-1945 bankruptcy reorganization of the global economic trade system…they needed US Dollars to buy what they did not have from the global market so they needed to supply what they did have to US consumers at basically fire sale prices.
Massive quantities of raw materials began flooding into the USA which produced a temporary prosperity. But since the rest of the world not in communist stasis was rapidly rebuilt…it began to consume more and more of the raw materials in the global market place leading to massive inflation in the cost of raw materials which could not be controlled. Bretton woods started out as a fixed system…the constantly expanding compounding interest credit system demanded that the rules needed to be changed…in 1944 the US Dollar was made the global trade medium of exchange and all the rest of the currencies of the world were fixed or had a static exchange rate that never changed and the US Dollar was fixed to Gold at an exchange rate of 35 US Dollars was equal to 1 troy ounce of Gold.
To make a long story short it became impossible to sustain the fixed exchange rate aspect of the Bretton woods system in 1971 and the rules were changed…the US Dollar floated against the supply and demand for Gold and everything else by the US Dollar and all the rest of the worlds currencies derive their value from their supply and demand for US Dollars.
Like the Euro…
Its strength or weakness is derived from the supply of and demand for US Dollars in the global marketplace.
The European Union imports 8.6 million barrels of oil a day…At say 70 US Dollars a barrel or 8,600,000 X 70 = 602,000,000 or a demand of 602 Million US Dollars a day by the European Union. The EU has to take 481,600,000 Euro’s and buy 602,000,000 US Dollars from the Global market to then buy 8.6 million barrels of oil every day. That works out to a demand of 219,730,000,000 or 219.7 Billion US Dollars a year.
That is just one of billions of transactions on a daily basis.
Because the US Dollar is the global trade medium of exchange there is for the most part a constant and almost desperate demand for them…
But something that has not happened in over 70 years has happened again…The production of US Dollars by US consumers has stopped… Demand for them has not stopped…demand for US Dollars is strong.
The production of Euro’s by European consumers demanding commercial banks to inflate the supply has not stopped…it’s of course slowed over the past few years.
The plight of the USA and world is like an all you can eat buffet where in order to pay the rent you constantly must lower the cost to dine and make up the difference on greater and greater volume…Works great until the consumers become fat pigs with their buttons popping off their shirts and are unable to gorge themselves anymore.
They just stop consuming more and more and more and basically are forced to consume less and less.
That’s the current situation…the USA is not a so called safe haven…the supply of US Dollars on the global market has stopped growing for 9 months but the demand by the rest of the world for them and the growth rate of the rest of the currencies has not.
After 65 years the current global trade system or scheme has basically reached maximum potential like the one before it that collapsed 1929-1933 leading to the 1933-1945 bankruptcy reorganization of the global system.
The current hijinx are just more symptoms of the doomed from square one global trade system that is imploding implemented by the top after the 1933-1945 bankruptcy reorganization of previous implementation.
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