Posted on 02/25/2019 8:14:54 AM PST by Olog-hai
Has Paul Krugman ever been right about anything? Even by accident?
I'm beginning to see it this way. There is too much invested in the house of cards to let it collapse.
The financial engineers will go to any length to keep the game going.
This means, going forward, inflation is the name of the game.
That’s just the Federal debt! You throw in state and local debt and that number climbs to north of $40 trillion!
Then throw in the hundreds of trillions of unfunded liabilities for good measure.
Dollars aren't created nowadays by printing, but by entering numbers on a Fed computer screen. Dollars are created by the Fed when Congress authorizes expenditures that exceed income. Just "creating" dollars without spending doesn't compute; in other words, you can't create money without debt in our financial system.
Creating more dollars to "buy" one's way out of debt doesn't work because the dollars created are themselves a debt instrument. Debt cannot extinguish debt. The only way debt can be extinguished is to exchange it for something real, such as real estate or precious metals.
But the extinguishment of debt would end the global debt-based financial system.
Jim,
I appreciate the sentiment and simplicity of yesteryear earnest patriotic notions when the U.S.A. and the vast majority of it’s citizens could claim moral authority.
However, the actual reason why the US dollar dominates as the World’s Reserve Currency domination is because ultimately - might makes right, i.e:
DeepState Economic Self-Interest$ + Gov’t Intelligence Agencies + Energy Industry (PetroDollar) + Military Industrial Complex (Muscle) + BIS & IMF (World Banking) collusion are why we’ve been allowed to run up a 22+ Trillion dollar national debt, defying 3000+ years of world economic history up until now...
U.S.A. and Roman Empire share striking parallels on many levels: gov’t / societal / military / economic corruption / conquered by barbaric immigrants.
Your explanation and that
Our world’s economy and vast “wealth” is the first one in the man’s history premised upon stealing from our children’s future and enslaving them to our debt.
</Grammar Nazi mode>
I remember all these Left-inspired “economic” and “financial” theories back in 2003 about how the second U.S. war against Saddam was going to lead to (a) the Opec world getting the dollar removed as the currency to which oil prices are pegged, and (b) either China’s currency or the Euro would replace the dollar as the world’s reserve currency.
Democrats are scum.
“conquered by barbaric immigrants.”
So full of crap.
Re: “So how did tax cuts add to the debt if revenue is up?”
Tax revenue actually set a record high in FY 2019.
Tragically, the two Trump budgets have also increased spending about 5%-6% per year.
I never heard it put that way before, and yet it makes sense in a bizarre kind of way.
Easy:
The dollar is tied to oil.
Because of fracking, we import less and export more oil.
So the flow of dollars out of the country is reversing and the demand for dollars outside the USA is increasing.
Dollar will just keep getting stronger.
Actually just prior to our invasion of Iraq, Saddam announced Iraq would no longer accept us dollars for Iraqi and Kuwaiti oil. That was the REAL reason for the invasion. That would have collapsed the dollar.
“Actually just prior to our invasion of Iraq, Saddam announced Iraq would no longer accept us dollars for Iraqi and Kuwaiti oil. That was the REAL reason for the invasion. That would have collapsed the dollar.”
Total nonsense, as to possible outcomes, and what we did what we did, even if Saddam issued the silly threat.
Iraqi & Kuawait oil measured what % of global oil output, and what % of global dollar trans did it represent? Both factors too small to either hurt the dollar or cause a shift away from the dollar as the worlds main reserve currency.
Hugh, what’s the matter?
Didn’t the final blow for a corrupt overextended Roman Empire occur when they were invaded and sacked by barbarian Visigoths and Vandals around 420 AD?
Feel free to contact via FRemail for tutor-neutering ;n)
RE: “conquered by barbaric immigrants.
So full of crap”
Actually just prior to our invasion of Iraq, Saddam announced Iraq would no longer accept us dollars for Iraqi and Kuwaiti oil. That was the REAL reason for the invasion. That would have collapsed the dollar.
“Total nonsense,”
‘A bizarre political statement by Saddam Hussein has earned Iraq a windfall of hundreds of million of euros. In October 2000 Iraq insisted on dumping the US dollar - ‘the currency of the enemy’ - for the more multilateral euro.’
https://www.theguardian.com/business/2003/feb/16/iraq.theeuro
“Iraqi & Kuawait oil measured what % of global oil output, and what % of global dollar trans did it represent? Both factors too small blah blah blah...”
‘Oil is central to Iraq’s present and future. It accounts for 99% of all government revenue. Along with existing reserves of 143 billion barrels (5th in the world) it is estimated there are 50 to 200 billion barrels yet to be discovered making it the largest unexplored market in the world. ‘
https://theconversation.com/iraq-what-happened-to-the-oil-after-the-war-62188
And all of this hurt the value of the dollar or the U.S. how? And helped the Euro how? It both cases it didn’t. Did the Euro ever become the world’s reserve currency? No. Not even with China.
As I said, Saddam’s threat was total nonsense. The net affect of it on the U.S. was zero. Why? As important as oil is to Iraq, there is far too much oil production by Saudi Arabia, the U.S., Russia, Canada, China, the Gulf States and the rest of Opec that Saddam’s currency gambit was but a blip in the global oil trade, and thus of little importance in global finance.
I was done at “So full of crap.”
You may be conquered, but I’m not.
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