USD is not worth the paper it is printed on

USD is not worth the paper it is printed on

 HERE'S a thought on your 'reserve currency',– your 'reserve currency' for today: Every US dollar is a check written in an account that draws over 30 trillion dollars. That's right! The “full faith and credit” – the full trust and respect of the US Treasury is largely a myth held together by an institutional framework that rests on a foundation of crumbling sand. In fact, USD is not worth the paper it is printed on; it's an IOU floating in a sea of   red ink. The only thing keeping the USD from evaporating, is the trust of people who continue to accept it as legal tender. But why do people remain confident in the dollar when its shortcomings are known to everyone? Not to mention, America's $30 trillion National Debt is no secret, and neither is the additional $9 trillion piled up on the Fed's balance sheet.

 It is a hidden debt of which the American people are completely unaware, but that they all must be held accountable for. To answer that question, we need to look at how the system actually worked and how the dollar was sustained by the many institutions that were created after World War II. These institutions provided the environment for the longest and most blatant fraud in history, exchanging high-priced manufactured goods, raw materials and labor for a piece of green paper with a dead president on it.
One can only admire the genius of the elites who fabricated this deception and then imposed it massively on the people without the slightest protest. Of course, this system comes with a variety of enforcement mechanisms that quickly get rid of anyone who tries to break free of the dollar or,– God help us, create an alternative system that is completely different. But the fact of the matter is – apart from the institutional framework and ruthless annihilation of the dollar's adversaries – there is no reason why humanity should remain tied to a currency that is buried under mountains of debt and whose true value can hardly be known. It's not always like that. 

There was a time when the dollar was the strongest currency in the world and deserved a place at the top of the pile. After the First World War, the US was “the majority owner of the world's gold”,— which is why international delegates “decided that world currencies would no longer be linked to gold but could be pegged to the US dollar, “because the greenback itself, is linked to gold.” Here's more from the article on Investopedia: “That arrangement came to be known as the Bretton Woods Agreement. This establishes the authority of the central bank, which will maintain a fixed exchange rate between their currency and the dollar. In turn, the United States will redeem US dollars for gold on demand….
The US dollar is officially named the world's reserve currency and is backed by the world's largest gold reserves thanks to the Bretton Woods Agreement. Instead of gold reserves, other countries accumulate US dollar reserves. Needing a place to store their dollars, states began buying U.S. securities. Treasury, which they consider a safe store of money. 

The demand for Treasury securities, coupled with the deficit spending needed to finance the Vietnam War and America's domestic program 'The Great Society', caused the United States to flood the market with paper money…. The demand for gold was such that President Richard Nixon was forced to intervene and disconnect the dollar from gold, which caused the exchange rate to float to this day. Despite periods of stagflation, defined as high inflation and high unemployment, the US dollar remains the world's reserve currency.”
But now all that gold is gone and all that's left is a billowing pile of debt. So, how did the dollar manage to maintain its status as the world's major currency? Advocates of the dollar system, will tell you that it has to do with “the size and strength of the US economy and the dominance of US financial markets.” But that's all bullshit! The truth is, the status of the reserve currency has nothing to do with the “size and strength” of the post-industrial, service-oriented, bubble-driven, third world economy,– America.

 Nor has it anything to do with the alleged security of US Treasuries which, – besides, – the dollar, – is the biggest Ponzi (fake investment mode) weakness of all time. The real reason why the dollar remains the main currency of the world is because of the cartelization of Central Banks. The Western Central Banks are a de facto monopoly run by a secret cabal that coordinates and colludes in monetary policy to maintain their deadly and insane grip on financial markets and the global economy. This is the Monetary Mafia and– as George Carlin famously said: “You and I are not in it. You and I are not at a big club." Bottom line: It is the relentless manipulation of interest rates, forward guidance and Quantitative Easing (QE) that has kept the dollar at its high but not worth it.
But all that is about to change completely because of Biden's reckless foreign policy that forces key players in the global economy to create rival systems of their own. This is a real tragedy for the West which has enjoyed a century of relentless extraction of wealth from the developing world. Now,– due to economic sanctions against Russia,– an entirely new order is emerging in which the dollar will be replaced by the national currency (processed through an independent financial settlement system) in bilateral trade deals until,– later this year,– Russia launches a trade-exchange with commodity-backed currencies used by its trading partners in Asia and Africa. 

Washington's theft of Russia's foreign exchange reserves in April 2022 was accelerated by banning Russia from foreign markets. In short, US economic sanctions and boycotts have expanded the non-dollar zone and created a new monetary order.
For decades the US has been running a scam in which it exchanged fish-wrapped paper currency for goods of genuine value, such as oil, manufactured goods and labour. But now Biden's entourage has abolished that system altogether and divided the world into warring camps. But, if that's the case, shouldn't we try to find out if the sanctions actually work or not before we recklessly change the system? The war against Russia has begun and its early results are already showing. Just look at the way we destroy the Russian currency, the ruble. This is surprising! Here's an excerpt from an article on CBS News: “The Russian ruble is the best performing currency in the world this year…. Two months after the ruble dropped to less than a US cent amid the fastest and toughest economic sanctions in modern history,– now the Russian currency has undergone a stunning turnaround. The ruble has jumped 40% against the dollar since January.

 Typically, a country facing international sanctions and a major military conflict will see investors fleeing and a steady outflow of capital, causing its currency to fall…. The resilience of the ruble means that Russia is not affected by the economic penalties imposed by Western countries after the invasion of Ukraine…”
"Commodity prices are currently very high, and despite the decline in Russian export volumes due to the embargo and sanctions, the rise in commodity prices has more than compensated for this decline," said Tatiana Orlova, leading emerging markets economist at Oxford Economics. Russia draws nearly $20 billion a month from energy exports. Since late March, many foreign buyers have complied with requests to pay for energy in rubles, pushing up the value of the currency.” “Russian exports… have held up very well, including those directed to the West. The sanctions allow oil and gas sales to much of the world to continue uninterrupted. And the surge in energy prices has further boosted revenues.

 As a result, analysts expect Russia's trade surplus to hit a record high in the coming months. The IIF reckons that by 2022 the current account surplus, which includes trade and some financial flows, could reach $250 billion (15% of GDP last year), more than double the $120 billion recorded in 2021. The sanctions have boosted Russia the trade surplus, and thus helping to finance the war, was disappointing, Vistesen said. Ribakova argues that the efficacy of financial sanctions may have reached its limit. The decision to tighten trade sanctions should be taken next. But such steps can take time to implement. Even if the EU enforces its proposal to ban Russian oil, the embargo will be phased in so that imports of the bloc's oil from Russia will fall by just 19% this year, said Liam Peach of Capital Economics, a consultancy. The overall impact of these sanctions will only be felt in early 2023, – by which time Putin will be raising billions to fund his war.”
Sanctions are actually hurting the US and helping Russia, so experts think we should impose more sanctions? That's all? Appropriately. 

Now that we've shot ourselves in the foot, experts think it would be wise to shoot the others as well. Am I the only one shocked by the madness of this policy? Check out this excerpt from the article in Russia Today below: “Russia could earn a record $100 billion from gas sales to European countries by 2022 due to a sharp rise in energy prices, French newspaper Les Echos reported this week, citing Citibank analysts. According to the newspaper, the projected revenue from gas sales will almost double from last year. The analysis does not take into account the gains from the sale of other Russian commodities, such as oil, coal and other minerals. Les Echos reports that, despite sanctions and warnings from the Russian energy embargo, the 27 EU countries continue to send about $200 million per day to Gazprom.” So the income from the sale of gas and oil really flooded Moscow's coffers like never before. Meanwhile, energy prices in the EU and America have skyrocketed to 40-year highs. Can you see how counterproductive this sanctions policy is? The European Union is sinking into recession, supply lines have been severely disrupted, food shortages continue to emerge, and gas and oil prices are breaking through the roof. 

By every objective standard, sanctions not only fail, but backfire spectacularly. Can't Biden's people see the damage they're doing? Are they really separate from reality? Here's more from an article on Russia Today: “Even as the West collectively continues to insist – against all observable realities – that the conflict in Ukraine is going well for Kiev, the major media are becoming increasingly uneasy about the situation on the economic front. A growing number of observers are recognizing that the embargo imposed by the US and its allies is not destroying the Russian economy, as originally intended, but rather destroying their own.… "Russia is winning the economic war," said the Guardian's economic editor Larry Elliott on Thursday. “It has now been three months since the west launched its economic war against Russia, and it is not going according to plan. On the other hand, things went very badly," he wrote.
In a May 30 essay, Guardian columnist Simon Jenkins also said that the embargo had failed… As Jenkins points out, the sanctions have actually raised the price of Russian exports such as oil and grain – thereby enriching, not impoverishing, Moscow while depriving Europeans of gas and running out of food for Africans.” Did you catch the part about “Russia won the economic war”? What do you think that means in practical terms? Does that mean that Washington's failed attempt to maintain its global hegemony by “weakening” Russia is actually placing huge strains on the Transatlantic Alliance and NATO that will re-ignite relations leading to a defiant rejection of the “rules-based system.” 

” What does that mean? Will Europe part with Washington and let America sink under a $30 trillion sea of   red ink? Supporters of Washington's proxy wars don't know how much wrong they were or how much damage they inflicted on their own country. The Ukraine disaster is the culmination of 30 years of bloody interventions that have brought us to a tipping point where the fate of the nation will drastically change for the worse. When the dollar zone shrinks, living standards will fall, unemployment will soar, and the economy will head into a death spiral. Washington has grossly underestimated its vulnerability to the backlash of a geopolitical disaster that would bring the New American Century to an agonizing and agonizing end. A wise leader will do everything in his power to pull us back from the brink of destruction! Not the other way around!

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