when the federal reserve began flooding the economy with cash through the bailouts and its series of quantitative easing many predicted that this would quickly lead to hyper-inflation. America was about to become the next Weimar Germany or Zimbabwe. We were going to be carrying wheel barrels full of cash to the grocery store just to buy bread. Many predicted this to happen by the summer of 2009, others by mid 2011. They were all wrong. Why? They were wrong because they didnt understand what actually gives the dollar value. Its true that the U.S. dollar is debt based, and is not backed by gold or any other precious metal, and its true that when money is created as debt it comes with interest and the money to pay that interest never exists, therefore it is inherently a ponzi scheme doomed to fail from the start, however it is not entirely accurate to say that the dollar is backed by nothing. The U.S. dollar, which is the world currency and therefore effects everyone on this planet, is backed by two things: Oil and the U.S. military. After Nixon ended the gold standard in 1971 he immediately began brokering deals with every member of OPEC offering military protection in return for them only selling their oil in U.S. dollars. By 1975 every OPEC nation had been brought into this agreement. From that point on if you wanted to buy oil in the international markets you needed Federal Reserve notes, and that meant that America could now print out as much funny money as they wanted, and the rest of the world would still have to use it as long as no one in OPEC backed out. This arrangement is called the Petrodollar status. This is what prevents the dollar from going into hyperinflation like a normal currency might. Thats not to say that running the printing presses like madmen has no effect. The dollar has lost a great deal of its perceived value since the 70s, however the inflation and the economic effects of the Federal Reserves policies are not proportional to what you would see if a county like Australia were to do the same thing to their currency. This is due to the fact that the demand for dollars created by the petrodollar status mitigates inflation to a large degree by distributing the consequences globally rather than merely effecting the United States. Essentially America gets to write hot checks and the rest of the world has to pay the bill. Now this gig is perfect for the U.S. as long as no one decides to buck the system, like Iraq did in 2000 by starting to sell their oil in Euros, or like Libya did by trying to pull most of Africa off of the dollar, or like Iran is doing now. As long as the U.S. military is able to crush or intimidate any major oil producing nation that defies them, the petrodollar arrangement will stand, and the dollar will retain its position. Mufti Ismail Menk, Dr. Bilal Philips, Dr Zakir Naik, Yasir Qadhi :“KNOWKEDGE IT POWER! When you know when the next solar eclipse is going to occur and others around you don’t, you can demand a lot from a primitive society when you threatens to turn of the sun. People with secret knowledge of astronomy are going to try to keep that knowledge to themselves, the moment they share that knowledge their power over any society is eliminated. Large groups of people can be hold in check by believe system given to them by a tiny elite which keep a core of knowledge to themselves, this is why the most powerful groups in any society operates in secret. In fact, the word “occult” does not mean evil; it means “secret”. You are not suppose to know the secrets of the elite, ONCE YOU DISCOVER AND VERIFIES THIS SECRETS YOU WILL SHOCK TO KNOW THE ELITE CONTROLS YOU.” (Lulrich) stormcloudsgathering/when-will-the-economy-collapse-0
Posted on: Mon, 04 Aug 2014 01:51:01 +0000
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