It boggles my mind that we appear to be on a war path with Russia.
This is not a piss-ant Middle East dictator with limited resources, this is a country that can easily match us nuke per nuke.
Lets look behind the obvious news that is custom fed
to the American people, Soviet "Meddling."
The Dollar, Reserve Currency of the World.
I am not by any stretch of imagination an expert on many topics, most of these facts are from other sites written by people a lot smarter than I.
I am doing this as an self education exercise, the ''News" we are force-fed is badly tainted.
RESERVE CURRENCY, what is it?
From Wikipedia, A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves, and that is commonly used in international transactions.
People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.
Today, the US dollar and the Euro make up 90% of allocated reserves globally.
" How the Dollar Stays Afloat"
"Here's something I think not many people understand. After all the money creation, debt expansion, and bailing-out of big banks, you might wonder why the dollar still stands as the most important global reserve currency. Never mind 2014, the dollar should have been dead by 1933.
The key is what monetary economists call the "exorbitant privilege" of a reserve currency. It works somewhat like a cycle:
As the US creates too many financial assets (money and debt), there's a lot of American money looking for good homes.
"Emerging countries" look good to US investors both because their asset prices are cheaper, and because the early wave of investments will receive currency appreciation too. (Plus, these countries are typically touted as the wave of the future.) A lot of capital flows to these countries.
But as time goes on, it becomes more and more apparent that these countries have weak governing systems against asset bubbles (and probably no governence would be good enough anyway to deal with the huge capital inflow.) Also, the US authorities start considering taking off their monetary and fiscal crutches for the economy, which turns off the flow of hot money.
Eventually, these foreign investments crash as capital flees back to the US. People lose money, asset values, and jobs in these countries.
These countries are now desparate to generate demand. They peg (or "softly manage") their currencies cheaply against the dollar to make their export cheaper.
Due to the workings of international money, this also gives their central banks the added benefit of storing up dollars as reserves, which will help soften the blow in a future capital flight as above.
The dollar gets strengthened, yet again, both in value and in confidence. Essentially, the US enjoys cheap goods and services while giving printed paper to these countries.
As US elites feel free to create financial asset without worrying about bubbles or inflation, for now (since other countries are sucking up a good part of those assets), eventually, asset bubbles appear in the US (and the irresistibility of this process is the key problem of the modern monetary system.) And eventually those will crash too.
US authorities now have to create money and public debt to bail out the US economy, and the cycle starts all over again."
My thought, whomever is the issuer of the World's Reserve Currency, pretty much rules the world.
E
MORE To COME....
This is not a piss-ant Middle East dictator with limited resources, this is a country that can easily match us nuke per nuke.
Lets look behind the obvious news that is custom fed
to the American people, Soviet "Meddling."
The Dollar, Reserve Currency of the World.
I am not by any stretch of imagination an expert on many topics, most of these facts are from other sites written by people a lot smarter than I.
I am doing this as an self education exercise, the ''News" we are force-fed is badly tainted.
RESERVE CURRENCY, what is it?
From Wikipedia, A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves, and that is commonly used in international transactions.
People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.
Today, the US dollar and the Euro make up 90% of allocated reserves globally.
" How the Dollar Stays Afloat"
"Here's something I think not many people understand. After all the money creation, debt expansion, and bailing-out of big banks, you might wonder why the dollar still stands as the most important global reserve currency. Never mind 2014, the dollar should have been dead by 1933.
The key is what monetary economists call the "exorbitant privilege" of a reserve currency. It works somewhat like a cycle:
As the US creates too many financial assets (money and debt), there's a lot of American money looking for good homes.
"Emerging countries" look good to US investors both because their asset prices are cheaper, and because the early wave of investments will receive currency appreciation too. (Plus, these countries are typically touted as the wave of the future.) A lot of capital flows to these countries.
But as time goes on, it becomes more and more apparent that these countries have weak governing systems against asset bubbles (and probably no governence would be good enough anyway to deal with the huge capital inflow.) Also, the US authorities start considering taking off their monetary and fiscal crutches for the economy, which turns off the flow of hot money.
Eventually, these foreign investments crash as capital flees back to the US. People lose money, asset values, and jobs in these countries.
These countries are now desparate to generate demand. They peg (or "softly manage") their currencies cheaply against the dollar to make their export cheaper.
Due to the workings of international money, this also gives their central banks the added benefit of storing up dollars as reserves, which will help soften the blow in a future capital flight as above.
The dollar gets strengthened, yet again, both in value and in confidence. Essentially, the US enjoys cheap goods and services while giving printed paper to these countries.
As US elites feel free to create financial asset without worrying about bubbles or inflation, for now (since other countries are sucking up a good part of those assets), eventually, asset bubbles appear in the US (and the irresistibility of this process is the key problem of the modern monetary system.) And eventually those will crash too.
US authorities now have to create money and public debt to bail out the US economy, and the cycle starts all over again."
My thought, whomever is the issuer of the World's Reserve Currency, pretty much rules the world.
E
MORE To COME....
