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View Diary: Gold Standard, Fiat Currency, and Petrodollar Explained (Why we may never be a green nation) (29 comments)

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  •  You did an excellent job. (0+ / 0-)

    And, I thank you inserting this most important reality:

    Have there been attempts to trade Petrodollars in other currencies?  Yes, certain world leaders have tried to do so.  The most famous of these being Khadafi of Libya, Hussein of Iraq, Ahmadinejad of Iran, and is a goal of Al Queda.
    One would hope your readers would be able to pull that thread for themselves. It reveals everything they need to accurately predict the future they and their children are about to experience.

    On to another point:  I am agnostic about the gold standard in the US -- but I don't think you have a handle on the mechanism. Past performance is not an indicator of modern economics. Gold confiscation is completely unnecessary, because the Dollar is not backed by gold. It is by by debt and the future sweat on the backs of the American Colonists. Gold  is a component of a value-backed currency, which generally includes fixed reserves of healthy currencies from other nations. That is what the gold standard means in the 21st century. It is not redeemable unless the issuing nation defaults on its debts to other nations. It is not Satan.

    Furthermore, there is every likelihood that the Dollar will soon be replaced as a trading currency that is backed by a value basket. The central banks of China, Russia, and India are buying and stockpiling gold as fast as they can, preparing themselves to participate on signal. Germany, Venezuela, and a number of other nations are pulling their gold out of storage in the US and bringing it home.

    US Terrorism in the Middle East has consequences.

    Denial is a drug.

    by Pluto on Fri Feb 01, 2013 at 11:42:24 AM PST

    •  No you hit the nail on the head (1+ / 0-)
      Recommended by:

      if we are to continue this path of economic leadership (I use that for lack of a better word) then we will be increasingly entering more and more combat situations to defend this system.

      If as you say China Venezuela, and Germany replace their fiat monetary system with that of gold backed, the US is royally F*CKD.

      Couple this with the UN now labeling Israel settlements illegal, and the peace treaties in place, and we could within a decade find ourselves staring into the face of the third world war.  

      I agree that a "new gold standard" would be different than the previous one, but my point of contention in this diary was to addres those on the libertarian spectrum who DO wish to return to the old gold standard that it will NOT work as it had before.  Kudos to you for knowing the difference (I chose not to address this new standard because many people hardly understand the old one).

      95% of all life forms that once existed on earth are now extinct. It is only a matter of time until the Republicans follow suit.

      by PRRedlin on Fri Feb 01, 2013 at 11:54:33 AM PST

      [ Parent ]

      •  You kept it really simple. (0+ / 0-)

        Dollar hegemony is difficult for Americans to truly understand. They've never known anything else. A third world child knows more about foreign exchange and global economics than any 50 Americans, combined.

        I don't think so:

        we could within a decade find ourselves staring into the face of the third world war
        There will be no war. They will hardly be a whimper. The nations of the world have been working together since at least 2003 that I know of, to master the situation, marginalize the US, and control the unfolding of the loss of reserve currency status for the US. They have played out a lot of financial rope to the US -- at great sacrifice to themselves -- allowing the US to bankrupt itself, which it did in 2006. A highly functional currency swap system is in place between nations, making the dollar redundant for world trade. No nation holding dollar reserves expects to recoup. It's the price they are willing to pay for world peace.

        The game masters are on the outside, and they've been running the show for at least a decade. At some point, they'll pull the trigger on the dollar. Probably after the US goes "all in" on their new war across the African continent.

        Denial is a drug.

        by Pluto on Fri Feb 01, 2013 at 12:08:31 PM PST

        [ Parent ]

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