« BACK TO FORUM
 Author |
 Post
|
 |
|
Hayk
Joined: Dec 20, 2005
Posts: 964 (view all)
Poster Rank:
Blabbermouth
User is
Offline
Country: Egypt
Province/State: Al Qahirah
City: Al Qahirah
|
The End of Dollar Hegemony
March 17, 2008 - 11:29 AM
|
|
....
During the 1970s the dollar nearly collapsed, as oil prices surged and gold skyrocketed to $800 an ounce. By 1979 interest rates of 21% were required to rescue the system. The pressure on the dollar in the 1970s, in spite of the benefits accrued to it, reflected reckless budget deficits and monetary inflation during the 1960s. The markets were not fooled by LBJ’s claim that we could afford both “guns and butter.”
Once again the dollar was rescued, and this ushered in the age of true dollar hegemony lasting from the early 1980s to the present. With tremendous cooperation coming from the central banks and international commercial banks, the dollar was accepted as if it were gold.
Fed Chair Alan Greenspan, on several occasions before the House Banking Committee, answered my challenges to him about his previously held favorable views on gold by claiming that he and other central bankers had gotten paper money – i.e. the dollar system – to respond as if it were gold. Each time I strongly disagreed, and pointed out that if they had achieved such a feat they would have defied centuries of economic history regarding the need for money to be something of real value. He smugly and confidently concurred with this.
...
There was no public talk of removing Saddam Hussein because of his attack on the integrity of the dollar as a reserve currency by selling oil in Euros. Many believe this was the real reason for our obsession with Iraq. I doubt it was the only reason, but it may well have played a significant role in our motivation to wage war. Within a very short period after the military victory, all Iraqi oil sales were carried out in dollars. The Euro was abandoned.
In 2001, Venezuela’s ambassador to Russia spoke of Venezuela switching to the Euro for all their oil sales. Within a year there was a coup attempt against Chavez, reportedly with assistance from our CIA.
...
ronically, dollar superiority depends on our strong military, and our strong military depends on the dollar. As long as foreign recipients take our dollars for real goods and are willing to finance our extravagant consumption and militarism, the status quo will continue regardless of how huge our foreign debt and current account deficit become.
...
http://www.lewrockwell.com/paul/paul303.html
This post was edited on: 2008-03-17 at 11:30 AM by: mnopq (Moderator)
|
|
back to top |
link to this post
|
|
Ashraf
Joined: Jan 31, 2004
Posts: 628 (view all)
Poster Rank:
Blabbermouth
User is
Offline
Gender & Age: Male, 39
Country: Saudi Arabia
|
Re: The End of Dollar Hegemony
March 22, 2008 - 05:49 PM
|
|
Some Economists are expecting the collapse of the US Dollar much earlier than expected. I believe oil is the only savior to this currency since oil is mostly purchased in US dollars in the international markets. I also believe the Gulf states should base their national currencies on a number of currencies including the Euro before it is too late.
|
|
back to top |
link to this post
|
|
Marco Bertoli
Joined: Jan 30, 2008
Posts: 16 (view all)
Poster Rank:
User is
Offline
Gender & Age: Male, 33
Country: Italy
|
Re: The End of Dollar Hegemony
March 30, 2008 - 06:58 PM
|
|
I think Ron Paul is a great politician.
I don't agree with some of his wiewes, but his Economic and Foregeen affairs purposes are really savvy.
Getting rid of Central Banks Seignorage and stop war, sould be a priority for every single government in the world.
|
|
back to top |
link to this post
|
|
|
Display posts from:
|
|
Home
Community
