“Petro-Currencies” Replace Petro-Dollar

Petro-Dollars (courtesy Google Images)

Every so often, I propose a theory that’s new (to me, at least).  When I do, my initial presentation of that theory is often clumsy and incomplete.  This isn’t surprising.   If the theory offers a new insight, it takes time to learn how to explain it clearly.   However, over time, if the theory comes to seem valid, my presentations of that theory become more refined and easily understood. 

Today, I present another theory with language that’s at least clumsy (some might say, “half-baked”).   I don’t like to present texts that seem clumsy even to me, but I have to do so to not only to try explain the theory to my readers, but also to explain it to myself.  More, I must make the presentation because I know that some of my readers will make comments that will help me to better understand if the theory is probably true or probably false and thereby help me to make clearer presentations in the future.

In essence, I can’t seem to take this theory any further without help from my readers.

For today’s theory du jour, I propose that while the former global monetary system from A.D. 1971 to A.D. 2001 was based on the singular “Petro-Dollar,” in the past two years it’s been replaced by a new system based on several “petro-currencies”.  The fiat dollar is no longer the only currency that can purchase petroleum, but with the reemergence of the US as an oil exporting nation, the fiat dollar has gained some value as one of several “petro-currencies”. 

The emergence of the several “petro-currencies” might explain the last 20-month decline in the price of gold.

 

Lions ‘n tigers ‘n macroeconomic consequences—Oh my!

We’ll need more than Ruby Red Slippers to get out of our current economic mess. (Photo credit: Wikipedia)

The Washington Times reports in “White House ups rhetoric on dangers of sequester,” that:

 

“The Obama administration amped up its offensive Sunday with Republicans over the $85 billion in across-the-board federal spending cuts scheduled to kick in Friday, releasing fresh warnings of a ‘real impact on people’s lives’ . . . .”

The federal government is projected to spend about $3.54 trillion in 2013.  The “sequester” laws scheduled to kick in this coming Friday will reduce that spending by $85 billion or about 2.4% of the entire budget.   Apparently, if government spending is cut by 2.4%, the sky will fall.

 

The Root of All Evil

The following video offers a compelling argument that all modern wars are initiated by and for the owners of the world’s central banks.  Michael Rivero (the video’s author) speaks a little too fast, but he makes good sense.  If you listen to this video often enough to learn and understand the argument and evidence, you’ll understand more about this world’s current reality than 99.9% of the American people.

The video implicitly points towards the spiritual basis for the bankers’ wars:  the love of money.  The Bible, of course, declares at 1 Timothy 6:10 (KJV) that the “love of money” (not money, itself) is the “root of all evil”.   And who loves money more than the private, central bankers?  In the name of central bankers’ love of money, we kill foreign nations and and they kill us.

video      00:43:44

 

College Student Debt

dump the debt (Photo credit: Friends of the Earth International)

Student debt is now so great that much of it may never be paid.  I suspect that the enormity of student debt will make the younger generation only that much more sensitive to the issue of unpayable debts, and predispose them to refuse to pay the National Debt.

Education is important, even crucial.  Over the past 40 years, Americans have shopped (on credit) until we have just about dropped–into a national or even global depression.  Through it all, we’ve neglected to continue to educate ourselves and we’ve certainly failed to provide  adequately for our children’s educations.  There will be a national price to be paid for our educational failure.

I don’t believe the young people will ever be able to repay the national debt that’s been foisted on them by their irresponsible politicians and parents.  In fact, when it comes to making good on the government’s National Debt, I believe the kids ought to tell the gov-co and senior citizens, “Screw you–you made the debt; you enjoyed the “free lunches” purchased with that debt; and now you want us, your children and grandchildren, to spend our lives in debt bondage in order to pay your debts?!  To hell with that!“

 

Is the Era of “Cheap Food” Over?

Combining demonstration in Little Casterton, Rutland, Great Britain. An american Case combine pulled by a Caterpillar tractor, these were used just after WW2. (Photo credit: Wikipedia)

The Sovereign Man recently posted and article entitled, “The Era Of Cheap Food Is Over” which declared in part,

“There are only a few people who get it: the era of cheap food is over.

“Global net population growth creates over 200,000 new mouths to feed ever single day. Yet supply of available farmland is diminishing each year due to development, loss of topsoil, peak production yields, and reduction in freshwater supply.

“Then there’s bonehead government policy decisions to contend with… like converting valuable grains into inefficient biofuel for automobiles. Paying farmers to NOT plant. Banning exports. Etc.

“Of course, the most destructive is monetary policy. The unmitigated expansion of the money supply has led to substantial inflation of agriculture commodities prices.

“These fundamentals overwhelmingly point to a simple trend: food prices will continue rising. And that’s the best case. The worst case is severe shortages.”

 

 

The “Fiscal Cliff” and Gold

MEL-GIBSON-JUMP ANSWER TO FISCAL CLIFF ! (Photo credit: snowlepard)

The term “fiscal cliff” describes a moment in early January, A.D. 2013, when certain cuts in federal government expenditures and increases in federal taxes are mandated by law to occur.  The purpose for these spending cuts and tax increases is to reduce the current federal budget deficit.

 

However, many fear is that if the government spends less and taxes more, the net effect will be to slow the economy and push us deeper into recession.

 

“So inevitable, yet so completely unforeseen”

English: Alexis de Tocqueville (Photo credit: Wikipedia)

In A.D. 1856, Alexis de Tocqueville observed that the French Revolution was paradoxically both ”so inevitable, yet so completely unforseen”. That social upheaval could not be avoided, and yet virtually no one saw it coming.  

Could the same be said of today’s China?  What about the United States?

Based on China’s size and extraordinary economic growth, some predict that the 21^st century will be dominated by China.

I disagree.

In fact, I’ve disagreed for a least three years based largely on a single anecdote from a friend (“Donna”) who lived in China for one year.  While in China, Donna always had a guide.  The guide would never take her to the restaurants near her apartment.  Donna repeatedly asked why and always received an answer that seemed pleasant but untrue.

After several months, Donna insisted that the guide tell the truth.  The guide finally explained that the local restaurants served dogs and cats as meals; that the guide knew Americans loved their pets; therefore the guide would not risk taking my friend into such restaurants.

The guide further explained that in the Chinese culture, a primary objective was to “maintain harmony”.  Everyone felt obligated to avoid “shocking” anyone else.  So, in order to “maintain harmony,” the Chinese people would routinely lie.  The guide lied to Donna to avoid shocking her.  In China, lying was culturally (“politically”) correct.

 

Congress CAN’T Balance the Budget.

(fear) the Fiscal Cliff… (Photo credit: MyEyeSees)

I’ve warned for most of the past five years that the National Debt is too great to ever be repaid.  I’ve chanted, “What can’t be paid, won’t be paid.”

The following video agrees:  ”To balance the budget, Congress must raise taxes by 50% or eliminate the federal government.”  Both solutions are politically untenable and therefore will not be considered to any significant degree until after the economy hits the fan.

Gov-co be screwed.

Note that the evidence and arguments presented in this video presume that the true national debt is at the “official” level of $16 trillion.  I.e., even if the total national debt is only $16, the gov-co (and the American people) be screwed.

 

Debt Bomb

Debt Bomb

The following video contains significant female nudity.  I am shocked!  Shocked, I tell you!  Clearly, this video is completely beneath the high standards heretofore established for this blog.

But . . . on the other hand . . .  it is pretty funny.

Soooo . . . I’ve been compelled to weigh the “inappropriateness” of this video against its humor and I’ve come down in favor of funny.

video     00:03:30

http://www.youtube.com/watch?v=GXcLVDhS8fM

 

Can’t. Can’t. Can’t. The National Budget CAN’T be Balanced

Titanic stern (Photo credit: Wikipedia)

To solve the national budget problem, we’ll have to raise taxes by 50% or shut down the federal government.

As I’ve been telling people for five years, “what can’t be paid, won’t be paid.”  The national debt can’t be paid.  It is mathematically impossible.  Those of you who continue to hold U.S. Treasuries or virtually any other paper debt instrument are going to lose your assets.

My only objection to the following video is that it’s based on the government’s claim that the current National Debt is only $16 trillion.  Credible sources estimate that debt to actually be anywhere from $50 to $500 trillion.  I’m inclined to accept John Williams’ (shadowstats.com) estimate of about $80 trillion.

If, as the video below claims, even the $16 trillion National Debt can’t be paid, then an $80 trillion National Debt is even more impossible to pay and more certain to cause catastrophe.  Until we reach the catastrophe, the national budget can’t possibly be balanced.

Other than the claim that debt is only $16 trillion, this video’s analysis of our national debt and national budget is short, easy to understand and brilliant.

video      00:05:37

http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0