“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global monetary system from A.D. 1971 to A.D. 2001 was based on the singular “Petro-Dollar,” in the past two years it’s been replaced by a new system based on several “petro-currencies”.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.

 

Those Who Won’t Learn From History . . . .

A poster for the 1896 Broadway melodrama The War of Wealth depicts a typical bank run in the Depression of A.D. 1893.. (Photo credit: Wikipedia)

In the 1890s, the American silver mining industry suffered from a major problem:  overproduction.

The silver glut caused such steep price declines that silver was sometimes selling for less than the cost of production.  The silver industry faced bankruptcy.

Therefore, the silver mining industry persuaded Congress to pass legislation to compel the U.S. Treasury to buy silver each month with the intent of coining that silver into millions of additional silver dollars.

It was presumed by silver mining industry that by creating an artificial demand for silver, the price of silver would increase and the mining companies would become profitable and spared bankruptcy.

Congress agreed (or was bribed to agree) with that presumption and enacted the Sherman Silver Purchase Act of A.D. 1890.  This Act mandated that the US Treasury purchase 4.5 million ounces of silver each month to be coined into silver dollars.

 

Desperate Times

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal.  In one of his articles after the recent “April Plunge” in the price of gold, he wrote:

 

“I was the first to point out that the Federal Reserve was rigging all markets, not merely bond prices and interest rates, and that the Fed is rigging the bullion market in order to protect the US dollar’s exchange value, which is threatened by the Fed’s quantitative easing.”

It’s one thing for people like the Gold Anti-Trust Action Committee (GATA) to claim that the gold and silver markets are rigged. It’s another thing entirely to have a former Assistant Secretary of the Treasury to make similar claims.  Mr. Roberts’ credentials add much credence to the market rigging claims.

 

“With the Fed adding to the supply of dollars faster than the demand for dollars is increasing, the price or exchange value of the dollar is set up to fall.”

 

Friday, the (Almost) 13th

For those who believe in gold, this last Friday (April 12^th) had a “Friday the 13^th” demeanor.  The price of gold was slashed by a jaw-dropping $84 in one day.  That might be a record.

The fact that gold fell dramatically is not of as much concern as the fact that there’s no consensus as to why gold fell.  If we don’t know the “why” gold fell on Friday, there’s no way of telling what will happen this Monday (April 15^th) or on into that week.

Will the price of gold go up, down or sideways?  Friday was disconcerting.  But without a “why,” Monday and the remainder of this next week could be frightening.

 

For Whom the Currency War Tolls

Hanami celebrations under the cherry blossoms in Ueno Park, Tokyo (Photo credit: Wikipedia)

According to the South China Morning Post (“Japan stimulus will start currency war, say Chinese economists”),

“The Bank of Japan will double its monetary base to 270 trillion yen (HK$22.1 trillion) by March 2015.”

 

Doubling their monetary base?!  In just 2 years?!  That’s an average of 50% increase per year!  Ohh, the beasts!  The damn Japs are inflating the yen and starting another currency war!!  Ohh-Em-Gee!!!

 

Fall of Another Empire of Debt

A comparison between Germany’s Wiemar Republic (which laid the foundation for the Hitler regime and WWII) and the current US gov-co and economy.  The video is not profound, but it’s informative and good.

video    00:06:42

 

First Principle: All Rights Flow From Title

Thomas Jefferson – Series of 1869 $2 bill (Photo credit: Wikipedia)

“What follows is personal conjecture that I cannot prove and might contain fundamental errors.  But I’ve considered these possibilities for over a decade and I remain convinced that they’re at least interesting and possibly correct:

According to Bouvier’s Law Dictionary (1856 A.D.), all rights flow from title.

For example, my “right” to drive or sell my car, is based on my “title” to that car. So long as I have valid title, I have the right to drive or sell that car.  My “rights” to any property flow from my title to that property.

But since I lack title to your car, I have no right to drive it. If I attempt to drive or sell a car for which I have no title, I can be charged with a crime. The same is true for houses, computers or any other form of property. Rights flow from title.

Thus, if you have no title, you have no rights.  If you have diminished title, you have diminished rights.

 

Adam Smith: The Origin and Use of Money

Profile of Adam Smith (Photo credit: Wikipedia)

Adam Smith (1723 – 1790) was a Scottish moral philosopher and a pioneer of political economics who’s best known for writing An Inquiry into the Nature and Causes of the Wealth of Nations (A.D. 1776). This book (usually abbreviated as “The Wealth of Nations”) is considered the first modern work of economics. Smith is cited as the father of modern economics and is still among the most influential thinkers in the field of economics today.

Chapter IV of Book I of The Wealth of Nations is entitled “Of the Origin and Use of Money”.  In that chapter, Smith explains that,

 

“[I]t is but a very small part of a man’s wants which the produce of his own labour can supply. He supplies the far greater part of them by exchanging that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other men’s labour as he has occasion for.  Every man thus lives by exchanging, or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society.”

However, there’s a problem with this system of barter. Suppose one man has more of a certain commodity than he can use, and another man has less.  The former would be glad to dispose of his excess; the later would be glad to buy it.  But if the latter has nothing to trade that the former needs, no exchange can be made between them.

 

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

 

“Currency Wars” Against Whom?

Inflation & Gold (Photo credit: Paolo Camera)

When you have a “war,” it is presumably waged against a particular “enemy”.  If the governments of the world are about to engage in “currency wars,” who, pray tell, are their enemies?

Premise:  By inflating its currency and thereby lowering its currency’s value, a nation fosters its “competitiveness” in foreign markets—but simultaneously robs its domestic creditors of their savings and robs  its own working people of their standard of living. 

•  Inflation makes the fiat dollar “cheaper” and thereby benefits two primary groups: