Ever wonder why the Federal Reserve and the treasury can add so much money to the market without it all becoming completely worthless, like the Peso, the Zimbabwe Dollar, the Mark, or the Peruvian Sole...? It's because there is a counteracting demand to buffer the egregious supply of Dollars. As a nation's economy grows, its demand for oil grows with it. Most of the oil bought and sold in the world is bought and sold in US Dollars. This creates a demand for Dollars and helps the Dollar retain most of its value even as the supply of Dollars increases as it does. Sometimes one of the big players in the oil market decides he doesn't like this arrangement any more, and decides to sell his oil in another currency. Saddam Hussein did this in 2000. Shortly after he had a come-to-Jesus talk with the US military who's job it is to protect this arrangement. The angry, nutty ruler of another country has been planning to do the same thing. Mahmoud Ahmadinejad doesn't want to sell his oil in Dollars either. And China now has the nerve to buy oil from Iran in its own currency. Who do these foreign (*)(*)(*)(*)(*)(*)(*)s think they are, messing with our cool arrangement like this? They just don't like the fact that we're free, so they have to mess everything up. This, selling oil in some currency other than ours, crap is clearly an act of war.
Perhaps the rest of the world knows that US dollars will soon become completely worthless, like many here in the States do.
When everyone else quits using fiat currencies it will make since for us to do so until then any attempt to do so will get you hammered in terms of trade. And the resons we went after Saddm were far more complicted than that.
The Government is generally lying about their inflation. There are many examples today of pricing that the CPI simply just says isn't happening. There are other mitigating factors, such as all of the imports which flows into the country.
Don't understand your "flag waver" comment. If you subscribe to the OPs theory (and it sounds good to me, but there is more to it, but generally on the right track) then you have to accept the US dollar would be worthless due to the federal deficits and debt. Most of that debt was created by paying for Democrat violations of the Constitution. Therefore, it would seem that the US military is dong a "bang up" job protecting American interests in the Middle East...
No. I would rather stop all costly Democrat violations of the Constitution to give the currency strength. Then I would develop all US oil and gas resources (FRACK away!) and make the US the worlds top energy producer and exporter much to the chagrin of the LEFTIST (Communist Red) GREEN environmentalists to further strengthen the US economy. Then, and only then, can we bring the troops back home. We can't have Democrat violations of the Constitution, really Democrats and not have a military presence in the Middle East FORCING countries to user our unstable currency to buy oil. IF another currency were to be used our whole economy would collapse. "And you're okay with that?"
Why not just dump the fiat currency and stop playing death monopoly with the world? Did you know the President said he may want to kill some of Americans, and only Rand Paul and a couple of other Republicans are filibustering over it right now? I guess the rest of the Republicans are okay with that. http://www.c-span.org/Live-Video/C-SPAN2/
We can "dump the fiat currency" when we no longer have a deficit, and little to no debt. Can't pay our bills now WITHOUT a fiat currency. Gotta inflate out of the debt. Again, once we get rid of costly constitutional violations (mostly caused by Democrats) then we can bring inherent value back to our money. Until then our military has to kick but in the Middle East!
