Okay, we all know inflation is rampaging across the landscape. Fewer are aware that the U.S. Federal Reserve is unwilling to do anything about it. Whether they are indifferent to the pain they cause to the majority of U.S. families, or they are actively seeking to break the entire financial system is irrelevant. Intent is for us to speculate over while the actions are there for us to analyze and use as the basis for forming our own action plans.
Even fewer are aware that inflation is everywhere and always a monetary phenomenon which means that inflation is a matter of active policy. It is not a random, unpredictable occurrence. It is people in power deciding to create the conditions for inflation, while deluding themselves into thinking they can control the worst of it when the time comes.
Well, the time has come and they are, predictably, unable to do much about it mainly because they are weaker in their inner constitutions than they imagined themselves to be.
At any rate, even as this whole fiasco is unfolding, there’s another larger subtext to the energy crisis that could unseat the U.S. dollar from its perch. That would be the death of what is known as the Petrodollar. Needed by every nation that uses oil (all of them), the Petrodollar has provided a huge lift to America over the decades since Kissinger implemented it with Saudi Arabia many decades ago.
Now? With the U.S. proving to the world that “sovereign” reserves aren’t really sovereign, and with the obvious rise of China as a power in the Middle East while America stumbles to an ignominious end (as exemplified by its weak retreat from Afghanistan), key Petrodollar players seem to be making huge moves.
The dollar has enjoyed an “exorbitant privilege” due to its reserve currency status. Now, knucklehead neocons are busy acting as if the world needs dollars so badly they will never turn their back on them. In truth, nobody but taxpaying U.S. citizens actually need dollars. The rest use them as a convenience. What everybody actually needs is energy and resources. Not paper promise tickets that can be revoked if/when the empire decides.
This is what’s unfolding and it promises to make the future exceptionally interesting.
from Peak Prosperity https://ift.tt/AqosVjT
