2018/04/19: Currency today is created by private institutions who create as much money as banks and governments desire. This money is created out of thin air, literally by punching a few keys on a computer and sending tiny currents of electricity to a screen which displays whatever number the private corporation wants. It is not backed by anything of value, yet these private institutions charge interest to governments and private sector borrowers.
For every dollar created and loaned, the magical money-lender demands that dollar back plus interest. Since the lender is demanding more than was created, it is mathematically impossible to ever pay off debt, because the interest simply just doesn’t exist.
The US dollar is highly important in today's economy for three main reasons: the huge amount of petrodollars, the use of the dollar as the world's reserve currency, and the decision taken by US President Nixon in 1971 to end the dollar convertibility into gold.
Michael Hudson in a preface to the 2017 German edition of the 1972 classic Super-Imperialism. Hudson reflects on the will of the US to bend major institutions to its favor.
by James Corbett corbettreport.com November 12, 2017 Saudi Arabia, May 2017. A private yacht sails into the port by corbettreport
The Petrodollar, long serving as the US leverage to encourage and facilitate USD recycling, and a steady reinvestment in US-denominated assets by the Oil exporting nations, and thus a means to steadily increase the nominal price of all USD-priced assets, just drove itself into irrelevance. A consequence of this year's dramatic drop in oil prices, the shift is likely to cause global market liquidity to fall. This decline follows years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling. But no more: "this year the oil producers will effectively import capital amounting to $7.6 billion.
Something is very rotten in the state of China, and its crashing, manipulated stock market is merely the tip of the iceberg.
The crushing Greek debt could be canceled the way it was made - by sleight of hand. But saving the Greek people and their economy is evidently not in the game plan of the Eurocrats. Greece's creditors have finally brought the country to its knees, forcing President Alexis Tsipras to agree to austerity and privatization
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The United States risks sliding into the abyss of economic crisis, Ron Paul warned, pointing out that "there is a huge bubble with the dollar.
Geopolitica, Terrorismo, Antropologia, Sociologia, Politica Estera, NATO, Russia, guerra, Libia, Siria, Intelligence, Sicurezza Nazionale, Esercito,
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(molte fra le recenti guerre hanno avuto un solo grande filo conduttore, la difesa del dollar standard) Botto di fine anno sul mercato
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Not long ago, I wrote Ten Reasons Why High Oil Prices are a Problem. If high oil prices can be a problem, how can low oil prices also be a problem? In particular, how can the steep drop in oil prices we have recently been experiencing also be a problem? Let me explain some of
Globalization seems to be looked on as an unmitigated "good" by economists. Unfortunately, economists seem to be guided by their badly flawed models; they miss real-world problems. In particular, they miss the point that the world is finite. We don't have infinite resources, or unlimited ability to handle excess pollution. So we are setting up
Ieri ai nuovi massimi, addio benefici dell'austerity. Una moneta forte erode la nostra competitività più di quanto faccia per Spagna e
Will they lose confidence in America? Please, let's hope so.
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