Wednesday, July 29, 2015

escape 2


Certainly, a lot of people are waking up to the possibility that all is not well in paradise.  There are quite a few newly minted expatriates.  Not that I’d want to join them.  Living in a festering jungle speaking Spanish and thinking my Social Security or pension check will keep feeding me is the height of folly.  But at least they weren’t totally stupid.  The American Empire is collapsing and the expats at least saw the writing on the wall.  They saw the wrong translation, but at least they got part of the problem correct.  Our economic collapse has nothing to do with which political party is in charge.  Republicans and Democrats and Independents and Tea Baggers and Greens and Fascist parties are all the same.  Elect me to fleece you for my paymasters.  Our collapse is not because of our welfare state.  Any right wing idiot, such as Beck or Rush, deplore welfare recipients as the cause of our decline, as if a social safety net doesn’t keep their own asses alive ( apparently, the French Revolution with its hungry participants, is a part of the past self-proclaimed historian Beck chooses to ignore ).  In their world, more welfare to the rich would save us all.  Our collapse has nothing to do with The Factories Needing To Come Home.  Over production from factories led to the first Great Depression ( along with central bank manipulations, but I shan’t digress there just yet ), and you’ll notice Switzerland isn’t exactly a pollution spewing Detroit, yet succeeds economically.  In a resource dwindling world, industrialism is a doomed model for running a nation state for profit. 


Mainly, our economic collapse is due to our overseas colonies failing to subsidize us anymore.  We never would have recovered from our 1970 contraction without their help, and now they are either out of resources ( Mexico seeing 8% a year petroleum production decline ) or opting out of our dollar hegemony ( the invaded as punishment régimes of Iraq and Libya ) or safely in the camps of other super powers ( Iran, a lot of Africa ).  There is obviously a lot more involved, but that is the gist of it.  Our Petro-Dollar was the Saudi Arabian agreement to only price their oil in our Dollars, which meant that anybody importing oil needed dollar bills to settle their bill.  And since Uncle Sam disliked too many dollar bills floating around ( electronics are easier to control and “print” ), rather than trainloads of currency to pay for millions of barrels of oil, US Treasury notes were used.  Foreign countries didn’t buy Treasuries to “invest in America” or “get the best return for their investment” or “seek the dollar safe haven”, they did so solely as a means to buy oil.  China with $2 trillion in treasuries?  That was their saving account to buy oil with, NOT an investment in our economy.  Until now, we could get into as much debt as we wanted since it was free money.  Our debt was increased with each barrel of oil traded.  But now, we are very long into a process where more and more countries are pricing their oil in non-dollars.  As Saudi Arabia lost its oil production hegemony, it lost its sway over what the rest of the world used as petroleum currency. 

More next issue

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  1. If it weren't for the fact that most other currencies are being devalued at a rate at least as fast as the US dollar I am certain we would have already seen a collapse of the US empire. Europe, the middle east, parts of africa asia and south america, all look to the US as the global policeman to protect them from their neighbors. That roll is waning but still there - for now.
    The loss of dollar value but not military might wont work for the competition, they will have to see our military humbled AND dollar take a nose dive.
    Notice how about every 6 months or so there is another place calling for US intervention - none of which are places we can get in and out of quickly. And Afghanistan is still slowly chewing up our ground troops. The military is being treated like the special olympics version of the boy scouts crossed with the last pat of butter in during an Idaho spud roast (not allowed a sharp stick to protect themselves with, and spread far too thin).

    1. It didn't and doesn't matter how much you devalue your currency, if everyone needs it to buy oil. Kissenger was a giant Prussian prick, but he was ours and his brand of medicine did work. It just isn't working in Decade Four.

  2. Yes, yes and yes. . . but what about the escape part? As I see it the only way to deal with a rigged game is not to play.

    1. You have to read through part four, and yes, I kinda cheated at the end but there aren't anywhere near perfect solutions.