The United States has just imposed sanctions on Venezuela because it does not like the outcome of the Venezuelan election.
That's sanctions on Russia (3 times), Venezuela, Iran, North Korea, Syria and who knows how many other countries. These sanctions are forms of economic warfare.
Their goal is to lock these countries out of the dollar-based financial system of the world. How long do you think people will continue to want to "net save" in dollars when they are potentially subject to indiscriminate seizure of their assets and blockage of the ability to transact commerce?
Not long.
I predict an end to the dollar's role as global reserve currency very quickly.
The world won't tolerate the risks of net saving in dollars anymore. We have signed our own death warrant here because of our incompetent and clueless moron "leaders." When I am president this will all be reversed.
What f'cking hypocrisy.
21 comments:
Could not agree more.
This is actually Trump's preferred policy... he wants ALL of this back:
http://ticdata.treasury.gov/Publish/mfh.txt
ALL of it.... the USD zombies are going to freak the f out...
"I predict an end to the dollar's role as global reserve currency very quickly."
I believe that almost 90% of the world leaders are pro USA. There will be a looong way to go before dollar falls.
Although I personally don't like USA imperial mindset and its sanctions (to Venezuela, Iran, Russian, etc), we shouldn't pretend that everything is ok in Venezuela.
Inflation is at 800% a year, and they are proposing the single most ineffective and destructive policy: price freezing. It's hard to get more incompetent than that.
Also, people are dying on the protests. Something is very wrong there.
Andre,
I believe that almost 90% of the world leaders are pro USA. There will be a looong way to go before dollar falls.
90% of the world leaders are pro USD stability. Sure. But if China can figure out a way to replace the $750 billion daily market in US Treasuries, then there will be a viable alternative. The instant the US slapped sanctions on Russia—which means, BTW, our govt violated long-term agreements the Fed made vis-à-vis the sovereignty of foreign accounts held there—China opened it’s first Yuan bond market (forget the name) in London.
China has been in the background planning this for some time, mark my words. I’ve predicted 2030, but it may be earlier . . . depending.
When Venezuela was rich with petro dollars, it imported everything it could and should have been producing itself, manufactured goods and most importantly FOOD, basic food stuffs. They subsidized their poor, but they didn’t provide a long-term plan or policy for them to ensure their own prosperity.
The elites didn’t give a shit; they still don’t even today because they can go to the best restaurants and get all the fancy food, meat, wine, and coffee, they want. They live in gated well-guarded enclaves.
The US is now worried about Russia taking up a toe-hold in Venezuela. A dollar late and a dollar short. Just heard some official on TV say that it’s looks like the sanctions aren’t working, they’re driving them into China and Russia’s arms.
Oh, wow, what insight. What planning on our part. We have no business contributing to these poor people’s plight. No wonder we are despised in places around the world.
S Korea doesn't despise us , Japan doesn't, Canada, Brazil, UK, EZ, Gulf States, Australia, others ...
MRW a relationship with Venezuela is a liability not an asset... the whole place is a shithole... it adds no material value... maybe only it's location above some petroleum ... we go over to electricity and F them the whole place will even implode further no one stays there who is materially competent...
Andre, I am waaay behind with my Venezuela facts. Read this! by the always excellent "b" at Moon of Alabama. He has scooped the Nytimes and WaPo many times, several of which were months in advance. He is ex-intel living in Germany: http://www.moonofalabama.org/2017/07/countdown-to-war-on-venezuela.html
"MRW a relationship with Venezuela is a liability not an asset. Couldn't agree more. We're apparently diddling there now because we're 'jes so scared that Russia will turn it into Cuba'. Which I what I heard from a US official this aft about why we need to go in there. What I found out this afternoon, also, is that the poor and police back the government! The opposition is the richer strata! Fog of War.
I don't see Trump doing it.... I don't think Trump would go into California if Russia was moving in there they could have it....
Maybe just keep Orange County and south ...
Trump sees them as a competitor.... We could replace all of that imported heating oil from CITGO in the northeast with Nat Gas from the Marcellus in PA, WV and OH.... "WIN!"
You have to retool oil-fired plants to use natural gas.
CITGO (Chavez) made deals with black and Latino neighborhoods here to provide them with cheaper gas, so they might be reluctant to give it up.
MRW, what troubles me is that:
1) I don't know who "b" is, what are his/her history, interests and bias;
2) He/she doesn't say a word about the hyperinflation or economics problems, that are obviously happening in the country. He/she doesn't say anything about how poor is the government when managing the economy;
3) He/she doesn't say a word about the deaths that are happening;
4) He/she doesn't say a word about the emigration from Venezuela to the neighbouring countries;
5) He/she doesn't say a word about the participation of close relatives to the president in the constitutional assembly.
So I think "b" is not telling the whole story...
You burn the heating oil in the furnaces of the actual homes... need pipeline infrastructure and tax credits to the home owner to convert from oil to gas heat pumps...
Program to convert over Should have been started about 1:00 pm on Sept 11,2001 but you had two who would lick the oil industry' ball sack in whitehouse for next 8 years and then a Title 7 guy for 8 years after that...
André, he's been writing about it for a while. Check the archives. This one article wasn't meant to be all-inclusive. BTW, the comment section is not moderated so there is a rafter of freaks as well as some really intelligent people. I generally ignore them these days, however. Tom features Moon of Alabama's stories--that's "b"--here every once in a while. See this one out from last month: http://mikenormaneconomics.blogspot.com/2017/06/moon-of-alabama-white-house-says-it.html
Matt, I'm not talking about residential structures or furnaces. I'm talking about big district and regional power plants.
When Carter deregulated natural gas in 1978, US power plants realized that if they retooled they could use NG instead of oil. Even though the price of NG shot up to $2.40 (or $2.70), it was waaaay cheaper than the $30/bbl OPEC was charging them.
But it took three years to accomplish the changeover, and Reagan ultimately got the credit for breaking the embargo.
André, you can check out MoA's twitter feed: https://twitter.com/MoonofA.
Well the use now is residential heating oil... electric heat pumps are not efficient in areas where the oil burners are still being used... a gas assist heat pump is what is needed there and tax credits could be provided to homeowners and businesses to fund the conversion pronto...
Here in mid Atlantic much oil (monopoly rent) to electric (regulated utilities) conversion was done over the last 10 years just based on the high cost of oil.... no help from govt AT ALL...
Moon of Alabama/About
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