Dollars
About two months ago dollar has reached its lowest value since 2015, continuing the negative trend of the 80s of the twentieth century. The US authorities claim they prefer a "weak dollar" becouse the cheap national currency allows better trading condition. Since the end Second World War , dollar owners - the most powerful banking trusts in the hands of the US Treasury and Federal reserves have concluded that aggressive US policy can maintain only by forcing poor oil producers to replace their commodities with the US national currency.*
Control oil and you control nations, control food and you control people. - kissinger.
By well-known methods (abductions, wars, riots, removal of political opponents etc.), America has made a good foundation for meeting national interests. But there was an obstacle, the dollar "covered" with state reserves of gold and silver. This standard has prevented uncontrolled dollar printing and distribution of states gold and silver. Because of the huge reserves of precious metals, the US economy was stable, poverty was slowly disappearing, the American dream resembled reality and inflation was minimal.
Bretton Woods
A "safe dollar" draft was created in Bretton Woods in 1944, and the event was attended by the most influential UN members who thought the economic recovery after the exhausting war could ease the dollar, the value of which would directly depend on the value of gold and silver.
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Nevertheless, security and stability prevented Nixon and his subscribers from financing the Vietnam War, for which they calculated that they would cost at least $ 500 billion of the current dollar. War games prevented something else, namely President Kennedy and Lyndon B. Johnson have provided numerous "expensive" social programs, such as health insurance, social benefits, food bills, free schooling, free qualifications and retraining, direct food aid and direct medical assistance to the needy and incentive programs for self-employment. Such socialist tendencies have come to an end.
President Nixon's Executive Order No. 11615, issued in August 1971, prohibited the direct conversion of dollars for gold and silver, more precisely, the US state should no longer have in its possession as many precious metals as it should. By abolishing the "silver clause" the dollar has become worthless "toilet paper", as private bankers can print and distribute it without any coverage.
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At this point, the dollar is transformed into a Petro dollar, and US tends to become a direct oil and gas flow controller, even in countries with socialist arrangements that do not have enough influence to connect oil with their own money. The look of the dollar itself is changing, it loses the state obligation on his gray face: "Silver certificate" and the statement "We are committed to secure the value of the dollar in a state treasury".
This graph shows the dollar's decline since the termination of the silver clause, but with the weakening of the USSR and the strengthening of the Americas influence in the world, it jumped abruptly to bring its value back to the present, with unusual high jump rates linked exclusively to the US occupation of rich oil countries.
Hellish plan
Americans should only think of a "hellish plan" by which state oil producers will accept the dollar without cover.Richard M. Nixon and his Secretary of State Kissinger knew that the destruction of the dollar on the Bretton Woods principle would be a dangerous game which could decrease world demand for dollar, but there was a phenomenal idea of how the petro dollars could be realized with the exhaustion of Saudi Arabia in the peak from which they will not be able to pull out.
According to the Kissinger-US agreement proposed to the Saudi Royal House, America offered the Saudis military protection and the protection of their oilfields and plants in exchange for the purchase of their oil in the DOLARS with the obligation that the oil is also sell in US dollars.
Beginning in the mid-1970’s the American Century system of global economic dominance underwent a dramatic change. The oil price shocks of 1973-1974 and 1979 suddenly created enormous demand for the floating dollar. Oil importing countries from Germany to Argentina to Japan, all were faced with how to acquire export-based dollars to pay their expensive new oil import bills. The rise in the price of oil flooded OPEC with dollars that far exceeded domestic investment needs, and were therefore categorized as “surplus petrodollars.” A major share of these oil dollars came to London and New York banks where the new process of monetary petrodollar recycling was initiated.
According to the above mantioned dollar is losing power every time a country decides to change oil and gas for another currency. Iraq just before Saddam Hussein was assasinated has decided to sell its oil for other currencies, Libya governed by Muammar al-Gaddafi decided to sell oil to local African currencies and euros until a Pan-African common currency was created, both countries were destroyed and robbed, where The US had a leading role. Iran has been trying to avoid selling its oil in US dollars,for that reason US initiated war between Iraq and Iran (1980-1988) while still considering Saddam as their ally. In the last 10 years, Iran has sold oil to Euros and Chinese Yuan, which is directly affecting the value of US dollar. America has gone so far that it has organized a civil war in Syria and has continued to sharpen its policy with Russia and BRICS members and Iran.
Conclusion
As we can see, the dollar is in trouble, more and more nations are beginning to show resistance to such modus operandi provoked by USA, and it is only a matter of time when the dollar will collapse. At the end of the day, it is not a question of whether the dollar will collapse, but when will it fall and how will the world react to such a waste? I wish I am wrong, but if we consider that the world's crises were always closely linked to America don't know why would it be different next time it happens. Petrodollar has no more room for progress- which is its main doctrine- when progress stops the value drops... I hope you get the point, cheers!
Of course, the Dollar will collapse...Just like the Sun in our solar system will eventually collapse under the force of its own gravity, which is to say, a very long time and not in our lifetime.
I do agree with you, but US focus on suprimacy and greed is to strong. I have read a lot about US foreign policy and i understand curent situation but man.... Dollar has no fucking value
Except that if you travel to the rest of the world, you'll find that the US dollar has more value than most other currencies.
Global number 1 most traded currency pairs is the USD-Euro. In the mid-term, you might bet USD-CNY (Chinese Yuan).
Real value ofc
Making cryptocurrency look verrry interesting.
indeed :)
The dollar can not fail to react to oil trends. The dollar also responds to the changing geopolitical atmosphere. Many states switch to settlements in their currencies. They refuse to count in dollars. This also greatly affects the position of the dollar.
That is true, their military is the only thing which is giving the value. Appreciate your time :)
I tend to agree. Go long on the Euro the next few years I think.
The Europe Union is an experiment that is gradually falling apart,... and the Euro along with it. Note that one of the largest banks in the Eurozone Deutscebank is falling apart and the economy is most nations suck big time.
Germany is Europe's largest economy and it's no 1 trading partner is not even another European country. It is China.
Not really. The IT industry innovation, global pop culture industry and global marketing run out of the US.
Making steem too
It's good but no magic bullet for now. There isn't a magic bullet. However, I do agree that crypto will look more and more interesting as most fiat currencies become more unstable with time.
Don't discount gold and silver too.
The best post I have seen on steemit! The dollar is 60% of all money on planet Earth. If it is devaluing what is happening to the global economy then??!
Among all the fiat currencies on earth, it'll be one of the slowest to devalue. That's precisely because of what you mentioned. It's the most widely adopted currency so will be keep artificially high in value from constant use. It's simply because most 90% of all currencies in the world are not worth the paper they are printed on.
A big devaluation (crash) in USD value would cause major global financial catastrophe. So it needs to be let down very slowly. Example to the gradual migration to decentralized open blockchain cryptocurrencies like bticoin.
I think it's inevitable, like you are saying, it's just a matter of time now till the crash. It's interesting to see countries moving away from it now and getting into the crypto space like the recent events with Argentinian Bank dropping out of SWIFT into Bitcoin and Cryptocurrency. This is a further confirmation of the inevitable. Crypto is here to stay.
Yep, i am crypto believer so i do agree on that part crypto is here to stay. I'm sick of this fuckingg "false security" since everything is more safer than system that made us slaves. Thank you for stopping by :)
No doubt it will hike again! Seems like crypto currency is taking over but its not yet that influential to make phenomenal impact over dollar.
as always, new tech need some time to prove itself. In a few years whole financial system will be different :) Thank you for the time bro :D
I think cryptocurrencies could be 10 percent of all money and gold in the world in ten years. That is a heavy money bleed to the system.
Good content and writing. Would like to point out though, we are not all from America so perhaps add 'US doller' or 'USD'. I for one am from Australia.
Oh man, my bad, you are right. Edited :) Thanks for info bro
Nah all good! Just here to help out :). You make good quality content.
It’s not so much the dollar that’s falling, but other currencies that are rising against it because their economies are strong and their central banks are moving towards raising rates – notably the euro and the yen. Also, I agree with you that it's a matter of time when dollar completely collapses... I mean, it's been going down since 2017.
zemljace :D
malo nas je, al' nas ima :D
Yep that is valid point, although to be honest im not sure are we ready for USD fall of value - it will probably cause a new war for supremicy all over the world.
For 140 years there will be 21 000 000 Btc in circulation (meaning "no secret").
How many US dollars are "today" in circulation?
How much is should ...
To be honest i don't think there is official circulating suply information, although i have found some info claiming about 1.5 trillion dollars are in circulation, but the real number is much bigger.
The dollar is doomed as we have rampant inflation due to the proxy printing press a.k.a. The Federal Reserve System.
The Fed has managed to prop the dollar up artificially via 0% interest rates for a majority of the past decade but that is gradually changing and will be higher (near 3%) by the end of the year.
Not a question of if, but when.
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Someone asked my "get rich" strategy....I said "Exit the USD." (true story, fresh even)
Enter crypto bro
wow .it's very interesting
I am not sure what will be with the crypto
Congratulation ocupation! Your post has appeared on the hot page after 18min with 9 votes.
Thanks to @souldelas.
Most people dont realize that the DXY (dollar index) is based not just on its value but the value of the 5 currencies in the basket that create the index. Its also why determining the real inflation rate can be manipulated.
In laymans terms,,,if the FED monetizes ours a little and the BOJ, ECB, BOE, etc get into their own "print fest" than the real value of the dollar can be distorted.
Reserve banks are nothing more than counterfeiters and should be burned down along with Israel!!
Why will the dollar fail? It is the worlds reserve currency and will continue to be so. Even cryptocurrency is valued in dollars. The weakness and strength of any currency is relative. It is still the only safe haven currency asset alongside jpy. The article doesnt talk about real interest rate diffential, a primary reason why currencies weaken or strengthen.
The largest economy in the world will suddenly collapse because some random country decided to sell oil in a different currency. And how much did they charge for oil in a different currency? They used the fx rate of that currency versus the dollar. Gold standard was let go because it was a junk concept and was impractical. Which is why gold crashed post that and not dollar and the world was fine after that. What backs a currency is the gdp, the economic output of a country and not some metal that has a perception of value.
@yeninsfer saludos desde Venezuela, Excelente publicación, pude aprender un poco mas del dolar, gracias por tu publicación.
A good work, i agree with you.
I saw it, it's something worth to talk about it, am a ugandan africa, l started believing more in cryptocurrencies since our currency is joke.
The inflations since have been so dramatic.
Hope the same thing doesn't happen to the dollar.. looks like some people no longer give a damn about it anymore.
The banksters are going to eventually go down, and they know it. This is why many of them are buying gold and digging bunkers. When the system all falls apart, they will be hunted like the animals many of them are.
I think China'd be the one that has a major profit then. What will happen next?