« Troy Davis and family live on in new bookSaudi Arabian Backed Insurgents Responsible for Ghouta Chemical Weapons Attack »

A Bad Month for the the Dollar

October 5th, 2013

by Robert Bonomo

September was not a good month for the U.S. dollar. The world’s reserve currency is sustained in large part by the Petrodollar, the agreement by the Saudis and OPEC to price oil in dollars and only accept dollars for payment. The US gets a guaranteed demand for its fiat currency and in exchange the US has agreed to protect militarily Saudi oil fields. However, after President Obama was forced to back off his plans to attack Syria in support of the Saudi backed insurgency fighting the Assad regime, one of the pillars of the Petrodollar scheme was shaken to its core.

If America has no more stomach for war in the Middle East, how certain can the Saudis be that America will protect the regime militarily if the need arises? Now that the President has acquiesced to public opinion in his decision on whether to use military force, can he be counted on in the future to hold up his end of the bargain in the Petrodollar scheme? The United States may have by far the world’s largest military, but what use is it if it can’t be used? And even when it is, seven years of war in Iraq has done little more than bring the country under the influence of Iran.

Another major problem for the dollar is the fact that the Fed has spent five years printing money and its balance sheet, at about 3.4 trillion dollars, is almost a quarter of US GDP. When Bernanke let the world know he was going to tap on the brakes, interest rates soared and the equities markets got spooked. He, like the President, had to back off.

And to finish the month we get an exercise in game theory galore with the House leadership playing high stakes chicken with the President by offering him only two solutions to the debt-ceiling, both of which would leave him devastated politically. He can either postpone implementation of his signature accomplishment, Obamacare, or shut down the government- it seems Mr. Boehner has taken a page from Mr. Putin’s playbook. After the foreign policy debacle with Syria, can the President afford to reside for long over a shutdown government? His other option is to be made politically irrelevant. One would think that his opponents will feel emboldened to hold their ground.

The dollar is backed by a military that has been left neutered by an incalcitrant home front, by a Federal Reserve Chairman who has no idea how to stop printing money by the trillions, and by an executive and legislative branch who spend billions on election campaigns yet are unable to renew the credit card used to pay the monthly bills of the government they supposedly serve.

It seems difficult to fathom that gold will not recover its march toward $2,000 an ounce and beyond while the dollar’s stature as a secure store of value continues to be gutted by an inept and irresponsible national leadership.

-###-

http://www.thecactusland.com/2013/09/a-bad-month-for-the-dollar.html

by Robert Bonomo

No feedback yet

Voices  Share this page

Voices

  • Katherine Watt [07/29/23] Orientation for new readers Excellent new post by Sasha Latypova on Dec. 10, 1974 National Security Study Memorandum 200 ■ July 26, 2023 - Population Control Policy. Why would my government want to kill me? Don't they…
  • PressTV The Israeli genocide against Palestinians in Gaza is funded by the United States according to Joe Iosbaker, an American political analyst and a leader of the Anti-War Committee – Chicago. 💬 “The US government leads the world in many…
  • Dr. Halvor Næss [06/17/23] It is now more than three years since the covid-19 pandemic started, and two almost self-evident statements summarize the most important lessons learned. 1. Without the draconian handling of the authorities, the pandemic would…
  • Dr Vernon Coleman If you want to know the truth about vaccines and vaccinations please read my book Anyone who tells you vaccines are safe and effective is lying: Here’s the truth. You can find it for sale on Amazon. 1. The UK is now sending long range…
  • Cesare Sacchetti When Donald Trump in 2016 walked down the mobile stairs of his New York residence, the Trump Tower, many prominent members of the deep state were anguished by a feeling of both panic and fear. Panic because for the first time after the…
  • Jeff Thomas The decline from democracy to tyranny is both a natural and inevitable one. That’s not a pleasant thought to have to consider, but it’s a fact, nonetheless. In every case, a democracy will deteriorate as the result of the electorate…
  • Walter Gelles Legal trickery would silence Dr. Charles Hoffe Prominent Canadian physician Dr. Charles Hoffe has spoken out courageously to warn people of the very serious dangers of the Covid mRNA genetic "vaccines". He now faces trial from the Canadian…
  • Stephen Lendman [04/05/23][Stephen died on May 9th, 2023, about a month after he wrote this article.] Illegitimately installed Biden regime criminals run the empire of lies and forever wars. A previous article discussed Trump’s politicized indictment,…
  • Linh Dinh [Pakse, Laos on 6/5/23] Sherwood Anderson, “For a time he was lonely and wrote to Alice almost every day. Then he was caught up by the life of the city; he began to make friends and found new interests in life.” Why quote a rather plain…
  • Walter Gelles Breaking News: "A prominent Canadian doctor who is bravely speaking out about the Wuhan coronavirus (COVID-19) 'vaccine' damage he is observing in many of his patients is facing trial this March over accusations of professional misconduct.…
March 2024
Sun Mon Tue Wed Thu Fri Sat
 << <   > >>
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31            

  XML Feeds

blogtool
FAIR USE NOTICE: This site contains copyrighted articles and information about environmental, political, human rights, economic, democratic, scientific, and social justice issues, etc. This news and information is displayed without profit for educational purposes, in accordance with, Title 17 U.S.C. Section 107 of the US Copyright Law. Thepeoplesvoice.org is a non-advocacy internet web site, edited by non-affiliated U.S. citizens. editor
ozlu Sozler GereksizGercek Hava Durumu Firma Rehberi Hava Durumu Firma Rehberi E-okul Veli Firma Rehberi