The Europeans printed 500b, as expected because there's no way in hell they are borrowing themselves out of that debt, nor taxing themselves out of it. (Lol no growth).
Iran and the US are on the verge of war about a supposed boycot of oil, the real reason being that in order to prevent OPEC from ditching the dollar as the currency of choice they need to slap some saudis back in to line. The eventual dropping of the dollar to pay for oil would lead to an instant and complete collapse of the dollar.
Why?
Since the only way to pay for the running pensions, and the interest on government debt is to print money. As the dollar will no longer be hedged against oil, oil prices would increase massively practically overnight, causing the importing of it to be really costly indeed. Bringing the us economy to a grinding halt.
Or in other words: if countries started dropping the US dollar as reserve currency, this would be bad for an industry sector already straining under the tax burden, plus it would jack up inflation quite a bit too. Which is why the best outcome for both the euro countries and the US, as 80% of the euro countries reserves are in dollars is that the USA glasses the iranian desert and claims the oilwells.
The only problem here is this: russia is finally mandating their share of the power in that general region, and if they back iran like they back syria, we might just have a world war on our hands.
tl;dr: let's hope you glass iran fast, otherwise we're in deeper shit. That shit being that if OPEC decides to trade for anything other than dollars.. well we're screwed.
Cute chick. Oh, wait..nevermind. Tell the hippy to get a haircut.
ReplyDeleteI grew up in AZ and these pictures make me feel all warm and nostalgic. Ain't the same place it was back then, though...
ReplyDeleteThe last few weeks, were like watching a movie.
ReplyDeleteThe Europeans printed 500b, as expected because there's no way in hell they are borrowing themselves out of that debt, nor taxing themselves out of it. (Lol no growth).
Iran and the US are on the verge of war about a supposed boycot of oil,
the real reason being that in order to prevent OPEC from ditching the dollar as the currency of choice they need to slap some saudis back in to line.
The eventual dropping of the dollar to pay for oil would lead to an instant and complete collapse of the dollar.
Why?
Since the only way to pay for the running pensions, and the interest on government debt is to print money. As the dollar will no longer be hedged against oil, oil prices would increase massively practically overnight, causing the importing of it to be really costly indeed. Bringing the us economy to a grinding halt.
Or in other words: if countries started dropping the US dollar as reserve currency, this would be bad for an industry sector already straining under the tax burden, plus it would jack up inflation quite a bit too.
Which is why the best outcome for both the euro countries and the US, as 80% of the euro countries reserves are in dollars is that the USA glasses the iranian desert and claims the oilwells.
The only problem here is this: russia is finally mandating their share of the power in that general region, and if they back iran like they back syria, we might just have a world war on our hands.
tl;dr: let's hope you glass iran fast, otherwise we're in deeper shit. That shit being that if OPEC decides to trade for anything other than dollars.. well we're screwed.