tag:blogger.com,1999:blog-8358039.post8385278194025425289..comments2024-03-25T15:17:04.488-07:00Comments on Captain Capitalism: US Money Supply as a Percent of Global GDPCaptain Capitalismhttp://www.blogger.com/profile/05620212946121617985noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-8358039.post-78810488577633179512015-03-11T12:38:07.319-07:002015-03-11T12:38:07.319-07:00http://www.mercenarytrader.com/2014/12/the-21st-ce...http://www.mercenarytrader.com/2014/12/the-21st-century-will-belong-to-america-and-commodities-and-emerging-markets-look-awful/<br /><br />Thoughts on this?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-42552099492524463222015-03-10T08:03:21.517-07:002015-03-10T08:03:21.517-07:00The real risk of fiscal irresponsibility is not th...The real risk of fiscal irresponsibility is not the US defaulting, but rather the loss of confidence in the US dollar as the world's reserve currency (and, related, the loss of the petrodollar).<br /><br />We wouldn't need to go bankrupt to get tossed off the gravy train we're currently riding as the country that prints everybody's reserve currency of choice.<br /><br />Note: This comment was deleted and reposted because there is no other way to fix a misplaced apostrophe. Sub-perfect grammar is an atrocity.Pax Empyreanhttps://www.blogger.com/profile/04889654524008462887noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-67848654520050239562015-03-10T07:57:23.275-07:002015-03-10T07:57:23.275-07:00Could not agree more. But...
An integral & n...Could not agree more. But...<br /><br />An integral & necessary ingredient that's missing about how "king"(?) dollar was established as the world's reserve currency is the fact that it was convertible to gold. As far as I know, at the time of the 1944 Bretton Woods agreement no other currency in the world carried a gold backing. The dollar truly was as good as gold (imagine walking into your local bank prior to 1933 & asking for gold in exchange for your dollars. That concept is so utterly & completely foreign to the average brain dead U.S. citizen). <br /><br />Of course by 1971 when Nixon slammed the gold window on those "greedy" foreigner's fingers, the Fed had been printing off funny money for so many years** that the dollar's value had been greatly devalued, with the predictable result of Italians, French and most foreign holders demanding gold in exchange for their Yankee dollars.<br /><br />So what explains the fact that the dollar still holds title to king of the hill? Here's my list of reasons, not necessarily in order of importance:<br /><br />1. Foreign Stupidity<br />2. Inertia<br />3. All other currencies in the world are at least as bad, and most are much worse, than the US dollar.<br />4. A false sense of safety & confidence felt by foreigners because of past gold backing & US reputation in the world market.<br />5. Old habits die hard (like trying to give up smoking)<br /><br />Once they realize that the dollar is just another empty paper promise, that's when the real fun begins.<br /><br /><br />**Most people falsely believe that 1971 was the year that the Fed began its excursion into inflating the money supply. That is a ridiculous notion. It was probably some Keynesian that started it based on the assumption that the Fed was supposedly kept honest till '71 because of the dollar's gold backing, and that once they were released from that restriction they had carte blanche to do whatever they pleased. In fact the Fed has been inflating the money supply since 1913.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-90490658246810552852015-03-10T06:17:36.248-07:002015-03-10T06:17:36.248-07:00This comment has been removed by the author.Pax Empyreanhttps://www.blogger.com/profile/04889654524008462887noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-3936107342708852892015-03-09T21:38:11.626-07:002015-03-09T21:38:11.626-07:00Brazil, Russia, India, China and S. Africa [BRICS]...Brazil, Russia, India, China and S. Africa [BRICS] forming a new world currency : Putin signs law on ratification of $100 billion BRICS New Development Bank deal<br /><br />From RT:<br /><br />http://rt.com/news/238981-putin-signs-brics-bank/<br /><br />"Russian President Vladimir Putin has signed a law ratifying the deal establishing the BRICS New Development Bank (NDB), according to a document published on Monday on Russia's official website for legal information.<br /><br />The BRICS New Development Bank (NDB) was set up to challenge two major Western-led giants – the World Bank and the International Monetary Fund. NDB's key role will be to serve as a pool of currency for infrastructure projects within a group of five countries with major emerging national economies - Russia, Brazil, India, China and South Africa.<br /><br />According to the Russian Finance Ministry, the New Development Bank is expected to start functioning fully by the end of the year, with the headquarters slated for opening in Shanghai. The chairmanship, with a term of five years, will rotate among the members.<br />It's hoped the new bank will stamp the growing influence of the BRICS. <br /><br />The NDB is expected to become one of the world's key institutions, with a stated capital of $100 billion. Each of the five-member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion. Russia has agreed to provide $2 billion from the federal budget for the bank over the next seven years.<br /><br />The bank, which will be able to start lending in 2016, will be open to other countries that are members of the United Nations. The BRICS share is never to decline below 55 percent, however. The money will be used to finance development projects in the emerging economies.<br /><br />India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will be Brazilian.<br /><br />The bank was first proposed in 2012. The signing of the agreement to create the joint development bank by the heads of the five countries took place at the BRICS summit in Fortaleza, Brazil, in June 2014.<br /><br />The lower chamber of the Russian parliament, the State Duma, ratified the agreement on the NDB establishment last month."ARYANhttps://www.blogger.com/profile/12141417987760482784noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-68740725754014610552015-03-09T15:33:23.221-07:002015-03-09T15:33:23.221-07:00the worse thins get, more $ will go into dollars d...the worse thins get, more $ will go into dollars due to flight to safety<br /><br />the better things get: INFLATE THE DEBT AWAY<br /><br />Either way, murica fuck yeagrey enlightenmenthttp://greyenlightenment.comnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-57122388487060447372015-03-09T13:46:14.410-07:002015-03-09T13:46:14.410-07:00Your ratio and reasoning are very informative.
H...Your ratio and reasoning are very informative. <br /><br />Hold onto your hat though, look at what is in the denominator... World GDP. If world GDP shrinks by any significant margin (forcing people in EM's/BRICs to give up dollars for locally made survival stuff), this could mean significant inflation in the U.S. that the fed will have little control over.<br /><br />Currently, World GDP is known to be contracting, which means the ratio of dollars to world goods is about to start going up.Jeremynoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-6895206847947298342015-03-09T13:12:39.129-07:002015-03-09T13:12:39.129-07:00"Two, this is why our deficits and debts seem..."Two, this is why our deficits and debts seemingly don't matter to anybody"<br /><br />I would disagree. Massive process of de-dollerisation happening amongst major states. Of course, this is due to geo-political reasons as well but I think many countries are n,ow choosing to trade in their own currencies given the dollars slow death.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-65736511075266168402015-03-09T09:57:21.767-07:002015-03-09T09:57:21.767-07:00Thanks for the economic lesson. Never gave it much...Thanks for the economic lesson. Never gave it much thought until now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-74833926925380127852015-03-09T09:36:04.804-07:002015-03-09T09:36:04.804-07:00Any thoughts on gold getting smushed after the &qu...Any thoughts on gold getting smushed after the "good' jobs report? Do you think Yellen is ever really going to raise interest rates and put an end to the Ponzi? I don't. Arthur Isaachttps://www.blogger.com/profile/12432379222331605220noreply@blogger.com