vi-va
SENIOR MEMBER
- Joined
- Jan 23, 2019
- Messages
- 6,475
- Reaction score
- 3
- Country
- Location
US National Debt
- Thread starter vi-va
- Start date
Imran Khan
PDF VETERAN
- Joined
- Oct 18, 2007
- Messages
- 68,815
- Reaction score
- 5
- Country
- Location
give me total man i cant understand this clock
Muhammed45
ELITE MEMBER
- Joined
- Oct 2, 2015
- Messages
- 10,321
- Reaction score
- -18
- Country
- Location
Almost 81 trillion dollar
vi-va
SENIOR MEMBER
- Joined
- Jan 23, 2019
- Messages
- 6,475
- Reaction score
- 3
- Country
- Location
Muhammed45
ELITE MEMBER
- Joined
- Oct 2, 2015
- Messages
- 10,321
- Reaction score
- -18
- Country
- Location
Just imagine when China sells that 7 trillion dollars in Global Market and then switches to Yuan. You can add that 7 trillion to US total debt.
LeGenD
MODERATOR
- Joined
- Aug 28, 2006
- Messages
- 15,813
- Reaction score
- 162
- Country
- Location
It is important to understand what kind of debt it is, and not post this for the sake of causing speculation.
DEBT is a global 'problem' if you wish to consider it as one.
DEBT is an integral component of the modern economic system. It should be recorded in the books, and it does not make or break a country (see Japan); it is, however, important to be in the position to fulfill DEBT-related obligations which is not a problem for USA.
American DEBT is very high because of the ongoing buying-and-selling of American T-bonds worldwide:
This dynamic is similar to bonds floated by the banks to "generate revenue." Americans get the money, others get to keep the bonds (investment plan). These can be sold at any time.
American DEBT is not like that of developing countries warranting IMF bailout packages to make ends meet.
Refer to the following post: https://defence.pk/pdf/threads/deco...ties-consequences.667175/page-3#post-12540462
Muhammed45
ELITE MEMBER
- Joined
- Oct 2, 2015
- Messages
- 10,321
- Reaction score
- -18
- Country
- Location
Well said. There are different components/factors in the total debt. It includes not only narional/public debt but also Foreign debt.It is important to understand what kind of debt it is, and not post this for the sake of causing speculation.
DEBT is a global 'problem' if you wish to consider it as one.
DEBT is an integral component of the modern economic system. It should be recorded in the books, and it does not make or break a country (see Japan); it is, however, important to be in the position to fulfill DEBT-related obligations which is not a problem for USA.
American DEBT is very high because of the ongoing buying-and-selling of American T-bonds worldwide:
This dynamic is similar to bonds floated by the banks to "generate revenue." Americans get the money, others get to keep the bonds. These can be resold - no issue.
American DEBT is not like that of developing countries warranting IMF bailout packages to make ends meet.
Refer to the following post: https://defence.pk/pdf/threads/deco...ties-consequences.667175/page-3#post-12540462
Those bonds are actually the inflation of US economy that USA sells them to weak countries of Europe and this process started right after WW2 when all of EU was smoking of War. USA abused their weakness and imposed its not only national currency on them but also shoved its inflation into their economy and hence enslaving them. US economy is built on paper printed money with no actual backing. The toilet paper that we call dollar is just a piece of paper which lacks support from Gold or other valuable assets. One of American economists said that anyone buying dollar has lost their minds, they are buying paper.
China has been buying US debt with treasury bonds, now that geopolitics are rapidly changing, consequently to angering China, dollar will lose its Global hegemony.
vi-va
SENIOR MEMBER
- Joined
- Jan 23, 2019
- Messages
- 6,475
- Reaction score
- 3
- Country
- Location
US. National Debt by Year Compared to GDP and Major Events
U.S. Debt-to-GDP Ratio Has Risen Dramatically Since 1929
Updated July 02, 2020
The U.S. national debt is more than $26 trillion. That's greater than the annual economic output of the entire country.
The U.S. began heading toward a debt default after threats to not raise the debt ceiling and the U.S. debt crisis in 2011. It continued with the "fiscal cliff" crisis in 2012 and government shutdown in 2013. While a debt default has yet to happen, the national debt continues to reach unprecedented levels.
Key Takeaways
It's best to look at a country's national debt in context. During a recession, expansionary fiscal policy, such as spending and tax cuts, is often used to spur the economy out of recession. During national threats, the United States increases military spending.
The national debt by year should be compared to the size of the economy as measured by the gross domestic product. That gives you the debt-to-GDP ratio.
You can use the debt-to-GDP ratio to compare the national debt to other countries. It gives you an idea of how likely the country is to pay back its debt.
The government creates debt with either excessive spending or deep tax cuts. If this expansionary fiscal policy boosts growth enough, it can reduce the debt. A growing economy produces more tax revenues to pay back the debt. The theory of supply-side economics says the growth from tax cuts is enough to replace the tax revenue lost. But that only occurs if taxes are too high—more than 50% of income, for example.
When the tax cuts are targeted at corporations and wealthier individuals, critics refers to this theory as "trickle-down economics," arguing that beneficiaries merely pocket the extra cash rather than distributing it to workers—exacerbating the national debt without providing economic stimulus.
Other events can also increase the national debt. For example, the U.S. debt grew after the September 11, 2011 attacks as the country increased military spending to launch the "War on Terror." Between fiscal years 2001 and 2020, those efforts cost $6.4 trillion, including increases to the Department of Defense and the Veterans Administration.3
Debt by Year Compared to Nominal GDP and Events
In the table below, the U.S. debt by year is compared to GDP and national events since 1929. The debt and GDP are given as of the end of the third quarter, September 30, in each year to coincide with the fiscal year. That's the best way to accurately determine how spending in each fiscal year contributes to the debt and to compare it to economic growth.4 5
Please note: From 1947-1976, debt and GDP are given at the end of the second quarter since, during that time, the fiscal year would end on June 30. For years 1929-1946, debt is reported at the end of the second quarter, while GDP is reported annually as quarterly figures are not available.
END OF FISCAL YEAR DEBT DEBT/GDP RATIO MAJOR EVENTS BY PRESIDENTIAL TERM
1929 $17 16% Market crash
1930 $16 18% Hoover signed Smoot-Hawley, reducing trade
1931 $17 22% Dust Bowl drought raged
1932 $19 33% Hoover raised taxes
1933 $23 39% FDR's New Deal increased both GDP and debt
1934 $27 40%
1935 $29 39% Social Security
1936 $34 40% Tax hikes renewed depression
1937 $36 39% Third New Deal
1938 $37 43% Dust Bowl ended
1939 $40 43% Depression ended
1940 $43 42% FDR increased spending and raised taxes
1941 $49 38% U.S. entered WWII
1942 $72 44% Defense tripled
1943 $137 57%
1944 $201 90% Bretton Woods
1945 $259 114% WWII ended
1946 $269 119% Truman's 1st term budgets & recession
1947 $258 105% Cold War
1948 $252 93% Recession
1949 $253 93% Recession
1950 $257 89% Korean War boosted growth and debt
1951 $255 74%
1952 $259 72%
1953 $266 68% Recession when war ended
1954 $271 70% Eisenhower's budgets & Recession
1955 $274 65%
1956 $273 61%
1957 $271 57% Recession
1958 $276 58% Eisenhower's 2nd term & Recession
1959 $285 54% Fed raised rates
1960 $286 53% Recession
1961 $289 52% Bay of Pigs
1962 $298 49% JFK budgets & Cuban missile crisis
1963 $306 48% U.S. aids Vietnam; JFK killed
1964 $312 46% LBJ's budgets & War on poverty
1965 $317 43% U.S. entered Vietnam War
1966 $320 40%
1967 $326 38%
1968 $348 37%
1969 $354 35% Nixon took office
1970 $371 35% Recession
1971 $398 34% Wage-price controls
1972 $427 34% Stagflation
1973 $458 32% Nixon ended gold standard & OPEC oil embargo
1974 $475 31% Watergate & budget process created
1975 $533 32% Vietnam War ended
1976 $620 33% Stagflation
1977 $699 33% Stagflation
1978 $772 32% Carter budgets & recession
1979 $827 31%
1980 $908 32% Volcker raised fed rate to 20%
1981 $998 31% Reagan tax cut
1982 $1,142 34% Reagan increased spending
1983 $1,377 37% Jobless rate 10.8%
1984 $1,572 38% Increased defense spending
1985 $1,823 42%
1986 $2,125 46% Reagan lowered taxes
1987 $2,340 48% Market crash
1988 $2,602 49% Fed raised rates
1989 $2,857 50% Bush 41 budgets & S&L Crisis
1990 $3,233 54% First Iraq War
1991 $3,665 59% Recession
1992 $4,065 62%
1993 $4,411 64% Clinton signed Budget Act
1994 $4,693 64% Clinton budgets
1995 $4,974 65%
1996 $5,225 64% Welfare reform
1997 $5,413 62%
1998 $5,526 61% LTCM crisis & recession
1999 $5,656 58% Glass-Steagall repealed
2000 $5,674 55% Budget surplus
2001 $5,807 55% 9/11 attacks & EGTRRA
2002 $6,228 57% War on Terror
2003 $6,783 59% JGTRRA & Iraq War
2004 $7,379 60% Iraq War
2005 $7,933 60% Bankruptcy Act & Katrina.
2006 $8,507 61% Bernanke chaired Fed
2007 $9,008 62% Bank crisis
2008 $10,025 68% Bank bailout &
QE.
2009 $11,910 ($11,000 on Mar 16 and $12,000 on Nov 16) 83% Bailout cost $250B ARRA added $241.9B
2010 $13,562 ($13,000 on Jun 1 and $14,000 on Dec 31 90% ARRA added $400B. Payroll tax holiday ended. Obama Tax cuts. ACA. Simpson-Bowles
2011 $14,790 ($15,000 on Nov 15) 95% Debt crisis. Recession and tax cuts reduced revenue.
2012 $16,066 ($16,000 on Aug 31) 99% Fiscal cliff
2013 $16,738 ($17,000 on Oct 17) 99% Sequester. Government shutdown
2014 $17,824 ($18,000 on Dec 15) 101% QE ended. Debt ceiling crisis.
2015 $18,151 99% Defense = $736.4B
2016 $19,573 ($19,000 on Jan 29) 104% Defense = $767.6B
2017 $20,245 ($20,000 on Sep 8) 103% Congress raised debt ceiling
2018 $21,516 ($21,000 on Mar 15) 104% Trump tax cuts
2019 $22,776 ($22,000 on Feb 10, $23,000 on Oct 31 ) 106% Defense = $956.5B
2020 $26,600 (est.) ($24,000 on April 7, $25,000 on May 4, $26,000 on June 10) 110% COVID reduced GDP, CARES Act, End of year from CBO Estimates
https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287
Federal Debt to GDP
Please noted, this chart end in Jan. 2020 before Corona virus hit US. Corona virus only add 3 trillions debt in last couple of month, and will continue add another several trillions of debt.
The ratio will be 150% in 2021 - 2022.
U.S. Debt-to-GDP Ratio Has Risen Dramatically Since 1929
Updated July 02, 2020
The U.S. national debt is more than $26 trillion. That's greater than the annual economic output of the entire country.
The U.S. began heading toward a debt default after threats to not raise the debt ceiling and the U.S. debt crisis in 2011. It continued with the "fiscal cliff" crisis in 2012 and government shutdown in 2013. While a debt default has yet to happen, the national debt continues to reach unprecedented levels.
Key Takeaways
- The debt-to-GDP ratio gives insight into whether the United States has the ability to cover all of its debt.
- A combination of recessions, defense budget growth, and tax cuts has raised the national debt-to-GDP ratio to unsustainable levels.
- The United States cannot afford to default on its debt without major global economic consequences.
It's best to look at a country's national debt in context. During a recession, expansionary fiscal policy, such as spending and tax cuts, is often used to spur the economy out of recession. During national threats, the United States increases military spending.
The national debt by year should be compared to the size of the economy as measured by the gross domestic product. That gives you the debt-to-GDP ratio.
You can use the debt-to-GDP ratio to compare the national debt to other countries. It gives you an idea of how likely the country is to pay back its debt.
The government creates debt with either excessive spending or deep tax cuts. If this expansionary fiscal policy boosts growth enough, it can reduce the debt. A growing economy produces more tax revenues to pay back the debt. The theory of supply-side economics says the growth from tax cuts is enough to replace the tax revenue lost. But that only occurs if taxes are too high—more than 50% of income, for example.
When the tax cuts are targeted at corporations and wealthier individuals, critics refers to this theory as "trickle-down economics," arguing that beneficiaries merely pocket the extra cash rather than distributing it to workers—exacerbating the national debt without providing economic stimulus.
Other events can also increase the national debt. For example, the U.S. debt grew after the September 11, 2011 attacks as the country increased military spending to launch the "War on Terror." Between fiscal years 2001 and 2020, those efforts cost $6.4 trillion, including increases to the Department of Defense and the Veterans Administration.3
Debt by Year Compared to Nominal GDP and Events
In the table below, the U.S. debt by year is compared to GDP and national events since 1929. The debt and GDP are given as of the end of the third quarter, September 30, in each year to coincide with the fiscal year. That's the best way to accurately determine how spending in each fiscal year contributes to the debt and to compare it to economic growth.4 5
Please note: From 1947-1976, debt and GDP are given at the end of the second quarter since, during that time, the fiscal year would end on June 30. For years 1929-1946, debt is reported at the end of the second quarter, while GDP is reported annually as quarterly figures are not available.
END OF FISCAL YEAR DEBT DEBT/GDP RATIO MAJOR EVENTS BY PRESIDENTIAL TERM
1929 $17 16% Market crash
1930 $16 18% Hoover signed Smoot-Hawley, reducing trade
1931 $17 22% Dust Bowl drought raged
1932 $19 33% Hoover raised taxes
1933 $23 39% FDR's New Deal increased both GDP and debt
1934 $27 40%
1935 $29 39% Social Security
1936 $34 40% Tax hikes renewed depression
1937 $36 39% Third New Deal
1938 $37 43% Dust Bowl ended
1939 $40 43% Depression ended
1940 $43 42% FDR increased spending and raised taxes
1941 $49 38% U.S. entered WWII
1942 $72 44% Defense tripled
1943 $137 57%
1944 $201 90% Bretton Woods
1945 $259 114% WWII ended
1946 $269 119% Truman's 1st term budgets & recession
1947 $258 105% Cold War
1948 $252 93% Recession
1949 $253 93% Recession
1950 $257 89% Korean War boosted growth and debt
1951 $255 74%
1952 $259 72%
1953 $266 68% Recession when war ended
1954 $271 70% Eisenhower's budgets & Recession
1955 $274 65%
1956 $273 61%
1957 $271 57% Recession
1958 $276 58% Eisenhower's 2nd term & Recession
1959 $285 54% Fed raised rates
1960 $286 53% Recession
1961 $289 52% Bay of Pigs
1962 $298 49% JFK budgets & Cuban missile crisis
1963 $306 48% U.S. aids Vietnam; JFK killed
1964 $312 46% LBJ's budgets & War on poverty
1965 $317 43% U.S. entered Vietnam War
1966 $320 40%
1967 $326 38%
1968 $348 37%
1969 $354 35% Nixon took office
1970 $371 35% Recession
1971 $398 34% Wage-price controls
1972 $427 34% Stagflation
1973 $458 32% Nixon ended gold standard & OPEC oil embargo
1974 $475 31% Watergate & budget process created
1975 $533 32% Vietnam War ended
1976 $620 33% Stagflation
1977 $699 33% Stagflation
1978 $772 32% Carter budgets & recession
1979 $827 31%
1980 $908 32% Volcker raised fed rate to 20%
1981 $998 31% Reagan tax cut
1982 $1,142 34% Reagan increased spending
1983 $1,377 37% Jobless rate 10.8%
1984 $1,572 38% Increased defense spending
1985 $1,823 42%
1986 $2,125 46% Reagan lowered taxes
1987 $2,340 48% Market crash
1988 $2,602 49% Fed raised rates
1989 $2,857 50% Bush 41 budgets & S&L Crisis
1990 $3,233 54% First Iraq War
1991 $3,665 59% Recession
1992 $4,065 62%
1993 $4,411 64% Clinton signed Budget Act
1994 $4,693 64% Clinton budgets
1995 $4,974 65%
1996 $5,225 64% Welfare reform
1997 $5,413 62%
1998 $5,526 61% LTCM crisis & recession
1999 $5,656 58% Glass-Steagall repealed
2000 $5,674 55% Budget surplus
2001 $5,807 55% 9/11 attacks & EGTRRA
2002 $6,228 57% War on Terror
2003 $6,783 59% JGTRRA & Iraq War
2004 $7,379 60% Iraq War
2005 $7,933 60% Bankruptcy Act & Katrina.
2006 $8,507 61% Bernanke chaired Fed
2007 $9,008 62% Bank crisis
2008 $10,025 68% Bank bailout &
QE.
2009 $11,910 ($11,000 on Mar 16 and $12,000 on Nov 16) 83% Bailout cost $250B ARRA added $241.9B
2010 $13,562 ($13,000 on Jun 1 and $14,000 on Dec 31 90% ARRA added $400B. Payroll tax holiday ended. Obama Tax cuts. ACA. Simpson-Bowles
2011 $14,790 ($15,000 on Nov 15) 95% Debt crisis. Recession and tax cuts reduced revenue.
2012 $16,066 ($16,000 on Aug 31) 99% Fiscal cliff
2013 $16,738 ($17,000 on Oct 17) 99% Sequester. Government shutdown
2014 $17,824 ($18,000 on Dec 15) 101% QE ended. Debt ceiling crisis.
2015 $18,151 99% Defense = $736.4B
2016 $19,573 ($19,000 on Jan 29) 104% Defense = $767.6B
2017 $20,245 ($20,000 on Sep 8) 103% Congress raised debt ceiling
2018 $21,516 ($21,000 on Mar 15) 104% Trump tax cuts
2019 $22,776 ($22,000 on Feb 10, $23,000 on Oct 31 ) 106% Defense = $956.5B
2020 $26,600 (est.) ($24,000 on April 7, $25,000 on May 4, $26,000 on June 10) 110% COVID reduced GDP, CARES Act, End of year from CBO Estimates
https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287
Federal Debt to GDP
Please noted, this chart end in Jan. 2020 before Corona virus hit US. Corona virus only add 3 trillions debt in last couple of month, and will continue add another several trillions of debt.
The ratio will be 150% in 2021 - 2022.
LeGenD
MODERATOR
- Joined
- Aug 28, 2006
- Messages
- 15,813
- Reaction score
- 162
- Country
- Location
1. US have stockpiled a huge amount of gold in Fort Knox and other locations by now:
Related: http://www.usfunds.com/investor-library/frank-talk/top-10-countries-with-largest-gold-reserves/
THEY are definitely preparing for the worse (an uncertain future) - a potential global economic reset - the ultimate CARD which they will play when the time is right. Many countries will be caught with their pants down unfortunately.
Germany, Italy, France, Russia, and China are not taking their chances however - wiser minds in short.
2. Nixon administration decided to decouple USD from the Gold standard due to one underlying reason: American gold reserves had almost diminished by 1970 (Vietnam War and Johnson's "War on Poverty" program being the two major contributing factors to this end) - terminating the Bretton Woods arrangement in short (Nixon Shock).
The Bretton Woods arrangement at a glance:
"Technically, gold is the asset by which nations pay their debts to one another. But practically, under the rules of the 118-nation International Monetary Fund, which evolved from the Bretton Woods conference, dollars are actually the medium of exchange through which nations settle those debts. The system was made possible by a promise from the U.S. Treasury to redeem dollars for gold at $35 an ounce. Because of that promise, IMF member nations had been assured that whenever they wanted gold in exchange for the dollars that they held as payment of debts, all they had to do was ask the Treasury Department in Washington."
Link: https://time.com/4444172/gold-standard-history/
The international monetary system after World War II was dubbed the Bretton Woods system after the meeting of forty-four countries in Bretton Woods, New Hampshire, in 1944. The countries agreed to keep their currencies fixed (but adjustable in exceptional situations) to the dollar, and the dollar was fixed to gold. Since 1958, when the Bretton Woods system became operational, countries settled their international balances in dollars, and US dollars were convertible to gold at a fixed exchange rate of $35 an ounce. The United States had the responsibility of keeping the dollar price of gold fixed and had to adjust the supply of dollars to maintain confidence in future gold convertibility.
LINK: https://www.federalreservehistory.org/essays/gold_convertibility_ends
The OPEC oil embargo (1973 - 74) was the final straw that broke the camel's back:
1) https://www.history.com/this-day-in-history/opec-enacts-oil-embargo
2) https://www.federalreservehistory.org/essays/oil_shock_of_1973_74
3) https://bancroft.berkeley.edu/ROHO/projects/debt/oilcrisis.html
4) https://www.federalreservehistory.org/essays/gold_convertibility_ends
Although American economy suffered a significant depression due to COMBINED IMPACT of the Vietnam War and Johnson's "War On Poverty" program, OPEC oil embargo (1973 - 74) failed to crash American economy and/or blackmail USA.
Related: https://www.nytimes.com/2016/03/13/...bia-turned-its-greatest-weapon-on-itself.html
Americans were like: WE ARE READY TO EAT GRASS for a while but WE WILL TEACH YOU ****** a lesson as well.
Nixon administration decoupled USD from the Gold standard (Nixon Shock) and Americans were thinking long-term; they decided to explore ways to extract Oil and Gas from the mainland which required a different technique now identified as "Fracking." The consequent Shale Revolution did not materialize overnight but eventually took off in the current century.
American Oil and Gas reserves and extraction zones highlighted in the following links:
1) https://www.eia.gov/special/shaleplays/
2) https://www.fractracker.org/map/national/us-oil-gas/
3) https://www.usgs.gov/centers/cersc/...ce_center_objects=0#qt-science_center_objects
3. American Gold reserved rebounced eventually:
----
Potential Lessons?
1. USA is an economic juggernaut built upon a huge number of productive organizations and brilliant minds over the course of years - the ultimate Anglo-Saxon experiment which delivered beyond their expectations. Do not underestimate this entity and its works. THEY will respond to (any) move intended to undermine their "global interests." Anybody who did not get the memo by now, need to wake the hell up.
2. OPEC should not have weaponized its leverage out of emotion - bad decision.
OPEC is risking becoming irrelevant to large extent in the near future because Americans are now pushing the world towards the direction of "Electric Revolution." TESLA was a major step towards this end.
Venezuela is already SMOKED.
OPEC members are coming to terms with the inevitable and in search of ways to save themselves. Notable examples:
Kingdom of Saudi Arabia (KSA) = Muhammad Bin Salman attempting to establish Saudi industries to diversify Saudi economic activity in the long-term.
Russia = Stockpiling GOLD just in case.
3. The National Debt?
THEY have a PLAN for this matter as well. You will see.
Muhammed45
ELITE MEMBER
- Joined
- Oct 2, 2015
- Messages
- 10,321
- Reaction score
- -18
- Country
- Location
Americans are already eating grass sleeping on the streets. Currently USA has the biggest number homeless people with no hope in the future.1. US have stockpiled a huge amount of gold in Fort Knox and other locations by now:
Related: http://www.usfunds.com/investor-library/frank-talk/top-10-countries-with-largest-gold-reserves/
THEY are preparing for the worse - a potential global economic reset - the ultimate CARD which they will play when the time is right. Many countries will be caught with their pants down unfortunately.
Germany, Italy, France, and Russia are not taking their chances either.
2. Nixon administration decided to decouple USD from the Gold standard due to one underlying reason: American gold reserves had almost diminished by 1970 (Vietnam War and Johnson's "War on Poverty" program being the two major contributing factors to this end) - terminating the Bretton Woods arrangement in short (Nixon Shock).
The Bretton Woods arrangement at a glance:
"Technically, gold is the asset by which nations pay their debts to one another. But practically, under the rules of the 118-nation International Monetary Fund, which evolved from the Bretton Woods conference, dollars are actually the medium of exchange through which nations settle those debts. The system was made possible by a promise from the U.S. Treasury to redeem dollars for gold at $35 an ounce. Because of that promise, IMF member nations had been assured that whenever they wanted gold in exchange for the dollars that they held as payment of debts, all they had to do was ask the Treasury Department in Washington."
Link: https://time.com/4444172/gold-standard-history/
The international monetary system after World War II was dubbed the Bretton Woods system after the meeting of forty-four countries in Bretton Woods, New Hampshire, in 1944. The countries agreed to keep their currencies fixed (but adjustable in exceptional situations) to the dollar, and the dollar was fixed to gold. Since 1958, when the Bretton Woods system became operational, countries settled their international balances in dollars, and US dollars were convertible to gold at a fixed exchange rate of $35 an ounce. The United States had the responsibility of keeping the dollar price of gold fixed and had to adjust the supply of dollars to maintain confidence in future gold convertibility.
LINK: https://www.federalreservehistory.org/essays/gold_convertibility_ends
The OPEC oil embargo (1973 - 74) was the final straw that broke the camel's back:
1) https://www.history.com/this-day-in-history/opec-enacts-oil-embargo
2) https://www.federalreservehistory.org/essays/oil_shock_of_1973_74
3) https://bancroft.berkeley.edu/ROHO/projects/debt/oilcrisis.html
4) https://www.federalreservehistory.org/essays/gold_convertibility_ends
Although American economy suffered a significant depression due to COMBINED IMPACT of the Vietnam War and Johnson's "War On Poverty" program, OPEC oil embargo (1973 - 74) failed to crash American economy and/or blackmail USA.
Related: https://www.nytimes.com/2016/03/13/...bia-turned-its-greatest-weapon-on-itself.html
Americans were like: WE ARE READY TO EAT GRASS for a while but WE WILL TEACH YOU ****** a lesson as well.
Nixon administration decoupled USD from the Gold standard (Nixon Shock) and Americans were thinking long-term; they decided to explore ways to extract Oil and Gas from the mainland which required a different technique now identified as "Fracking." The consequent Shale Revolution did not materialize overnight but eventually took off in the current century.
American Oil and Gas reserves and extraction zones highlighted in the following links:
1) https://www.eia.gov/special/shaleplays/
2) https://www.fractracker.org/map/national/us-oil-gas/
3) https://www.usgs.gov/centers/cersc/...ce_center_objects=0#qt-science_center_objects
3. American Gold reserved rebounced eventually:
----
Potential Lessons?
1. USA is an economic juggernaut built upon a huge number of productive organizations and brilliant minds over the course of years - the ultimate Anglo-Saxon experiment which delivered beyond their expectations. Do not underestimate this entity and its works. THEY will respond to (any) move intended to undermine their "global interests." Anybody who did not get the memo by now, need to wake the hell up.
2. OPEC should not have weaponized its leverage out of emotion.
OPEC is risking becoming irrelevant to large extent in the near future because Americans are now pushing the world towards the direction of "Electric Revolution." TESLA was a major step towards this end.
OPEC members are coming to terms with the inevitable and in search of ways to save themselves. Notable examples:
Venezuela = SMOKED in short.
Kingdom of Saudi Arabia (KSA) = Muhammad Bin Salman attempting to establish Saudi industries to diversify Saudi economic activity in the long-term.
Russia = Stockpiling GOLD just in case.
UN reports about Human Rights in USA are mostly biased. There is a report that says homelessness in USA is not only issue of poverty but also the fact that American economy is designed to protect interests of oligarcgs at expense of poor people.
Truth is that 2 million will die of hunger without charity, almost 1.5 million of them are sleeping on the streets. At least 2 million American students have experienced homeleness.
Honestly i can't understand the functionality of those statistics which defy the Ground reality. After eating grass they are eating Asphalt of the streets apparently.
LeGenD
MODERATOR
- Joined
- Aug 28, 2006
- Messages
- 15,813
- Reaction score
- 162
- Country
- Location
Bro,Americans are already eating grass sleeping on the streets. Currently USA has the biggest number homeless people with no hope in the future.
UN reports about Human Rights in USA are mostly biased. There is a report that says homelessness in USA is not only issue of poverty but also the fact that American economy is designed to protect interests of oligarcgs at expense of poor people.
Truth is that 2 million will die of hunger without charity, almost 1.5 million of them are sleeping on the streets. At least 2 million American students have experienced homeleness.
Honestly i can't understand the functionality of those statistics which defy the Ground reality. After eating grass they are eating Asphalt of the streets apparently.
What I shared with you, is the ultimate truth and reality. Many observers (speculators) are telling half-baked truths because they are TASKED to draw attention away from American measures and contingency plans. Speculators also do the needful because they want to profit from their works.
I am no expert but I have studied economics and accounting, and I am able to connect the dots better than those who have not - education is important consideration (always have been). Those who live in New York City and work in the Wall Street will easily grasp my points and expand on them.
Poverty is everywhere - it cannot be completely eradicated. External causes notwithstanding, there are scores of people who do not work hard enough or get involved in unproductive ways of living.
American Food Assistance program was introduced to feed all those in need: https://www.usa.gov/food-help
Economic indicators are never positive or glossy through the years because there will always be EXTERNAL SHOCKS in the view - Keynesian theory is a good start. This is why contingency measures are essential. American economy is in shock once again due to ongoing CORONA effect - unemployment statistics have understandably spiked in relation. But this is a temporary setback.
Prince Kassad
BANNED
- Joined
- Apr 19, 2020
- Messages
- 740
- Reaction score
- -37
- Country
- Location
US natural reserves and assets is over 280 TRILLION ( 2018 ) now must be more. so what is 23 trillio to 280 trillion?
Similar threads
Latest posts
-
Bajwa calls Bushra's allegations against Saudi Arabia 'baseless'
- Latest: Novus ordu seclorum
-
-
-
Pakistan Affairs Latest Posts
-
Bajwa calls Bushra's allegations against Saudi Arabia 'baseless'
- Latest: Novus ordu seclorum
-
-
-
-
