BATMAN
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US debt statistics shows that each American citizen owes the world one million dollar.
The big problem is that today US economy is tied with petro dollars. US have agreements with OPEC that they will trade oil in dollars.
This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar 'artificial' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers and the other states have confidence in the US dollar the system functions.
Other wise statistics shows all dollar based ecomomies have depriciated twice since 2003 basically there is no point for govt. to keep FE reserves in dollars.
Russia, Europe and China has already diversified their FE reserves, eventually more states will be joining in and leading to graduall collapse.
US is desperately looking for countries with large FE reserves in order to make them dependent on US.
This situation reminds me of Italy in second world war who spent all its resources in building war machhinery and eventuall had no money left for other things and hence was forced to wage war on various europen nations to grab their wealth. Today, I see US at same position in few years time it will have no other choice to wage more wars with mineral rich countries.
The big problem is that today US economy is tied with petro dollars. US have agreements with OPEC that they will trade oil in dollars.
This system of the US dollar acting as global reserve currency in oil trade keeps the demand for the dollar 'artificial' high. This enables the US to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports. There is no theoretical limit to the amount of dollars that can be printed. As long as the US has no serious challengers and the other states have confidence in the US dollar the system functions.
Other wise statistics shows all dollar based ecomomies have depriciated twice since 2003 basically there is no point for govt. to keep FE reserves in dollars.
Russia, Europe and China has already diversified their FE reserves, eventually more states will be joining in and leading to graduall collapse.
US is desperately looking for countries with large FE reserves in order to make them dependent on US.
This situation reminds me of Italy in second world war who spent all its resources in building war machhinery and eventuall had no money left for other things and hence was forced to wage war on various europen nations to grab their wealth. Today, I see US at same position in few years time it will have no other choice to wage more wars with mineral rich countries.