Goldseek article "Weapons of Monetary Destruction"

Discussion in 'Metal Futures' started by harrytrader, Apr 25, 2003.

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    "Among the most effective instruments for provisioning the army in the field was the use of hard currency. Darius I(about 500 B.C.E.) was the first Persian monarch to coin money, using as a standard the daric coin weighing 130 grains of gold. Supported by the enormous Persian gold reserves, the daric became famous for its purity and stability. It became the only gold currency of the ancient world and could be spent anywhere. The use of a precise standard of weights and measures needed for coinage also had an effect in terms of the ability to obtain military supplies in precise amounts and weights. Unlike earlier times when armies on the march confiscated what they needed to the detriment of the local economy, the Persians could purchase what they needed with a universally accepted currency." (Richard A. Gabriel, The Great Armies of Antiquity(Westport: Praeger, 2002), 165.)

    An accepted currency of exchange was established as important to armies about 2,500 years ago. Our armies no longer need to buy feed for their pack animals. They do however needs lots of oil and other things that come from foreign producers. And even that which the nation produces itself requires inputs from foreign sources. Our trade deficit in technology is greater than many imagine. The nation's ability to buy those essential goods and services depends in large part on the value of the U.S. dollar in foreign exchange markets.

    Remember that our goal here is only intended to introduce the subject. The vulnerability of the U.S. to monetary black mail must be given further consideration given U.S. reliance on foreign funding of the current account deficit and federal deficit. The nation's ability to import goods and services relies on the willingness of foreign central bankers and investors to hold dollar denominated assets.

    If foreign central banks, for whatever reason, decide to not hold more dollars the value of the dollar will fall on foreign exchange markets. The price of all those imports will rise. Interest rates will have to increase. A deeper recession will follow. An economy deep in another recession, with housing prices crumbling, will have trouble buying those "things" the armies need. The money for the high tech army may simply not be available.

    You want a reason ? Instability of the world due to terrorism threats => contraction of world exchange => commercial wars between continents => use of financial weapons.

    Of course it is a pretext since these bankers have no patries and are internationalists. Wars between nations are pretext to pump public finance through adding debts to all nations and interests are paid to them and do not return to the public mass or so few. The public mass are just used to buy the bonds when they have been inflated.
  2. What's the deal harry? I thought I was bein quite reasonable with you, and yet you start this thread with nearly the same post as where you left off - not replying to my post - in the last. Comon' let me in on this thing, I know your up to something.
  3. I understand the problem. What do we do about it?