| Subject: | Re: [socialcredit] more on the State Theory | | Date: | Thursday, May 17, 2007 00:28:59 (+1200) | | From: | William Hugh McGunnigle <wmcgunn @.........nz>
|
| In reply to: | Message 4744 (written by william_b_ryan) |
Clarifying the position with respect to American Dollars and the purchase of
oil.
One of the conditions set up by the Bretton Wood's agreement in 1944 and
later established, I believe, in 1947-8 was that oil, which was fast
becoming the dominant factor in world trade, would be invoiced in American
Dollars for the sake of price stability. This favoured the international oil
companies because it meant that they did not need to hold stocks of currency
for every country that traded in oil, but simply held an account in some
country like Switzerland invoiced in American dollars from which it made its
bids for oil on the world market. Effectively the American dollar became the
world's principle reserve currency. Sterling was pegged at a set rate
against the US dollar and these two currencies now control world trade.
History has shown that although this appears to be an excellent idea
there appears to have been manipulation by certain central reserve banks to
ensure that excessive inflation in the USA can be "exported" from that
country by manipulation of the oil price. Significantly rulers that treaten
this cosy arrangement by trying to invoice their oil in other currencies
come under pressure to revert to the status quo ante.
While this position may be agreeable to certain financial organisations,
there is increasing evidence that it is putting considerable pressure on the
government of the USA to embark upon certain types of military action to
ensure that it remains so. The USA also faces a very disturbing problem of
deskilling and loss of manufacturing capacity. Much of its present domestic
produce (61%) is now manufactured outside the USA in places like China and
India. Refered to as "outsourcing". This means that the manufacturing base,
which was the mainstay for the value of the US dollar, now no longer exists,
and that it is very vunerable to pressure from those countries that are now
its supplier of goods. The deficits accumulated by the US government that
have been needed to maintain the currency supply to maintain oil trade could
be the source of a world wide trade collapse if the dollar loses its
position as the trading currency for oil. World trade is on a knife edge at
present, and I, personally, cringe at the prospect of a vast depression that
would be caused by the collaspe of the dollar.
Bill Mc G
----- Original Message -----
From: <william_b_ryan@yahoo.com>
To: <socialcredit@elistas.com>
Sent: Wednesday, May 16, 2007 10:00 AM
Subject: [socialcredit] more on the State Theory
> On May 15, 4:23 pm, "The Trucker" <mik...@verizon.net>
> wrote:
>
> "There is little but taxation and the force of the USA
> in insisting that dollars must be used to buy oil that
> gives the US dollar any value at all."
> --------------------------------------
> ---------------------------------------
>
> Dollars have value because sellers will accept them
> when tendered for what they are selling. By "dollars"
> we mean deposits denominated in dollars that are
> created by commercial banks when they grant loans.
>
> Taxation is the analogue to sales by a commercial
> enterprise.
>
> A firm with little prospect for sales would have
> little credit with the commercial banks.
>
> The same is true for governments with little prospect
> for tax collections.
>
> Where is your evidence that the government of the USA
> "insists" that dollars must be used to buy oil?
>
> Isn't it rather due to the fact that the domestic
> product of the USA is very nearly greater than all the
> rest of the world's economies combined?*
>
> It is the domestic product of the USA that gives value
> to its dollar in international transactions.
> -
>
> * I know this is an exageration but you see the point.
>
>
>
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