Search? Click Here
Join the BUGS Team! Post on the internet along with us to fight White Genocide!

When Will America Run Out of Credit Abroad?

Posted by Bob on March 11th, 2010 under Coaching Session


It is a LONG time since I made my living as an economist. In aircraft negotiation I was officially an economist.

America now is a lot like Spain in the sixteenth century. Spain put all its effort into producing gold while other countries developed exports which immediately took all the gold. The United States has exactly the same source of wealth Spain did with its colonies, though it looks entirely different.

Gold was money. The United States produces money. It is true that China holds $700 billion in US money and bonds, but this is not the weapon you might think.

No, Virginia, China is not sitting there thinking how their vast US dollar gives them the power to destroy the white devils. If the dollar is destabilized, China loses seven hundred billion dollars it cannot afford to lose.

As I say, it is a long time since I really kept up with these things, but in 2008, when we had our monetary crisis our stock market dropped,. But it was a greater catastrophe abroad. Including in the Euro area, especially in the Euro area.

We got scared. They PANICKED.

It is hard to think of US dollars as like any other export. But US dollars underlie the world economy exactly the same way Spanish gold did. Money is a GOOD.

I remember laughing to myself at a deal China and Russia made about 1960. They were exchanging things, and there would be a gap, so they agree to settle that gap at six hundred million DOLLARS. I remember in Communist countries themselves there were foreign currency only shops where the local money was no good. For years after the collapse of the USSR dollars were called “the green ruble” and when you went to an ATM in Moscow they would ask if you wanted your money in dollars or rubles.

We know all this, but no one THINKS about it. The media, which is constantly preaching how much better Europe is than America, also preached about the superiority of Communist countries even more. So Europe’s out of control debt and the one long recession it has had for a generation is never mentioned, much less considered.

In 1960 no one even noticed that the USSR and China would not even consider dealing with each other in anything but dollars. But it is a lot like noticing if the United States and Britain refused to deal with each other in 1943 in anything but Reichmarks!

So we run deficits, big ones. Our production base is, as is said, disappearing, as Spain’s didn’t develop when its main product was gold. So people expect a collapse of the dollar.

It is true you can only export so much paper, but due to the Eurocentric media, people do not understand the other factors working here. If the dollar destabilizes, it is a disaster for those who hold all those trillions.

Obama’s economic policy scares Americans. But his policy has been standard in Europe. The Euro is worth more than American dollars, but who would HOLD Euros as a BASIC currency? You can be damned sure Europeans wouldn’t.

Money is a VERY conservative commodity. The dollar has a history. Despite all the talk, few doubt that the dollar will be worth SOMETHING twenty years from now. The Euro, the only possible competition, depends on Germany, Spain, France, Italy, and whatever parts of Eastern Europe join the Euro area in coming years to all work in concert.

It is true that our industrial based has the same problem Spain’s did. But in the time of Spanish gold, industry was the way of the future. Industry is now the way of the past. I get the impression that Japan is producing as little of its exports cars as we do. Those are built in Korea or India and assembled in Japan paying Japanese labor, if indeed they ARE even assembled in Japan now.6

I wonder how many “Japanese” imported cars ever saw Japan?

It is hard for us to realize that it has always been a major problem for non-Americans to find a place to put their money safely. It was a conjecture in the 1960s that, despite the statement that norteamericanos owned everything in Latin America, the total investment by South Americans in the US was higher than ours in them. NOBODY kept his money in South America except as a temporary investment. The routine Brazilian inflation rate over fifty percent annually.

For years Central America has been trying to get a common currency. I don’t know if they have succeeded yet. But that is the important point: I don’t KNOW.

How many Americans know the NAME of the Chinese currency?

The American word “dollar” is as universal as the American word “OK.” Money is PSYCHOLOGY, and it will take generations before any other currency gets into the world’s mind the way the one we are pumping out does.

I always marvel at the endless trade deficits we run. What is allowing us to do that? I have just explained what does.

No one can understand today’s international economics without thinking about this. Economists don’t really think about this.

Facebooktwitterredditpinterestlinkedinmail
  1. #1 by Dave on 03/11/2010 - 10:42 am

    The reason the dollar is dominant is very meaningful for white people in America.

    No one wants to borrow money they can’t earn.

    America’s markets are open to the world and the world’s markets aren’t open to America.

    Everybody runs a trade surplus with America, because America ALLOWS IT, ceding domestic market share to foreigners.

    Europeans won’t tolerate this. Neither will Asians. Neither will Africans. Neither will South Americans.

    The US Dollar is the world’s reserve currency because America allows everybody to earn dollars.

    Accordingly, global trade is denominated in dollars because dollars are the cheapest currency for hedging foreign exchange risk because everybody is allowed to earn dollars by penetrating America’s domestic markets.

    China doesn’t want the Yuan to be a world reserve currency because it would have to open its markets to accomplish that. Japan doesn’t want the Yen to be a world reserve currency because it would have to open its markets to accomplish that. Europeans don’t want the Euro to become a world reserve currency because Europe would have to open their markets to accomplish that.

    Get the picture? Leave out the Europeans for a moment (they protect themselves better than white in people Anglo-Saxon countries) and you get: “Asia for the Asians, Africa for the Africans, and White Countries for Everybody.”

    That is American policy and the REAL REASON the dollar is the world’s reserve currency.

  2. #2 by Gator61 on 03/11/2010 - 11:16 am

    That reminds me of a bit of history that I’ve noticed but everyone seems to ignore.

    In the 15th century the Middle East and the Muslims grew rich by sitting in the middle of the trade routs with the east. They in effect controlled the transportation of goods.

    Europe broke that monopoly by sailing west and discovering new routs. The result was that the middle east and the Muslim world declined in power and importance.

    Today the Middle East and the Muslim world is growing rich and powerful bay sitting on top of the a large portion of the the world’s oil reserves. In effect controlling the transportation of goods.

    The solution to this situation seems simple enough. We need to sail west again, not to discover new trade routs, but to find alternatives to oil.

    When we do, all all the Middle Eastern countries will decline in power and importance.

  3. #3 by Simmons on 03/11/2010 - 11:17 am

    The bifurcated economy, we peasants scramble for dollars making them valuable, the plutocrats non-suprisingly comprised mostly of jews enjoy unlimited access to dollars that by our somewhat desperate straits of deflation and the foreigners as Dave describes needs make those plutocrat trillions $s valuable.

    Let the jews play with dollars I think we Aryans are moving beyond money, but if the colored masses want fancy baubles and it makes their little selves feel better let bernanke and geithner create dollars.

  4. #4 by backbaygrouch4 on 03/12/2010 - 8:03 am

    The dollar as a reserve currency would last longer if the Fed and Treasury were run by Christians. The creation of privately issued “dollars” by means of hedge funds and “Credit Swaps” undermines the whole system. Not sure exactly what to call it. The M17 money supply? As opposed the M1, M2, M3…..? How many different ways are there for the casino operators to game the system today? As big a danger as the printing press is, the utter crookedness of the Jewish clique that has a stranglehold on the levers of America’s fiscal and monetary institutions is an even greater threat.

You must be logged in to post a comment.