Part One: The havoc of the Petrol Dollar.
US treasuries or bonds is a worldwide ponzi scheme to suck in the wealth and riches of all other countries. USA is a very heavily indebted country. It has a national debt of about $US 26 trillion. So US sells treasuries to other countries to keep its economy afloat. China and Japan hold about two trillion and one trillion American bonds or treasuries respectively. Practically almost every other country holds some billions or hundreds of millions of US treasuries.
The ponzi scheme works because of the American toxic Petrol Dollar. It all began in 1973 because of the demise of the previous Bretton Woods Agreement of the Gold Standard where every American dollar was once solidly backed by gold and where every ounce of gold was pegged at $US35,00. In short if you hold three hundred and fifty billion American dollars you can demand payment from US government in real solid gold to the equivalent value of that amount at the exchange rate of $US35 per ounce of gold.
However, since 1973 the US dollar is no more supported by gold or other precious metals or resources. The dollar is then known as the Petrol Dollar. US tricked and armed twisted Saudi Arabia and other Arab oil producing countries in the Middle East to trade and sell oil or purchase other products only with $US dollars only. So eventually every country which wants to buy oil or trade with America and other countries must first buy $US dollars. America's Private Federal Reserve Bank just need to print all the billions or trillions of paper notes to meet this demand. It means US has actually been paying nothing for its trade with the world. The buying or selling or trading via the $US dollar must go through "SWIFT" the American control International Monetary Exchange. American dollars is now just fiduciary issues with no gold or asset backing.
America is now using the Petrol Dollar as a weapon to contain and constrain China's economic development. It denies China the right to buy US assets or companies under the fake distorted reason of for national security. America and its allies Australia, Britain, France and Germany are colluding to deny China to invest in their companies or assets. America needs Chinese loans to bail out its economy but will not allow Chinese companies to buy its failed companies. So China can continue to hold the toxic Petrol Dollar but unable to use it.
China may want to unload the Petrol Dollars and sell back the treasuries to US. Here comes the catch. As the saying goes "If you owe the bank one million dollars, you have a problem, but if you owe the bank one hundred billion dollars the bank has a problem. China is now in this situation and America doesn't care. Even if China manages to sell the toxic bonds US Federal Reserves will just print the dollars to pay China and it comes back to square one. The only plausible avenue to get rid of the petrol dollars is to use it to buy gold and silver and other resources and then work out a solution to destroy the Petrol Dollar.
Russia has already got rid of almost eighty percent of the American treasuries. China and Russia and some other countries are already using their own currencies for trade to by pass the Petrol Dollar. The BRIC countries are working together to slowly getting rid of the Petrol Dollar. In fact many countries are already using the Chinese Yuan or swap their currencies for mutual trading.
PART Two : SANCTIONS
The Petrol Dollar enables America to use "SANCTIONS" to play havoc with other countries economy. When America sanctions your country it means you cannot conduct trading and commerce with other countries and vice versa. This is economic strangulation to destroy your country. It is a sort of collective punishment for the whole population of the country. Sanctions impoverish the country and make the people suffer. China was sanctioned by US and its allies for almost three decades after the Second World War. In early 1990s American sanctions wrecked the Soviet Russia's economy and caused the break up of the USSR. DPRk and Iran are now under US and its allies sanctions. However Russia and China being big continental countries can sustain with the strength of their huge internal economy. Iran and DPRK fortunately now has the strong support of Russia and China. But Venezuella is now a victim of American sanction and is now suffering badly .
US using Tariffs as a weapon
US is unable to compete with China in fair trade even though China is trading under American impose rules and regulations. In the last four decades American companies have flocked to China to take advantage of cheap labour. American companies have made hundreds of billions of profits every year. They re-export the products make in China to America and the Americans benefit greatly from cheap Chinese products. Now the American government claim that China is indulging in unfair trade because US has a trade deficit with China of a few hundred billion dollars every year. Actually this trade deficit is due to America's refusal to sell China high tech industries and products. Other than commercial aircrafts and a few agricultural products like soyabeans, corn, fruits, poultry and beef or pork they have practically nothing worth to sell to China. Moreover they bar China from investing in almost all their big conglomerate commercial companies claiming it on grounds of security reasons. So Trump and his pack of extreme China haters impose high tariffs on practically every Chinese product to stop China from selling to America. It is another wicked set up to punish the Chinese people collectively. However they cannot do much harm to China now because not only China now has a huge consumer population but also China now trades with almost every country in the world and is now also the biggest importer and exporter to almost all these countries.
By weaponising the American petrol dollar and using sanctions and tariffs as additional weapons US is actually building its own death knell for eventual self-destruction. All these wicked schemes have galvanized victimised countries to become more resolved, more resilient and more self-reliant.
Southernglory1
Thursday, 6th September,2018
US using Tariffs as a weapon
US is unable to compete with China in fair trade even though China is trading under American impose rules and regulations. In the last four decades American companies have flocked to China to take advantage of cheap labour. American companies have made hundreds of billions of profits every year. They re-export the products make in China to America and the Americans benefit greatly from cheap Chinese products. Now the American government claim that China is indulging in unfair trade because US has a trade deficit with China of a few hundred billion dollars every year. Actually this trade deficit is due to America's refusal to sell China high tech industries and products. Other than commercial aircrafts and a few agricultural products like soyabeans, corn, fruits, poultry and beef or pork they have practically nothing worth to sell to China. Moreover they bar China from investing in almost all their big conglomerate commercial companies claiming it on grounds of security reasons. So Trump and his pack of extreme China haters impose high tariffs on practically every Chinese product to stop China from selling to America. It is another wicked set up to punish the Chinese people collectively. However they cannot do much harm to China now because not only China now has a huge consumer population but also China now trades with almost every country in the world and is now also the biggest importer and exporter to almost all these countries.
By weaponising the American petrol dollar and using sanctions and tariffs as additional weapons US is actually building its own death knell for eventual self-destruction. All these wicked schemes have galvanized victimised countries to become more resolved, more resilient and more self-reliant.
Southernglory1
Thursday, 6th September,2018
