- Since August 15, 1971, when President Nixon closed the gold window and refused to pay out any of our remaining 280 million ounces of gold (ed: in exchange for dollars like we promised we would), the U.S. dollar has operated as a pure fiat currency.... In essence, we declared our insolvency in 1971.
- Everyone recognized some other monetary system had to be devised in order to bring stability to the markets. ...elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC in the 1970s to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence backed the dollar with oil. In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup.
- In 2009 Iran completely ceased any oil transactions in U.S. dollars. These actions by the second largest OPEC oil producer pose a direct threat to the continued status of our dollar as the world's reserve currency, a threat which partially explains our ongoing hostility toward Tehran.
- Our greatest benefactors for the last twenty years-- Asian central banks-- have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever.
The part I highlighted in red is very important. While the US dollar is backed by oil because of the deals we made with the Saudis, the deal with the Saudis itself was backed by threat of military action. And so, at the end of the day, thinking people will concede that the US dollar is backed by nothing at all except the threat of war. If you don't like what Uncle Sam is dishing out then he will kill you, your family and anyone else that gets in his way. Sorry if you don't like the sound of that but it is the bottom line truth. You either stay in the Dollar Ponzi or you die. You are either with us or against us. If you are against us you are a threat to our well-being and thus a terrorist. It doesn't matter if you didn't really harm us, simply threatening to leave our corrupt money game terrifies the US leaders (as it should) and thus the people who do that are being branded terrorists. Saddam wouldn't play ball so we killed him and invaded his country.
This is not me being anti-American, it's me being pro American. Real Americans tell the truth and they want to live or die by the truth. Con men running the show in government are traitors to American ideals of freedom, liberty and truth. In like manner I'm not afraid to say that "the Jews" own Hollywood. And so they should since they conceived it and built it with the sweat of their labor. They earned it and it is theirs. Don't like it? TOUGH!! Only a socialist thinks it is a crime to own something that you earned. True Americans are proud of owning stuff they earned and they will do with it whatever they want because its their property. True Americans do not begrudge property ownership of others as long as it was earned. The dollar's reserve currency status is not earned, it is forced at gun point. True Americans are disgusted by that and all that it stands for.
Back to Iran! Iran isn't playing ball so the con men are trying to figure out how to take them down just like they took down Iraq. Iran knows that defying the US orders to support the petro dollar is interpreted as an act of war by the US. This is why Iran is Hell bent on creating their own nuclear bomb. The US fears the Iranian bomb. One bomb could take out all of New York City. It would make 911 look like a walk in the park. One bomb could bring down our whole financial industry. So Iran wants a bomb for what are perfectly legit reasons to them (not having to put up with the global bully anymore) and the US wants to stop them for what are also perfectly legit reasons to the con men running the show (maintaining the real threat of military invasion as the underpinning for the US dollar to be the world's reserve currency).
Unfortunately for the US con men, the rank and file people of the US are not liars and criminals like the leaders are. The people are watching the leaders closely right now and so the leaders are treading as lightly as possible. Their first move against Iran was to use the Stuxnet virus on their bomb-making labs. It was very effective but the Iranians reacted to that threat and as a result that dog won't hunt again. It was a good way to buy time, nothing more. At the same time, the Iranians are digging deep underground and setting up nuke-building operations there. So pretty soon there won't be any bunker buster that can reach them either.
The right and fair thing to do, of course, would be to back the US dollar with gold right here, right now. This would return honesty to the global money supply which is really what every dollar malcontent is bitching about. Yes, it can be done if gold is $10,000-$15,000 per oz and then the US submits to global audits of the gold supply in order to prove that the stated ratio of gold to dollars is true. This would shut the Iranian threat down over night. But it would also skyrocket US fuel to $15 per gallon or more. The lack of cheap fuel would kill our production (note that production = labor times tools times energy to run them) because the adjusted cost of products would be higher than people can pay for them. This would put the smack down on the US economy. At that point, people would stop buying our debt and the US-driven debt Ponzi would collapse. This would kill our ability to fund a globally distributed invasion force (AKA dollar hegemony force) which we have today. But at least we would avoid nuclear attacks on US soil.
The last card has obviously not yet been played in this Ponzi but no Ponzi ever lasted forever and no, it's not going to be different this time.
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