the USA doing exactly as it always planned? - an alternative view
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peace all,
I found the following interesting
http//www.roadtoroota.com/public/527.cfmI think it makes sense also.
Basically says the US intentionally did away with the gold standard in 1971, not only to preserve its gold reserves, but also to use its position as the world's reserve currency and build huge amounts of infrastructure, military and industry, by being able to print an endless amount of money. And when they printed too much and the world lost faith is the US$ they would make a transition back to the gold standard.
Whilst I do not agree with fiat currency, I have to say, it's pretty genius what the US have done if that was their plan, and it is what any country would do if their currency was the world's reserve currency.
The only problem with the above plan is of course the short-medium adjustment period of when the US$ collapses and they go back to a gold or some other standard. Many analysts say this is happening right now, signs include quantitative easing, inflation, investors switching away from US$ into commodities, other currencies, precious metals, US government still spending recklessly etc.
To put it simply, imagine you are a country and you have a credit card with an infinite spending limit, of course you'd take advantage.
Interestingly, other countries were forced to play along, so they could be part of world trade, and hence countries like Russia/China etc actually help build up the US to where they are now! The interesting response will be what these countries do now, to get out of the US$ so they are less affected when it collapses. They seems to be switching their trade out of the US$ gradually, buying companies/land, oil/energy/gas/minerals/commodities etc (especially China).
