[ DONATE TO RMN ] [ Return to Main Page ] [ Read Prev Article ] [ Read Next Article ] [ CGI Media News Room ] [ SUBSCRIBE TO RMN ]

RMN is Reader Supported

Our Goal for
NOV 7 - DEC 5:
$1,755

Powered by FundRazr

Click Widget
or Click Here to contribute.

Checks & Money Orders:

Raye Allan Smith
P.O. Box 95
Ashtabula, OH 44005


Users Online:
59

Who Founded RMNews?


Dewitt Jones' Video
"Celebrate What's Right
With The World"


"When the
Starships Fly!"

Listen at YouTube


The Theme for The Obergon Chronicles

Listen at YouTube


The Obergon Chronicles ebook


RUMOR MILL
NEWS RADIO


CGI ROOM
Common Ground
Independent Media


WHAT ARE
THE FACTIONS?


THE AMAZING
RAYELAN ALLAN


BIORHYTHMS

LOTTO PICKS

OTHER WAYS TO DONATE





RUMOR MILL NEWS AGENTS WHO'VE BEEN INTERVIEWED ON RUMOR MILL NEWS RADIO

______________

NOVEMBER 2008

Kevin Courtois - Kcbjedi
______________

Dr Robin Falkov

______________

Melinda Pillsbury Hr1

Melinda Pillsbury Hr2

______________

Daneen Peterson

______________

Daneen Peterson

______________

Disclosure Hr1

Disclosure Hr2
______________

Scribe
______________

in_PHI_nitti
______________

Jasmine Hr1
Jasmine Hr2
______________

Tom Chittum Hr1
Tom Chittum Hr2
______________

Kevin Courtois
______________

Dr Syberlux
______________

Gary Larrabee Hr1
Gary Larrabee Hr2
______________

Kevin Courtois
______________

Pravdaseeker Hr1
Pravdaseeker Hr2
______________

DECEMBER 2008

Tom Chittum
______________

Crystal River
______________

Stewart Swerdlow Hr1
Stewart Swerdlow Hr2
______________

Janet Swerdlow Hr1
Janet Swerdlow Hr2
______________

Dr. Robin Falkov Hr1
Dr. Robin Falkov Hr2
Dr. Robin Falkov Hr3

JANUARY 2009 ______________

Patriotlad
______________

Patriotlad
______________

Crystal River
______________

Patriotlad
______________

Dr. Robin Falcov
______________

Patriotlad

FEBRUARY 2009

Find UFOs, The Apocalypse, New World Order, Political Analysis,
Alternative Health, Armageddon, Conspiracies, Prophecies, Spirituality,
Home Schooling, Home Mortgages and more, in:

The Rumor Mill News Reading Room

The War For The Dollar Is Over Part II . . . The Fly Or The Windshield?

Posted By: SpaceCommando
Date: Friday, 10-Mar-2023 15:44:29
www.rumormill.news/218803

[Note - Part One of this article can be found on RMN here: https://www.rumormillnews.com/cgi-bin/forum.cgi?read=218562 ]

By Tom Luongo - March 9, 2023

Live images flashing by
Like windshields towards a fly
Frozen in that fatal climb
But the wheels of time, just pass you by

- RUSH, “Between the Wheels”

In part I of this series I told you the war over the US dollar was over because the bane of domestic monetary policy, Eurodollar futures, lost the battle with SOFR, the new standard for pricing dollars.

The ignominious end of the Eurodollar system is a study in the evolution of markets, as a new system replaces an old one. Old systems don’t die overnight. We don’t flip a switch and wake up in a new reality, unless we are protagonists in a Philip K. Dick novel.

More than a decade ago I looked at the responses to President Obama cutting Iran out of the SWIFT system as the beginning of the end of the petrodollar system. The goal was to take Iran out of the global oil markets by shutting Iran out from the dominant dollar payment system.

Out of necessity Iran opened up trade with its major export partners, most notably India, in something other than dollars. India and Iran started up a ‘goods for oil’ trade, or as Bloomberg called it at the time, “Junk for Oil.”

The stick of sanctions created a new market for pricing Iranian oil and a way around the monopoly of US dollar oil trading. India, struggling with massive current account deficits because of their high energy import bill, welcomed the trade as a way to lessen the pressure on the rupee.

Iran needed goods. They worked out some barter trade and the first shallow cuts into the petrodollar system were made.

Turkey eventually joined the fray, seeing the opportunity to act as a middle man by accepting gold into its banks from Iran’s customers and settling up with Iran in dollars or whatever.

Turkey was the first country to make gold a 100% reserve asset in defiance of Basel I capital rules to facilitate this trade. Turkey’s gold ‘reserves’ skyrocketed because of this.

More than 10 years later we’re now looking at the lynchpin of the petrodollar, Saudi Arabia, seriously considering taking other currencies for their oil. The petrodollar was never going to die overnight, it was always going to die as the cost of doing business in dollars rose to make using other currencies a better path to buying/selling oil.

Every time the US went to the sanctions well to coerce conformity, the more “star systems slipped through its fingers,” to quote Princess Leia. While we joke today about never ‘going full retard,’ this is just another way of saying that you should never threaten to nuke someone either.

Trump went sanctions nuclear on Iran in 2018. He failed.

“Biden” and Davos went nuclear on Russia in 2022, going further than even Trump. And they failed even harder. All they did was raise the cost of using dollars in the minds of the dollar’s best customers.

When the cost/benefit framework flips, behavior changes accordingly.

In the world of money, since we don’t have anything close to resembling real capital markets, rather politicized ones, policy is the thing that alters that cost/benefit structure the most. This means while analyzing the market reaction to day-to-day data the listening to the tea-leaf reading by commentators becomes an exercise in chasing your tail through a wilderness of rhetorical mirrors if you don’t include policy changes.

So, with that in mind we have to analyze structural changes to markets from a policy perspective to see what the future really looks like. It’s not that the markets don’t have a say in the matter, it’s that if you analyze the policy through the lens of capital flowing to where it is treated best, then the future outcome is pretty predictable if there isn’t a competing policy put in place to redirect that capital flow later.

In this sense, financial analysis in politicized markets is better described by court politics than spreadsheet output cells.

People want oil. They will buy it regardless of what Davos or “Biden” or anyone else says about this. Until you replace oil itself, no amount of policy changes will fundamentally change the market for oil unless you destroy the supply chain supporting the oil industry.

And analyzing oil supply and demand fundamentals in this case is a fool’s errand when malign actors are materially affecting the supply and demand for oil and are incentivized to ‘game the statistics.’ It’s not that these numbers are worthless, it’s more that they should be discounted heavily until policy changes are assessed.

Diminishing Returns of Socialism

In the end all markets respond predictably to the Law of Diminishing Marginal Utility. If you don’t believe that, then you are a Malthusian and publicly admitting you are a moron with the inability to accept outcomes you cannot personally perceive.

I put the “Peak Oil” folks in this category. And you know who you are.

I put Climate Change believers in this category as well. Yes, by the transitive property of rhetorical mathematics, I just called them all morons.

The Davos solution to their problems of overpromising the deliverables of socialism financed through the dollar is to default on those promises through global monetary inflation using war with Russia and China as the cover and Climate Change as the reason why it’s necessary.

This is to save themselves and secure totalitarian control for their posterity into the next cycle of history.

But history will prove them wrong. Because, in the end, you can’t fight a flowing river any more than you can alter the mass of human behavior with respect to their preferences. If they want to drive a car, eat a steak, live in a house, own a gun or have a child, they will.

You can delay it or make it more expensive but that expense is a double-edged sword, because as Margaret Thatcher famously said, “The problem with socialism is that eventually you run out of other people’s money.” (OPM)

Think of the Eurodollar system as the ultimate expression of OPM, which is a homophone for ‘hopium.’ . . .

[SNIP]

CLICK THIS LINK TO READ THE REST OF THE ARTICLE




If you enjoyed this article,
Please consider a monthly subscription to Rumor Mill News!!


RMN is an RA production.

The only pay your RMN moderators receive
comes from ads.
If you're using an ad blocker, please consider putting RMN in
your ad blocker's whitelist.


Serving Truth and Freedom
Worldwide since 1996
 
Politically Incorrect News
Stranger than Fiction
Usually True!


Powered
by FundRazr
Click Widget
or Click Here to contribute.


Organic Sulfur 4 Health

^


AGENTS WEBPAGES

Provided free to RMN Agents

Organic Sulfur 4 Health

^


AGENTS WEBPAGES

Provided free to RMN Agents



[ DONATE TO RMN ] [ Return to Main Page ] [ Read Prev Article ] [ Read Next Article ] [ CGI Media News Room ] [ SUBSCRIBE TO RMN ]

The Rumor Mill News Reading Room is maintained by Forum Admin with WebBBS 5.12.