Tuesday, December 30, 2014

Fiat Money And Wars Of Choice

Why is the United States involved in so many wars? Well the first and most important reason is We Can Afford Them.How? We print money and sell government debt all over the planet to fund wars. In a very real sense our creditors are supporting our wars efforts and are in fact rooting for us. Our vibrant economy pays interest on the debt and so it goes on to the next war.Recently we have gotten so arrogant that we have declared a kind of trade war and or threatened a hot war on the very people who buy our debt and who we trade with. China and Russia are two of the targeted creditors/trading partners. Between them they have 16 time zones and 1.5 billion people. We support Japan and South Korea and Australia in efforts to keep China at bay. We have joined with the European Union with sanctions on Russia over their "aggression" in Crimea and Ukraine.We are shooting ourselves in the foot. In retaliation for our rudeness China and Russia have started to deal in their own local currencies to avoid sanctions which are denominated in U.S. Dollars and the Euro.That event was effected yesterday December 29, 2014.This could be a positive. If the U.S. is denied reserve currency status then fiat money would be curtailed. Because there would be less buyers.With less debt buyers our wars of choice would be immediately limited. Ergo wars would have to be financed domestically which would necessarily impact government spending on a great range of stupid programs. As an example limit or stop paying subsidies to people or corporations who do nothing to earn those subsidies.Only when that happens will our governmnet be forced to debate what we will pay for and what we wont.

No comments: