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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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Without a doubt, the existing global financial system depends on the widespread use of fiat currencies issued by insolvent governments. The wealth of the world’s large financial institutions requires that there be currencies with sufficient size and circulation to absorb massive capital flows. The current system is based primarily on the dollar; with a $14 trillion economy, the United States was for years the only country in the world with a sufficient money supply and financial infrastructure to take in the preponderance of the world’s wealth. It is for this reason commercial loans, commodities contracts, international reserves, and cross border settlements have traditionally been denominated in US dollars.
That is an interesting take on the power behind the people who produce the dollar unit of currency. My thinking is such that mere quantity is not the power behind the people who produce the dollar. Military (including oil), and Political (including falsehood) are the powers that "back the dollar" into a state of effective monopoly.
By monopoly I mean: Sufficient power employed in the effective weakening of competition to a level by which the producer of the monopoly product is no longer forced (by competition) to increase quality and lower price.
I'll read on - in this report on the money power.
For example, large corporations or banks that are sitting on billions of dollars in cash typically purchase short-term US or European government bonds because the low default risk.
That is a case of mistaking a cause for an effect. Any quantity of power collected by any means whatsoever and then controlled by some human being, or some group of human beings, will be a moment in time, and place, where the power is altered in form, by a decision, by a human being.
This is important.
Call the person collecting a very large amount of power person X.
Person X (or group X, where the decision making power is not one person's decision alone) gains control over a very large collection of power and then this person accurately measures that large sum of power.
What is the power collected into a large sum?
If it is money, what was it before it became money, or why did the person (or people) sell a large sum of something so as to "cash in" that large sum of power and by that decision, and that act, the large sum of power became money (became: the power to purchase - and note that money isn't money if it has no power to purchase).
That report is speaking about billions of dollars worth of purchasing power.
Why wouldn't those people buy Oil, if the idea is to "cash in" on all that power before all that power evaporates?
That is why it is important to understand how someone or how some group of people managed to get billions of dollars worth of purchasing power in the first place.
If this guy, with this report, is going to educate people with pertinent facts and useful commentary, then ignoring the facts that explain how someone, or some group, manage to collect very large sums of purchasing power, billions of dollars, where this person, or these people, are "sitting on billions of dollars in cash", then to me the person has placed the cart before the horse.
In any case where any person, or group of people, are selling any product, without an enforced monopoly, the result will be a price that has been forced down to cost by competition. What other possibility explains the flow of power into the control of one person, or one group of people, who are now "sitting on billions of dollars in cash"?
An example is required.
How about a Rock Star/Movie Star such as 50 Cent?
Suppose 50 Cent were sitting on billions of dollars in cash, because he is the only one - every other copy of 50 Cent is pitifully unable to life up the the standard: a monopoly of one.
How about Bill Gates?
Can you see how this works? As soon as a producer of something capable of causing large quantities of power to flow to the producer from the buyers of the product starts to produce a lower quality product the flow of power diverts to a higher quality product, and the producer reaches a limit, no more power can flow to that individual or that group.
How about the Rolling Stones?
How many billions of dollars are these people sitting on?
How did they get those billions?
Why did they buy dollars, why didn't they invest in tax avoidance lawyers, homes in countries that have no taxes, safer places to live, bigger houses, more cars, a personal recording studio, or "Record Label", a political lobby to out-law the competition?
Why are billions of dollars flowing to this one group, or one person, to a point where this one person, or this one group, are "sitting on billions of dollars in cash"?
Back up some?
Why would a producer of the dollar, or a producer of a euro, or a producer of a Yen, or a producer of any legal money produce more dollars, and more, and more, and more, until there are so many dollars that large piles of dollars, of billions of dollars, are being sat upon by one person, or one group?
The reporter confuses the effect for the cause.
I will read on, and I have so many other things needing to be done.
On second thought - I'm done with this for now.