ECONOMY

 

Its not warming up outside as I expected. An hour ago the temperature was in the fifties F, now it is in the forties. It is mostly cloudy, but I can see patches of blue sky, when I look out my window. Ah, the Sun is coming out right now.

I mentioned in my last blog that I could go after some low hanging fruit in reference to how we have been deceived. Since, some sources say, the poop is about to hit the fan economically, perhaps we could look at a few things.

We had been gradually exiting the gold standard since World War ll, the final break came under the Nixon administration. We have been told that the gold standard was unnecessary because the government stands behind the money and guarantees its value; fiat money. I bought in to this idea, because if everybody is in agreement, why wouldn't it work? Well, at an international level, no such agreement exists. The dollar maintained its value because nobody could buy oil without using dollars; the so called petrodollar. As the most dominant force in the world, the United States was able to convince Saudi Arabia of the value of this idea. The Saudis dominated the petroleum producing companies. For years oil could not be purchased without the exchange of dollars. This kept the dollar valuable. Add to this, that as inheritors of the British Empire, the U.S. Dollar supplanted the British Pound as the world reserve currency. All monies were valued in comparison to U.S. Dollars and many countries would not do business except in dollars.

The dollar has been losing its preeminence around the world. It has been clear to other world leaders that the dollar, no longer backed by gold, is becoming more fragile. The proliferation of dollars has outstripped the wealth of the country. Just how is the government to maintain and guarantee its value? The only way the dollar has maintained its value on the world stage is, as the World Reserve Currency, and the Petrodollar. What happens if world events challenge these two factors?

Our hold over the petrodollar has been weakening. There has been agitation on both sides, buyers and sellers, over the forced use of dollars to buy oil. Our continuous wars to control the oil producing countries have backfired. Instead of going along with the U.S., many countries are questioning the purpose of their allegiance. As I write this, oil is being sold for Euros and Yuans. The dam has been broken, the genie can not be put back in the bottle.

The world has been searching for a more stable currency than the U.S. Dollar. The Chinese Yuan is at least partly backed by gold. It may become preferable to the U.S. Dollar as the World Reserve Currency.

This information, I am sharing is not esoteric, it is easily found by searching the internet. But it is one way, we are kept blind to what is happening. All that we are told is that we are the greatest economy in the world. How can that be – when we don't make anything?

What will happen? We can be assured that no country wants the U.S. economy to go down the tubes. No country wants to destroy the U.S. Economy. They couldn't do it without destroying there own. But certainly a revaluation -or reset- of the worlds currencies will happen. Will the dollar experience a major devaluation? Its possible. Timing? Sooner than later.

This is all part of the crumbling, of our present civilization, as we have known it. We cannot build the world we dream of within the present structures. It is all good. Regardless of what happens we can only go on with our lives in the most loving way we can. We need to keep our faith in a loving universe and know, ALL IS WELL.

Look for change happening fast; but let us keep our cool. Stay centered, with our feet entwined in Mother Earth. It is a good time for gardening. And then singing and dancing and celebrating, our privilege, to live on this beautiful Earth.

Love and Peace, Gregg