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Peak Exorbitant Privilege - FOFOA

Discussion in 'Topical Discussions (In Depth)' started by Ragnarok, Apr 4, 2012.



  1. Ragnarok

    Ragnarok I'd rather be Midas Member

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    http://www.fofoa.blogspot.com/2012/04/peak-exorbitant-privilege.html

    This is a long and involved article that may tax the brain, but I wouldn't be posting the link if I did not think it was a MUST READ for anyone wanting to understand and fully grasp the events that have led to today and our future.

    The lead-in picture of thousands upon thousands of empty shipping containers at a US port is a sad shock, but the video at the end is worth the task of reading the entire article (and is a "must watch" even if you don't/won't read the text imo).

    So, please read it/save it/read it again/pass it on to your fellow gold adherents. IMHO here's some real meat in there for people starving for some truth, knowledge and sanity.

    "We will be victorious".

    FYI, R.
     
    andial, Argentsum and shamash like this.
  2. Fiat Metaler

    Fiat Metaler Gold Member Gold Chaser

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    FOFOA is unable to explain anything simply, and there are many things he is unable to explain at all. Concision is not his strength.

    But thanks for the heads up - i'll check it out based on your tip.
     
  3. andial

    andial Sir Midas Member Site Supporter ++

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    http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt


    Good article, yes China has stopped buying our bonds but Luxembourg,Switzerland,Brazil,Taiwan,Arab Kingdoms, Japan (despite a massive earthquake), Ireland (thought they were broke), Norway,Spain (thought they were broke) and the old stand by Carib banking centers have stepped up to the plate. See above chart.
     
  4. Fiat Metaler

    Fiat Metaler Gold Member Gold Chaser

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    nteresting historical background, including many references to Jacques Roeff

    However, the entire lengthy article boils down to looking at a chart of the US trade deficit and claiming our “exorbitant privilege” peaked in 2005 because that is when the trade deficit peaked. Well, that is highly simplistic reasoning and while the trade deficit is down somewhat from 2005, (1) I would expect that there are many variables at play, including volatile energy prices, and (2) I would hesitate to ascribe the result to foreigners in the “physical” plane refusing to continue to accept dollars. The latter is one of many unexplained unsupported pet theories of FOFOA that somehow the monetary plane and the physical plane are separate. If I’m a government contractor and the govt conjures dollars into existence and pays me with them, Europeans and Asians are more than happy to exchange them with me for their goods and services. It doesn’t matter if I have govt-created fiat or physical apples with which to trade. Some day, when there is a total loss of confidence in fiat, it may matter, but frankly the dollar because of its wide use ironically may be the last fiat currency in which trading partners completely lose confidence.
     

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