The West Has an Illiterate Financial Press by Paul Craig Roberts!
(2024-05-16 at 20:31:59 )

The West Has an Illiterate Financial Press by Paul Craig Roberts!

The entire western financial press has zero understanding of basic economics. The financial "journalists" just print press releases.

The United States debt has never mattered, because the United States dollar is the world reserve currency.

That means United States debt is the reserves of the worlds central banks. If United States debt rises, so does the reserves of the world banking system. All central banks were delighted to accumulate more United States Treasury debt as it meant the reserves of their banking system went up.

The Federal Reserve can always redeem United States Treasury debt by creating money with which to buy it. The debt is always redeemable because it is denominated in dollars.

The problem arrives when the dollar is deserted as world reserve currency.

The morons who comprise the Biden regime are scaring central banks away from the dollar as their reserves because of sanctions against Russia, Iran, China, Venezuela, and others.

The slow mental processes of central banks are beginning to understand that having your reserves in United States Treasury dollar debt means they can be frozen, seized, denied to your use if you cross Washington,D.C.

The threat to Washington,D.C. is, whereas the Fed can print dollars to redeem the debt, the Fed cannot print foreign currencies to redeem the United States dollar.

So, if central banks shift their reserves out of dollars into gold, as Russia and China are doing, or into other currencies, the supply of dollars in foreign exchange markets have fewer and fewer takers.

Consequently the dollar loses its value relative to gold, silver, and rising currencies, and the dollars value falls in foreign exchange markets.

As Americas manufacturing is offshored and as America relies on imports of food, United States inflation rises. Historically, the Feds response to inflation has been unemployment.

The Federal Reserve and the institutions used to suppress gold and silver prices use naked shorts to control the price by dumping shorts into the futures market.

In other words, contracts unsupported by actual gold holdings can be used to increase the paper supply of gold in futures markets. As the futures market settles in cash, not in gold deliveries, a flood of paper contracts unsupported by actual physical gold can be used to suppress the price. In other words, the supply of paper gold can be printed just like the Fed can print paper money. Myself and Dave Krantzler have explained this over and over on my website.

This price control process fails when the demand for gold exceeds the physical supply at the suppressed price. We have recently witnessed a new outbreak in the gold price. Is this a sign that the controlled price can no longer hold against the demand for physical gold, or is there some other explanation?

As the fools ruling the United States continue their destruction of the country, the dollar and living standards will die with the country.

The United States of America is likely living her last years.

Perhaps this is why Putin and Xi do not bother to dispose of us!

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