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October 15 2019

mr-absentia

The Spoils of Economic War: How the US, Saudis Profit From Sanctions on Venezuela and Iran

«The "almighty" dollar would fall from grace with back up from oil

Trump opens war fronts everywhere, which wouldn't seem to make sense unless they were a distraction. But they're not.

The rise of China as a global power has been silently transforming the international monetary system, another element triggering the U.S. into endless economic bullying.

Since the abandonment of the gold standard in 1971, the U.S. dollar is not linked to any assets, becoming a fiat currency. In these kinds of cases, only a country's output could back the currency in the long term. But what happens when monetary expansion occurs faster than increases in productivity?

Bringing new meaning to the "In God We Trust" motto coined so long ago, the dollar’s value depends on its capacity to remain an international reserve currency; that is, a currency other countries hold as part of their foreign exchange reserves and use in their international transactions.

In a world where economic agents don't ask the Federal Reserve to convert their notes into gold or any other physical asset, trust is the only thing keeping the U.S. upright. As a result, the dollar has remained a mighty currency because most international transactions are traded in U.S. dollars.

On Jan. 30, U.S. National Security Advisor John Bolton, in fact, revealed very little when he blatantly admitted that the coup attempt in Venezuela was really about grasping for oil resources. In reality, aggression by the U.S. hides something much more than that.

If the dollar stops being the world's most traded currency, the U.S. will not be able to issue the notes it needs to finance an almost 50-year-old federal deficit which rose from US$666 billion in 2017 to US$779 billion in 2018.

"The U.S. budget deficit by year is how much more the federal government spends than it receives in revenue annually. The Fiscal Year 2020 U.S. budget deficit is expected to be US$1.1 trillion.

"That's the biggest deficit since 2012," wrote Kimberly Amadeo in The Balance, noting how President Trump has ramped up the U.S. deficit to pay for record-high levels of military spending.

The dollar losing status as the world's preferred currency would give the U.S. problems paying for imports in an economy where its lack of international competitiveness has given it a trade deficit since 1976, which widened to US$50 billion in March.

Last but not least, if the dollar stops being almighty, the U.S. will have a very difficult time maintaining itself as a first-world-class economy, since it's federal debt exceeded US$22 trillion in February. This amount represents over 76 percent of what the U.S. is able to produce in one year. Nevertheless, this is most likely to get worse: the debt-to-GDP ratio in the United States will rise to 150 percent by 2049, according to the Congressional Budget Office.

Besides preventing Venezuela and Iran from exporting their natural resources, the U.S. is actively seeking to avoid the dollar's collapse, an inevitability in the next few years, as the history of previous empires has already shown.

This is why the Trump administration is prone to fighting the use of barter, virtual currencies or other alternative international payment methods.

U.S. sanctions are not whimsical expressions of this president. They are tools used to retain hegemonic power in a multipolar world no longer willing to tolerate such an aspiration. At the core of U.S. bullying is not ideological disagreement but economic decline.»

October 25 2018

mr-absentia

US May Impose Sanctions on Firms Working on Syria Reconstruction - Reports - Sputnik International

another proof that the sanctions-addicted US gov’t is the enemy of peace in Syria.

“…the strategy reportedly focuses on political and diplomatic efforts toward forcing Iranian armed forces out of Syria, namely, via putting financial pressure on them.

Three people with knowledge of the plan told NBC News that the United States was set to hinder Syria's reconstruction by withdrawing its aid from the areas where the Russian and the Iranian forces are present, and also introducing sanctions against the Russian and the Iranian companies engaged in the reconstruction.

The United States is seeking Iranian forces withdrawal from Syria, insisting that their presence in the country reduces the possibility of achieving a political settlement to the crisis and hinders the struggle against the Daesh* terror group. In late September, James Jeffrey, the US State Department's special representative for Syria engagement, pledged that the United States would maintain its presence in the country to defeat Daesh, expelling the Iranian forces and achieving a peaceful settlement.

While Russia and Iran, along with Turkey, are the guarantors of the ceasefire in Syria, they are also assisting in the reconstruction of the country's cities and infrastructure, largely destroyed in over seven years of clashes between the Syrian government, opposition and militant groups.”

July 31 2018

mr-absentia

“The rial has lost more than a half of its value against the dollar in just four months, having fallen to the 50,000-mark for the first time in March. Iranians have been trying to buy more US currency on the black market for fear the economy can collapse when the US sanctions return.

In an attempt to curb currency speculation which has led to the rial collapse, the Iranian central bank unified the official and unregulated exchange rates. However, there have been reports that black market vendors are inflating the costs of goods imported in US dollars.

The locals often seek to buy the US currency as they think it is a safe way to store their savings, or as an investment if the rial continues to drop. While the official rate is about 44,050 rials, it is very hard to buy a buck at that rate in Iran.”

— rt.com: Iranian rial falls to record low against the US dollar & central bank blames ‘nation’s enemies’ (Jul. 31 2018)

June 30 2017

mr-absentia

‘Get your dirty hands out of Venezuela’ – Maduro to Trump — RT News

“The United States should ‘get out of Venezuela,’ the country’s leader, Nicolas Maduro, said after Washington slapped Venezuelan top judiciary officials with sanctions to ‘support’ the Venezuelan people.

The new sanctions package, targeting the chief judge and seven other members of Venezuela’s Supreme Court, was imposed by the US Treasury to ‘advance democratic governance’ in the country.

‘Enough meddling ... Go home, Donald Trump. Get out of Venezuela,’ Maduro said in a speech broadcasted live on TV, as cited by Reuters. ‘Get your dirty hands out of here.’

The Venezuelan president’s tirade echoed a statement issued by the government, accusing the US of intervening into country’s internal affairs and seeking to further destabilize it.

‘President Trump's aggressions against the Venezuelan people, its government and its institutions have surpassed all limits,’ the statement said.

It urged the US to focus on sorting out its own internal problems, instead of meddling in Venezuela’s affairs.

‘The extreme positions of a government just starting off only confirmed the discriminatory, racist, xenophobic, and genocidal nature of US elites against humanity and its own people, which has now been heightened by this new administration which asserts white Anglo-Saxon supremacy,’ the statement read, as cited by Reuters.

The sanctions imposed by the US Treasury include freeze of any assets the eight judges might have in the US, deny them entering the country, and prohibit US citizens to do any business with them. The situation in Venezuela ‘is a disgrace to humanity’ and the country ‘has been unbelievably poorly run,’ Donald Trump said Thursday.

‘We haven’t really seen a problem like that, I would say, in decades,’ Trump added.”

September 27 2014

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April 01 2014

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March 21 2014

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March 20 2014

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March 19 2014

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March 18 2014

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March 17 2014

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