If you wonder why the US is in a pickle economically and politically, you can blame the ruling elite. Ever since the United States went off the gold standard and went full blown paper money propped up by the sale of oil in the Middle East, things have gone south.
First of all, people don't understand why their money does not buy what it used to. And, why America constantly gets embroiled in conflict in the Middle East. Let us address these issues which are separate though linked.
In 1973, Pres. Nixon did two things: one he severed the dollar from the gold standard and two he signed the Breton Woods Agreement with the Saudis. The severing of the dollar from the gold standard was based on Keynesian economics which basically says that money will only be worth what the government says it will be worth and central banks will take control of a nation's economics by either restricting or expanding the money supply as they see fit.
So, starting in the 1970s we had something called inflation which was due to the severing of the dollar from gold. This new money was called fiat currency because its value was determined arbitrarily by bankers rather than by the government/nation. This switcheroo was already planned in the 1920s when the US dollar was replaced with Treasury notes or IOU. So, now the central bank could inflate the money supply to be used by the government to go into debt so the government could borrow money from the central bank. This new US dollar no longer belongs to the United States but belongs to the Federal Reserve which is the US central bank. So the US government has to borrow Treasury notes (US dollars) and has to pay back this debt every year and this is the reason income tax was created so that the government could pay back the central bankers with these tax dollars rather than printing it ourselves as the Constitution stipulates. It is not our money, it belongs to the central bank and we have to pay them back.
This ability to inflate the economy has been going up since 1973 and has never gone down. It is essentially the robbing of wealth of the American people by the bankers. Inflation is not a natural process but becomes extortion by the central bankers.
In 1973 Nixon signed that Breton Woods Agreement which stated that the US would protect and defend the Saudi Kingdom if they only sold their oil in US treasury notes (US dollars that belong to the bankers).
And, so this deal with the devil has led to a series of long drawn out unnecessary wars in the Middle East in order to maintain and or fulfill that agreement... starting with the Gulf War in the 90s and including our current involvement in Afghanistan, Syria and Yemen, also our heavy navy and air presence in that region, all part of the guarantee to continue doing business in dollars.
Of course, this guarantee means that every country in the world must buy dollars in order to buy oil. Which means they have to take their currency and exchange it for dollars in order to buy oil. This means that the world wants lots of dollars and it keeps the value of the dollar high. This also means that the central bankers can print money at a rate that would normally hyper-inflate any other kind of economy. The central bankers and politicians created a demand and supply out of thin air. And, this product is just paper with no inherent value other than what the central bankers say it has.
These are the reasons, we have inflation, worthless money and bloody wars in the Middle East.
*Guest Blogger ~ John T. Gallion
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