Loading ...Re parts:
“For now, The Fed has a magic checkbook that allows it to spend without paying the bill because it thinks the checks will never come back to be cashed.”
Comment: Every time the Fed creates money, the rest of the world gets it. Then they move in next door.
art: “Thus, in the 1970s, in the wake of the Nixon Shock, members of OPEC accused the US of exporting inflation.”
Comment: The gold backing was removed in ’71. After that nobody knew what the dollar was worth. So the Dollar dropped oil went up.
Part: “The international monetary system itself depends a lot on the U.S. dollar, or, to be precise, on the monetary and financial policy of the U.S. authorities.”
Comment: The “US authorities” are not really the local “US authorities”. The global governmental authorities are doing business using our name. Even the US Dollar is not really a US dollar. Its a Fed Res Note DBA US Dollar.
The author is not up to speed imo. The Fed Res actions have been a burden on the USA and a benefit for the rest of the world. Even Switzerland lost its sovereignty to the world gov’t.