More Evidence Great Depression II Is Here: 30mm Unemployed in U.S. (19% of workforce)

[Greenrush Drew]

Ok point taken.

But how do you explain our mercantilic relationships with other countries?
The petrodollar scheme with OPEC is a perfect example of not American superiority but empirical aggression.

Don't forget that America became the richest country in the world from 1800 to 1900 in a deflationary boom with limited government intrusion into the economy. At the same time, the brits empire unraveled because they overextended themselves militarily and economically which is exactly what we are doing now.

Quote from trefoil:

The dollar being the reserve currency is the result of our being by far the largest economy on the planet.
It's a result of success. When some other country becomes the biggest instead, it will fade naturally. It's not at all an imperial imposition, and it actually results in a profit to us. It's not an expense.
The problem in economics is that everyone focuses on stats instead of getting up and looking at what's happening in real life.
In real life, for instance, Russia exports energy and not much else. That makes it a third-world country.
Western nations export a wide variety of finished products and high value services. That's what makes them first world.
Your status is dependent on what the rest of the world looks to get from you, as expressed by the exports you're able to sell. On that basis, Russia is a backwards basket case. China, Brazil and even India aren't.
It ain't a case of BRIC, but of BIC. But most folks just focus on the stats and don't realize this.
If you look away from the stats, the US is still doing very well, and will continue to do so for as long as we're alive. That's because it still has lots of vital places producing all kinds of things other people want. The rest of the world would kill to have just one of Boeing, Microsoft, Intel, Ebay or Google. The first successful electric car company is Tesla, out of California.
That kind of thing doesn't happen in Russia.
None of it has anything to do with the US being an empire. The US is dominant, but that's an effect of its success. That doesn't make it an empire. Two different things entirely.

 

[zdreg]

Quote from Ivanovich:

If that were true, and I didn't want that said then I would delete your posts saying it now. I'm not, so you're mistaken.

Last warning. Get back on topic please, and refrain from trying to flame.

fyi making the economy mess worse increases the number of unemployed.

 

[trefoil]

Quote from Greenrush Drew:

Ok point taken.

But how do you explain our mercantilic relationships with other countries?
The petrodollar scheme with OPEC is a perfect example of not American superiority but empirical aggression.

Don't forget that America became the richest country in the world from 1800 to 1900 in a deflationary boom with limited government intrusion into the economy. At the same time, the brits empire unraveled because they overextended themselves militarily and economically which is exactly what we are doing now.

I don't know what you mean with OPEC. Could you explain?

 

[Greenrush Drew]

without going into too much detail, check out petrodollar recycling.
The current result of PR is that America gets 'free' oil and artificially low interest rates and the Saudi's get rich and get to stay in power.

The rules of the game are simple.

America controls US trade because of our reserve currency status. This is how we maintain our empire. If China wants oil, the need US Dollars. So china sells a bunch of shitty lead filled toys to America and we give them Dollars.
China takes those USD and sends them to the Saudis to buy oil. Saudis then send those USD back to America and they buy Treasuries.

The Saudis get their 5 percent return and total military protection, they get very wealthy, and they shut the fuck up.

If this Dollar hegemony ends then America's empire is in trouble. Some would argue that its happening right now.

Quote from trefoil:

I don't know what you mean with OPEC. Could you explain? [/N]

 

[Misthos]

Quote from Greenrush Drew:

without going into too much detail, check out petrodollar recycling.
The current result of PR is that America gets 'free' oil and artificially low interest rates and the Saudi's get rich and get to stay in power.

The rules of the game are simple.

America controls US trade because of our reserve currency status. This is how we maintain our empire. If China wants oil, the need US Dollars. So china sells a bunch of shitty lead filled toys to America and we give them Dollars.
China takes those USD and sends them to the Saudis to buy oil. Saudis then send those USD back to America and they buy Treasuries.

The Saudis get their 5 percent return and total military protection, they get very wealthy, and they shut the fuck up.

If this Dollar hegemony ends then America's empire is in trouble. Some would argue that its happening right now.

So what would happen if an oil producing country was run by a dictator that publicly stated he prefers to sell his oil for Euros instead of US dollars?

A theoretical question.. of course.

 

[Greenrush Drew]

I wonder!

Its no surprise that the first thing US forces did when they attacked Iraq was take over ALL the oil fields.

Sure they would. Its war,right?

Quote from Misthos:

So what would happen if an oil producing country was run by a dictator that publicly stated he prefers to sell his oil for Euros instead of US dollars?

A theoretical question.. of course.

 

[infolode]

Quote from Greenrush Drew:

I wonder!

Its no surprise that the first thing US forces did when they attacked Iraq was take over ALL the oil fields.

Sure they would. Its war,right?

'Secure strategic resources', would be a priority.....yes.

 

[trefoil]

Quote from Greenrush Drew:

without going into too much detail, check out petrodollar recycling.
The current result of PR is that America gets 'free' oil and artificially low interest rates and the Saudi's get rich and get to stay in power.

The rules of the game are simple.

America controls US trade because of our reserve currency status. This is how we maintain our empire. If China wants oil, the need US Dollars. So china sells a bunch of shitty lead filled toys to America and we give them Dollars.
China takes those USD and sends them to the Saudis to buy oil. Saudis then send those USD back to America and they buy Treasuries.

The Saudis get their 5 percent return and total military protection, they get very wealthy, and they shut the fuck up.

If this Dollar hegemony ends then America's empire is in trouble. Some would argue that its happening right now.

You really weren't paying attention when I said what I said about Russia. You're falling for the effect rather than the cause; the tail rather than the dog that wags that tail.
China is the dog; OPEC is the tail.
The US is the dog; OPEC is the tail.
No one who has studied the question thinks OPEC has anything at all to do with the value of the dollar. They are a collection of hopelessly dependent supply regions, like Saudi Arabia and Kuwait, and stronger places with more diverse economies who happen to have lots of oil, like Nigeria and, until recently anyway, Indonesia.
In any event, the fact that oil is priced in dollars is an inconsequential side effect of the dollar's reserve status. It means nothing.
China gets USD to suppress, directly, the value of its currency so it can sell junk to the US. The fact that those dollars are useful to buy oil from the Saudis is a happy coincidence and a convenient side effect. China, you can be sure, does not base its monetary policy on the needs of Saudi Arabia.
Saudi Arabia, Kuwait, Iran, and Iraq (and Russia) are all pimples on the ass of the world economy. The world economy sits on them, not the other way around.

 

[Greenrush Drew]

The fact that oil, gold, soybeans, and much more is priced in dollars is of Massive consequence.

Its not just about China or Russia. Its the entire world.

If the dollar dominates global trade and we can print them out of thin air, we have the ability to export inflation. That's the US tax on the world. That's the pillar of the economic empire. If that comes down, kiss the military pillar goodbye.

Read William Clark's book on the Petrodollar. Its enlightening.

Quote from trefoil:

You really weren't paying attention when I said what I said about Russia. You're falling for the effect rather than the cause; the tail rather than the dog that wags that tail.
China is the dog; OPEC is the tail.
The US is the dog; OPEC is the tail.
No one who has studied the question thinks OPEC has anything at all to do with the value of the dollar. They are a collection of hopelessly dependent supply regions, like Saudi Arabia and Kuwait, and stronger places with more diverse economies who happen to have lots of oil, like Nigeria and, until recently anyway, Indonesia.
In any event, the fact that oil is priced in dollars is an inconsequential side effect of the dollar's reserve status. It means nothing.
China gets USD to suppress, directly, the value of its currency so it can sell junk to the US. The fact that those dollars are useful to buy oil from the Saudis is a happy coincidence and a convenient side effect. China, you can be sure, does not base its monetary policy on the needs of Saudi Arabia.
Saudi Arabia, Kuwait, Iran, and Iraq (and Russia) are all pimples on the ass of the world economy. The world economy sits on them, not the other way around.

 

[EMRGLOBAL]

Extended Stay Implossion...on the Commerical RE end. Its the start to a very long and destructive Commerical RE problem.

So, the market is rallying.....on what volume? Summer tends to be light volume anyways.

Sept/Oct will be the tell tell signs for the markets pullback.

Profit taking to safty soon?

No idea what is going to happen, I don't have a crystal ball.

I doubled back into oil on the last pull back....tripple digit returns in oil since it was at 38......not looking back. I'm buying the dips on Oil...i'm biased.


Never the less, there is nothing out there to indicate the economy is turning. Plenty to indicate the economy is finished bleeding across the board, for now. Much like during the great depression, the "Stable" signals before 1930/32.

Earnings were are joke...based on more % of production with less employeed. Less workers are cranking out good production, for the fear of loosing their jobs. This show's nothing on the improvement of orders being brougth to Companies.

We still have a long way to go. The "MOTHER OF ALL FINANCIAL CRISES SINCE WWII IS ENDING IN LESS THAN 8 months?

Please, fucking sheepole may fall for this bullshit...."GREENSHOOTS" and all.......

The "DEPRESSION" did not come until a year or so after the BIG CRASH, and BANK/HOUSING Crash".

The US GOV. is pumping more money into the system than HOOVER ever did. And look what happen when the GOV pump'd in all that money in 30-32.

Why do people expect adifferent outcome, this time around? Because the Media says so? CNBC says so? Because we are quick to forget the lessons of History and EGO's big enough to believe we can prevent the forces that be from crashing?