I like to read what Paul Craig Roberts writes. He saw America with his own eyes during its time of glory and its top power, and he sees what his homeland has become now. He is simply a actual American patriot to whom you can respect even if this patriotism is not in line with the interests of another countries (also ours).
Just recently, I found another text in which he mentions the good times and compares them with the present decline of his country. Here's the text:
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"A long time ago, America had a capitalist economy. Bank deposits were utilized to supply loans that increased production capacity. America produced its own goods and grew its own food. The American currency was secured with gold, and inflation did not exist. Investment in fresh technologies improved productivity and surviving standards increased. The profits were diverted back to improving production methods.
Governments subsidized social infrastructure and education. This reduced transport costs, thus besides production costs and, consequently, prices, and provided an educated workforce to manufacture and the economy. My yearly tuition at Georgia Tech was about $450.
This very effective way of moving the economy has been replaced by a completely different economy, the 1 we have today. Who is liable and how it happened is simply a communicative that can be told later, but not in this column.
In the current economy, bank loans are not granted to finance fresh investments in fresh establishments and equipment. They are provided to finance the acquisition of existing assets. Credits are granted to acquisition existing companies, to charge them with debt and to sale their assets. Credits are granted to finance the redemption of own shares of companies, which increases the price of shares and results in bonuses for members of the board and supervisory board for ‘results’. Loans are provided to finance the acquisition of real property in order to increase their value and thus increase the cost of housing.
The fresh economy is being financed. It maintains from interest on debt and fees, the plundering of public assets through privatization and exploitation of the economies of 3rd countries through dollar loans that can only be repaid by an indebted country through the sale of public property to American creditors, usually at the lowest prices.
The fresh American economy is based on debt, not on the wealth of the American population, and on financial coercion in abroad governments' dollars, which repay their debts with the assets of their countries.
The national Reserve destroyed household farms and monopolized agribusiness food production, monopolized the financial strategy in the hands of the 5 largest banks and destroyed the US dollar value.
This is not a image of a successful economy with a future.
The Western world, especially the United States, moved its manufacture and production to Asia and Mexico. Offshoring stripped the American working class of income from the production of goods that enabled American consumption. erstwhile goods and services hit the US market, they are imported, which increases the US trade deficit.
The reason why this exploitative strategy could have been continued is due to the fact that Washington utilized planet War II to make the US dollar a currency of the central banks of the world. USD-denominated debt instruments have become reserves of global central banks.
Being a reserve currency means that the country's debt is the reserves of central banks of all another countries. Therefore, the increase in US government debt was not a problem, as it marked an increase in central bank reserves worldwide. Therefore, US debt financing has never been a problem.
In the 21st century, the U.S. government itself destroyed this privileged way of financing steadily increasing debt, utilizing the dollar position as a reserve currency as a weapon. The sanctions imposed on Russia and another countries have led to a general departure from utilizing US fiscal debt as central bank reserves. The seizure by Washington of the reserves of the Russian central bank held in dollars, showed the planet that the same could happen to them. As a result, US dollar usage in global payments fell from about 90% to somewhat little than 50%. With the establishment and expansion of BRICS, it will fall even more.
As another countries halt utilizing the US dollar as their reserves, a large supply of dollars in the planet – I have late read that the US public debt is now 35 trillion dollars – likely to exceed demand. The consequence of this is simply a drop in the dollar value, already confirmed by the increase in gold and silver prices. In the short run, Washington can force the central banks of Japan, the UK and the EU to support the dollar by utilizing their currencies to buy dollars. But this dollar rescue operation cannot be extended forever.
When the time comes erstwhile Western central banks will no longer be willing to hazard the value of their currencies to support the US dollar, and prices of gold and silver will no longer be suppressed by the practice of selling spent shorts, America will become a third-world country.
This is not a subject that many economists are curious in. The American economical profession is, in my opinion, a gathering of people who, in exchange for grants and consultants' positions, accepted the lie that offshoring "dirty hands" will consequence in better paid jobs in the fresh economy. After all these years, there is inactive no sign of these promised better paid jobs. The same economists have told us that globalisation, which makes us dependent on imports, is simply a wave of the future. The future of an imported economy with a weak currency is permanent inflation.
Since robotics and artificial intelligence replace human labour and millions of immigrants come to the country each year, permanent unemployment is besides the future.
The American economy is driven by short-term maximisation of profits. deficiency of imagination means a bleak future, even in the absence of the large Reset.”
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Craig Roberts accurately portrays all the pains affecting present America and the full West, but unfortunately he is here in the function of a doctor who describes the symptoms of the disease, but does not make any diagnosis (about therapy at all can not be said!). Although he points out at first that this is simply a subject for a separate analysis, I do not say it to be correct. Craig Roberts was the Deputy Finance Minister in Ronald Reagan's government, and ( judging by his erstwhile texts) he is completely unaware of the fact that he himself made a crucial contribution to the collapse of his country. The drastic simplification in taxes on advanced incomes that was then carried out did not redirect this money to investment in jobs, but to the stock market. But the main origin of his perversions is our monetary system. I've already explained this mechanism. Craig Roberts writes that banks erstwhile provided loans that were utilized to invest in fresh technologies, fresh products and fresh jobs. He does not realize that this was a period erstwhile the increasing economy was able to absorb capital revenue. This period has passed forever and no fresh president, no fresh head of the national Reserve or anyone else will change anything!! This process will only deepen and accelerate!!
The amount of money in what I call a capital ellipse is already so large that it affects not only the functioning of the economy, but besides economical theories that adapt to the dominant function of the “financial sector”. This adjustment is simply a form of intellectual prostitution, as it involves creating theories whose task is to "scientific" to explain this dominance. The Fed and another central banks, in the face of the collapse of the full monetary system, besides had to adapt to the changed operating conditions. They're under duress. It is frightening that no 1 understands this!!! He besides doesn't realize Craig Roberts erstwhile he resents economists.
We besides request to realise that virtually all the processes in the planet that can be described as "indulgent" are the direct consequence of the accumulation of immense amounts of money in the capital circulation. They enable not only any investment, but besides the creation of the basis for these investments. The most painful example is pandemic. Everything – from the virus to the ‘vaccine’ – has been prepared in advance. The course of the pandemic itself was carefully and professionally directed. The most effective methods of controlling society were: fear and hatred. Fear of being sick and hating people who can think for themselves and who have not been fooled. The same methods are applied in another phenomenon – which concerns us all –: the fight against climate change. These changes actually take place, but the climate on earth has changed many times. This time it's expected to be CO2 emissions. This is simply a complete idiotism that does not have any technological confirmation, but media, as well as physical panic against those who effort to overthrow this myth, does not let any factual discussion.
This money besides allows for the implementation of completely psychopathic projects specified as large Reset, which presume a complete reconstruction not only of economical but besides of social systems. The media hype and panic around gender, LGBT, and so on is an integral part of this project.
Craig Roberts is incorrect erstwhile he writes that the US erstwhile had a capitalist economy. The economy is inactive the same. Only the environment and monetary conditions in which this economy works have changed! The economy besides had to adapt to them. There is no specified thing as a capitalist economy due to the fact that capitalism is neither an economical strategy nor a political strategy nor a social system. CAPITALISM is simply a MONETARY SYSTEM!!! But no 1 understands...
Craig Roberts confirms what I have written many times: that the power of the United States is based on the dollar and exploitation of another countries, which is possible thanks to the privileged position of the dollar. Without that power, the U.S. will flow like a bubble of soap. It besides indirectly confirms my claim that the US conflict with Russia and China is inevitable. With the power of the United States, the wealth of American oligarchs will besides disappear. It's a game of everything and a fight to the death!
The article comes from a blog Pecunia olet
