Story is the dollar is being dumped. This is the scenario that you don’t want to happen. We have been misled into an unfavorable war, and countries around the world dislike the way America has conducted herself on the international scene. So how do they return the favor? By hurting America where it matters the most: dumping the dollar. Because oil has been mainly denominated in dollars, dollars have to be held world wide. That gave America the upper hand in the world because everyone needs oil and they would have to possess dollars in order to purchase that oil. But when oil producers decide to receive other currencies in exchange for their oil and there is a reduction in dollar holdings in favor of other currencies it will devalue the dollar and put a squeeze on the US economy.
There is the Chinese government, who peg their Yuan with the value of the dollar. America cannot seem to get them to let their currency float with natural market conditions of supply and demand. America cannot seem to get them to let their currency float It is in the interest of their economy to continue to peg their currency against the dollar to keep the prices of their goods attractive. The more money we spend on their goods because they are cheap, the more dollars they accumulate and have on hand. It helps us in a way because it does keep inflation at bay because of the cheap prices and it keeps interest rates low because they reinvest the dollars they get from their exports in US assets. But it creates a trade imbalance that depending on the dollar value can grow or shrink. Given the US’ current track record in the international community these days, will they be willing to change their policy at our request? And Russia is refusing any outside ownership of its oil which has the potential of shrinking our oil supply. You have got to wonder what is going to happen next. One thing is for sure if things don’t change in Washington this country is going to be at the mercy of other nations and will be in for a hard landing. And it may even be too late.
So we wonder why is it that George H.W. Bush is having these recent break downs when he is giving speeches. The recent break down was during a speech he was giving on behalf of his son Jeb Bush who is in the last leg of governorship in the state of Florida. What flashed across his face during that outburst did not appear to be tears of joy. It looked more in the vein of agony. One can only imagine how agonizing it must be for him to know that his elder son who is the president has tarnished a great country like America.
We are now the most hated country in the world because of the foreign policy of this administration. And they audaciously tout that foreign policy to the disdain of other nations. Under this current president and his administration America’s credibility has been torn to shreds. This administration arrogantly flaunts its power as if this country is invincible and that no one would dare challenge it. Yes we are a powerful country but that power is basically based on the dollar and our economy makes our might and it is based on paper that is becoming weaker and weaker due to both internal and external pressures, economical and political. So what will that do to the US position in the world? It will become weaker and weaker and of no influence.
This president and his administration have attempted with their all to go counter of everything this nation was based on. This nation was the beacon in the world that otherNations emulated. America was the nation that always took the lead in foreign diplomacy and human rights. Now we are being ridiculed and chastised by other countries because we are becoming the nation which in times past we stood against. And it is happening under the direction of Bush 41’s son and that is surely not making him proud. We no longer can enjoy the status that we once had as being a world leader that champions justice fairness and tolerance. Now we champion imperialistic, intolerant, aggressive agendas. We are being brought to shame. Maybe it was the shame that brought Bush 41 to tears.
