Happy Birthday U.S. PetroDollar: The Golden Anniversary Of Shedding Gold (August 16, 2021)
. . .
K “Fifty years ago yesterday, our friend Tricky Dick decided the country could no longer afford to back the greenback with Au and instead developed a plan to backstop it with Fe and Pb.”
J “Precious metals all three.”
. . .
K “Nixon had no choice. Fiscal and monetary irresponsibility got the country into a mess. The solution precipitated even more grossly irresponsible fiscal and monetary policy.
. . .
J “Oil is the oxygen for the economy.”
. . .
K “The idea is among the craftiest in the history of humankind. Inform another country that your country will provide protection if it sells black oxygen in a new magical unit called the PetroDollar. If you don’t agree, we will kill you. If others do not agree, we will kill them.”
J “They were not demanding protection money, they were demanding that everyone use their money to obtain protection. No one has been able to refuse the offer to date. To date. Anyone who tried was killed. The ultimate international carrot and stick.”
. . .
K “No other commodity or idea or thing has been as universally accepted if not cherished across time and space as precious metals particularly gold. Try to find a country or culture or collective that has not given precious metals at least a serious look-see.”
J “A precious metals standard is still problematic.”
. . .
[See “WTF Happened In 1971?” for some thought provoking ideas on what happened in and after 1971.]
[See the e-commentary at “One World Currency? (January 8, 2018)”, ““Bitcoin”, “Ethereum” . . . “Blockchain Technology” Say What? (July 3, 2017)”, “The Mandibles, FRNs, SDRs, IMF, G20, WTD! (September 5, 2016)”, “World’s Reserve Currency War I = Cold War 2.0 = WW III (?) (September 8, 2014)” and “The Legacy Of “Easy Al” And Easy Money (October 15, 2007)”.]
Bumper sticker of the week:
No Baby On Board Feel Free To Ram Me
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