by Bill Holter, Miles Franklin:
Not what is “a” dollar, because there is only one answer to this and unfortunately “is” no longer. The legal definition of a dollar is 371.25 grains of silver. What we use today has no link to silver whatsoever, and is merely a promissory note issued by the Federal Reserve. “The” dollar on the other hand is the currency of the U.S. yes, but more importantly it is the “stock” of the U.S. It goes “up and down” versus other currencies, other monies (gold and silver) and against commodities. The dollar goes up and down based on many factors, supply and demand of course but “confidence” is the largest factor. In essence the “price” of the dollar is determined just as the price of any stock is determined. Global investors look at the current financial status and look into the future to whether it is bright or dim. They then place their bets, which will push the price up or down.
So why is any of this important? Because, if we had not done enough for years and years to piss off the rest of the world, we have now done so. We have bullied our way around the world “lending” to borrowers at terms that we knew could not be met. We then foreclosed and took possession of raw resources. We have toppled “unfriendly” governments and rigged or “helped” in foreign elections to those who would do our bidding. Everything was “priced” in dollars so before any trade could occur…dollars had to be bought. This has recently been changing as foreigners are making deals amongst themselves to settle trade without using dollars.
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