MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘dollar’

The End is Nearing: A World Slowly/Openly Turning Away from the USD

Posted by M. C. on August 29, 2022

By Matthew Piepenburg
Gold Switzerland

As more nations turn away from the West (and the USD) and closer to the East (i.e., Russia) to meet their energy needs, how will they find the Rubles or Yuan to buy their oil, gas and other commodities? After all, in the new, post-sanction, multi-FX importing model described above, Turkey can’t just buy Russian oil in Lira; it needs to first settle the trade in Rubles.

So, again, what currency will Turkey use?

With the USD losing influence, it would be the understatement of the year to say that we live in interesting times, for we certainly do.

But despite the inevitable attacks of appearing sensational, un-American or just plain cynical, I feel a more appropriate phrase boils down to this:

“We live in dishonest times.”

Below, I bluntly address the “Fed pivot debate,” the “inflation debate” and the USD’s slow global decline in the setting of a now multi-FX new normal in which gold’s historical bull market has yet to even begin.

These views are not based on biased politics, but honest economics, which for some odd reason, ought to still matter.

Let’s dig in.

The New Normal: Open Dishonesty

I recently authored a report showcasing a string cite of empirically open lies which now pass for reality on everything from the CPI inflation scale to the Cleveland Fed’s +1 real interest rate myth, or from official unemployment data to the now comical (revised) definition of a recession.

But a more recent lie from on high comes directly from the highest of all, U.S. President Joe Biden.

Earlier this month, Biden waddled to his podium and prompt-read to the world that the US just saw 0% inflation for the month of July.

Oh dear…

It’s sad when our national leadership lacks basic economic, math or even ethical skills, but then again, and in all fairness to a President in open (and in fact sad) cognitive decline, Biden is by no means the first President, red or blue, to just plain fib for a living.

A History of Fibbing

We all remember Clinton’s promise that allowing China into the WTO would be good for working class Americans, despite millions of them seeing their jobs off-shored to Asia seconds thereafter.

And let us not forget that little war in Iraq and those invisible weapons of mass destruction.

Nor should we ignore both Bush and Obama’s (as well as Geithner’s, Bernanke’s and Paulson’s) assurance that a multi-billion-dollar bailout (quasi-nationalization) of the TBTF banks and years of printing inflationary money (Wall St. socialism) out of thin air was, “a sacrifice of free market principles” needed to “save the free market economy.”

In reality, however, we haven’t seen a single minute of free market price discovery since QE1.

See the rest here

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The Dollar’s Reserve Status Is Ending. Will Bitcoin Save Us?

Posted by M. C. on April 8, 2022

“The bigger the government the smaller the individual”

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Why Does Money Have Value? Not Because the Government Says It Does. | Mises Wire

Posted by M. C. on October 10, 2021

Contrary to the popular way of thinking, the value of a paper dollar originates in its link to gold—and not government decree or social convention. Following Ludwig von Mises’s regression theorem, money must have originated as a commodity. Furthermore, the fact that an entity has established a purchasing power with respect to various goods and services does not automatically qualify it as money, i.e., as the general medium of exchange. For the entity to become money, it must have wide acceptance.

https://mises.org/wire/why-does-money-have-value-not-because-government-says-it-does

Frank Shostak

Why does the dollar bill in our pockets have value? According to some commentators, money has value because the government in power says so. For other commentators the value of money is on account of social convention. What this implies is that money has value because it is accepted, and why is it accepted? … because it is accepted! Obviously, this is not a good explanation of why money has value.1

The difference between Money and Other Goods

Now, demand for a good arises from its perceived benefit. For instance, people demand food because of the nourishment it offers them once consumed. This is not so with respect to money. According to Murray N. Rothbard,

Money, per se, cannot be consumed and cannot be used directly as a producers’ good in the productive process. Money per se is therefore unproductive; it is dead stock and produces nothing.2

Why, then, is there demand for money? Why do individuals desire to have something which cannot be consumed and produces nothing? To provide an answer to this one must go back in time to establish how money emerged.

In trying to improve their lives and well-being, individuals discovered that by replacing direct exchange, where individuals exchange one good for another good, with indirect exchange they could enhance the marketability of their produce. The introduction of indirect exchange means that the produce of an individual is exchanged for some more marketable good and then this good is exchanged for the produce of another individual.

The key to a good’s emergence as a mediator of indirect exchange is that it must be widely accepted. On this, Ludwig von Mises observed that, over time,

there would be an inevitable tendency for the less marketable of the series of goods used as media of exchange to be one by one rejected until at last only a single commodity remained, which was universally employed as a medium of exchange; in a word, money.3

Similarly, Murray Rothbard wrote that,

See the rest here

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Contact Frank Shostak

Frank Shostak‘s consulting firm, Applied Austrian School Economics, provides in-depth assessments of financial markets and global economies. Contact: email.

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The Worst “Fact Check” Ever

Posted by M. C. on July 28, 2019

Truth is treason in an empire of lies.

https://blog.tenthamendmentcenter.com/2019/07/the-worst-fact-check-ever/?fbclid=IwAR0bSIisduyxs0rh37wj8UtBV_ZBq18qV0T7XzZe_N3dHTwSJQ_8jF-KdYE

By:

Voice of America has responded! And it may well be the worst “fact-check” and rebuttal in the history of fact-checks and rebuttals. As Ron Paul Institute executive director Daniel McAdams put it, “Unbelievable! They confirmed everything you said as true and then pronounced you wrong!”

This revolves around an interview I did on RT where I talked about how the U.S. weaponizes the dollar and uses the global SWIFT payment system as a foreign policy billy club. The Voice of America “fact-checking” website Polygraph.info contacted me for comment. Since it was clear they intended to discredit my narrative, we decided not to respond to their email but instead write a full-blown rebuttal of the narrative that I knew they would advance.

This worked out even better than I anticipated. Polygraph.info actually responded to my pre-rebuttal. And in their response, they basically conceded my main point – that the U.S. government can and does use SWIFT as a foreign policy tool. Of course, they tried to downplay the significance, but their concession is telling.

“While the U.S. has the ability to pressure SWIFT thanks to its position in the global economy, it could be limited by potential costs that would be felt by U.S. businesses and those of U.S. allies. An Atlantic Council opinion piece warns the U.S. Congress to ‘be wary of taking unilateral steps to target SWIFT in future legislation,’ adding the practice risks hampering the flow of financial data, “slowing global trade and transactions.” Moreover, the U.S. does not directly control SWIFT.” [Emphasis added]

McAdams is right. This essentially confirms what I said — No. The U.S. does not control SWIFT, but it can exert significant pressure on it.

“So, despite what VoA and the Treasury Department claim, the U.S. government clearly pressures SWIFT to serve as a foreign policy tool. It may be technically accurate to say the U.S. government does not ‘control’ SWIFT. But the U.S. clearly applies political pressure on the institution and that pressure yields results.” [Emphasis added]

The Atlantic Council piece Polygraph.info links to confirms what I wrote. The very fact that somebody felt the need to warn Congress about the consequences of abusing its influence over SWIFT indicates that my position is absolutely correct.

Polygraph.info chose to ignore most of the points that I made in my pre-rebuttal article, writing that they were “beyond the scope of this fact check.”

This is an odd statement considering my article addressed the substance of what they were supposedly fact-checking. So basically, the very thing they were fact-checking was beyond the scope of the fact check.

OK.

As Ron Paul once said, “Truth is treason in an empire of lies.” The fact that a propaganda arm of the U.S. government wants to whitewash the truth about America’s economic warfare is telling. Its inability to effectively do it is even more so.

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truth

 

 

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