03/03/2019 (Sun) 15:43:47
"The Entity had abused dollar hegemony over the years by simply printing dollars. The Entity ran huge trade deficits every year. China, Japan and all other countries had had to keep reserves of dollars if they were to purchase oil and protect their currencies. These were like never- having-to-be-repaid loans to the Entity. If other currencies could be used they would dump these reserves because the only thing preventing inflation of these dollars had been dollar hegemony, backing the dollar with oil. Iran doing business in non-dollar currencies is like a leak in a dike.
Russia, China, India and Japan are now unloading dollars carefully, so as not to cause a panic. But they are steadily unloading them. They see dollar hegemony disappearing. Naturally, Saudi Arabia sees what is happening, and is not that enamored of the dollar either. As long as they thought the Entity protected them from Iran and, of course, from the Entity itself, they went along with it. Now the Entity is impotent to enforce dollar hegemony. The dollars the Saudis take for their oil today will be worth a whole lot less tomorrow if dollar hegemony ends. They are wavering, especially after Trump scolded them for murdering Kashoggi. Naughty, naughty MBS. They know the Entity cannot protect them from Iran, and they are panicking."
"The Entity’s hive mind, for it’s part, refuses to accept the Iraq failure as having revealed its weakness. It still wants to maintain dollar hegemony and its protection racket. The end of dollar hegemony is an existential threat to The Entity. Originally The Entity exchanged securities for these dollars, one piece of paper for another, or more likely bits of code, with the Federal Reserve. Then it spent them, mostly on the military. The Federal Reserve unloaded these dollar-denominated securities to whoever had faith in the dollars they could exchange them for. Nice work if you can get it, but securities are debt. The Entity is so far in debt that it pays almost a trillion dollars in debt service annually. To do so it needs more dollars and to sell more securities. Faith in this Ponzi scheme might waver. If everyone unloads dollar securities the entity will have to print more dollars, and sell more securities to buy them. Otherwise their price will crash. But what real something or other will these dollars buy given how many will be floating around? For there will be no other buyers unless the dollars can buy something real. The Securities will then be worthless. If Entity securities become worthless so will the dollar. Bye-bye Entity."
"The hive-mind’s strategy is to simply deny what has happened, the ostrich maneuver. The Entity didn’t lose in Iraq, it hasn’t as a consequence lost all credibility in the Middle East, dollar hegemony is salvageable, and the Entity might still attack Iran after all. The continuation of dollar hegemony requires a world in which Humpty-Dumpty gets back together.
If only Iran could be put back in the box of dollar hegemony all would go back to what it was. In 2012 the Entity blocked Iran from the SWIFT messaging system for making international payments as punishment for straying from dollar hegemony, the first time that system had ever been used politically. It froze Iranian funds and the trust required for international banking was destroyed. However, Iran continued on its wayward path. Now the Entity withdraws from the JAPOCA, which was very beneficial to all other signers. Obedience to the Entity’s sanctions against Iran is bringing the interests of much of Europe into conflict with those of the Entity."