Tuesday, May 06, 2008

It's already bankrupt


It's already bankrupt
by Ted Rudow III,MA ( Tedr77 [at] aol.com )
Tuesday May 6th, 2008 9:11 AM
America was able to tax the world indirectly, through inflation. It did not enforce the direct payment of taxes like all of its predecessor empires did, but distributed instead its own fiat currency, the U.S. Dollar, to other nations in exchange for goods with the intended consequence of inflating and devaluing those dollars and paying back later each dollar with less economic goods—the difference capturing the U.S. imperial tax.

The U.S. dollar was tied to gold, so that the value of the dollar neither increased, nor decreased, but remained the same amount of gold. The Great Depression, with its preceding inflation from 1921 to 1929 and its subsequent ballooning government deficits, had substantially increased the amount of currency in circulation, and thus rendered the backing of U.S. dollars by gold impossible. This led Roosevelt to decouple the dollar from gold in 1932. The fixed value of the dollar did not allow the Americans to extract economic benefits from other countries by supplying them with dollars convertible to gold. From that point on, to sustain the American Empire and to continue to tax the rest of the world, the United States had to force the world to continue to accept ever-depreciating dollars in exchange for economic goods.
The U.S. ran out of money a long time ago. It's already bankrupt; it just doesn't know it yet! It has more debts than it has money to pay them, and its money is worth less all the time. It's "worthless" for sure, because in the end it's just paper, and the only backing it has is the faith of the people who use it, which has gone into a steep decline.
The American people have been making war and making money in their war jobs and their high salaries at the expenses of the poor Iraqi and other Mideast countries. In fact, almost all American industries, even non-war industries, are making money at the expense of the poor of other nations of the world.
Ted Rudow III,MA

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