03-12-2017, 04:36 AM
(03-12-2017, 04:19 AM)Kinser79 Wrote: Neither do I. Which is why I believe a great deal of the saber rattling toward Russia by a certain political clique is based on oil in some way (perhaps not fully--the Russian spies line is for the Outer Party as it were, and maybe the most intelligent of the Proles). Russia has said in the past that they are willing to sell their oil and gas in a combination of Gold, Dollars, Euro, Yen and RMB as well as Rubles.
This is why I brought up the petrodollar which has its roots in the closing of the gold window in 1971. Without gold backing there would need to be another reason to hold dollars. Nixon made a deal with Saudi Arabia and OPEC in 1974 to only sell oil in dollars. As you can see this had had two primary effects. First, demand for dollars is maintained and so the dollar maintains and expands its dominance in international trade. Second, this has allowed inflation to be exported to the rest of the world and has largely kept consumer price inflation under control.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises