The World is Losing Faith in the Dollar

As an inevitable consequence of US foreign policy and monetary policy, the world is finally losing faith in the dollar.

Brazil, Russia, India, China, and South Africa during the BRICS Summit have decided to discuss letting go of the dollar as the world's reserve currency. It's interesting that the two likely opponents for the 2012 US presidential elections are not even talking about changing foreign policy or monetary policy — the two direct causes of the debasement of their currency.
"There is no instance of a nation benefiting from prolonged warfare." - Sun Tzu, The Art of War
When the US has to borrow money from China just to sustain their empire-building and endless wars, it is not surprising for China to start losing faith in the dollar, along with the other highly developing countries that are members of the BRICS summit. The US has spent hundreds of billions on their endless wars, or their empire-building, on their embassy in Iraq that's bigger than the Vatican, something that is just economically doomed to fail. The US is broke and a while back they even had to raise their debt ceiling and lead to the downgrading of the dollar. Regardless of the arguments for their policing of the world, they just can't afford it anymore.

And then there's the Federal Reserve, responsible for devaluing the dollar since 1913, who keeps giving their buddies billions of dollars in bailouts. Their ability to print money at will is basically theft from the income of hardworking individuals because the dollar gets debased. Actually, those who advocate the Austrian School of Economics have been predicting this for a long time. Ron Paul has been warning his colleagues in congress about this for 30 years and no one ever listened to him. Also, this form of central banking also funds the foreign policy and policing of the world.

I'm actually getting paid by Google again on the 25th (yes I do get paid just for blogging my thoughts). I am directly affected by this, obviously. In spite of the increase in my revenue, the purchasing power of what I earned did not increase. And it's not just me. Think of all the remittances from our OFWs that are getting devalued as well. And being that the dollar is the "world's reserve currency", they have a direct effect on the currencies and monetary policies of the whole world.

It's only sensible for these 5 countries to lose their faith in the dollar. It's weird though that they want to replace it with some sort of new bank that will just be printing money again and will have as much potential to be corrupt just as the Federal Reserve. They are critical of the IMF or the World Bank and yet their solution is to just create their own IMF or World Bank.

Inevitably, the world will one day realize that this kind of monetary policy is ridiculous and immoral. We need to take out the State's monopoly on money and allow competition and let the market decide what truly has value.

This is a good thing, I guess. Maybe it will make the US wake up and rethink their monetary and foreign policies.


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