Tag Archives: dollar

  We have been hearing about the great economy for a decade while the labor force participation rate declined, real family incomes stagnated, and debt burdens rose. The American economy has been great only for large equity owners whose stock ownership benefitted from the trillions of dollars the Fed poured into financial markets and from buy-backs by corporations of their …

  Digital Currency: The new digital currency will make trackable every transfer of money to family, charities, friends, clients. The nation’s central banks who issue the virtual money will have total control over how you spend it. Big Brother will, in other words, control your wallet every hour of every day.  “You will not be able to buy a stick …

  A study of requirements for the optimal functioning of Capitalism quickly uncovers the need for a strong focus on trust. This applies to economics on the micro level as well as the macro perspective. Trust is one of the ethical principles that make the difference between constructive and self-destructive operation in profit-driven financial businesses. In cultures where social development …

  The Federal Reserve’s Anti-inflation Policy Makes No Sense. Another agenda is in play. Dear readers and fellow economists, the Federal Reserve is treating a rise in prices from supply shocks and disruptions from the Covid lockdowns and sanctions against Russia, Iran, and other countries as if it were a monetary inflation. It is true that too much money is chasing …

  As the dollar declines, so does Washington’s power. Cutting dependence on the US dollar: The De-Dollarization discussion suffers from holdover thinking that a reserve currency is needed.  No reserve currency is needed.  Countries can settle their trade balances in their own currencies or contracts can specify the currencies of trade transactions.   Countries with low inflation and low debt will have stronger …

  No country has successfully challenged the U.S. dollar’s global hegemony—until now. How did this happen and what will it mean? Foreign critics have long chafed at the “exorbitant privilege” of the U.S. dollar as global reserve currency. The U.S. can issue this currency backed by nothing but the “full faith and credit of the United States.” Foreign governments, needing …

  Here’s your ‘reserve currency’ thought for the day: Every US dollar is a check written on an account that is overdrawn by over 30 trillion dollars. It’s true. The “full faith and credit” of the US Treasury is largely a myth held together by an institutional framework that rests on a foundation of pure sand. In fact, the USD …

  Saudi Arabia’s recent announcement that the government is open to accepting payment for oil in currencies other than the dollar is a major announcement ignored by the presstitutes.   The end of the petrodollar would have severe adverse effects on the value of the dollar and on US inflation and interest rates.  For a half century the petrodollar has supported …

  Herland Report: The American De-Industrialization: As I recently wrote, the US no longer has an economy.  America is a market for goods produced offshore with foreign labor that US global corporations sell to Americans.   The US which once produced its own manufactured goods and food now imports much of it.  The result is that fewer and fewer American incomes are based …

  Herland Report: The United States Could Easily Lose: Since the United States seems serious about confronting China in an extended contest for global supremacy, it had better start getting its own house in order. Other countries will not want to ally themselves with a power that rests on increasingly uncertain economic, social, and political foundations. In seeking the world’s …