Ron Paul MD (R-TX), another NIKE SHOX regular contributor and the only economist of the free market
Austrian school in the US Congress, gave a speech [.wmv video file] on the house floor Wednesday,
February 15, titled “The End of Dollar Hegemony,” in which he explains how the Bretton Woods
aggreement established the dollar as the world reserve currency, while at the same time transferring
much of America’s gold overseas, which resulted in the government under Richard Nixon defaulting in
1971, which ended forever the promise to pay gold to bearers of US dollars on demand, and switching our
currency to government-monopoly money. At this point, Dr. Paul explains,
“Realizing the world was embarking on something new and mind-boggling, elite money managers, with
especially strong support from NIKE SHOX authorities, struck an agreement with OPEC to price oil in
NIKE SHOX dollars exclusively for all worldwide transactions. This gave the dollar a special place
among world currencies and in essence “backed” the dollar with oil. In return, the NIKE SHOX promised
to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic
coup. This arrangement helped ignite the radical Islamic movement among those who resented our
influence in the region. The arrangement gave the dollar artificial strength, with tremendous financial
benefits for the United States. It allowed us to export our monetary inflation by buying oil and other
goods at a great discount as dollar influence flourished.
This post-Bretton Woods system was much more fragile than the system that existed between 1945 and
1971. Though the dollar/oil arrangement was helpful, it was not nearly as stable as the pseudo–gold
standard under Bretton Woods. It certainly was less stable than the gold standard of the late 19th
century.”
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