The American Empire in a Changing World


Tuesday, October 16, 2012

''The Financial Collapse Won't Come With A Warning Sticker''

From Seeking Alpha
By Plan B Economics 

''Dollar reserves around the world have relentlessly risen for decades, putting pressure on a one-sided system created by a global dollar-regime that is enforced financially, legally and militarily. This 'petrodollar' system (a system that forces oil producing countries to sell oil in US dollars, effectively forcing oil importing countries to build dollar reserves) has reinforced the imbalance by propping up the dollar and suppressing US interest rates, allowing the US to run what would otherwise be disastrous monetary and fiscal policies. The US has little incentive to right the world financial system as it has enabled the US to finance the worlds largest army, a welfare state and a consumption-driven economy.''

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