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American Default25/9/2021 Sharing a mail I sent to a friend who asked me about the potential default of America. This was vetted by an ex-SVP and Chief Economist of the World Bank, currently professor of economics at Peking University. He says it's basically correct.
America controls both the currency (USD, the international reserve currency) and conduit (SWIFT) for international trade. This is their global imperial power. They can print paper to buy the world's limited and precious resources while the rest of the world must earn or borrow the paper. They also decide who can or cannot trade. In addition, they control all the banks and financial institutes doing international business. America can strangle and impose oppressive fines, indict and hijack, as well as corrupt and incite regime change, to turn any intransigent player into a whimpering idiot. They control the world's media and the narrative. America can do no wrong and you're all assholes living in hellholes. Most importantly, America can print paper to build the greatest military force to control your mineral resources and trade routes, meanwhile pacifying and civilizing sundry barbaric people of defenseless countries. And guess who is paying for this monstrosity? If you think it's the American taxpayers, you'd be wrong. It's all smoke and mirrors. The ruling class in America creates a ton of money from thin air which becomes debt that the rest of the enslaved world must buy. That debt becomes a debt of the American people which they can never repay, therefore they become debt slaves, tamely complying to their master's orders. And the money created eventually ends up in the coffers of the 1% American military industrial financial warmongering scammers. Since the rest of the enslaved world ends up being holders of American debt that pays almost no interest, of a currency that is being created at an exponential rate, and paying interest that is also created out of thin air, you the victims are paying for the oppressive weapons of the American monstrosity. Capische? By the way, America did not invent this beautiful scheme. After kicking the Persians out of Greece in 479 BCE, Athens was the liberating hero beloved even by their perennial enemy, the Spartans. Then Athens formed the Delian League to fight the Persians. Everyone must pay the League and send their sons to fight. The treasury of the League soon ended up in Athens and used to enrich Athenians. Member cities desiring to leave the League were sacked, their men slaughtered, their women enslaved, and their sons castrated. Athens at the head of the League became an imperial power even crueler than the Persians, who had Greek allies. In less than a generation, Athens turned from being the most admired Greek city state into the most hated. Eventually, it led to war with the Spartans, who allied with the Persians to destroy Athens. Such is the fate of empires. The idea of setting up an international currency for trading is theoretically fine, and the SDR of the IMF serves that purpose to some extent. But at the end of the day, America still controls the IMF with veto power and the SDR is but an accounting tool. Power and trust are what cause a promissory note to be used as a token of wealth for trading between countries. Nixon actually defaulted and robbed the world blind. It's a well known history which you can read up on your own (Google Nixon gold default). America and its dollar still has power, but trust is badly eroded. There is no good alternative at the moment that can challenge the USD, but China's RMB is gaining, slowly and steadily. The digital RMB is dangerous for the US dollar hegemony because people can pay anywhere in the world just by using a smartphone, and the transaction is done instantaneously, without the need for clearing through banks, without any bank fees, and certainly does not need clearing through any American system, completely kicking America out of the loop. No more American clearing, no more SWIFT, no more waiting for days going through the international banking system, and most importantly, no more American unilateral sanctions. Besides, RMBs are appreciating because of China's growing economic power, which by the way, is based on production and innovation rather than running the printers, persistent lying, and committing highway robbery. Below is an article about what happens if America defaults on its treasury bills. I suggest that China shouldn't have to worry about its 1 trillion dollar reserve. America won't let China buy anything valuable with it anyways. Anything of value China wants to buy is against the interest of American national security. America will eventually have to pay up, as the T-bills in China's reserve is only a small portion in the whole pot. In any case, the collapse of the USD hegemony is much more valuable to China and the rest of the world than empty American paper promises, which by now should be badly discounted. If you trust habitual liars, then it's your problem. The fall of the USD hegemony means that America can no longer print its way out of problems and let the rest of the world bail them out. They'll have a hard time printing trillions for their military adventures. Every trip to the South China Sea needs to be balanced against servicing their debt. Their bases all around the world may need to figure out a way to generate an income, maybe by selling military shirts and boots, all made in China, of course. America will have to produce valuable commodities or sell their valuable assets in order to trade with the rest of the world. Let's hope that day comes soon. The writer of the following article William Pesek is based in Tokyo and is a mainstream journalist, writing for Nikkei Asia and Forbes, etc. When reading articles, always learn a bit about the writer's background. This article is supposed to be behind a pay wall which apparently doesn't work. If you can't read the article but want to, let me know. US default a greater risk than Evergrande meltdown
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