Article - Mengapa Begini
MMJ: 20230626
UTAMA | Manusia | Komunikasi | Ilmu | Cabaran | Keluar || HOME | People | Communication | Knowledge | Challenges | Exit
MENGAPA BOLEH JADI BEGINI
An excellent explanation of the massive USD scam executed by the United States by Twitter member Ni Mingda:
倪明达 (Ni Mingda)
@NiMingda_GG
The U.S. is the only country that can print unlimited
“funny money” & exchange them for real goods from other nations.
This is due to the USD's “reserve currency” status.
But do you know the U.S. can also extend this exorbitant privilege to an ally?
Here's how the scam works...
If you want to understand how the U.S. defrauds the world, you need to know how reserve currency works and how the USD gained that status.
I've covered that previously (link below).
But in this thread, I'm going to reveal how select Western nations also benefit from this massive scam.
The tool that allows the U.S. to extend its exorbitant monetary privileges to an ally is called 'swap lines'.
'Swap lines' are agreements that enable one country to exchange its currency with the currency of another.
This is done through their respective central banks.
Let's use the example of 'swap lines' between the U.S. & UK to illustrate how the scam works: Countries are free to print their own currencies. But only the U.S. can print "unlimited" amounts of dollars without suffering hyperinflation due to the USD's reserve currency status.…
That means the U.S. can generate "unlimited" amounts of dollars out of thin air and exchange them for:
- tangible goods from China
- natural resources from Africa
- oil from the Middle East
That's "magic".
No other country can do that... unless the U.S. grants them such a privileged ‘swap line'...
What if the UK wants a share of that "magic money"?
The U.S. Fed can help. Here's how:
Let’s say the Bank of England prints 1 trillion GBP.
It then swaps that with the Fed for 1.25 trillion USD (the current exchange rate).
The UK has just indirectly printed 1.25 trillion USD!
Did you see the "magic" that just happened?
Unlike America, the UK cannot print GBP with impunity and allow all that excess "money" to enter the market.
That would devalue the GBP and cause hyperinflation.
So it prints the said GBP & swaps them for USD with the Fed instead.
In short, the U.S. defrauds the world with its USD, then uses 'swap lines' to share the spoils with its staunchest allies.
The U.S. can grant 'swap lines' to any allied country it wishes.
Now do you understand why some countries are such diehard supporters of the U.S. Empire?
Question:
What does the U.S. Federal Reserve do with the 1 trillion GBP received from the Bank of England?
Answer:
It depends on what they agreed on.
In theory, the Fed can choose to do nothing and just store it as a number on its balance sheet.
It's "money" created at no cost anyway.
The good news is that de-dollarisation is gaining speed and momentum.
Many BRICS, OPEC, ASEAN & Latin American nations are now bypassing the U.S. Dollar in their bilateral trades with each other.
The USD is rapidly losing its reserve currency status, and the U.S. ruling elites are panicking….
As the USD loses its reserve currency status, the U.S. will no longer be able exchange its "funny money" for real goods from other nations.
The mountain of greenback already out there will come flooding back into the U.S. to cause hyperinflation.
Even toilet paper will be worth more than USD!
Addendum:
The U.S. can also weaponise existing 'swap lines' as a blackmail tool.
Using our previous example as an illustration:
If relationship between the U.S. & UK sours, the Fed can dump the 1 trillion GBP into the open market.
This would cause inflation in the UK.
Note:
Any country can print any amount of its own currency.
But...
- its currency may not be accepted as payment by some international suppliers
- overprinting causes hyperinflation
At the moment, the USD does not face those two problems due to its global reserve status.
The U.S. has 'swap lines' with Canada, UK, EU, Switzerland & Japan for some time now.
MENGAPA BOLEH JADI BEGINI?
UTAMA | Manusia | Komunikasi | Ilmu | Cabaran | Keluar || HOME | People | Communication | Knowledge | Challenges | Exit
Dikemaskini [Updated]: Sam Ahmad 20230626