Those Who Have the Gold Will Make the New Rules

With every skyscraper is built a crater. The only problem for the United States is that we have so many skyscrapers to hold our gaze upwards, that we aren’t looking for the many holes right before us and below us. They are quite likely to become our graves, as we have a long fall from our stilts, that are becoming ever thinner as we repurpose wood girth to greedily seek yet new heights. Thanks to Jim Willie for making me aware of how incredibly vulnerable we have made ourselves as our dollar—not backed by gold nor oil, and less and less by an incapable, unwilling military (I am happy about this last point, and sick of knowing that I live in an imperial state)—is going to be revealed as paper. We will no longer be able to trade around our dollar for “cheap premium” (if this is an oxy moron, all the better) imports of everything from natural resources all the way up to highly refined specialized consumer and industrial goods that we have grown used to buying and periodically throwing away. On the brightside, at least our dumps and landfills will get to have a breather.

The new likeliest most common piece of trash to be found at dumps the world over will be the US dollar… probably (The probably is due to the wonderful and frightful analysis of James Corbett on the trend towards a global oligarchy and the IMF’s Special Drawing Rights Currencies that will likely continue to include the dollar, along with adding the Huan). Why will the dollar be trashed? The dollar has given an unfair preeminence to the United States in all matters of foreign exchange and trading. Many players in the game are surely sick of being seconded by the USA having a position of leverage whenever the game isn’t going their way. I thought of an overly simplistic way to explain this in an “International Relations, Nation States as Individual Actors” kind of way:

Imagine there are 4 different players in a game to get the most resources, and each player at the beginning is given money—8 paradimes—and a specialization for exportability. Nation A’s specialization is in Agriculture, Nation B’s specialization is in Smart Phones, Nation C’s specialization is in Energy Crude and Refined, and Nation D’s specialization is that it has a paradime making machine that only requires an input of water. The focal point of this heuristic device is Nation D. They realize the strategic advantage of a paradime making machine, but after a few rounds of trading, as they are only purchasers and have nothing to trade, they make only a few paradimes so that the other players don’t catch on that they have this machine. They are in a sense very responsible with their gift and don’t want to abuse and lose it, and they are just using it, very justly, for survival since they don’t have anything else to offer. However, as time goes on and they see how central paradimes are to the other 3 nations interacting and getting along, they decide to push their advantage and want to be number one—not dependent on the other nations but as the one who is depended upon. They start working the machine over time and buying disproportionately lots of food, oil, and smart phones, and the paths of trade into Nation D become well worn and defined, so that Nation’s A, B, and C all tweak their operations to accommodate to Nation D’s importing habits and they have less and less need or desire to trade with each other beyond basic needs. Eventually, Nation C gets exhausted of its Energy Resources, and Nation A loses its soil nutrients, and they realize that their own domestic needs cannot be met while simultaneously meeting Nation D’s lust for these items. Nation D ups the ante by offering exorbitant amount of paradimes for food and energy, and for a while Nation A and C are willing to tighten their belts because they love paradimes. However, at some point Maslow’s hierarchy of needs kicks in and they really need their food and energy and realize that paradimes are not so important, as they aren’t edible and can’t be burned for fuel, and that they are not very important to them. They become quite annoyed as well when it dawns on them that Nation D has somehow had an unlimited supply of these things and hasn’t contributed anything more than these useless circlets of metal. Their view on paradimes shifts…

There is a Nation ABC summit to the exclusion of Nation D, where the three nations decide that they need some sort of currency to facilitate trading and that food is a fundamental resource that will always be desired and the more of it created does not have the negative effect of inflation, but the positive effect of allowing more eating and/or trading. Nation D does not hold water, so it cannot even trade water for food, and its existence begins to dwindle as the famine and then disease take their course. Such is the rise and fall of a nation that had an unfair advantage, which proved in the long reality to be a grave disadvantage.

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