Red Alert Somalia

The essence of the Bretton Woods system can be clarified in one sentence: the world's currencies lock the US dollar, and the US dollar locks the gold.The U.S. government promised the world that every 35 U.S. dollars can be exchanged for one ounce of gold. At that time, the U.S. can be said to be very proud, because at this time the U.S. has the world’s largest gold reserves and 80% of the world’s gold is held in the U.S. In human hands, at the same time, the United States also has the world's most powerful production capacity and military machinery.

By establishing the Bretton Woods system, the Americans established the hegemony of the dollar in one fell swoop.This status lasted until the early 1970s. Before that, the United States was the richest and most stable country in the world with the best economic development momentum. Naturally, the U.S. dollar had the best reputation.

However, flowers do not have a hundred days of red, and people do not have a thousand days of good.The good days of the Americans also come to an end.The Americans who came home from the Korean battlefield did not accept the lessons of that war.

In 1959, the Americans traveled far and wide and were involved in the Vietnam War.After fighting in Vietnam for nearly 17 years, when the war ended in 1975 and evacuated hurriedly from Saigon, the Americans had been shot down by tens of thousands of planes and lost the lives of nearly 50,000 soldiers, but in the end nothing was gained!This war destroyed 800 billion U.S. dollars, which is equivalent to more than 3 trillion U.S. dollars today.Correspondingly, the United States' gold reserves are also declining. By 1971, the war hadn't ended. The United States was already stretched out and it was not enough to spend.At that time, Americans were not able to implement a "moderate monetary easing policy" as they did today to deal with the financial crisis and open up the printing press to print US dollars.Because there is the "Bretton Woods System", which prevents Americans from doing what they want. Without enough gold, you can't print enough dollars!Because you have a commitment to the world, you are the world's benchmark currency, and you must maintain the stability of the dollar.This put the United States in an unprecedented dilemma.

The war continues, gold reserves are dwindling, and it is impossible to print more dollars.Americans think about it, but there is no other way but to lose faith in the world.

In the early 1970s, then US President Nixon announced that the US dollar was decoupled from gold.This act of dishonesty meant that the United States was free from the fetters of gold and printed US dollars at will.In the past, you had to prepare an ounce of gold for every US$35 printed. At least theoretically, you can print as much as you want!But Americans are not fools.Not so stupid to think that printing money alone can solve the problem.Of course Americans understand that overprinting money means digging one's own grave.When you devalue your money to nothing, your country will die.

So the U.S. government paid people to make a research report to see what impact the U.S. dollar and gold had on the U.S.?What impact will it have on the world economy?Half a year later, the research report "The Impact of Gold Demonetization" was released.The name of the researcher is Michael Hudson.This is a young economist with a conscience. He reminded the U.S. government in his report that the decoupling of the U.S. dollar from gold is good for the U.S. in a short period of time, because the U.S. can print more money before the world has recovered. , To take advantage of the world with banknotes without gold endorsement.But in the long run, this is by no means a good thing for the United States and the world.Especially for the United States, drinking poison is undoubtedly a way to quench thirst.

After the U.S. government received this report, it was ecstatic, like a treasure.It seems to be initiating and enlightening!They ignored Michael Hudson’s warning at all, and used Mi’s report instead.In the eyes of these American economic policy makers, since doing so is good for the United States in the short term, why not turn it into a long-term benefit.Let Americans enjoy it forever?Of course, this first needs to decouple from gold and completely turn into a green paper dollar, and still maintain its credit in front of the world.This means that the dollar must maintain its hegemony.How can we maintain the hegemony of the dollar?The U.S. government believes that the most important are two pillars, one is the strong scientific and technological innovation of the United States.The other is the strong military strength of the United States.With these two pillars, the credit of the U.S. dollar can be ensured, and the U.S. dollar can be used as a hard currency in the world unimpeded.Americans can play the magic of transferring physical wealth with paper money even more freely all over the world.

But the Americans are also worried.What if others don’t buy your account if you rely solely on the strength of the United States?Then, the U.S. dollar after being decoupled from gold is best linked to the most important commodity in the world.In order to ensure that the dollar's position is as solid as a rock.The opportunity came soon.On October 6, 1973, the Fourth Middle East War broke out.At first, the Egyptians and Syrians attacked on two fronts and caught Israel by surprise, but soon after the war reversed and Israel had the upper hand.

A victorious war finally ended in a forced truce, which made the Arab world very depressed.The Arabs who were sitting on oil decided to get what they could not get on the battlefield from other places.Therefore, OPEC-the International Organization of Petroleum Exporting Countries-decided to use oil as a weapon to raise oil prices against the West.This method was indeed more effective than war, and soon the West couldn't bear it.

According to the report of the intelligence agency, the US Treasury Secretary Simon flew to Saudi Arabia secretly to meet the Saudi oil minister and the first OPEC secretary-general, telling him, "We don’t care how high you want the oil price, but If you want to prevent Americans from being your enemies, you must accept a condition that global oil transactions are settled in U.S. dollars."

The Saudi Minister of Petroleum, like the whole world, did not understand the profound motives of the Americans' move, so he agreed to the Americans' request. From then on, the world's oil transactions were linked to the U.S. dollar, and the U.S. dollar's credit In the following 40 years, it was firmly linked to global energy demand.

At this point, the new empire designed by the Americans has gradually begun to show its outline. This is a financial colonial empire that has never appeared in the history of human empires.The Americans discovered that, compared to the stupid practice of the Germans grabbing food from their mouths to fight for a country’s living space, a smarter way should be to obediently hand over their wealth in a way that is almost imperceptible to the world. Come out without creating hatred.To achieve this goal, there is no better way than financial colonization. This method can bring the whole world into the American financial system, and then let wealth flow into American pockets like turning off a tap.

"Globalization" is not a historical necessity, but the careful design of the Americans-this is the answer that the whole world has come to after awakening.

In order to achieve this grand strategic goal, the United States needs to promote changes in the global economy.To suit the appetite of the United States.The first thing to accomplish is the global industrial division of labor, the so-called globalization.In order to build momentum and make American-style globalization more universally recognized by the people of the earth, there must be a theory to raise the flag for it. For this reason, the Americans chose the free market economy theory as a leading theory.Pave the way for US-led globalization.

To make the global industrial division of labor seem reasonable and in full compliance with economic laws, Americans use the theory of comparative advantage to divide the world into two parts. One is the United States. Americans believe that its advantage lies in producing dollars; the other is the world.

Where is the advantage of the world?For example, Chinese.Your comparative advantage is that you have a lot of cheap labor.Your development can only use this advantage.This reason is simply convincing. Through the theory of comparative advantage, the United States will always be at the high end of the global economic and biological chain, and a country like China with a large amount of cheap labor has no choice but to develop labor-intensive industries. Immutably living at the low end of the entire economic and biological chain, other countries and so on.The global industrial division of labor is thus completed.

With Americans as one party and the world as the other, Americans are responsible for the production of U.S. dollars, and the world is responsible for producing products exchanged for U.S. dollars. This is the essence of the American-led global industrial division of labor. Since then, the wave of globalization has swept the world. .

The United States uses its own financial system to tightly bind the world and the United States.The result of this transaction model of exporting US dollars from the United States to the world and the world providing products to the United States resulted in a rapid concentration of global wealth in the United States. This is why the United States only reached 70,000 gdp during the 200 years before 1990. Billion US dollars, and in the last 20 years, the gdp has actually doubled.The root cause of reaching 14 trillion.

Of course, Americans know better than the world that the wealth accumulated in this way is not enough to rely solely on the global industrial division of labor.Even the pegging of oil to the U.S. dollar is not enough. A very powerful method is needed. Without this method, the United States cannot rob so much wealth from the world. This method is the world's number one military power.

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Natasha looked at the materials in her hand again, but still had a lot of confusion, "Commander, does this have anything to do with us?"

"The economic aspect will definitely have an impact in the future, but it will not have a big effect. Somalia will not need to import industrial products in the future, but will expand the export market. The global economy of the dollar will not have a great impact on us." At this point, Li Lan's voice changed. Said: "However, for this negotiation, the US will not let go so easily."

"Why?" Natasha just asked the question, and then she surprised herself: "Is it oil?"

"There is nothing wrong with the United States fighting Somalia, plainly speaking, it is for oil! Whether it is the oil under Somalia or Saudi Arabia's oil channel, it is related to oil." Li Lan nodded and replied very positively.

Combined with the detailed information on this information, it is not difficult to understand the original.

In four consecutive wars in 20 years, the Americans only wanted oil to be pegged to the US dollar.

Why did the Americans fight the Iraq war?The answer is: for oil.Then, the next question is: Why did the United States not pull a barrel of oil from Iraq for free after occupying Iraq?Why do ordinary Americans endure the suffering of high oil prices with the world?This is a puzzling question for many people, but the answer has been given earlier in this article, that is, global oil transactions are pegged to the US dollar.

When the United States captured Iraq, what happened first?Global oil prices have soared.What does it mean that oil prices are soaring and transactions are settled in US dollars?It means that the soaring oil price has pushed up the global demand for US dollars. In other words, the Americans have played out global demand for US dollars through the war.Before the war in Iraq, a barrel of oil was 38 dollars, and after the fight, it was close to 150 dollars, which is equivalent to a war that nearly tripled the demand for dollars.When the world needs more U.S. dollars to buy oil, of course, the happiest country is the US government, except for the oil-producing countries.Because of this, the U.S. government can use the money printing press to print more U.S. dollars in the name of providing liquidity to the world. The U.S. government is not a philanthropist and will not give you U.S. dollars in vain. You must take yours. The product is exchanged, thus once again joining the game of physical exchange of green paper.At this time, the US government's money printing behavior can be justified, and there is no need to blatantly and dishonestly issue additional US dollars when there is no demand in the world like the financial crisis today.

In this way, more dollars flowed into the hands of other countries, into the hands of oil-producing countries, and into the hands of countries that need to buy oil.What can so many dollars hold in the hands of these countries?In addition to being a symbol of wealth that makes people happy, the prospect of turning into waste paper is worrying, because the dollar is depreciating at a rapid pace, devaluing every day, and turning into waste paper every day. At this time, your only choice, It is the choice that the Americans have prepared for you a long time ago: buying American national debt.

The purchase of U.S. Treasury bonds has returned a huge amount of U.S. dollars to the United States, making the United States the world's largest debtor country.Then, why does the United States need to allow the US dollars that flow to the world to return to the United States by buying US Treasuries?Because the United States is not worried about a long-term deficit in the current account, but it is very worried about a short-term capital account deficit. In other words, a US with almost no savings rate must always maintain a capital account surplus, and this surplus amount was in 2001 Before and after, it was about 700 billion U.S. dollars a year, that is to say, it requires a net inflow of 2 billion U.S. dollars every day.Therefore, the United States needs a large amount of world capital to return to the United States in order to maintain the liquidity of its normal economic life. Otherwise, the good days of overdrafts by most Americans will be unsustainable. Therefore, the United States is not afraid of a current account deficit, but a capital account deficit.

In order to maintain the surplus under capital, the United States will not hesitate to use war methods to destroy the investment environment of other countries and regions, and drive the US dollar back to the United States like a flock.So, on the surface, the two Iraq wars are related to oil, but in fact they are mainly related to the US dollar.Because as long as there is war in oil-producing areas, oil prices will rise, and so will the demand for dollars.In this way, Americans can use the money printing machine to print more US dollars and exchange more physical wealth from the world. The reason is as simple as that.