“I don’t want another one of your sullen whores using my medicine cabinet as a PEZ® dispenser.” – Archer
I once had a dream I was an owl. It was a hoot. (all memes this post, as-found)
The dollar. Since the end of World War II, it’s been the world currency. The reasons are fairly simple – out of the World War II mess, the United States was ascendent. The reasons, in retrospect, were obvious. It was the strongest economy in the world. It sat on (at that point) nearly limitless oil reserves, and was the undisputed technical world leader in getting oil out of the ground.
While not the preeminent world land military power (that would likely have been the Soviets at that stage) it did have the best planes and the best navy along with a short monopoly on atomic weapons. I believe, and this cannot be emphasized enough, that the United States at this point was also the world’s largest producer of PEZ® not long after PEZ™ was introduced to the United States in 1952.
Great Britain was in the midst of involuntary decolonization – two world wars had robbed them of their vitality, except for their international leadership in the production of pop music. That left the United States standing alone, except for France, which always likes to pretend that it’s still important and the Soviets, who had an economic system that create a shortage of sand on a beach.
I once helped that Wolverine actor, the Jackman guy, find his laptop when he lost it in Switzerland while filming a movie about a professional yodeler. I said, “Your Dell® lay here, Hugh.”
As I’ve mentioned in the past, there are huge advantages to having the world currency. First, you can print dollars, ship them overseas, and people send you stuff. If that’s the first benefit, I’m not sure that you really need a second benefit. It’s the equivalent of a six-year-old scratching “one candy bar” on a piece of paper, walking into a Wal-Mart®, and Wal-Mart™ giving him a candy bar in exchange for the piece of paper. I think Wal-Mart© has a special program where they give kids in Chicago candy, all they have to do is show a pistol.
Sure, they pretended that the dollar was backed by gold for a few decades, but those fictions always end. Still, during that time frame the United States built something else – a payment framework. Using this payment network, Saudi Arabia could quickly trade a million dollars it had received from selling oil for something more useful, like hot bimbos. Saudi Arabia quickly jumped on board with this idea, especially after one of their Kings got lead poisoning after the oil embargo.
I hear the biggest show in Saudi Arabia is “How I Met Your Mothers”.
Then, Ukraine.
For whatever reason, the people who do the thinking while Biden drools, reads things in real big print, and says random crap, thought it was a good idea to take Russia’s money. How much? $1 trillion. That’s enough to buy cell phones, track suits (seriously, those are Russia’s biggest imports) for almost every Russian with enough left over for enough vodka to fuel another offensive, but not enough to pave a road.
It was a pretty serious breach of trust. In my own personal business I try to avoid giving my money to people who promise that they’re going to give it back to me and then decide, “You know, I’m just going to keep this money for myself because . . . it’s Tuesday.” Admittedly, invading another sovereign state is a little more than it being “Tuesday” but the idea is that this is a weapon that can be used once if there’s an alternative system.
Sure, the Russians have lost $1 trillion, which is half of what their entire economy produces in a year. The damage was done, though, when everybody else looked around and said, “Huh, if it can happen to Russia, it can happen to me. I’m not sure that I like the idea that someone can take away all my cash . . . and has proven that they will do so.”
Is a British bank robber a quid-napper?
How much longer can we trade the dollar for candy bars? I’m not sure. Other groups have already started trading back and forth on systems other than the ones the United States influences.
To add difficulty to this, the dollars we shipped offshore to buy candy bars and oil and Chinese clothes are headed back to the United States and there’s actually a dollar shortage overseas as the dollars flood back here. Why are they headed back? Because the interest rates are headed up, folks overseas are shipping the dollars back here to take advantage of the higher interest rates.
If we lower the interest rates? Inflation kicks higher. If we raise them, dollars (which will cause inflation) head home and make all those dollars we’re printing right now worth a little less. If only those pesky Chinese had burned all the dollars when they sent us radar detectors and fishing rods and forks and ceramic garden gnomes.
But they didn’t. And neither did anyone else, though a cat broke several of my ceramic garden gnomes, so those are a loss.
I hear China’s running a currency special – buy Yuan, get Yuan free.
Beyond that, we have either unserious, mentally damaged, or downright dangerous leadership at virtually every level of national government, and A.I. starting to take a toll on some of the higher paid jobs in society. Sure, losing all those buggy-whip makers was tough in society, but I’m not sure what we’re going to do with all of the awful plumbers that used to be programmers.
Maybe they could mine coal?
Did I mention that we just had the second-largest bank failure in U.S. history, so the indication is that, perhaps, the banking system is rotten to the core?
It’s all fun and games until everyone sees that the press is just running everything on a script in collusion with the government. Then everything will change. Oops, guess not.
And maybe Russia is a diversion, you know, to keep the whole thing together while it’s all falling apart?
Next you’re going to tell me that PEZ® entering the Chinese market in 2017 was . . . a coincidence.
