Effects of Trade War on US dollars and treasury notes.

Effects of Trade War on US dollars and treasury notes.

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.30x).

#trade war, #dollar, #treasury note, #bond, #US, #China,

Trade War has begun and the combatants are trying to outsmart their respective opponents [1,2].

1. China is no more the largest holder of US treasury notes.

Japan is. [3,4,5]

2. China and Russia had quietly (using straw men) sold off most of their US treasury notes.

Now they can thrash the US economy with no harm to themselves.

3. The Shanghai Security partners now form a gold-plus-oil based trading block.

They have a robust trading system based on REAL money which are gold and oil.

 

4. China has found other markets for their (low grade) consumable products.

China’s other markets are The Shanghai Security block (Russia, China, former Soviet Republics, Pakistan), Asian, African countries, EU, their raw material suppliers (Australia, Brazil, Pacific Island Nations).[6]

China does not need to keep its currency low relative to US dollars to preserve its outlet in the US, especially after most of US manufacturing industries have moved to China.

5. Soon there will be an about face on China/US exchange rate.

China will force US dollars down after US had LOST all manufacturing CAPABILITIES and NEED to buy Chinese products (This strategy had been previously applied many times in Chinese-Vietnamese trade). That is why tariff and import/export control are ALWAYS NEEDED.

Forcing US dollars down also increase the perceived Chinese national wealth and let China buy more foods and more raw materials.

6. The dollars will lose their massive international reserve-currency holdings.

After they lose their privileged position they will be more volatile relative to US annual budget deficits. There will be more countries dumping US dollars as reserve-currency holdings. The cycle will feed on itself until the dollars reach their real commodity based value which is suspected to be much less than the present value.

… U.S. dollars were convertible to gold. In France, it was called “America’s exorbitant privilege” as it resulted in an “asymmetric financial system” where foreigners “see themselves supporting American living standards and subsidizing American multinationals”. As American economist Barry Eichengreen summarized: “It costs only a few cents for the Bureau of Engraving and Printing to produce a $100 bill, but other countries had to pony up $100 of actual goods in order to obtain one.” In February 1965 President Charles de Gaulle announced his intention to exchange its U.S. dollar reserves for gold at the official exchange rate. He sent the French Navy across the Atlantic to pick up the French reserve of gold and was followed by several countries. (https://en.wikipedia.org/wiki/Exorbitant_privilege)

7. US banning of processing of transactions involving US sanction’s targets quickens de-internationalization of US dollars.

US fiat dollars also suffer from US banning of processing of transactions involving US’ targets.

The Belgium-based SWIFT financial messaging service said on Monday it is suspending some unspecified Iranian banks’ access to its messaging system in the interest of the stability and integrity of the global financial system. (https://www.reuters.com/article/us-usa-iran-sanctions-swift/swift-says-suspending-some-iranian-banks-access-to-messaging-system-idUSKCN1NA1PN)

8. Less people will be willing to buy US treasury notes.

US interest rate will shoot up like those in third world countries after every undisciplined budgetary plan promoted by American (In Name Only?) lefties.

References:

[1]. https://survivaltricks.wordpress.com/2018/09/12/real-life-lessons-on-national-economics/

[2]. https://survivaltricks.wordpress.com/2018/09/12/real-life-lessons-on-national-economics/

[3]. https://truth4freedom.wordpress.com/2019/06/25/americas-adversaries-are-buying-gold-like-a-nuke-is-going-off-tomorrow-zerohedge-news/

[4]. https://ticdata.treasury.gov/Publish/mfh.txt

[5]. https://www.marketwatch.com/story/heres-who-owns-a-record-2121-trillion-of-us-debt-2018-08-21

[6]. https://chinadailymail.com/2019/07/17/southeast-asia-overtook-us-as-chinas-2nd-major-trade-partner-and-why-it-matters/

[7]. https://en.wikipedia.org/wiki/Exorbitant_privilege

[8]. https://en.wikipedia.org/wiki/Barry_Eichengreen

[9]. https://www.reuters.com/article/us-usa-iran-sanctions-swift/swift-says-suspending-some-iranian-banks-access-to-messaging-system-idUSKCN1NA1PN

[10]. https://www.dw.com/en/germany-urges-swift-end-to-us-payments-dominance/a-45242528

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Government money flowing into private banks.

Government money flowing into private banks

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.80).
#money, #private bank, #Federal Reserve Banks, #underwriting fee, #bond, #quantitative easing,

Government money flowing into private banks.

American people keep paying to private bankers through (private) Federal Reserve Bank and various schemes.

1. USA fiat money.

fiatmoneyc60.jpg

Figure: Fiat money relies only on the taxation power of its issuing government for its backing.

From the above simple design for fiat money, International Private Bankers have managed to hook onto it their system living off the flow of fiat money.

2. Current flow of US money.

Fogure: Private banks are taking money off the government. Solid arrows represent current flows, hollow arrows future flows. Three dark green boxes on the right represent FRB.

Private banks “earn” their money from the government by:

1, “Underwriting” the issuing of new US money !

2. “Earning interest” for leaving their fractional deposits at (private) Federal Reserve Bank.

3. Influencing Government’s policies on Government Bonds.

4. Having free money from Quantitative Easing.

Notes:

1. The government of USA is a money sovereign. It can print as much fiat money as it likes (and bear the consequences). Its fiat money has value to American people because they have to use it to pay taxes to their federal and states governments.

2. The deposits by the contributing constituent, private banks of the Federal Reserve Bank are part of their own effort to make themselves appear more liquid. They cannot demand any interest from the government on their deposits, just like airlines cannot demand government compensation on the costs of carrying their statutory reserve fuel on each flight. It is currently (for 2016) costing $40 per year per person for the US to keep using the private Federal Reserve Bank.

3. It is nice when you are the buyers of Bonds and you can influence the seller (government) !

4. Early redeeming of bonds still at face value is having free money ( [11]).

3. Chilling story of United States Notes.

Presidents Abraham Lincoln, Thomas Jefferson and John F.Kennedy had seen the unfairness of private bankers charging interests to the country and had tried to unshackle the burden on the country. Lincoln and Kennedy had been assassinated while Jefferson survived the assassination attempt.

A chilling history of private bankers gripping the US government system is given by reference [9]:

“Central bank usury control caused the US Constitution… to get their First Bank Of The United States in 1791. … When their 20-year charter was up in 1811, the Jeffersonian Democrats prevented its charter from being renewed. So the Rothschild bankers summoned their mercenaries (the British army and navy) to teach us a lesson, the War of 1812. … they got their Second Bank Of The U.S., again with a 20-year charter. When Andrew Jackson was elected in 1828, the bankers tried everything to stop him; they created the 1833 recession; had him censured in 1834; and a failed (both guns misfired) assassination attempt on Jan. 30, 1835… Jackson killed the bank in 1836, … During the Am. Civil War, Abraham Lincoln created Greenbacks instead of the 24% to 36% usury the Wall Street bankers wanted to charge, and he was assassinated on Good Friday 1865. … 1913 the Rothschild bank got their …. Federal Reserve Bank. The Federal Reserve Act of 1913 originally had a 20-year charter. But … 1927, the McFadden Pepper Act was signed into law. It made the F.R.’s power over our monetary policy perpetual. . … 1963, President John F. Kennedy created United States Treasury Notes, known as Silver Certificates, with Executive Order 11110, and he was assassinated on Nov. 22, 1963.”

4. Conclusion.

Bankers are now even pushing for the use of cashless cards issued by them [10] !

American people should resist that and should further demand United States Notes (each with a red seal) issued directly by the Treasury just like those issued under Kennedy’s administration. Those notes had nothing to do with the FRB.

Using the dollar notes with red seals (such as Five dollar with Red Seal Notes in series 1953 A through C, see picture in reference Five-Dollar-Bill-Red-Seal-Series [6]) will save Americans $40 per head each year.

References:

[1]. Your fiat money, https://survivaltricks.wordpress.com/2017/01/09/your-fiat-money/

[2]. Your fiat money (Part 2), https://survivaltricks.wordpress.com/2017/01/12/your-fiat-money-part-2/

[3]. The-thirty-families-made-plans-for-a-future-without-you, theMicky.org, http://mikeyy.org/2017/01/30/the-thirty-families-made-plans-for-a-future-without-you/, originally by horse237, https://vidrebel.wordpress.com/2017/01/30/the-thirty-families-made-plans-for-a-future-without-you/

[4]. Stack Jones, The Banking Swindle-The History of Banking Fraud, criminalbankingmonopoly.wordpress.com, https://criminalbankingmonopoly.wordpress.com/2014/02/20/history-of-banking/#comments, accessed Jan 2nd, 2017.

[5]. Federal Reserve System, wikipedia, https://en.wikipedia.org/wiki/Federal_Reserve_System, accessed Jan 2nd, 2017.

[6]. Five Dollar Bill Red Seal Series 1953 US Currency, Natural Web Solutions Inc.(US), https://www.collectons.com/shop/item/58107/Five-Dollar-Bill-Red-Seal-Series-1953-US-Currency#imgs58107

[7]. Us issues, Central banks alchemists of finance part iii-reblogging, http://us-issues.com/2017/04/05/central-banks-alchemists-of-finance-part-iii/, 03 April 2017

[8]. Dale B. Halling, History of Central Banks in the United States, thesavvystreet.com, http://www.thesavvystreet.com, accessed 03 April 2017.

[9]. http://rudolfhess.net/

[10]. tonytran2015, ,
[11]. , Reuter , https://www.reuters.com/article/uk-us-economy-imf-idUKBRE95O0P720130625, June 25, 2013.
Added after 2018April21st:
[12]. https://us-issues.com/2018/04/21/black-tuesday-october-29th-1929-revisited/
[13]. https://counterinformation.wordpress.com/2018/05/03/i-know-which-country-the-us-will-invade-next/

[14]. http://www.chuckmaultsby.net/id94.html

[15]. https://riggedgame.blog/2018/07/09/banks-squeal-as-spains-new-government-threatens-to-do-unthinkable-raise-taxes-on-their-profits/

[16]. https://fellowshipoftheminds.com/2018/07/25/president-trump-is-taking-on-tptb-the-federal-reserve/

[17]. https://socioecohistory.wordpress.com/2018/08/14/the-central-bank-illusion-is-falling-apart-kim-dotcom-warns-of-a-crash/

[18]. https://nationalinterest.org/feature/who-pays-uncle-sams-deficits-26417

During the great recession, the Fed bought a vast quantity of debt (around $4 trillion) but paid interest to banks that keep their “excess reserves” at the Fed to keep this so-called “base money” from increasing the broader money supply. Normally through public deposits at banks, these purchases by the Federal Reserve would typically produce a substantial increase in the monetary supply.

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