Friday, February 03, 2006

Is There a New Standard?

Offically the US dollar left the Gold Standard some time ago. If no one had told me, I'd have never known.

The reasons bandied about range from the Swiss Gnomes and their financial terrorism/manipulation of the world to the fact that the U.S.S.R. had (and still has) the largest gold reserves in the world and were our enemy at the time and removing the gold standard eliminated the opportunity for them to control the value of our currency. There's others too, but I think the private company known as the Federal Reserve (is my tinfoil hat showing) likes controlling the economy. I'll let others argue the evilness of this.
When I read this article the following paragraph jumped out at me:
The United States depends on the dollar foreign-currency reserves in order to sell the Treasury debt that sustains budget deficits. What if foreign-exchange portfolios from oil sales fell to 60 percent being held in dollars – would that cause a crisis in the U.S. economy? Or would it take 55 percent? Most Americans are completely unaware of this threat Iran represents to the U.S. economy.
Is our dollar based on an Oil Standard? Sounds like it to me.

OK, maybe it's not based on an Oil Standard, but it sounds like it is heavily influenced one.

Like I posted earlier, Iran has more child prodigies per capita than the rest of the world and they probably have a plan made by a group of geniuses. This smells like it to me.