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International Trade and our Cyber Dollar! (a real problem)!

October 27, 2014

America’s trade balance has been mostly negative since the closing of the gold window in 1971-73. Fiat money has been the core problem (since ’71) and America’s special status of enjoying the Reserve Currency position has allowed our leaders to mostly ignore our continual trade deficit. America has been able to borrow and spend with no serious accountability. We have ignored ‘Value for Value’ exchanges with other Nation State countries. America has been able to borrow to pay for its goods and mostly ignore the penalties of a continuing trade deficit. This has now reached a CRISIS situation. Take a look at our trade deficit via the following chart. Why is this now a serious matter? Why are Russia, Brazil, China, India, South Africa desiring a change! These Nations now desire a New Reserve Currency for all trades!

Why the continual RED ink since the closing of the Gold Window in 1971-73? Why do our foreign traders now desire a new Reserve Currency for our planet? Can America live off the entire planet with NO trade consequences? Look at this chart! It’s very serious!

United States Balance of Trade

Notice the recent numbers! We are asking foreign Nations to subsidize our consumption habits! Is this even moral? Why has this advantage become a serious scandal and a moral hazard going forward?

What we need to recognize is that Sound Money was essential for International Trade to flourish. When America purchases steel from Germany, lumber from Sweden, furniture from Denmark, and sugar from Brazil we are obliged to provide our counterparties with an equal ‘value’ in exchange. This is fair and moral. If we ‘counterfeit’ money and pay our counterparties this is a form of stealing. Most view this as morally unjustified. Yet America has been ‘counterfeiting’ their money units for some time and using these units as real proxies for the goods which we have purchased. Many argue…’so what’! Foreigners can use our ‘counterfeit’ dollar to purchase goods from us. But is this a fair exchange between equals in a marketplace? Isn’t fairness important? Should America be allowed to create its currency ‘Out of Nothing’?

America purchases goods from China and exchanges computer digits. But are these computer digits (what we now call Cyber Dollars) a ‘Value for Value’ exchange? How are these Cyber Units created? What are they (in reality)? Do they represent a real ‘Store of Value’ for China? Are they derived from a Natural Resource?

Look again at our continuing trade deficits with our foreign counterparties. Can these foreign counterparites ‘counterfeit’ their currencies, borrow from their Central Bank continually, and then purchase our goods with their ‘funny money’ creations? This has not been allowed by America…who patrols all the primary sea lanes, shipping routes, and all international monetary/trade/banking policies. Currently, America has been ‘counterfeiting’ their dollar in the $trillions since 2008 (we call it QE). And this QE ‘dollar’ is no longer a physical entity (such as our prior ‘paper’ dollar). Are you aware of this? America is now promoting a ‘cyberspace’ dollar which we create ‘Out of Nothing’ (also called ‘thin air’) and ‘type’ into our cyberspace computer screen. We then direct this Cyber Dollar to select TBTF financial entities for further ‘value’ distortions. Why is this happening and can this charade and Ponzi scheme continue indefinitely?

Money used to be a printed note. Today, we create our currency ($$$) from the computer!

Is the above mindset one which promotes justice, fairness, and ‘value for value’ exchanges among our foreign counterparties? Predicting the imminent collapse of the U.S. dollar, a Russian lawmaker submitted a bill to his country’s parliament Wednesday that would ban the use or possession of the American currency. Mikhail Degtyarev, the lawmaker who proposed the bill, compared the dollar to a Ponzi scheme. He warned that the government would have to bail out Russians holding the U.S. currency if it collapses. This statement was on November 13, 2013.

Mikhail Degtyarev says the American dollar is a Ponzi Scheme (as it is created arbitrarily out of ‘thin air’)!

What we now need to recognize is that our Cyber Dollar can not work morally for our INTERNATIONAL TRADE. Yes, this ‘dollar’ can work within our own Nation (as we witness with Apple Pay/Credit Cards/etc.) as long as American citizens have FAITH in this money from heaven. But FAITH and trust for our International counterparties needs to be based on moral principles (value for value exchanges and wealth for wealth transactions). This is not presently occurring and America is the culprit. All the QE polices started by Ben Shalom Bernanke set the tone for this immoral monetary system which we now experience. Who is becoming AWARE of this International Ponzi Scheme? Who understands MONEY?

Since abandoning the Gold Dollar (in 1971-73), America has consumed much more than it has produced! Fiat money and the World’s Reserve Currency gave America this opportunity. It is now a ‘moral hazard’ as many of our counterparties refuse to accept this situation as fair and just!

The BRICS are now starting their own BANK as they reject the IMF and the American policies emanating from this World War II institution. Must America change their mindset going forward? What do you think?

The BRICS nations are all becoming AWARE. Brazil, Russia, India, China, and South Africa have started their own International Monetary Fund. The Bretton Woods institution which we call the International Monetary Fund (IMF) is not liked by many of our foreign counterparties (especially those in Asia, Latin America, and Africa). If America wants to continue trading internationally we will need to ‘clean up’ our money system and our trading system. What we have today is morally corrupt and few seem to desire a real change (it seems)! We need to start with SOUND MONEY and/or NO MONEY going forward. Sound money is silver and gold! No money is a new world order where all economic power is given back to the Creator. Are you ready for some serious CHANGE? I am:

2 Comments leave one →
  1. hallenberg2005 permalink
    October 27, 2014 7:15 pm

    simon black reported today,” the dollar decline continues: china begins direct convertibility to asia’s #1 fininancial center tomorrow. the renminbi will become directly convertible with the singapore dollar.”


    • October 28, 2014 1:33 pm

      Thanks for this update. D

      On Mon, Oct 27, 2014 at 7:15 PM, Kingdom Economics – The Future Is Now wrote:



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