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Originally posted by Wise Dome
What has happened is what's called a savings glut.
This occured because of our corrupt petrodollar system.
When we buy oil from the countries they deposit some of the profits in our banks.
So, interest rates are artificially low as oil prices increase.
Originally posted by St Udio
Originally posted by Wise Dome
What has happened is what's called a savings glut.
This occured because of our corrupt petrodollar system.
When we buy oil from the countries they deposit some of the profits in our banks.
So, interest rates are artificially low as oil prices increase.
The Saudi kingdom accepts our PetroDollar because we protect them from those who would do them harm.
They also put the Dollars they are paid for their oil, back into the USA by buying Treasury bills/bonds...
They aren't about to go shopping any banks that offer higher interest rates,
the Saudi want the 'guarantee' that their dollar wealth will still be there next year and next decade.
besides, the USA Treasuries are paying from less than 1% on 30 day notes to less than 4% for 30 year notes.
And it's good that the US pays out low interest or out Treasury would be going broke faster than it is now. The 'artifically low' interest rates are set before any price of oil is determined---there is absolutely no connection between high oil prices and low Treasury interest payments...they both operate on different pricing mechanisms.
also, we do not buy oil from China or India, yet between those economies they hold close to Two Trillion Dollars of US Treasury bonds/bills/notes.
That is an example there is no connection to those nations 'savings' & oil prices, as you suggest.
Those 2 nation examples, buy our Treasuries because the Treasuries are convertable and accepted as cash payment to every nation on Earth, thats why the Petro-Dollar is considered the 'Reserve Currency' by all the nations.
but thats only my point of view,
[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole...... This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.
"It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national autodetermination practiced in past centuries."