King Dollar
In Venezuela, the Dollar is King. People who own Dollars can afford many of the goods and services denied to people who only have Venezuelan Bolivars.[1]
This happened because Venezuela progressively adopted Socialism and ran out of other peoples’ money to pay their bills; so, the government printed the money they needed, resulting in the Bolivar being worth less until it was worthless.
Today, Americans have progressively adopted Socialism and run out of other peoples’ money to pay their bills; so, the government has been printing the stimulus money they need, resulting the Dollar being worth less.
The government is stuck between a rock and a hard place. The USA cannot afford to pay the taxes for the stimulus cheques but there would be a depression if people don’t get their stimulus money.[2]
The government can either print money and risk hyperinflation and a Great Depression, or the US goes into a Great Depression.[3]
The Federal Reserve’s Federal Open Market Committee (FOMC) today announced that they would rather risk hyperinflation rather than risk being blamed for starting the Depression.[4]
The FOMC will be the lender of last resort if the government will go further into debt.[5]
The USA are following in the footsteps of Venezuela.
In both countries, the Dollar economy will survive so long as the Dollar is King. If the Dollar goes the way of the Bolivar, then only those with gold and silver will have money just like only those with Dollars have money in Venezuela.
“The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.” -Former Federal Reserve Chairman Alan Greenspan, Meet the Press, August 7, 2011.
“We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.” -Fed Chairman Alan Greenspan, US Senate Committee on Banking, Housing and Urban Affairs, Feb 16, 2005.
“Gold is a currency. It is still by all evidences the premier currency where no fiat currency, including the dollar, can match it.” - Alan Greenspan, in an interview for the Council on Foreign Relations, Nov 2014
[1]https://www.zerohedge.com/markets/dollar-based-businesses-flourish-venezuela-while-country-starves
[2] https://www.zerohedge.com/personal-finance/pandemic-emergency-jobless-claims-soar-new-record-high
[3]https://www.hamiltonmobley.com/blog/ch4l2ssqmdngldxo3xegkol02ngiqu
[4]https://www.federalreserve.gov/monetarypolicy/files/monetary20201105a1.pdf
[5]https://fred.stlouisfed.org/series/fedfunds “The effective federal funds rate is essentially determined by the market but is influenced by the Federal Reserve through open market operations to reach the federal funds rate target. […] Similarly, the Federal Reserve can increase liquidity by buying government bonds, decreasing the federal funds rate because banks have excess liquidity for trade.”
