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A Parasite On The World
8/14/2011
By Paul Craig Roberts
If Russian prime minister Putins recent description of America as "a parasite on the world" was reported by the US media, little doubt but that most Americans were infuriated. We are the virtuous people. Without us good guys to police the world there would be mayhem and wars everywhere, not merely the ones we started in the Middle East, Asia, and North Africa. Without the American white hats people everywhere would be starving and dying from natural disasters. It is us chosen ones who provide the rescue operations and good deeds. How dare the former KGB monster to slander our country!
Is it merely a coincidence that on August 11 the Swiss announced that they were discarding their monetary constitution that has prevented inflation in Switzerland and that has made their currency a safe haven for people everywhere who desired to protect their wealth, both small and large, from the predatory inflation practices of their own governments? Or is the Swiss announcement a result of Americas financial irresponsibility, the behavior of a parasite?
The Swiss said that they are forced to violate their monetary constitution, because the irresponsible practices of the United States and European Union monetary authorities are driving so many dollars and euros into Swiss francs that the franc has appreciated to astronomical heights and is threatening Switzerland with the collapse of their export markets and Gross Domestic Product.
The EU says it has no choice but to bail out its private banks as that is the policy of Washington, DC, and that it must print euros in order to bail out the banks. This policy
is in violation of the charter of the European Central Bank, but what do rules and laws mean in todays world? Nothing whatsoever.
Obviously, Washington is threatening the world not merely with war but also with inflation.
After announcing a massive printing of Swiss francs to absorb the inflow of dollars and euros so that the exchange value of the franc would not rise further, the Swiss government announced that it would peg its franc to the euro. That means that the Swiss will defend the pegged rate of exchange by printing enough francs to offset the inflows of euros. I think that the Swiss chose the euro as the peg over the US dollar because the majority of Swiss exports are to Europe rather than to the US.
Years ago China pegged its yuan to the US dollar, not to protect its currency from rising as a result of flight from the dollar, but in order to demonstrate that the money of what was seen as a questionable communist currency was "as good as the US dollar."
Not long ago China was forced off the fixed peg by the amount of Chinese money creation necessary to maintain the peg.
Read more VDARE.com: 08/14/11 - A Parasite On The World
8/14/2011
By Paul Craig Roberts
If Russian prime minister Putins recent description of America as "a parasite on the world" was reported by the US media, little doubt but that most Americans were infuriated. We are the virtuous people. Without us good guys to police the world there would be mayhem and wars everywhere, not merely the ones we started in the Middle East, Asia, and North Africa. Without the American white hats people everywhere would be starving and dying from natural disasters. It is us chosen ones who provide the rescue operations and good deeds. How dare the former KGB monster to slander our country!
Is it merely a coincidence that on August 11 the Swiss announced that they were discarding their monetary constitution that has prevented inflation in Switzerland and that has made their currency a safe haven for people everywhere who desired to protect their wealth, both small and large, from the predatory inflation practices of their own governments? Or is the Swiss announcement a result of Americas financial irresponsibility, the behavior of a parasite?
The Swiss said that they are forced to violate their monetary constitution, because the irresponsible practices of the United States and European Union monetary authorities are driving so many dollars and euros into Swiss francs that the franc has appreciated to astronomical heights and is threatening Switzerland with the collapse of their export markets and Gross Domestic Product.
The EU says it has no choice but to bail out its private banks as that is the policy of Washington, DC, and that it must print euros in order to bail out the banks. This policy
is in violation of the charter of the European Central Bank, but what do rules and laws mean in todays world? Nothing whatsoever.
Obviously, Washington is threatening the world not merely with war but also with inflation.
After announcing a massive printing of Swiss francs to absorb the inflow of dollars and euros so that the exchange value of the franc would not rise further, the Swiss government announced that it would peg its franc to the euro. That means that the Swiss will defend the pegged rate of exchange by printing enough francs to offset the inflows of euros. I think that the Swiss chose the euro as the peg over the US dollar because the majority of Swiss exports are to Europe rather than to the US.
Years ago China pegged its yuan to the US dollar, not to protect its currency from rising as a result of flight from the dollar, but in order to demonstrate that the money of what was seen as a questionable communist currency was "as good as the US dollar."
Not long ago China was forced off the fixed peg by the amount of Chinese money creation necessary to maintain the peg.
Read more VDARE.com: 08/14/11 - A Parasite On The World
