Most of us are feeling the eternity of the pandemic. Wondering if the scars and damage will ever heal or if things will ever go back to some form of normal. A lot of people have either suffered harshly financially or have lived in constant stress and fear about their financial stability and survivability. In addition, many Americans are seeing the pandemic as shining the red-hot spotlight on American waning as the Economic Powerhouse of the World. And from watching the news and TV pundits and reading the business and economic articles all the experts agree with the common man.
But what if one ‘expert’, who makes his money from his own words, said The Rise Of America is something to come and not memories of the past…..
What if this ‘expert’ defies all the naysayers and points out what is really going on in the area of natural resources and exploitation of said resources…..
What if he explains the ins and outs of what is really going on with economies of the world, especially here in America….
Marin Katusa does exactly that in his work The Rise Of America Remaking The World Order. And it makes for a very interesting read. Most of us might think that economics and investing are truly beyond our understanding, as Katusa points out some of it is beyond the understanding of those in the middle of the wheeling and dealing as well. Thus, while you may not completely understand all the content of this work, you should understand enough to make you sit up and take notice of what you see and read in the news in a different light.
I have long held the belief that taking ANY currency off of the traditional gold-standard was a bad and destabilizing idea. I still hold that belief. But, unfortunately without a complete collapse of society on a global scale there is no hope of the gold-standard being returned and honestly, it would destroy economies to attempt to do so. My basis for supporting a gold-standard economy is the natural contraction that gold as a tangible and finite collateral placed on the economy. An economy could only grow to its limit of gold reserves, then it had to acquire more, plateau or rid itself of ‘dead weight’ and create new ideas, industries, and technology to fill those freed up areas, thus evolving and moving forward. Additionally, as a natural constrictor of the currency, gold-standard economies have a built in value feature that more modern economies lack. Those modern economic theories are the ones that Katusa focuses on in The Rise Of America and they are what we are stuck with for the foreseeable future, so we need to understand them and their impacts.
While America was the longest hold out of the major economies on the gold-standard; it was that coupled with their strong economic position after the war that made the dollar the economic franca lingua. This played into America’s ability to gain the dollar’s place as currency of trade for crude oil, even without a gold-standard. This is better explained in the pages of Katusa’s work. What we currently have is a fiscal-monetary coordination (FMC), which put too simply is the government agrees to provide certain “investments” whether they are tangible or not for the money supply that they are requesting. This is what I call a debt based system — all the currency is based on the future interest of current debt, or that a printed dollar today will be two dollars in 50 years; however, there is nothing backing today’s dollar other than the speculation of tomorrow’s profit and citizens’ ignorantly blind faith in it.
So what happens when this FMC theory becomes a near disaster? Well, that is when Modern Monetary Theory (MMT) can step in and be the (in my opinion) fake hero, saving the day. If it saves the day, how can it be a fake hero? In the same way that gloriously winning a losing battle does not win the war!
We have all used the phrase “money out of thin air,” which is at the very simplest level just what MMT is. The government or Wall Street needs money, just print it. The problem with that is two-fold; first, MMT is very dependent on the faith of the citizens of the currency, and second, there is no longer any real economic valuation for anything. Another words it really will not matter if a loaf of bread costs $1 or $100 cause the government will always have the ability to print the money that it needs for the loaf of bread. What will happen, more significantly than now, is how all this money, and make no mistake about it, there is way too much money in the system now, flows in the world of the economy.
All the economic theory aside, this book does focus on industrial needs and development and where and how America may or may not fair moving forward. And that should be of interest to all , American or not. Additionally, this book is a great companion read to Bright Green Lies, which covers some of the same topics as Rise Of America, from the opposite side of the debate.