Aggregated Awareness

From the prodigious Antal E Fekete via his blog comes this latest essay for inquiring minds. In it, he explores the concepts behind the floating exchange rate regime that the world has lived with, since the US, under President Nixon reneged (ie. defaulted) on it's international gold obligations on the 15th August, 1971.

The exploration of the floating exchange rate regime by Professor Fekete comes to the conclusion, that it is a scheme to embezzle the US Dollar balance of surplus nations. This is achieved by luring the surplus nation to revalue their currency upwards against the US Dollar, as China is being asked to do now, and Japan had been asked to do previously.

As the surplus country's currency increases in price against the Dollar, part of the surplus Dollars are appropriated by the US from the surplus country.

This is akin to the US unwittingly forcing its trading partners to grant it partial debt abatement.

Excerpt: "...It works as follows. The United States lures the unsuspecting surplus country into the black hole of currency revaluation against the dollar. As their currencies are floating upwards, a part of the surplus countries’ dollar balances are appropriated by the U.S. In effect, the U.S. is forcing its trading partners running a surplus to grant, unwittingly, a partial debt abatement..."

Source...