"Inflation makes you pay 50 dollars for the 20 dollar haircut you used to get for 5 dollars when you had hair!" submitted by
Let's embark on a journey that made the United States the number 1 economy of the world.
1. Despite the British Empire's claim that it would for ever remain the leading empire,history can serve as a harbinger for what's to come...
At the peak of its power, in 1913, "the empire on which the sun never sets", controlled 25% of the planet's land mass and about the same percentage of the world's population. Britain was both the naval an imperial power of the 19th century, and between 1812-1914, its dominance resulted in relative peace in Europe and the rest of the world. The industrial revolution transformed Britain into the workshop of the world.
By the start of the 20th century things changed as both Germany and the United States started to challenge Britain's economic and influential leadership. As often happened during human history such challenging lead to war and although Britain achieved its largest territorial influence after WW1, the war had destroyed much of its economic strength, with losses in industrial and military power marking the begin of its demise.
During WW2, Japan occupied Britain's colonies, and after WW2, India, Britain's most valuable and populous possession, achieved independence. Much of the British Empire's influence is now enshrined in the Commonwealth Charter, stating shared values like democracy, human rights and the rule of law.
The United Kingdom's pound sterling was its world's reserve currency during its reign and by controlling the supply of money, Britain was able to influence its global power. "Permit me to issue and control the money of a nation, and I care not who makes its laws!" Mayer Amschel Rothschild
2. The US Empire repeats this blueprint by claiming the U.S. Dollar's reserve currency status as its birthright! The Federal Reserve Act.
The Panic of 1907 triggered many American's belief that The Federal Reserve Act, passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913, was necessary for financial and economic stability. The law created the Federal Reserve System, the central banking system of the United States. The Bretton Woods System.
The FED ended immobile reserve issues and the inelastic currency problems and successfully internationalized the U.S Dollar as the global reserve currency. The usage of the prior nationally used U.S. Dollar expanded a first time when the Allies agreed to the terms of the Bretton Woods System, establishing the rules for commercial as well as financial regulations among the United States and its allies. Canada, Western Europe, Australia and Japan accepted the U.S. Dollar, which was backed by a gold exchange standard, making the U.S. Dollar "as good as gold". This was only possible because the United States controlled two thirds of the world's gold reserves.
Soviet representatives, who claimed that institutions like the IMF and the International Bank for Reconstruction and Development (IBRD) were Wall Street branches, didn't participate in Bretton Woods and later proved to be right, as the United States printed too much money (not backed by its gold reserves) to wage war on Vietnam, destroying a big part of the value of the U.S. Dollars held by its allies, due to the inflation of the U.S. Dollar money supply.
Yet, the initial demand for U.S. dollars created the American way of life: a consumer driven economy fueled by products made outside the U.S. in return for U.S. Dollars. As the Allied countries couldn't really buy any "Made in America"-products, due to the fact that the United States' elites rather outsourced their manufacturing, they instead invested their hard labor into U.S. Treasuries.
On August 1971, President Richard Nixon announced the unilateral cancellation of the direct international convertibility of the United States dollar to gold, in a response to halt the Allied countries' continuous attempts to exchange their U.S. Dollars for Gold. By 1973, the Bretton Woods system was replaced by the current freely floating fiat currency system. The petro dollar system.
The second wave of U.S. Dollar adoption was the result of the petro dollar, making the global trade of oil U.S. Dollar denominated. Every country on this planet needed and still needs oil to operate and grow its economy, creating an enormous growth in U.S. Dollar demand and like mentioned before, those dollars had to be earned. Especially China served the United States consumer model by producing almost everything Americans can buy in Wall Mart and other stores. By relying on the U.S. Dollar reserve currency status, the American elites have made the mistake of outsourcing manufacturing to China, as often predicted by Donald Trump in the 1980's. The y figured it was easier to just print wealth. The tradewar.
President Donald Trump, decided it was time to bring jobs back to the U.S. and started an ongoing trade war with China, the country that supplied the U.S. consumer driven economy, and proud owner of $1.07 trillion in Treasury holdings. The trade war has negatively impacted the economies of both the United States and China and will most likely result in the decoupling of both economies. What is to come? My personal insights.
I see huge problems for the U.S. and the rest of the western liberal democracies. But especially the United States, who's currency amounts to no less than 60% of all the world's reserve assets, is vulnerable if and when China who only accounts for 1 or 2 %, says it is time for change. Most likely we will experience another banking crisis, with or without Covid-19, and unfortunately a bigger one when compared to the 2008 dissaster. Did you know that the global debt tripled since then? Many economists and politicians advocate the end of the U.S. Dollar reserve currency system and predict a reset. Every financial system has a limited lifespan similar to a human live: it is created, it grows, it matures, and unfortunately, it ages, weakens and dies. It happened to the Brittish Pound Sterling, and I am afraid that the days of this financial hegemony are numbered as well. And I did write "afraid", why?
History tells us that these transition periods are particularly dangerous and have often led to full-blown military conflicts if not world wars. The current wealth transfer, the result of manufacturing outsourcing to mainland China, impoverished the United States and destroyed its middle class. President Donald Trump's analysis that the U.S. needs a strong manufacturing base is correct, yet without its allies the United States will not be able to turn the tide.
It took China decades to build its manufacturing base, and President Trump doesn't have the privilege of having the political luxury to design five year plans, as the United States capitalistic and political model specializes more on presidential campaigning and less on economic planning, which is exactly China's strength.
3. The Chinese 'digital' empire.
China is ideally positioned to become the new global power: it produces many of our products and dominates most supply chains. It has been hoarding gold and mines most of the Bitcoin. It might just have the right reserve assets to back its DCEP, the digital Yuan, which will be pilot tested during the 2022 Winter Olympics hosted by China. Despite the fact that the United States and other western nations might not want to adopt the Yuan or allow it to be part of the world's reserve assets, China can demand payment in Yuan for its products. It's that simple! This is why outsourcing is such as stupid economic voluntarily yet fatal policy. If you only print money and don't produce goods, how long will the world play ball?
One of the results of Trump's trade war is that China and other countries such as Russia and Iran no longer want to be vulnerable to U.S. sanctions that come in the shape of being denied access to the financial system through Swift. The United States can indeed destroy a big part of Iran's economy, but Iran is now becoming a big cryptocurrency player. In other words, bullying those countries might work in the short-term, but in the long-term they will simply adopt a new standard: and I believe that the Yuan will likely play a major role in the financial system they will adopt.
This trend means that the expansion of the demand in U.S. Dollars will stop and reverse, when countries no longer want to use the currency whose issuer can economically destroy them through sanctions. The alternatives for such countires are cryptocurrencies like Bitcoin, Ethereum and many others, national CBDC's (Central Bank Digital Currencies), and the adoption of the digital Yuan.
This digital Yuan will be attached to the One Belt, One road initiative, finding adoption whilst developing huge infrastructure projects that will lead to a Eurasian trading zone. If the U.S. Military leaves the Middle East, as Trump brings home troops, this will create the right conditions for China to emerge as the victor.
4. Surveillance Capitalism - Insights on the DCEP (Digital Currency Electronic Payment, DC/EP):
- This centralized digital financial system works on blockchain and cryptographic principles and aims to increase the circulation of the RMB, in the hope it can become a reserve currency like the U.S. Dollar.
- Created and sanctioned by the Chinese Government, it is the only legal digital currency in China.
- The system offers Chinese regulators better monitoring abilities and will be an efficient tool against anonymous counterfeiting, money laundering and illegal financing. At the same time it reduces costs involved in maintaining and recycling bank notes and coins.
- As mentioned above, China aims to bypass Swift, which it regards to be a U.S. entity, and will be able to collect real-time data related to money creation, bookkeeping, essential information for the implementation of monetary policies.
- The pilot institutions for DCEP, China Construction Bank, Agricultural Bank of China, Bank of China and Industrial and Commercial Bank of China, will serve as a production test for China's new currency system, after which the DCEP will be distributed to large fintech companies such as Tencent and Alibaba to be used in WeChat Pay and AliPay. Transfers will not go through bank accounts, but through electronic wallets.
- By mandating that all merchants who accept digital payments must accept DCEP, the DECP will become the most accepted digital currency in the world.
5. Sings of hope.
If the United States adopts blockchain and issues a CBDC (Central Bank Digital Currency) backed by Bitcoin, they will have a reasonable chance to offer the western democracies a new type of dollar standard that can be an anchor versus the coming RMB. If not, I fear the worst is yet to come for the U.S. Dollar and its economy.
Many smart American economists and Wall Street goeroe's have finally figured out the remarkable strength of Bitcoin, the world's first and most favorite digital form of gold.
Some of the smartest investment capitalists like Ray Dalio and Warren Buffet have allocated more money into gold, a clear sign of trouble. Bitcoin might be a step too far for Warren Buffet, but rest assure that Wall Street investment management companies have figured it out by now, have you?
You can expect more institutions to allocate a % of their portfolio's wealth into Bitcoin and other cryptocurrencies, as a hedge against the systemic risk in our global financial system, which will inevitable start feeling the effects of the trillions that have been printed. "Inflation makes you pay 50 dollars for the 20 dollar haircut you used to get for 5 dollars when you had hair!"
Bring up the file, I clicked play. The footage began, revealing its contents inside the ventilation shafts, winding it to the ventilation in the heads. Quinton also brushed up against me, watching in anticipation, brushing up against me in surprise.
"And so it ends here," Quinton exclaimed, his eyes kept on the video, withdrawing his senior sailor issued shotgun, "I'm going to shoot that bastard."
A muffled screech, and we watched at the screen, as the ventilation panel cover popped off and was removed by a gloved hand. A skinny man crawled in, identity hidden by the gariny footage.
"Goddamit, can they not afford good cameras," an exasperated Quinton said.
"Shut up," I shot back, "I want to watch this."
"Me too, aye sir." We watched as the figure unscrewed the other shaft, as the black jacket covering his uniform twisted. Finally, one of its zippers ripped open, revealing the naval camoflauge around it. Viktor.
That nametag was indistingushable - the Eastern European name was unmistakably him. Out of nowhere, a pistol being cocked, as its hammer sprang forward slamming the spring. We had been caught.
"So, a bit of late night espionage?" he said menacingly. I watched as Quinton slowly turned around, and using his hands, flicked the pistol to the floor, the background filled with crashing waves.
That's when a I realised that the ship arrives in port tommorow at this time. Quinton masterfully jumped up, knocking Viktor, dressed in the black jacket rammed Quinton across.
"HEY! SOMEONE!" I yelled, trying to draw and brandish my own pistol, flicking the safety switch. "I already gassed all of them. Painlessly," Viktor said unemotionally and coldly as he ran into Quinton again, knocking him to the ground.
Aiming the pistol, I squeezed the trigger. Viktor rammed Quinton, and stomped on him, keeping his boot squeezed against his stomach, before holding out a firing pin, etched with my serial number.
"I also already tampered with your pistol. You went on. Carelessly," he said as he smirked. That's when he raised his pistol, and shot Quinton. Quinton jarred, his mouth open, and fell back cracking his head on the floor. I inched back, trying desperately to press it, hoping he was fluking, as he laughed with insidious intent.
"I control this ship!" he screamed triumphantly, "and when this ship sails into port tommorow, it is I who shall be the hero! You shall be the criminal!" he continued, "And while you are renditioned to Pine Gap, and waterboarded endlessly, I shall rise up!" he boomed with a final screeching laughter, before kicking me in the face and slamming my head into the ground.
"Why? Why?" I tried to say, as my mouth started to swell.
"How well do you know me?" he started off with.
"I know you now better than I'll ever do," I groaned in pain. "Why do you think I am doing this?" he laughed. "Because you're evil," I replied with, earning me another kick, this time in the stomach sending me yelling out all sorts of obscenities.
"Do you know what you have done?" he yelled in anger, "the Australian Government has betrayed me! Forgotten me! A long time ago, I was a commando! I served in Africa, in the Middle East! And then they forgot about me! I had to find my way back! And do you know what they have given me? Nothing!"
"And so you steal a navy ship and murder 20 people," I muttered.
"I will be remembered. I will be victorious! I shall use my power to abuse the brass who had abused me 5 years ago! You read through my file! You know my abilities!"
"You're also a high school drop out," I shot back. "Intelligence... does not rely on human intelligence!" the demented madman screamed out, busy shouting in all his self glory as he cheered, "We will arrive in Cairns tommorow! You will be escorted out in handcuffs! You will admit to your crimes in front of the Port Inspector and the Naval Police!"
"What if they review the footage?" I questioned him.
"They won't," came an iron voice booming from the intercom. The voice of my very own commander - Captain Daniels.
"You never heard anything," Viktor said, as I wallowed in my defeat, "right, James?"
"I never would've taken you, out of all people, as a traitor! That's why you placed him on my cabin guard! That's why I've been thumping into him as he-"
"Yes, Commander. He has been trying to pick your locks. He's been eavesdropping, listening to you," the Captain replied calmly. I saw his face on video call, his hands obscuring the sides webcam on his computer. A thin, wiry tall man in navy whites, sitting comfortably on his office desk, earning is $40 a hour payslip, with an oblivious number of personnel working around him probably trying to solve this situation. "
Why?" I screamed at the computer, slurring my speech, unable to form words as blood started to come from my mouth. A cut flap of my tough interferred in my speech.
"Because I too, am horrified at Viktor's mistreatment. And also, I would also like to be a hundred thousand dollars richer. Has that money been transferred?" he said.
"Yes. Check your offshore for one half, and your bitcoin wallet for the other half. All 100,000 AUD worth of currency." They both began to laugh, torturing my senses. They were responsible for the death of all of my crew. And here I was, injured, basking in my hopelessness and guilt. That's when I saw Quintons boatswains pipe. Grabbing it, while they were still distracted, I made my move.
"Hm?" he said as he looked over. I leaped, and I thrust the boatswain pipe into his hip, laughing at his screaming, before jabbing it up his nose, and releasing it as I heard his nose snapping at my force, before pushing myself off. He picked up his pistol and fired it, hitting the communications broadcaster. I ran out of the room, slamming the door, watching as he blindly fired into all of the computers, screaming in frustration, disconnecting the swearing Captain, rendering the intercoms to silence. He ran out, reloading, when I dismounted a fire extinguisher and swung it against his chest, missing his head, smashing the glass on the door.
Ripping off the tags with my already somewhat dislodged teeth, I slammed the lever and sprayed the powdery and foamy solution onto him, as he slid down the stairs and slid down the hall, slamming through the doors and into the other room. Picking up the shard of glass, I ripped off a ventilation panel cover, and breathed in as I climbed through, and slid the cover back on, listening to his howling cries of pain and determination. Inside the vent, I breathed out, and talked aloud in relative safety.
"It was time to finish this," I muttered as I began to wait in anticipation
PART 1: https://www.reddit.com/nosleep/comments/ivmvw3/someone_has_been_killed_aboard_my_ship_and_the/
PART 2: https://www.reddit.com/nosleep/comments/iw8ncc/someone_has_been_killed_aboard_my_ship_and_the/
PART 3 - https://www.reddit.com/nosleep/comments/iwvnp9/someone_has_been_killed_aboard_my_ship_and_the/
FINALE - https://www.reddit.com/nosleep/comments/iy6mkl/someone_has_been_killed_aboard_my_ship_and_the/
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