© MMXII V.1.0.5
by Morley Evans
HIGHLIGHTS: According to Michael Hudson, the BRICS (Brazil, Russia, India, China, South Africa) have begun conducting business without the U.S. dollar. Turkey and China just signed an agreement. Japan and China are reaching an agreement. Middle East oil producers are ready to sign. "We do not want any more dollars," they say. That means they will stop selling things to Americans because U.S. dollars are used to buy T-Bills which finance the U.S. debt. They want to stop financing the U.S. Military. The most interesting thing Hudson says is that the U.S. is "muscle bound" and that it cannot afford to invade even Ecuador! When Mao famously said the United States is a "paper tiger", he meant that it is running on paper money. That was in 1971 when Nixon took the United States off the gold standard. Hudson says during the War in Vietnam, the U.S. was using a ton of copper per year for every soldier there. Conventional war is too expensive. Hydrogen bombs are affordable. When foreigners stop paying for the military, Congress and the IRS will try to grind it out of the American middle and lower classes who are already hard-pressed. CONCLUSION: When the money runs out, the Empire is finished. The money ran out long ago and the Empire has living on borrowed time.