The History of the Future

The History of the Future

A superpower is any nation that has dominating influence across the world and as a result it continues to extend its influence through economic, military and ideological means.

We can see how this is clear with the US although it can be argued that its influence is declining. The US has a large share in global dominance across the world through economic, military and ideological means.

The era of the great depression lasted from 1929-1939 and the Executive Order 6102 came into place in 1933, where American citizens were forced to hand in any gold bullion or risk a prison sentence. The US was not established as a world power until after World War 2, when they were able to benefit as the war raged on.

The rising of the US to becoming a superpower came largely after World War 2 (1939-1945), as the US was a major supplier in military exports to resource the war for European nations. The US was late joining the war and so they enjoyed a huge influx of gold (the world currency before Bretton Woods was revoked in 1971) and through this they became extremely wealthy enjoying much prosperity.

It so happened that after the war, the dollar became the dominant currency of the world. The dollar was pegged to gold and for every 35 dollars, one ounce of gold was retrievable from the bank on demand. So in short, all other currencies were pegged to the dollar and every 35 dollars could be used to retrieve one ounce of gold. This was the Bretton Woods Agreement of 1945.

Over time, war, greed and excessive spending would lead this nation to produce more paper dollars than the weight in gold in reserves. Nations began to discover that this process was stealing wealth from their existing currencies and France was the first to demand gold in exchange for their dollars. Trust in the dollar (which was now being produced out of thin air) was deteriorating fast and other nations began to follow suite in demanding gold for dollars.

The US couldn't keep up; after Vietnam they had produced more dollars than they could ever back in gold. The Nixon Shock followed in 1971 and the Bretton Woods agreement was revoked without warning. President Nixon announced that the dollar was no longer pegged to gold and this became the beginning of the era of free floating currencies. After 1973, currencies became free floating based on the dollar, which then became pegged to thin air.

After the Nixon Shock, Nixon moved fast to secure the dominance of the dollar. Nixon would then strike a deal with King Faisal of Saudi Arabia in 1973 - otherwise known as "the deal with the devil". The Saudis held a monopoly over the supply of oil dominating over 70% of the market within OPEC (established in 1960).

It was agreed that oil would then only be purchased via the dollar, while Nixon promised to protect the Saudi oil fields from Iran, Iraq and the Soviet Union. In 1975, King Faisal was assassinated by his nephew (with a Revolver), shortly after he refused to sell oil to nations supporting Israel.

All other members of OPEC followed suite, only accepting dollars as a means for nations to purchase oil that very same year. Since then, the Saudis have never betrayed their sacred agreement with the US.

As a result, the demand for the dollar rose to an unprecedented level and it once again regained its dominance against all other currencies. The dollar became the reserve currency and the power it once enjoyed being pegged to huge reserves in gold was now exchanged for its value in crude oil - hence the term "petrodollar".

This would increase the global demand for the dollar, once again giving the US free reign to produce this currency without any limits or ramifications. This “petrodollar pegging” allows the US to ultimately import goods and services from other nations incurring less in expense, since the dollar is valued more so than the majority of other currencies in circulation.

One can argue that the perpetual creation of credit would lead to greater inflation for the dollar. The US are very aware of this and so they export their inflation – this is done by purchasing goods and services outside the US in an attempt to devalue the currencies of third world countries, essentially drowning the people into further poverty.

When inflation peaks beyond 40%, this produces revolt, riots and revolutions from the people and so a regime change comes in order. Dictators become obsolete so coups are staged and new dictators take up the vacancy by the permission, selection and approval of the US.

The US is declining as the dominant world superpower and it is not possible for them to dictate terms to the rest of the world without facing resistance from other powers such as Russia and China, if interests oppose one another. It can be argued that the world power status of Russia has heavily declined after the disbanding of the Soviet Union but it is also clear that Russia does oppose the US when interests are in conflict.

Russia and Iran have previously traded gold for oil and as a result the US have issued sanctions against them. There has also been intent from India to purchase oil from Iran with gold. These can be seen as open acts of rebellion against the US world hegemony, although the Saudis enjoy a monopoly over the global oil economy.

The life of the dollar is reaching its expiry date. It is not possible for the US to sustain its ever increasing debt and there is no blank cheque for the continuous war efforts. This is known by the powers that be and when the world economy finally crashes, no amount of Quantitative Easing; credit creation; bailing out banks and economic amphetamine will revive the imminent death of the dollar.

Essentially, we have been living through a 45-year long experiment, where currency has been made equal to debt and worthless paper; an experiment that is soon on its way to implosion.

While Russia and China continue to acquire gold in secret, it is clear that preparation is already in order for the imminent collapse of the world economy. The SDR (special drawing rights) is the currency of the IMF and it is the last clean balance sheet, so it is likely that this will be the chosen proposal of the US.

However, the world has changed since the post-World War 2 era – the US no longer have a clear dominant status in the world, such that they can dictate terms to other competing powers without resistance. So it remains that the SDR would be only one viable option during this time, while the rest of the world continue rioting searching for a minority to blame, as the attention is shifted away from the fallacy of the Capitalist system and the greed of politicians.

One thing is certain – when this time arrives, gold will not just be the talk of the town but rather, it will be the talk of the world. The value and worth of gold will finally be truly realised and this will cause the demand for the physical asset to rise beyond the likes of anything experienced in previous economic meltdowns.

This is the history of the future. This history and this future are a direct product of Capitalism. This is not “Capitalism misapplied” but rather, this failure is built into the very model itself and it will always be the most impoverished in society that will suffer the consequences for every meltdown.

Essentially, Capitalism is a highly sophisticated, well thought out, complex, fraudulent system that has convinced the masses of the very opposite – that it is the saviour of mankind.

Is there any system or ideology that can offer a better alternative than the turmoil mankind is yet to witness?