Sometimes I find the oddest things. I keep finding interesting stories on reddit.com about Iran and how they want to start exchanging oil for the euro. Most recently I found a story that goes along with this. I find all of these stories plausible.
A little over a year ago I realized that our currency is on a foundation that cannot stand forever. For those who aren't familiar with the federal reserve system I'll give hit some main points and move on...
The Federal Reserve loans money into circulation at what is known as the prime rate, though if you read what wikipedia has to say about it you'll find it's not quite that simple.
The problem however, is that when the fed loans money into circulation it does so bearing interest. This is all fine and good until we realize that money only comes into circulation by being borrowed from the fed. We then must ask ourselves if there is any money in circulation that does not have interest accruing against it. To date, I know of none, but would welcome being corrected on the matter.
What does this mean? Simply that all money in circulation is principle and if it were all given back there wouldn't be enough money in existence to pay off the loan. All existing money would have gone to paying the principle only.
Given this sandy foundation why would anyone want to use the US dollar? As good as I can guess, it's because they have to. If what I have been reading is true then we'll go to war as long as it takes to force the world to use our money.
After all, Saddam did start offering to sell oil for the euro shortly before we invaded just a few short years ago.
Something is up. There is writing on the wall, but what does it all mean?