"It is the highest impertinence and presumption, therefore, in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expence, either by sumptuary laws, or by prohibiting the importation of foreign luxuries. They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expence, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will." ~ Adam Smith
A Threat to the Dollar
LRC and PressTV report today that in response to the rude and boorish things Loose-Cannon Kerry and his boss have been saying recently about Russia, Kremlin economic aide Sergei Glazyev said that US sanctions would cause Russia to “...find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves,” adding that Russia could stop using dollars for international transactions (my italics.)
“An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system.”
I heard several years ago that the use of the US Dollar as the world's currency for international transactions was a primary reason why this country has prospered rather well since 1944. This is the first time I've seen it admitted openly by a government spokesman.
So now we know: global demand for dollars is high (so boosting our living standards) not just because our exports are in demand, but because dollars are needed when some country buys a shipload of grain from Russia. Print money, get rich. What a racket.