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But wasn't the petrodollar as a reserve currency (a.k.a. hegemonics) defacto replacing gold as a fundamental unit of value, in this case a commodity? To wit - both quotes from comments section found here: "...Is there any DOUBT that the price of oil is a key factor in controlling inflation/deflation by the Central Banks? Same can be said for gold. This is why futures markets were never reformed to force only users of commodity to play the futures market in a significant way. GS and JPM are tasked with holding oil prices UP as high as possible for any suppply/demand imbalance. I’d say they have done a damn good job as the price of oil is much higher than I think supply/demand would normally support. Same for gasoline. We all know gold is manipulated lower through the futures market. Oil is the one key commodity that flows through almost every cost structure. They can’t let oil collapse. That would be hugely deflationary and devastating to the world economy.." However; "...Soon to arrive on the futures scene? The new China based Oil Futures Contract (fully convertable) Trading Platform, priced in yuan. With Russia, Iran and Saudi Arabia now selling oil to China denominated in yuan, the other oil producers will be able to do the same. With the added bonus of being able to convert yuan to gold bullion on the Shanghai Gold Exchange. Those countries who must buy oil, but who produce gold will be able to do the same in reverse, by-passing their need to hold US dollars. What happens to all those unwanted dollars sloshing around the world? They come back home. The price of oil in US dollars may go far higher, but it won’t be gauged by the value of the oil, but by the eroding purchasing power of the US dollar. Inflation cometh. Big time.."
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"... Keynesian central bankers leave time out of their calculus. While they think they are lending money, they are really lending time. Borrowers purchase the use of time. Hazlitt reminds us that the old word for interest was usury, “etymologically more descriptive than its modern substitute.” And as Mises explained above, time can’t have a negative value, which is what a negative interest rate implies. Borrowers pay interest in order to buy present assets. Most importantly, this ratio is outside the reach of the monetary authorities. It is determined subjectively by the actions of millions of market participants.."
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Jul 31, 2015