The

Coming

Dollar Smash

De-Dollarizing the American Financial Empire

Imperialism is getting something for nothing. It is a strategy to obtain other countries’ surplus without playing a productive role, but by creating an extractive rentier system. An imperialist power obliges other countries to pay tribute. Of course, America doesn’t come right out and tell other countries, “You have to pay us tribute,” like Roman emperors told the provinces they governed. U.S. diplomats simply insist that other countries invest their balance-of-payments inflows and official central-bank savings in US dollars, especially U.S. Treasury IOUs. This Treasury-bill standard turns the global monetary and financial system into a tributary system. That is what pays the costs of U.S. military spending, including its 800 military bases throughout the world. I’m Bonnie Faulkner. Today on Guns and Butter:
 Dr. Michael Hudson. Today’s show: De-Dollarizing the American Financial Empire. Dr. Hudson is a financial economist and historian. He is President of the Institute for the Study of Long-Term Economic Trend, a Wall Street Financial Analyst and Distinguished Research Professor of Economics at the University of Missouri, Kansas City.
 His most recent books include, And Forgive Them Their Debts … Lending, Foreclosure and Redemption from Bronze Age Finance to the Jubilee Year; Killing the Host: How Financial Parasites and Debt Destroy the Global Economy; and J Is for Junk Economics: A Guide to Reality in an Age of Deception.
 We return again today to a discussion of Dr. Hudson’s seminal 1972 book, Super Imperialism: The Economic Strategy of American Empire, a critique of how the United States exploited foreign economies through the IMF and World Bank.

We discuss how the United States has dominated the world economically both as the world’s largest creditor, and then later as the world’s largest debtor, and take a look at the coming demise of dollar domination.

DYI:  Intriguing, fascinating, super informative pod cast well worth an hour of your time.

If the U.S. is going to continue with ultralow and going lower interest rates European stocks using Vanguard’s European Stock Index Fund Admiral Shares (VEUSX) is sporting a yield of 3.25% as compared to the S&P 500’s 1.86% and greater than the Treasury’s 30 year bond yielding 2.64%.

DYI doesn’t use foreign stocks in our model portfolio however it is your money [you can do what you want] and for a portion of the gold shares you may want to venture out into the European markets.  I’ll leave that up to you.

Again a top notch pod cast well worth your investment in time!

DYI