The outbreak of the Middle East war in the 1970s triggered an oil crisis, causing global prices to skyrocket.
Before the oil crisis, U.S. crude oil remained between 1.5 and 2 US dollars per barrel for a long time. After the oil crisis, crude oil soared to a maximum of 40 US dollars per barrel in the 1970s. Correspondingly, the gold dollar went bankrupt, the petro dollar rose, and the global credit currency The system becomes the protagonist, and crude oil becomes the anchor of global currency and credit!
No matter how much Israel brags, it is just a big-ass place with a bunch of cowards. Without the support of the American father, it will be difficult to gain a foothold in the Middle East. How can it have the ability to defeat the Arab coalition?
I have never heard of anyone who plays religion who can show real fighting power. Without Judaism, where would there be Jews? A group of people gather together to become a fighting nation based on their doctrines. Haha, this is just a joke.
Of course, Jews and Muslim brothers have the same origins, so they are quite comparable in fighting. However, given the population size of Arab countries, the potential for war is still greater.
But with Lao Mei helping behind the scenes, everything is different.
My public account has written stories about the 1970s several times.
It all started with the Korean War in the 1950s. The U.S. imperialists suffered a huge loss, so they took the threat of the 17th Parallel very seriously during the Vietnam War and did not dare to go too far.
Now the Vietnam War was very difficult to fight. The North Vietnamese fought and lost again and again. If they couldn’t win, they hid north of the 17th parallel. The Americans could only stare. So the Americans won every battle in the jungles of Vietnam. Losing the entire war not only caused a generation of Americans to suffer from war phobia, but also turned the military conscription system into a recruitment system. Only by spending money can children from poor families be deceived into serving as soldiers, resulting in a rapid decline in the overall combat effectiveness of the US military.
Of course, behind the tragic war was huge war expenditure. The ten-year Vietnam War emptied the U.S. treasury. The Americans had no choice but to let go of the money printing press and print money. However, the United States could not attract gold, so the extra U.S. dollars could not be used. The Bretton Woods system agreed to pay the full amount of gold, so the United States had no choice but to bite the bullet and let the gold dollar default.
The United States needed to spread the cost of its debt to the whole world, and at the same time stabilize the credit of the streaking dollar, so it started to embrace oil doctrine.
The reason why oil prices rose more than 20 times in the 1970s was because the currency depreciated to 5% or even lower than its original value.
Don’t think that the Fed doesn’t like inflation. Think about it, you originally owed me 10,000 yuan, and now you only need to pay me 500 yuan to pay it off. Doesn’t it make you feel good?
Rather than saying that the biggest crisis in the United States at the end of 1970 was the inflation crisis, it would be better to say that the Americans cleverly sent a wave of inflation to the world and solved the internal debt problem!
I have read many books describing the great changes in the lives of Wall Street people at the end of the 1970s. It is very interesting. From the 1970s to the 1980s, the value of investment bankers has increased rapidly. Inflation is not terrible, or for those who have mastered top-level resources. , Inflation can eat up debt and expand capital. Can ordinary people be eligible to borrow more money?
Unfortunately, for ordinary people, they only have deposits, and some people trick you into saving. As a result, your savings passively become a sacrifice for inflation. Who suffers the loss?
I remember when Trump was president, he once boasted that he could solve the U.S. national debt problem in his second term.
At that time, we thought that US$20 trillion in US debt was already an astronomical figure. Who knew that it would only take a few years to exceed US$30 trillion?
So here’s the question, if the U.S. debt of 20 trillion U.S. dollars has already given many Americans a headache, what about 30 trillion U.S. dollars? According to Yellen, the next step is to reach US$50 trillion.
Many people confuse the concept of U.S. debt. The United States not only has national debt, but also local debt. All states are in debt, as well as various cities. Otherwise, how could there be talk of city bankruptcy?
And U.S. corporate bonds.
There is a cunning operation on Wall Street that forces companies to borrow money to buy back shares and pay dividends. This is of course good for investors. The consequence is that if you look at the balance sheets of well-known American companies, you will find that the net assets of Dunima are negative, and they are insolvent. normal phenomenon.
Of course, some people will boast that this is the superiority of the capitalist stock market, which allows companies with negative equity to be valued at more than 100 billion, which is great.
But is this sustainable?
Once negative equity encounters a liquidity crisis, what can be done to solve the problem?
Of course, we hope that asset prices will skyrocket. If there is hyperinflation like in the 1970s, and asset prices increase 20 times, will debt still be a problem?
In the great inflation, whoever has the most debt takes advantage. Who else in the world owes more debt than the United States?
The easiest way to find out the murderer is logical analysis, who benefits the most and who is the most suspect.
So do Americans really hate inflation now? Would a group with so much debt and a group that has obtained a large amount of cheap assets by printing money really hate inflation?
The reason why the Federal Reserve pretends to be a little white lotus and is desperate to fight inflation is, to put it bluntly, it hopes to maintain the strong status of the US dollar.
The world is worse than the United States. As long as everyone is worse than the United States, the U.S. dollar, which cannot withstand inflation, will still be strong after all. The Federal Reserve also has a tactic of blaming the oil crisis, just like it did in the 1970s, blaming the inflation caused by currency collapse on the oil crisis. It happens every 50 years. Wouldn’t it be enough to do it again and mess up the Middle East?
As a result, conflicts in the Middle East resumed, with Palestine and Israel fighting.
The evil deeds of Hamas are spread all over the Internet. I have no good impression of extremists, but without the state terrorism carried out by Zionists, where would Hamas come from?
It’s just that the main voice of public opinion in the world is in the hands of the Jewish plutocrats. It’s not too difficult to hang Hamas on the moral cross and let the world criticize it.
When the Russo-Ukrainian war broke out, the inflation that had been hidden in the United States suddenly became very serious. It was exposed and repeatedly hyped, which directly led to continuous super-intense interest rate hikes in the US dollar.
By now, both sides are tired of the war between Russia and Ukraine, and they no longer want to fight. As for Ukraine, it has long lost its united front value in the Western world. Zelensky has turned from a Zelensky to a nuisance. Everyone is afraid of him. He rushes over and asks for money directly, avoiding him for fear of losing money.
The United States and the West were already having a hard time, but Zelensky took turns blackmailing him from the moral high ground. The money he gave him changed from being politically correct to being politically incorrect. Ukraine went from being a chess piece in provoking geopolitics to being an abandoned piece in the game.
After some operations, after Europe and Russia cut off energy supply, a new energy balance system was achieved. Of course, Europe will definitely have to spend more money to solve the demand problem.
But this is not enough. If inflation is only a little bit, how can we achieve the goal of resolving debt?
It just so happens that OPCE+ joins forces to get rid of the control of the US dollar and engage in de-dollarized energy transactions. This is a poke in the lungs of the United States. Can it still be regarded as US imperialism without retaliation?
Israel, the biggest thug of the United States in the Middle East, has many internal problems. It is one thing to be paid to be an uncle, but it may not be happy to be paid to fight for one’s life as a grandson. Some time ago, the color revolution went directly to Israel’s home base.
The Democratic Party is a senior planner and financial backer of various color revolutions. The son of Israeli Prime Minister Benjamin Netanyahu publicly accused the United States on social media of “secretly funding opposition protests with the intention of subverting Israel.”
Of course, the reason for losing one’s temper is not to cause a divorce, nor do they dare to cause a divorce. It is just to shout out so that they can negotiate terms. It seems that they have been talking to each other for a while, and the terms they negotiated are to continue to cause trouble in the Middle East. The low match is Palestine and Israel. There is no limit to the war, or it can be a Middle East war in the new century, and the Jews and Arab brothers will have another one.
If a war breaks out, oil pipelines and gas pipelines in various places can be “reasonably” destroyed by terrorists one by one, disrupting the supply. How can it not increase prices?
What’s interesting is that many of the so-called Hamas weapons come from the United States, and are said to be purchased from the black market. So why is there a black market, and why do American arms dealers become suppliers to terrorists in the Middle East?
During the Reagan era, the so-called Iran-Contra incident broke out. The White House was revealed to have secretly sold a large amount of weapons to Iran to fight the Iran-Iraq war. The American people couldn’t stand it. Where were the promised enemies and the agreed sanctions? The bandits are in Washington now.
The public opinion at that time was very uproar for a while, but finally disappeared.
Americans don’t like peace in the Middle East. As long as there is a war, it is best to continue the war. If our good friend Israel defeats the Arab brothers one-sidedly, maybe various advanced weapons will continue to be given to terrorists through the black market, and vice versa. The old American even rolled up her sleeves herself.
The most active post-80s generation in the Middle East, the Saudi Crown Prince has publicly expressed his support for the Palestinian people. Of course, Americans have to express their opposition, but the opposition is ineffective. In essence, the Palestinian-Israeli conflict is a religious war, a contest between Judaism and Islam. The big dogs naturally The position is set and there is no need to change it.
From a hot war to an economic war, there can be another oil crisis, oil prices skyrocket, and the cauldron of inflation is transferred to the Middle East. The American people can openly hate the Middle East players and become crazy, so the Federal Reserve will be removed.
Looking at it this way, this calculation is quite clever. It depends on how the situation develops.