https://asia.nikkei.com/Opinion/Get-Janet-Yellen-to-Beijing-and-let-the-healing-begin
Assalam.
This is the usual play acting America plays in the World Play called “The Emperor Has No Clothes”.
Up until 1971 there was some semblance USD, the accepted international currency has some gold backing. But that story came to an end when Nixon became the unlucky President with his hand caught in the till. So Nixon the exposed President declared to the world their USD is no longer convertible to gold.
One would have thought that the world would use this opportunity to reset the international monetary system and adopt Dr Mahathir’s Gold Exchange system. But nay, US hegemony is so intricately woven into the world everybody says, lets play the “The Naked Emperor Has Got Clothes” game.
Cos if they really write off the worthless USD it would be harakiri cos they held an awful lot of these green pieces of paper. US by the way is the only country in the world that can tell people of other countries – take this piece of paper and give me your wealth. Of course they call it US Treasury Bonds to make it marketable. The unfortunate part is this particular piece of paper is a debt that has to be paid. Not that they have ever bothered to pay the principal to anyone; they only need to pay the interest, the principal being rolled over.
Now a credible nation like US must pretend to have a debt ceiling stated in percentage to GDP. So this is the annual play acting people like best actress Janet Yellen have to do! With a shocked worried face she must utter the words- “OMG, we have reached our Debt Ceiling! The US can’t borrow more money to pay interest on US Treasury Bonds! Oh me, oh my, goodness gracious me!” She would say in a huff and in a puff.
Giving a heads up to the extras in Congress and Senate to prepare to play their part in grudgingly increasing the debt ceiling. However the unfortunate part is there is a fearsome foreign party involved. The Chinese govt!
So at whatever stage of war they are in they have to call a truce to settle this inconvenience. For as bad as it is for the US – its harakiri for China to let these pieces of paper go worthless. They only hold USD1.1 trillion of the USD7 trillion outstanding to the world. So the play acting takes on a bit of Chinese Opera- China must show the hurt but accepting face of a mistreated mistress.
So no problem world, Congress will increase the debt ceiling; US Govt will settle the Bond interest and they can defer the play acting for another year.
Of course the Quran and Sunnah has warn of a riba world but not many in the world cares. That unfortunately includes a sizeable number of Muslims especially in the govt. Islamic Monetary Reformists are your friends really; not your enemy. Giving us an ear can be at least the start of the required journey.
mmj.my
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