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How does the U.S. control the value of dollar by soaking up drug trade money?
Posted on 12/13/16 at 10:14 am
Posted on 12/13/16 at 10:14 am
Someone recently posted this.
It's intriguing to think about, but I don't fully understand it.
Can someone (perhaps the original author) explain it in a bit more detail. I think I get it, but I just need a few more details.
It's intriguing to think about, but I don't fully understand it.
Can someone (perhaps the original author) explain it in a bit more detail. I think I get it, but I just need a few more details.
This post was edited on 12/13/16 at 10:16 am
2
Posted on 12/13/16 at 10:17 am to mizzoukills
I quoted it from that weird-arse LARP thread compilation from 4chan.
I haven't tried to break it down (or read from someone who has), but it seems plausible on the surface.
I haven't tried to break it down (or read from someone who has), but it seems plausible on the surface.
Posted on 12/13/16 at 10:20 am to HempHead
quote:
I haven't tried to break it down (or read from someone who has), but it seems plausible on the surface.
I get that it's a great way to soak up excess U.S. dollars...but how does that translate to controlling the value of the dollar?
That's the missing link which is going over my head.
Posted on 12/13/16 at 10:21 am to mizzoukills
quote:
I get that it's a great way to soak up excess U.S. dollars...but how does that translate to controlling the value of the dollar?
By controlling M1 supply. Eliminating these dollars from circulation could prevent excessive inflation.
Posted on 12/13/16 at 10:24 am to mizzoukills
quote:
I get that it's a great way to soak up excess U.S. dollars...but how does that translate to controlling the value of the dollar?
That's the missing link which is going over my head.
I have never heard this, but if they are removing money from circulation they might be implying that this makes money more scarce and therefore relatively more valuable.
Of course that explanation ignores the massive amount of credit extended during the last 8 years.
Posted on 12/13/16 at 10:24 am to mizzoukills
quote:
value of the dollar
I didn't see what you are talking about so I don't know if value means literally what the dollar is worth or more so that the dollar is very useful.
Drugs being traded in dollars means the dollar will be internationally used and will keep dollars moving. There was worry for a while that Euros with their 500 euro bills would displace the dollar since you could carry more currency in lesser space.
Posted on 12/13/16 at 10:25 am to HempHead
quote:
By controlling M1 supply. Eliminating these dollars from circulation could prevent excessive inflation.
so are they implying that the failed War on Drugs actually has another purpose altogether, and that purpose is to soak up U.S. dollars to control the value of the dollar?
If so, does that perhaps partly explain why the Treasury can print money with little blowback? Just an offset of what we soak up from the drug trade?
This post was edited on 12/13/16 at 10:35 am
Posted on 12/13/16 at 10:27 am to mizzoukills
I have seen a lot of material on how drug money props up the markets. But, as to the value of the dollar, read up on petrodollar recycling.
Posted on 12/13/16 at 10:28 am to mizzoukills
quote:
If so, does that perhaps explain why the FED can print money with little blowback? Just an offset of what we soak up from the drug trade?
I doubt it's a total offset.
I also imagine that the feds running big-time drug shipments is a way for 'non-budgetary' enticement of foreign officials.
Posted on 12/13/16 at 10:33 am to mizzoukills
quote:The Fed doesn't print currency. The Bureau of Engraving and Printing does. They're a part of the Treasury, not the Fed.
If so, does that perhaps partly explain why the FED can print money with little blowback?
Posted on 12/13/16 at 10:33 am to HempHead
I've never really looked at the War on Drugs from this point of view, which is really fascinating.
I've always wondered why our government has been 100 percent committed to the War on Drugs even though experts have long claimed the War on Drugs has been a total failure.
I've always wondered what secret motives the government had to continue the War on Drugs. I assumed the motives were far beyond my understanding: Perhaps foreign policy related, etc. Unless you were directly involved it would be nearly impossible to understand it. And I assume the government believes there's many different angles of benefit to continuing the WoD.
But I never considered this angle.
Very fascinating!
I've always wondered why our government has been 100 percent committed to the War on Drugs even though experts have long claimed the War on Drugs has been a total failure.
I've always wondered what secret motives the government had to continue the War on Drugs. I assumed the motives were far beyond my understanding: Perhaps foreign policy related, etc. Unless you were directly involved it would be nearly impossible to understand it. And I assume the government believes there's many different angles of benefit to continuing the WoD.
But I never considered this angle.
Very fascinating!
This post was edited on 12/13/16 at 10:36 am
Posted on 12/13/16 at 10:34 am to Big Chipper
quote:
The Fed doesn't print currency. The Bureau of Engraving and Printing does. They're a part of the Treasury, not the Fed.
Correct. My mistake. I'll edit.
Posted on 12/13/16 at 10:35 am to HempHead
quote:Buying something, including drugs, does not remove dollars from circulation.
Eliminating these dollars from circulation
Posted on 12/13/16 at 10:38 am to LSURussian
quote:
Buying something, including drugs, does not remove dollars from circulation.
Selling drugs and sitting on the cash effectively does, though.
Posted on 12/13/16 at 10:42 am to HempHead
quote:
By controlling M1 supply.
quote:Those dollars are still included in the M1 calculation, contrary to your quote above.
Selling drugs and sitting on the cash effectively does, though.
Posted on 12/13/16 at 10:46 am to LSURussian
quote:
Those dollars are still included in the M1 calculation, contrary to your quote above.
Under what model are inert monies counted? Serious question, I'm not trying to debate you on your expertise.
Posted on 12/13/16 at 10:48 am to HempHead
What about busting drug lords and confiscating billions in U.S. dollars?
Posted on 12/13/16 at 10:49 am to mizzoukills
quote:
What about busting drug lords and confiscating billions in U.S. dollars?
Doesn't seem to happen very often.
Posted on 12/13/16 at 10:54 am to HempHead
quote:What is that?
inert monies
Posted on 12/13/16 at 10:55 am to mizzoukills
I would think the problem would be scale, and well control of the actors. its not like the gov't can adjust rates and get the cartels to sit on $$ or spend them.
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