War of Inflation

There are four distinct wars going on: Afghanistan-Pakistan, Iraq, Palestine and Libya. Would an attack on Syria lead to an integration of these separate wars? Leading towards a broader Middle East-Central Asian war, engulfing an entire region from North Africa and the Mediterranean to Afghanistan and Pakistan?

The only advantage that we Cape Republicans have is that we don’t have oil. Or any other natural resource. Granted we do have an important trade route – but that’s always been there. Thankfully wine isn’t on the top of U.S. politics to make it a needed resource, well, not yet anyway. You need to know that the U.S. is a parasite to the rest of the world. The Swiss (for example 11 August) announced that they were discarding their monetary constitution that has prevented inflation in Switzerland they were forced to violate their monetary constitution, due to the irresponsible practices of the United States and European Union monetary authorities who are driving so many dollars and euros into Swiss francs that the franc has appreciated to astronomical heights and is threatening Switzerland with the collapse of their export markets and Gross Domestic Product. One must understand that the U.S. is not only threatening the world with war. But inflation too.

This is a very serious problem for the Cape Republic since a lot of our income does come from tourism. No tourist. No income. No wine exported. No income. Granted there are other countries (Africa, Far East) that buy our products but since all world markets are gauged by… yes, the US$ this is a worrying factor.

At the moment, China is importing inflation to maintain there ‘floating peg’ as the dollar is declining. Oil producing countries have their currencies in a fixed peg to the dollar. If the dollar depreciates too much in currency markets, the price of oil goes up. (Oil producers compensate for US dollar devaluation by hiking the oil price.) and we in the Cape Republic have to pay more for petroleum goods.

The situation is this: the entire world suffers from the Americans’ inability or unwillingness to put their house in order.

Should we refuse to accept or pay in U.S. dollars and demanded say Pound Sterling? I’ll let you decide on that one.