The U.S. is the only country that can print "unlimited" money and exchange it for real goods from other nations. This is due to the US Dollar's reserve status.
But do you know the U.S. can also extend this exorbitant privilege to an ally? Here's how the scam works...
If you want to understand how the U.S. defrauds the world, you need to know how reserve currency works and how the US Dollar (USD) gained that status.
The tool that allows the U.S. to extend its exorbitant monetary privileges to an ally is called 'swap lines.' 'Swap lines' are agreements that enable one country to exchange its currency with the currency of another. This is done through their respective central banks.
Let's use the example of 'swap lines' between the U.S. & UK to illustrate how the scam works:
Countries are free to print their own currencies.
But only the U.S. can print "unlimited" amount of dollars without suffering hyperinflation due to the USD's reserve status.
That means the U.S. can generate "unlimited" amount of dollars out of thin air & exchange them for:
- tangible goods from China
- resources from Africa
- oil from the Middle East
That's "magic."
No other country can do that... unless the U.S. grants them a 'swap line.'
What if the UK wants a share of that "magic money"? The U.S. Fed can help. Here's how:
The Bank of England prints 1 trillion GBP. It then swaps that with the Fed for 1.25 trillion USD (the current exchange rate).
The UK has just indirectly printed 1.25 trillion USD!
Did you see the "magic" that just happened?
Unlike America, the UK cannot print GBP with impunity and allow all that excess "money" to enter the market. That would devalue the GBP & cause hyperinflation.
So it prints the GBP & swaps them for USD with the Fed instead.
In short, the U.S. defrauds the world with its USD, then uses 'swap lines' to share the spoils with its staunchest allies.
The U.S. can grant 'swap lines' to any country it wants.
Now do you understand why some countries are diehard supporters of the U.S. Empire?
Being a staunch US ally means they get to create money out of thin air thanks to the U.S.A.
