It seems that self-evident things take time for a modern crop of Western economists to dawn.
The author of 'Planet Ponzi' and blogs at PlanetPonzi.com talks to Max Keiser about the euphoria in the markets. He says that he is very bullish about commodities, which are the ‘real assets.’ “The commodities’ space is not up nearly as much in a bubble as everything else,” says Feierstein. According to the banker, who worked on Wall Street in the 1980s, commodities are “a real value” while “you can actually exchange them for something that somebody needs.” Feierstein says that in the next decade paper money, fiat currency is going to lose its luster. “US dollar hegemony will end in the next decade,” he says, as part of his “big prediction.” The analyst explains how right now fiat currency, particularly the US dollar, is overvalued.
No way! Actual things are "real assets". How could this be? I always thought that commercial and combat aircraft were growing on the trees, and that gas, oil, nuclear and other types of energy were appearing out of nothing due to quantum instability of the vacuum not as the result of human labor, creativity, education and, often, sacrifice. Wait a minute, Wall Street is on-line with me... what do you say? Ahh, phew, now I can sleep calmly--it is all BS, real assets are papers produced on the Wall Street and TV, Radio and Internet entertainment. Facebook, too, with Twitter and other social networks being a real deal. Virtual economy, you know, like the insurance or real estate speculation and their "paper" derivatives--that is the real deal. Not mining, computing, processing, manufacturing technologies. Nah, indeed, cannot be right. Facebook stock, on the other hand... You get me being sardonic here, I hope.
In related news, about US Dollar: everything what made US Dollar at some point of time a desired (and reserve) currency--America's immense manufacturing capacity and an illusion of global military power--are all gone. Long time ago. Since 2000s it was a mythology of US military power which served as a foundation of US Dollars' reserve currency status, meaning that anyone without nuclear weapons, who would decide to use anything but USD in its trade would get thrashed by US military might. Like Libya. Remove military power aura from USD and suddenly things begin to look rather shaky. As I continue to say ad nauseam (I know, I sound as a parrot)--Eurasia, which is a main, by a gigantic margin, global production and consumer market, increasingly understands that she will be protected. Militarily. It is not one day process, of course, but it is fully in motion and once Eurasia is protected, the need for US Dollar will evaporate, in fact, it is already evaporating. Iran's strikes on US bases in Iraq is yet another tick in the last minutes of US Dollar's existence as a reserve currency. Indeed, what is a currency if it is not defended or, as is the case of Pax Americana, cannot be forcefully imposed? Not much really. Facebook's "capitalization" may be in hundreds of billions of US Dollars, but it takes merely a couple salvos of cruise missiles to make it zero.
Gazprom's capitalization maybe down (due to mostly PR manipulations), but its real WORTH is orders of magnitude more than that of the few buildings with computers and routers of Facebook. People WILL survive without Facebook, in fact another iteration of a platform for exhibitionism and reports on bowel movements and Botox injections will emerge immediately, but without gas and heating, production will stop and people will begin to die from cold. Obviously, Gazprom, as is Rosatom, among many, are defended by actual military power, which CAN and WILL defend them in particular, and Russia in general. I can go on forever with those analogies, but, I guess, you got my drift. Five years ago, yes, I repeat it again, and, no, not for self-praise, I stated that American criminal coup in Ukraine was the start of the count-down to US demise. I based my, as it turned out correct, conclusion only on things which "are the real assets", ranging from real economy and manufacturing capacity, real resources and real military power, not some ethereal BS of electronic transactions in imagination and air. So, I have a bit of disagreement with Mr. Feierstein--we are down to few years (less than decade) before the whole thing becomes irrelevant and, as much as I hate all those silly predictions, the amount of time left for US Dollar as premier global currency depends not even on successful completion of China's massive BRI project, with China's economy already dwarfing that of the US. No, this will depend on a progress of National Projects of Russia of which we will see first results by 2024. Why? Because of Russian culture and its ability to generate civilization models from which anyone can draw most attractive features. But here we are entering the issue of metaphysics, granted supported by Russia's massive "commodities", increasing manufacturing capacity and state-of-the-art military machine.