(CONT'D) Global Economic Hegemony: A New Kind of Warfare

By Kaleem Hussain

(CONT'D) Global Economic Hegemony: A New Kind of Warfare

Sat Mar 11, 2006 21:29

This unseemly adventure came to an end on Aug 15, 1971, when Nixon closed the gold window.

Preserving the Dollar Hegemony

R. Paul's article highlights how the U.S. agreement with OPEC to price oil in U.S dollars exclusively for all worldwide transactions gave the dollar a pivotal position in the global currency market as the dollar would now be extricable linked to oil. In exchange, U.S. protection was guaranteed towards the oil rich nations and the dollar gained in relative strength allowing the U.S. to export "monetary inflation" and buy oil and other goods at a discount rate fostering further the quest for dollar hegemony.

However, the key points that R. Paul highlights in the article is that the OPEC arrangement was not as strong and stable as the Bretton Woods arrangement or the gold standard of the late 19th century. This volatility was highlighted when in the 1970's the dollar nearly collapsed and extortionate interest rates of 21% were required to bring stability back into the system. To this date, central banks and international commercial banks have preserved the strength of the dollar giving it similar footing to that of gold.

Economic Warfare: A New Kind of Warfare?

Congressman R. Paul points out that the artificial demand for the dollar along with the military might places the U.S. in the unique position to the rule the world without hindering its own domestic resources or deficits. This cosy relationship can't last!

In the past 5 years, the dollar has been devalued in terms of gold by more than fifty percent. The above analysis has shown, that if anyone does challenge the status quo in terms of the link between the dollar and oil e.g. Saddam Hussein (2000), the powers that be will use all economic and military means to remove that challenge (regime change) at whatever costs, including at times illegitimate authorisation as in Iraq. In 2001, Venezuela's ambassador to Russia spoke of Venezuela switching to the Euro for all their oil sales. This was immediately thwarted with economic pressure from the U.S.. The U.S. foreign policy in recent years has heightened tensions and increased resentment amongst majority Muslim nations around the world. This does not hold well when it comes to U.S. credibility and diplomacy in the international arena. R. Paul states that the $ 2.trillion never ending war must be paid for one way or another. Dollar hegemony provides the vehicle to do just that.

The key is to propel the dollar dependency among states, so that they remain "allies to the fraud" and hence keep the dollars artificial value high. If Iran does go ahead with the planned Iranian Oil Bourse from March 2006, if previous precedents is to go by, she will be subjected to the same economic and military pressures until a regime change has been put firmly in place in the region. As R. Paul highlights, using force to compel people to accept money without real value can only work in the short run.

Economic law is based on fiduciary exchange of goods with real value as opposed to the superficial values system the dollar hegemony project is promoting. It seems that the tide is slowly changing, when we will see the oil rich nations bartering in currencies other than the dollar. Although, the authors of the three main articles in this analyses would cherish seeing that day, the immediate likelihood is that the neo-conservative U.S. global economic dollar hegemonic project will continue using both political and military pressure to foster this global agenda.

http://www.icssa.org/economic_hegemony.htm
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THE REAL REASON WE ARE AT WAR!
http://www.apfn.org/apfn/iraq_reason.htm

TIME MAGAZINE NOVEMBER 13, 2000 - Page 34
FOREIGN EXCHANGE

SADDAM TURNS HIS BACK ON GREENBACKS

Europe's dream of promoting the euro as a competitor
to the U.S. dollar may get a boost from SADDAM HUSSEIN.
Iraq says that from now on, it wants payments for its
oil in euros, despite the fact that the battered
European currency unit, which use to be worth quite
a bit more than $1, has dropped to about 82 cents.
Iraq says it will no longer accept dollars for oil
because it does not want to deal "in currency of the
enemy."

The switch to euros would cost the U.N. a small
fortune in accounting paperwork changes. It would also
reduce the interest earnings and reparations payments
that Iraq is making for damage it caused during the Gulf War,
a shortfall the Iraqis would have to make up.

The move hurts Iraq, the U.N. and the countries receiving
reparations. So why is Saddam doing it? Diplomatic
sources say switching to the euro will favor European
suppliers over U.S. ones in competing for Iraqi contracts,
and the p.r. boost that Baghdad would probably get in
Europe would be another plus.

-By William Dowell/ New York City

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Saddam Turns His Back on Greenbacks
By WILLIAM DOWELL/NEW YORK CITY
http://www.time.com/time/archive/preview/0,10987,998512,00.html

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The Euro And The War On Iraq
By Amir Butler
ATrueWord.com
info@atrueword.com
3-29-3
http://atrueword.com/index.php/article/articleview/49/1/1/

IRAQ WAR...INFO & LINKS:
http://www.apfn.org/APFN/IRAQ_WAR.HTM
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FULL REPORT: THE REAL REASON WE ARE AT WAR!
http://www.apfn.org/apfn/iraq_reason.htm