WWIII: The Petrodollar warSubmitted by philosophicrant on Mon, 04/30/2012 - 11:43
The U.S. will never remove their troops from around the world under Barack Obama. Even if they wanted to (which they don't), America's own paranoia through fear of reprisals brought about by their continual aggression, intimidation, sabotage and military action towards countless of countries for decades AND it's continuation under this administration will see to that. The provocative foreign policy and controlling laws of the U.S. is less to do with a failing economy, civil unrest and National security and more to do with the U.S. losing their No.1 Superpower status. Consider that powerful nations are rejecting the dollar as the 'World Reserve Currency' and there is a serious concern that OPEC countries stop trading in the US Dollar to sell their oil. The very thought of it encourages major war in order to uphold the US economy. The dollar's ,'World Reserve Currency' status allows the U.S. to run up high deficits and have its debt denominated in the U.S. dollar. This in turn enables it to print unlimited dollars and inflate its way out of debt. America will protect this privilege with human life and already have displayed this. The growth of Japan, Russia, South Korea, amongst others and particularly China given it's size, created by the continual devaluation of the U.S. Dollar through mass printing could soon change all of that. China is already strongly tipped to become the next No.1 Superpower, which could spell disaster to the U.S. economy.
If you are unaware of Asian advancement consider the Japanese 'Yen' versus the dollar as an example. For around 200 years Great Britain held the 'World Reserve Currency', this basically meant that sterling was the standard currency predominantly used for trading between countries around the world. Unfortunately UK got in a mess over debts from WWII which at the same time had made a weak America rich. As the world lost confidence in sterling in 1968 the U.S. Dollar became the agreed world currency for trading. At this time the Yen was pretty insignificant. Initially in 1949 the Yen was set at 360 per $. This was changed to 308 in 1971 following devaluation of the U.S. Dollar (Smithonian agreement). Supply and demand meant China ended up floating their currency two years later. In 1973 the Yen was worth around 270 per $ and fluctuated to around 240 by 1985. In 1985 the U.S. Dollar was again seen as overvalued and the Yen undervalued (Plaza agreement). This brought the Yen in at around 130 per $. The Japanese 'Asset Bubble' in 2002 and the 'Global Economic Crisis' of 2008 saw more fluctuations however according to The Economist, the Yen is still undervalued by as much as 15% against the U.S. Dollar. At the end of 2011 the yen was holding up at 78 per $.
The U.S. feels aggrieved also because of suspected foul play by China in 2008/2009. The U.S. relies heavily on imports and exports to China. They claimed that China, purposely and illegally depreciated its currency so that Chinese products were cheaper for U.S. consumers and American products cost more in the Chinese market. This was happening during the economic crisis. Thus China’s foreign exchange reserves jumped nearly 20% in a year achieving an 'unfair competitive advantage in the International Market (Wolverson 2010). Therefore China threatened the growth and stability of the U.S economy. (Wolverson, 2010) By artificially lowering their currency China created a huge surplus for their economy and a huge deficit on the US economy. The U.S. Dollar is now not only under pressure from trade in the Euro but with other currencies like the Juan, Yen, Won and Rupee as well. Russia and China have started to trade goods directly and have discussed with central banks, economic analysts and groups, such as the Gulf Cooperation Council, a desire to see an independent new currency replace the dollar as the reserve currency.
The U.S. is totally dependent on the U.S. dollar being used to trade oil around the world. The 'Petrodollar' was set up in 1973 by President Nixon and King Faisal which required Saudi Arabia to accept only U.S. dollars when trading oil around the world, in exchange for protection against the USSR. Subsequently all OPEC countries also agreed to sell oil only in U.S. dollars. This made the U.S. dollar very strong and oil was virtually free to the U.S. because they printed the currency it was traded in. However the downside to this meant the U.S. could import goods cheaply at a cost to their own production and export expensively creating a false economy. Also with the U.S. so reliant on their 'Petrodollar' agreement, if OPEC countries traded using another currency the value of the dollar would plummet. The protection the U.S. puts over oil is actually the protection of the currency itself. However, this is precisely the scenario that panned out in 2000 when Saddam Hussein began trading in the Euro, not only as a snub to the U.S. but also because the Euro offered 17% more per barrel. What happened next was 9/11 and the fallacy of the 'war on terrorism'. This war ensured that Iraq would be brought back to trading through the U.S. Dollar and sent a message out to all other OPEC countries. However in 2008 Iran dared to do the same and began trading in the Euro.
Of course Iran aren't the only country to do this either. From 1996 right up to a month before the NATO attacks, Gadhafi was trying to implement the African Gold Dinar in Libya to encourage trade from Arab nations and Africa to the rest of the world. This would have been hugely beneficial to African self-determination. NATO attacks followed and 'revolution' ousted Gadhafi and he was executed. The Libyan attempt at the 'Gold Standard' ceased. Going back to 2008 the U.S. has behaved increasingly threateningly towards Iran. Since the withdrawal of troops from Iraq this threat has stepped up, under the guise of resisting their nuclear program, which incidentally has been in development since the 1950's. This is a smoke screen to what they are really concerned about and is designed to gather public support for yet another Middle East war. Let's face it Israel have around 300 nuclear weapons, so Iran would be foolish to provoke a war there. Pakistan and India have around 100 nuclear weapons each and North Korea has an unknown amount. Suggesting Iran is a threat to Israel or to the U.S. is not at all reasonable. Incidentally Russia has nearly 5000 and America has around 2500 reportedly. The nuclear weapon concern is simply an excuse for America to threaten Iran with war and send a message to other OPEC countries to continue trading with U.S. Dollar. In this way the U.S. offers protection not from the Soviet, that threat died away decades ago, but from themselves. Like the mafia, menacingly protecting businesses from getting smashed up, but on a much larger scale. War also ensures the military corporations trundle on. Even if this means bankrupting their own country to maintain their 'Petrodollar' agreement it would protect their 'reserve currency' status and they can always prop up their economy by stealing Iranian wealth and resources later. The spoils to the victors and if you can't win by fair means, cheat.
The UK as always follows their puppet-master and have hit Iran with sanctions. Incidentally the direct competition of the U.S. dollar with the Euro is one of the main reasons the UK isolates itself from the Eurozone. With reference to oil-rich Iran rejecting the U.S. Dollar in favour of the Euro, starting war would be 'payback'. However, starting yet another war in the Middle East, as a so called deterrent against 'Weapons of Mass Destruction', would be so criminal, so inexcusable, so corrupt, that it could be and should be deemed a treasonable act and the U.S. leadership risk being tried for International war crimes. Lets remind ourselves though, this is not a game. The war on Iraq was horrific for unarmed civilians and American soldiers and weapon makers exploited the very people they pretended to protect.
I doubt any amount of CIA mischief making will work in Iran to destabilise their government and assassination attempts are also unlikely so...
...what does a country with a massive ego like America do, to promote another war in the Middle East and get away with it...AGAIN, while plunging its citizens into poverty?
Hmmm, let's see...how about -
- Gauge public support as much as possible using the corporate media.
- Spread the 'Fear' message.
- Provide the ex-CIA President with immediate and unquestionable power over National Security and Foreign Policy.
- Prepare control policies at home to prevent and quell civil unrest, including arresting and detaining indefinitely 'unpatriotic' citizens without trial and even assassinate undesirables if required.
- Prepare concentration camps in the event of Martial Law.
- Increase Homeland Security exercises and military training for police in the event of Martial Law.
- Deploy troops strategically around Asia and the Pacific Rim. Contact the 6 Gulf partners and Australia.
- Step up military training in South Korea as a warning to North Korea not to get involved.
- NATO are already in league with the U.S. but influence within the UN may be a requirement.
To gather public support against Iran the U.S. will spread propaganda, even create a phony attack to get things started. They will start an attack and get the media to report that Iran attacked first. Another option is a 'terrorist' home attack by devising a 'Northwood' operation and pinning it on Iran. It's worked on many occasions before. This could be on the table as we speak! But Let's not forget that Iran is no push over and Iran is not Iraq. Iran has a strong infrastructure. They have links with China, Russia and of course North Korea, as well as friends in the Middle East like Afghanistan, India, Pakistan, Syria and Palestinians. Even Iraq could become unlikely bedfellows considering the experiences they have endured over the past 20 years on and off at the hands of the U.S. Iran has a lot of money, so France and Germany could even help them regarding financial services. Not to mention the Rockerfellas of the world who have a history of backing both sides during major wars. God bless America.
Vote Ron Paul - End the Federal Reserve - Trade in gold - Bring the troops home.