2005/03/26

US Dollar Hegemony and the Iranian Threat

The costs of sustaining the US's new 'Empire' will become apparent to its public only when these costs directly accrue to them. This will happen, as this article suggests, only when other nations stop subsidising the US's imperial adventures by colluding in them and the dollar loses its role as the world's reserve currency.

This article argues that if the US’s ability to undertake imperial conquests like that of Iraq depends on its obvious military supremacy, this in turn is ultimately based on the use of the US dollar as the world’s reserve currency. It is the dominance of the dollar that underpins US financial dominance as a whole as well as the apparently limitless spending power that allows it to keep hundreds of thousands of troops stationed all over the world. Destroy US dollar hegemony, and ‘Empire’ will collapse.
The Soft Underbelly of Empire

Iran does not pose a threat to the United State because of its nuclear projects, its WMD, or its support to “terrorists organizations” as the American administration is claiming, but in its attempt to re-shape the global economical system by converting it from a petrodollar to a petroeuro system. Such conversion is looked upon as a flagrant declaration of economical war against the US that would flatten the revenues of the American corporations and eventually might cause an economic collapse.
The Iranian Threat: The Bomb or the Euro?

Both of these articles are very interesting. Even if you have nothing to say about them I recommend the reading.

5 Comments:

Let the soft underbelly be exposed any way possible. To me the weakness is in the wrongness of the policy. It wouldn't matter in the long run if even if the dollar continues to be used as the dominant interational currency. No nation has ever done itself a long term service by trying to become more of an empire. There's a reason there weren't any left before the U.S. started with these actions, which really date back to soon after World War II.

Strength is never gained by the combination of (a) forcing others far away to live under another country's domination an/or rule especially when you don't have a lorge enough force to make it stick anyway. I think the game "RISK" should be part of the training for any world leader with such ideas, except to throw a little reality into the mix, each country you take over and then try to occupy with one or two little pieces, gets to grow new players themselves every turn (who are twice as powerful as the pieces left as occupiers, due to their justified hatred of the occupation.) 

Posted by surrogate
3/27/2005 05:29:00 pm  
The economic behemoth that is the US can not be attacked effeciviely in that manner IMHO. The US has their hands into to many pies globally. I'd like to know how to accomplish what you are saying without causing a global economic meltdown.

The small oligarchy that controls the vast majority of global economic interests would have to have a reason (or a soul) to not do business with US interests. Fiscally speaking, thats insane. These people don't care about "insignifigant" things like Peace: only prosperity.

Additionally, attempting to starve out the current remaining superpower could have some pretty negative consequences. When you corner a wild animal it tends to fight to the death. Be sure, if the US doesn't have the resources it "needs" it will "aquire" them.  

Posted by deviant1
3/27/2005 06:27:00 pm  
Devient1 you're exactly right. There are big reasons to fear the possibility of the scenarios predicted in the articles but I have been seeing it coming and I'm no brain on these matters. And it's not just in the Middle East that people are beginning to think this way. Pay close attention to Latin American countries. Chavez has been taunting Bush and trying to pull his own coalition together. The world isn't going to lie down for George Bush and it's been a huge mistake for him to stomp his big boots as he has been doing. I had hopes that the American people would see what was coming and put a more sensible man in office but they failed and I expect the worst. The only way to stop the Bush cartel is where it hurts the most and if I were sitting on the oil and being threatened I would use the most powerful weapon I had. I'm just thinking out of the box here. I would much rather see George Bush recalled and sent back to Crawford. 

Posted by Dianne
3/27/2005 08:20:00 pm  
Dianne,

I am partial to W. being tarred and feathered myself. Just a thought.  

Posted by deviant1
3/28/2005 03:22:00 pm  
Another interesting article : The Passing of the Buck
http://www.economist.com/finance/displaystory.cfm?story_id=3445928 

Posted by yenayer
3/30/2005 11:50:00 pm  

'); preview.document.close();} function PostComment(frm){if (frm.Comment.value=="" || (confirmBeforePost && confirm(confirmText)==false))return; if(frm.rememberMe.checked){ setCookie('author',frm.author.value); setCookie('email',frm.email.value); setCookie('url',frm.url.value); setCookie('remember','true');}else{ setCookie('remember','false');} var txt=frm.Comment.value; txt=txt.replace('','&'+'#'+'160;'); txt= txt.replace('','&'+'#'+'160;'); txt=txt.replace('','&'+'#'+'160;'); frm.postBody.value=txt; frm.postBody.value+="&"+"#1"+"60;\n\n"+ getAuthorInfo(frm); frm.submit();} function toggleRemember(frm){if(frm.rememberMe.checked) setCookie('remember','true');else setCookie('remember','false');} function getCookie(name){var rexp = new RegExp(name + "=([^;]+)");var val=rexp.exec(document.cookie); return (val!=null)?unescape(val[1]):"";} function setCookie(name, value){document.cookie=name+ "="+escape(value)+";expires="+expiry.toGMTString();} document.write('
'+ formCaption+'
');if(!document.all) document.write("
");
:
:
:

BloggerHacks

<< Home