Monday, January 09, 2006

Fall of the Red Dollar

Strangleholds on the Dollar

OpEd News are rapidly becoming my first choice of the day for political comment (Alternet now second and Counterpunch in third place) and this link proves the point with some coverage I haven't seen elsewhere.

In real times (if you disregard false manipulation of the global economy), Amerika's currency is today a pretty worthless commodity. If Suadi Arabia and China cash were to cash-in their dollar reserves for for a more stable currency, the United States economy would crumble. I recently mentioned that one of the first actions Amerika took after the Iraq invasion was to restore the local oil transactions to a system pegged to the dollar, thus artificially boosting their own currency and effectively controlling the global market for Iraq's oil production. (Saddam had favoured the increasingly strong Euro.)

Last Thursday, China took the first steps toward shifting away from the dollar as the anchor for its exchange rate mechanism. A week or so ago Iran did the same. It will be a slow decline, but if this trend continues, Amerika will be facing a real threat to its current way of life. It's military machine and consumer economy would become impotent if they could no longer afford the resources required. The fall of the Amerikan empire could come as a consequence of their own devise.

For readers in the US, check out this link, also at OpEd. You have two weeks left to protect your freedom! Also - do you know what "Echelon" is? No? Click here.


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