The world is unwittingly being used by the US (to continue its hegemony over it)

The world is unwittingly being used by the US (to continue its hegemony over it)

An Empire needs money to survive. All Empires in history have met their end when they ran out of money. Throughout history, Gold and Silver have been used to retain control of an Empire, either by producing and/or looting, in order to maintain an Empire’s tentacles. Bestowing of wealth by Gold, Silver and Land on those who controlled armies and people was a means of ensuring the Empire’s grip.
The American Empire today rests on its paper currency called the dollar which it prints at will and hands out to the rest of the world to continue its hold over it.

Ever since Nixon threw aside the Bretton Woods agreement in 1971 after France asked for its money back in the form of Gold, the dollar has become a fiat currency. The dollar has no backing and is just a piece of paper. The US in order to retain its hegemony over the world saw to it that Oil was traded in dollars as they were aware that Oil would be the one commodity that no one could do without.

The US policy was to install and/or back the Kings and the Dictators in the Middle East to ensure that Oil was under their control. In 1954 America overthrew the democratically elected government of Dr.Mohammed Mossadegh in Iran and installed the Shah of Iran to control Iran’s Oil.

The Saudi Arabian Monarchy, for over 50 years now, from the time of Ibn Saud, a family of now approximately 6000, is kept well protected and ensconed in order to cater to American requirements. So much for American Democracy which promotes a monarchy where the people have no freedom of speech and which gives women no rights!

In Iraq in 1963 the CIA removed President Qassim by a coup and helped installed Saddam’s Baath Party. "We came to power on a CIA train," admitted Ali Saleh Sa’adi, the then Baath Party Secretary General. And as the world already knows Sadaam was being provided weapons of Mass Destruction by the US to take on Iran, which had thrown out the Shah of Iran and replaced him with Khomeini. Throughout the eight year 1980-88 war the US supplied the military armament and the chemical and biological weapons used by Iraq against Iran. The object was to break up Iran and regain control of Iran’s Oil.

The US Empire today encompasses military bases in 130 countries and over 6000 military bases all over this world to help maintain their hegemony as the world’s super power. To the US, it is their form of democracy. It also helps to ensure that their writ runs all over this world.

The present trend of globalization is reported to have started in the 80’s. Most countries that were non aligned and those in the Soviet Block did not initially participate. Japan & Germany already had made considerable industrial progress since WW2 since they did not have any defense budget to take away financial resources. India started the process very slowly in the mid 90’s followed by China in the late 90’s. The stage was set for expansion of the US Dollar to take over as the reserve currency for International Trade with Oil already being the forerunner. By virtue of this fact all countries were required hold and maintain the US Dollar as reserves in order to meet their International Trade commitments. The irony of it is that while the US has a total (foreign exchange) dollar reserves of around $80 billion, Japan & China have around $800 billion (foreign exchange reserves). Japan alone holds over $685 billion in US Treasury notes and China $256 billion . In effect Globalization became the Globalization of the American dollar

The US has found the going difficult. The main strength of the US economy stems from its exports of war weapons, aircraft and high technology. To this end they have been fomenting unrest around the world and selling their warplanes and guns. They subsidize civilian aircrafts like the Boeing to compete with the European Airbus. Today American exports are limited to war weapons(includes warplanes) and civilian aircraft. American trade deficits for 2005 was an incredible $725 billion.

After the Tech Bust of 2000, recession was staring the US in it’s face. That’s when all financial norms were thrown to the winds. -“ In for a penny- In for a pound”. The M1 supply, which reached $350 billion in the year 2000 from the birth of the dollar in 1776 (all of 224 years), took off. Since then M1 has added another $450 billion dollars in less than 5 years to make M1 over $800 billion. Two thirds of these dollars are reported to be outside the United States. The US response to its Federal and Trade deficits has been to print notes and fund its requirements and give these worthless pieces of paper to the Globalized world. Imagine the credit expansion created on this money supply at the rate of $10 billion for every billion printed. Presently total Fed debt is around $8.18 trillion and total American debt inclusive of those of all individual States, the American consumer and American Corporate debt is rumoured to be around $45 trillion. American debt appears to have lost all sense of proportion.

Today the entire world is being made to use the American dollar for its international trade needs. This enables the US to retain its supremacy over the world. By virtue of having to hold the Dollar as reserves, all other countries have been forced into lending money to the US instead of using it for their own needs. Those Governments who lend it to the US are borrowing money from their own people and other Governments most often at higher rates.In addition these countries will end up loosing value on these dollar investments by the coming dollar depreciation, which is a question of not "If" but "When".

As each day passes America’s financial condition deteriorates further and further. Whereas the rest of the world saves money, America’s saving rate is negative. It prints money, uses it to pay for its for goods and services and borrows a part of it again. Naturally the world is awash in dollars and each passing year has added on huge amounts. The US Defense budget is equal to what the rest of the world together spends. The US war machine is now effectively funded by the rest of the world.

The world is now in a Catch 22 situation. Other countries greed has kept America afloat. Selling Goods and services to the US has been good business upto now. But as the dollar becomes more and more worthless these countries are becoming wiser. Having such huge depreciating reserves, which are effectively their own people’s savings being used for America’s self-serving purpose defeats their own national interest. And what’s more ,it is now very clear that the rest of the world is funding America’s intransigence, its wars, it’s arrogance and it’s super power status.

Without the US dollar continuing to be the International Reserve Currency, America has no hope for the future. Once the world stops having to hold the rapidly depreciating dollar as a reserve currency, it will be the beginning of a new economic order. The age old dictum applies - "A Fool and his money are soon parted" .

And now the world outside the US is aware that the threat of the Iran nuclear bomb is just a pretext to prevent the formation and existence of the Iranian Oil Bourse which is to commence trading in Euros. Iran is the 4th largest producer of Oil in the world and the 2nd largest producer in OPEC. It would be in any major Oil exporting company’s interests to deal in a currency which is more fiscally responsible and is used in it’s neighbourhood. The two main exchanges on which oil is traded are the NYMEX and the IPE. The IPE (International Petroleum Exchange) based in London does its dealings in dollars (when it should be Pounds or Euros). The other main exchange NYMEX in New York naturally trades in dollars. It makes sense for Europe to deal in Euros for Oil, as it will do away with dollar fluctuations ,conversion charges and the need to lock up funds for this purpose in another currency. One has to understand just why Britain did not join the Euro. And it was for this same reason Britain attacked Iraq along with the US against the decision of all other countries in the UN - it was for the US to retain its Super Power status and protect the dollar. Incidentally Saddam had been selling Oil in Euros from the year 2000 and had to be brought in line. It was also meant to be a lesson to those Oil Producing countries to stick to dealing in dollars.

The threat of war is real. The coming days also hold out many economic changes as well as the end of the present unipolar world status as the US makes it out to be now. With the latest news of China having signed a $100 billion dollar deal with Iran for its energy requirement, more dimensions have been added to the picture.
The scenario is very,very scary as the Bush administration will brook no interference in its quest for continued world domination. The uselessness of the UN was brought to the fore by the US attack on Iraq without UN consent.