Most American assume that the US is involved in multiple Middle-East wars because of oil but it’s actually about the dollar as the worlds reserve currency.
Allow me to explain.
In 1971 President Nixon took the US off the gold exchange standard. The dollar became a fiat currency whose value could float. However, to maintain the dollars value relative to other currencies the US manipulates the value through financial engineering and by ensuring that all commodities, especially oil, are priced in dollars. This scheme helps explain why the US has been able to run up large trade deficits year after year and still maintain the dollar as the worlds reserve currency.
This dynamic also explains why it is that the US maintains a global garrison, engages in constant warfare, and is allies with the autocratic kingdom of Saudi Arabia. The Saudi’s role as the leading producer of fossil fuels is not the only reason we turn a blind eye to their horrible human right record as well as their ongoing support of terrorism. The Kingdom also recycles the billions of dollars it earns from the sale of oil back into US Treasuries and Wall Street investments and spends record amounts on US weapon purchases. Essentially, the Saudi’s are one of the key cogs in a perpetual motion machine.
Does this picture make more sense now?
The ongoing efforts to prop up the dollar also helps explain why it is that the US has been on a regime-change tear in the Middle-East since the fall of the Soviet Union. If I were cynical, it might appear that the financial engineers that control our country immediately started taking out the uncooperative countries throughout the Middle-East and the so-called policy blunders the US made in Iraq and Libya were anything but.
As The Guardian reported near the beginning of the Iraq War, “In October 2000, Iraq insisted on dumping the U.S. dollar—the currency of the enemy—for the more multilateral euro.”
Can’t have that, now can we.
Then, there’s Libya. Soon after Libya began moving toward an African gold-based currency we destroyed it as well, with the help of NATO. Author Ellen Brown pointed this out at the time of the bombing.”Gadhafi initiated a movement to refuse the dollar and the euro, and called on Arab and African nations to use a new currency instead, the gold dinar.”
John Perkins, author of Confessions of an Economic Hitman, also has said that the true reason for the attack on Libya was Gadhafi’s move away from the dollar and the euro.
The financial engineering that drives America imperialism should also provide some insight into what the current kerfuffle with Iran is really about. For example, Iran is determined to sell its prodigious amounts of oil in Euro’s or Yuan’s instead of dollars.
The importance of this cannot be understated. Mohamed Bin Salman, as the absolute ruler of Saudi Arabia, is playing a central role in escalating the confrontation between the US, backed by Israel, Saudi Arabia and UAE on one side, and Iran and its allies on the other. President Trump is giving full support to Saudi Arabia and accusing Iran of acts of sabotage against shipping in the Gulf, but he will have difficulty in dispelling international suspicions that the whole affair is about maintaining the dollar as the worlds reserve currency.
This dollar recycling system is another reason why, even as the US produces record amounts of domestic oil and gas, the US military maintains numerous bases and is ready to intervene in the Middle-East at a moments notice. An interruption of oil will not only cause industrial disruptions, it will make untenable the financial system on which US fiscal and monetary policy is dependent upon.
Here in the US the damage wrought by decades of financial engineering are becoming harder to ignore. The destruction of America’s once vibrant military and commercial industrial capacity in many sectors has become the single biggest unacknowledged threat to our national security. Because of public policies focused on finance instead of production, the United States increasingly cannot produce or maintain vital systems upon which our economy, our military, and our allies rely.
Maintaining the dollar as the worlds reserve currency has also come at a steep cost for the American people since it allows policy makers to neglect domestic manufacturing and ignore the consequent steady erosion of wages for hourly workers. It’s not an exaggeration to say that this dynamic is responsible for the massive inequality we’ve witnessed in recent years.
I’m also cynical enough to believe that the financial engineering that’s a key component of US foreign policy is the reason why the banks were saved rather than the American people in the wake of the Wall Street Crash and why none of the architects spent a day in jail.
Still, nothing goes on forever not even the US perpetual motion machine. Perversely, US foreign policy elite are hastening the dollars demise as the world reserve currency through their aggressive financial warfare against Iran, Russia and China.
Naturally, Trump’s ham-fisted approach has set in motion a much needed global rebalancing. The potential use of the US dollar as a financial weapon of mass-destruction has been evident for some time now for Russians, Chinese and Iranians. For this reason, they have been exchanging their dollars for other currencies and stockpiling gold for years.
And, now the US, as a declining empire, is lashing out, employing every weapon available to try and arrest its diminishing status as the world’s sole superpower.