2013/10/17 by seanmiller12
The concept of ‘the leading reserve currency’, the American Dollar as the unit in which petroleum is traded, was the brainchild of the Nixon White House, and if memory serves, was a spooky manipulation in which Saudi Arabia played a major role. Saddam Hussein and Muamar Qaddafi each tried to supplant the American Dollar with another unit of exchange. Some claim it would have been the Euro. Some claim the Dinar. It’s of little importance. For their grievous transgression against Washington, both men paid with their lives. This was because Washington is ever fearful of its hegemony being challenged. American economists know that if the dollar were replaced by any other medium of exchange for acquiring petroleum, the American economy would be in shambles. Prices would rise immediately and markets for American goods and services, the few remaining, would wither. So, the Dollar must be protected, at all cost. Wars, embargoes, and general sabre-rattling are all prosecuted to maintain American financial prowess. Any leader who would even attempt to change the world order changes from ally and friend to heinous, immoral dictator and is eliminated.
For sixteen days TEA Party sympathizers and their Dominionist Republican allies held the American government hostage, damaging the American Dollar’s position as the preferred medium of exchange far more than the potential machinations of an Hussein or a Qaddafi. While Washington struggled in an ideological power play, the rest of the world laughed. Washington’s self importance became the butt of international jokes. Barack Obama missed attending two very important trade conferences in Asia, leaving the door wide open for China to step in, and ridicule the United States for being a capricious nation, led by incompetent fools. As Gavin Silber writes in South Africa’s Mail and Guardian, “There are few better remedies for pessimism on the state of South African politics than some time spent in the United States. Its government seems to be continuously divided and increasingly inept at advancing the interests of its people.” This is the predominant international view of the United States. Economist Martin Hennecke, of the Henley Group, stated that the American government’s shutdown crisis could cause central banks, such as China’s, reluctant to hold U.S. Treasury bonds and urge them to move into other assets, perhaps even divesting their holdings. Liu Chang, writing for China’s Xinghua news agency, has called for a “de-Americanised” world as an answer to Washington’s petulance and deleterious effects on the international economy. His article was written in English, to assure that American readers would not miss the point.
American industry is now referred to as “multinational”, with American manufacturing jobs all outsourced overseas. American isolationist disregard for international opinion is another fine example of American hubris. Does a government which allows its manufacturing strength crippled, its education system destroyed, and its healthcare system to descend into an abyss of bureaucracy and incompetence, purely for profit, while prosecuting endless, futile wars across the globe, really believe it can do do with impunity, invisible on the global stage? Apparently Washington does. Ted Cruz should be proud. He was able, with his accusatory rhetoric and grandstanding for his illiterate constituency, to accomplish what neither Saddam Hussein nor Muamar Qaddafi could accomplish. He ruined the United States Dollar, and forever called the reputation of America into question. Welcome to irrelevance! The self-proclaimed world superpower is now a third world nation. American hegemony will soon be replaced by that of the BRIC nations. Hussein and Qaddafi lost their positions of power, found their governments toppled, and lost their lives for challenging the U.S. Dollar. Now, China is leading the fray against America’s self declared “leading world currency”. Do we invade China next, and topple their government? That would be a trifle reckless and futile. The United States government should arraign Senator Ted Cruz and his allies on charges of treason for their actions, though. That would seem reasonable and appropriate.