Friday, October 10, 2008


Falling Dollar


Now It All Makes Sense



Yousef Abudayyeh

Oct 8th, 2008

I must admit that I have always wondered about the reason(s) the US had when it used all of that military power in the last war, which caused Iraq to return to the Stone Age. I also wondered about why the US had to build the two biggest military bases in the world there, when it had bases pretty much everywhere in that region.

I wondered about these things, not because I am naive and I do not know how ruthless the US is, I wondered because it is obvious that there were many ways the US could have used to take control of Iraq without using this tremendous force and this degree of destruction and it chose this way. Now I believe, I know why it all happened the way it did.

The US, being the sole super power, is also the only country in the world that if it wants, it could print as many Dollars as it wants without thinking twice about it. It will also hear no complaints about it from any country, nor will it worry that people will stop using that green back because it’s not backed by Gold. On the contrary, even with the introduction of the Euro, the US made sure that the Dollar is the only currency to be used, if one (and who doesn’t want to) to do business with the US or be on the US’s good side. The US made it clear that the Dollar is backed by the strength of the US , and to insure that, it had to physically control the oil fields, and the countries and leaders of these oil producing countries. The many attempts by many countries to switch to using anything other than the Dollars to buy and sell Oil did not materialize. Saddam’s threats to do that helped the US to put an end to it at once. The US had to do something to stop these attempts from reoccurring, and that is why it decided to go to Iraq and use that unbelievable force, not only to destroy Iraq, but to show the whole world, and especially its allies the Europeans, and also the Chinese, that any other attempt to disregard the Dollar will be costly to all. Saddam’s faith was a clear message to the oil rich Arab Gulf leaders. The destruction of Iraq was the "Gold" that backed the Dollar.

The US also wanted to make sure that these Allies and the Chinese will pay for their stupid attempts to sabotage and challenge the sole super power by bankrupting them for years to come, and by achieving this goal it will be almost sure that no word will be heard from them for a long time.

So the US had to go to work, it had to tailor a plan that will drain these countries and keep them busy dealing with their misfortunes. And for about three years, with the help of the sophisticated media outlets and the shrewdness of this (stupid) White House occupant, coupled with the huge appetite of the capitalist system to make more money and more of it, the US in an unbelievable ease, drew everyone who had a Dollar to invest, to buying a part of the US . And before anyone knew it, the whole world (except for Japan, because it learned from earlier experience) was holding almost worthless (a 10th of what it cost them a couple of years back) notes of US investments. These countries took the bait, and the price the US had to pay for this was few capitalist companies that will be consumed by other leaner and bigger ones. And with the help of the US and its Dollars, these companies will buy back from these foreign investors these very cheap notes. Just like the way the capitalist system works.

It is now obvious that the US will bail its banks, and it will bail them by printing more Dollars, one thing the rest of the world cannot do. It is also obvious that the US will bring back confidence to its main street (a lubricant the capitalist system needs for its machine to continue producing and surviving) another thing, the rest of the world cannot do or afford to do. The US causalities of this plan will soon be forgotten and the survivors will reap the benefits of the strength and ruthless of (this) Capitalist System that will continue to survive until it is faced with an enemy that will not be intimidated by its strength and will not be fooled by its shrewdness and will find a way acceptable to print money and used it as a weapon without any meaningful objection from the world community. And it looks that it’s going to be a while before we get there.


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