| Why the dollar bubble is about to
burst?
iran has really done it...more
deadlier than the nuclear..
the voice (issue 264 -) ran an
article beginning, ' iran has
really gone and done it now. no,
they haven't sent their first
nuclear sub in to the persian gulf
. they are about to launch
something much more deadly -- next
week the iran bourse will open to
trade oil, not n dollars but in
euros' this apparently
insignificant event has
consequences far greater for the us
people, indeed all for us all, than
is imaginable. currently almost all
oil buying and selling is in
us-dollars through exchanges in
london and new york . it is not
accidental they are both us-owned.
the wall street crash in 1929
sparked off global depression and
world war ii. during that war the
us supplied provisions and
munitions to all its allies,
refusing currency and demanding
gold payments in exchange.
by 1945, 80% of the world's
gold was sitting in us vaults. the
dollar became the one undisputed
global reserve currency -- it was
treated world-wide as `safer than
gold'. the bretton woods
agreement was established. the us
took full advantage over the next
decades and printed dollars like
there was no tomorrow. the us
exported many mountains of dollars,
paying for ever-increasing amounts
of commodities, tax cuts for the
rich, many wars abroad,
mercenaries, spies and politicians
the world over. you see, this did
not affect inflation at home! theus
got it all for free! well, maybe
for a forest or two.
over subsequent decades the
world's vaults bulged at the
seams and more and more vaults were
built, just for us dollars. each
year, the us spends many more
dollars abroad that at home.
analysts pretty much agree that
outside the us , of the savings, or
reserves, of all other countries,
in gold and all currencies -- that
a massive 66% of this total wealth
is in us dollars! in 1971 several
countries simultaneously tried to
sell a small portion of their
dollars to the us for gold.
krassimir petrov, (ph. d. in
economics at ohiouniversity )
recently wrote, 'the us
government defaulted on its payment
on august 15, 1971 . while popular
spin told the story of `severing
the link between the dollar and
gold', in reality the denial
to pay back in gold was an act of
bankruptcy by the us
government.' the 1945 breton
woods agreement was unilaterally
smashed.
the dollar and us economy were on a
precipice resembling germany in
1929.
the us now had to find a way for
the rest of the world to believe
and have faith in the paper dollar.
the solution was in oil, in the
petrodollar. the us viciously
bullied first saudi arabia and then
opec to sell oil for dollars only
-- it worked, the dollar was saved.
now countries had to keep dollars
to buy much needed oil. and the us
could buy oil all over the world,
free of charge. what a houdini for
the us ! oil replaced gold as the
new foundation to stop the paper
dollar sinking. since 1971, the us
printed even more mountains of
dollars to spend abroad.the trade
deficit grew and grew. the us
sucked-in much of the world's
products for next to nothing. more
vaults were built.
expert, cóilínn nunan, wrote in
2003, 'the dollar is the de
facto world reserve currency: the
us currency accounts for
approximately two thirds of all
official exchange reserves. more
than four-fifths of all foreign
exchange transactions and half of
all world exports are denominated
in dollars. in addition, all imf
loans are denominated in
dollars.'
dr bulent gukay of keele
university recently wrote,
'this system of the us dollar
acting as global reserve currency
in oil trade keeps the demand for
the dollar `artificially'
high. this enables the us to carry
out printing dollars at the price
of next to nothing to fund
increased military spending and
consumer spending on imports. there
is no theoretical limit to the
amount of dollars that can be
printed. as long as the us has no
serious challengers, and the other
states have confidence in the us
dollar, the system
functions.'
until recently, the us-dollar has
been safe. however, since 1990
western europe has been busy
growing, swallowing up central and
eastern europe .french and german
bosses were jealous of the us
ability to buy goods and people the
world over for nothing. they wanted
a slice of the free cake too.
further, they now had the power and
established the euro in late 1999
against massive us-inspired
opposition across europe ,
especially from britain - paid for
in dollars of course. but the euro
succeeded.
only months after the euro-launch,
saddam's iraq announced it was
switching from selling oil in
dollars only, to euros only --
breaking the opec agreement.. iran
, russia , venezuela , libya , all
began talking openly of switching
too -- were the floodgates about to
be opened? then aero planes flew
into the twin-towers in september
2001. was this another houdini
chance to save the us (petro)
dollar and the biggest
financial/economic crash in
history? war preparations began in
the us but first war-fever had to
be created -- and truth was the
first casualty. other oil producing
countries watched-on. in 2000 iraq
began selling oil in euros. in
2002, iraq changed all their
petro-dollars in their vaults into
euros. a few months later, the us
began their invasion of iraq .
the whole world was watching: very
few aware that the us was engaging
in the first oil currency, or
petro-dollar war. after the
invasion of iraq in march 2003,
remember, the us secured oil areas
first. their first sales in august
were, of course, in dollars, again.
the only government building in
baghdad not bombed was the oil
ministry! it does not matter how
many people are murdered -- for the
us , the petro-dollar must be saved
as the only way to buy and sell oil
- otherwise the us economy will
crash, and much more besides. in
early 2003, hugo chavez, president
of venezuela talked openly of
selling half of its oil in euros
(the other half is bought by the us
). on 12 april 2003, the
us-supported business leaders and
some generals in venezuela
kidnapped chavez and attempted a
coup. the masses rose against this
and the army followed suit. the
coup failed. this was bad for the
us . in november 2000 the
euro/dollar was at $0.82 dollars,
its lowest ever, and still diving,
but when iraq started selling oil
in euros, the euro dive was halted.
in april 2002 senior opec reps
talked about trading in euros and
the euro shot up. in june 2003 the
us occupiers of iraq switched
trading back to dollars and the
euro fell against the dollar again.
in august 2003 iran starts to sell
oil in euros to some european
countries and the euro rises
sharply. in the winter of 2003-4
russian and opec politicians talked
seriously of switching oil/gas
sales to the euro and the euro
rose. in february 2004 opec met and
made no decision to turn to the
euro -- and yes, the euro fell
against the dollar. in june 2004
iran announced it would build an
oil bourse to rival london and new
york , and again, the euro rose.
the euro stands at $1.27 and has
been climbing of late.
but matters this month became far,
far worse for the us dollar. on 5th
may iran registered its own oil
bourse, the iob. not only are they
now selling oil in euros from
abroad -- they have established an
actual oil bourse, a global trading
centre for all countries to buy and
sell their oil! in chavez's
recent visit to london ; he talked
openly about supporting the iranian
oil bourse, and selling oil in
euros. when asked in london about
the new arms embargo imposed by the
us against venezuela , chavez
prophetically dismissed the us as
'a paper tiger'.
currently, almost all the
world's oil is sold on either
the nymex, new york mercantile
exchange, or the ipe, london's
international petroleum exchange.
both are owned by us citizens and
both sell and buy only in us
dollars. the success of the iran
oil bourse makes sense to europe ,
which buys 70% of iran 's oil.
it makes sense for russia , which
sells 66% of its oil to europe .
but worse for the us , china and
india have already stated they are
very interested in the new iranian
oil bourse.
if there is a tactical-nuclear
strike on - deja-vu - `weapons of
mass destruction' in iran ,
who would bet against a certain oil
exchange and more, being bombed
too?
and worse for bush. it makes sense
for europe , china , india and
japan-- as well as all the other
countries mentioned above -- to buy
and sell oil in euro's. they
will certainly have to stock-up on
euros now, and they will sell
dollars to do so. the euro is far
more stable than the debt-ridden
dollar. the imf has recently
highlighted us economic
difficulties and the trade deficit
strangling the us-- there is no way
out.
the problem for so many countries
now is how to get rid of their
vaults full of dollars, before it
crashes? and the us has bullied so
many countries for so many decades
around the world, that many will
see a chance to kick the bully
back. the us cannot accept even 5%
of the world's dollars -- it
would crash the us economy dragging
much of the world with it,
especially britain .
to survive, as the scottish
socialist voice article stated,
'the us , needs to generate a
trade surplus to get out of this
one. problem is it
can't.'
this is spot on. to do that they
must force us workers into near
slavery, to get paid less than
chinese or indian workers. we all
know that this will not happen.what
will happen in the us ? chaos for
sure. maybe a workers revolution,
but looking at the situation as it
is now, it is more likely to be a
re-run of germany post-1929, and
some form of extreme-right mass
movement will emerge... does europe
and china/asia have the economic
independence and strength to stop
the whole world's economies
collapsing with the us ? their
vaults are full to the brim with
dollars.
the us has to find a way to pay for
its dollar-imperialist exploitation
of the world since 1945.. somehow,
eventually, it has to account for
every dollar in every vault in the
world. bombing iran could backfire
tremendously. it would bring iran
openly into the war in iraq ,
behind the shiite majority. the us
cannot cope even now with the much
smaller iraqi insurgency. perhaps
the us will feed into the sunni v
shiite conflict and turn it into a
wider middle-east civil-war.
however, this is so dangerous for
global oil supplies. further, they
know that this would be temporary,
as some country somewhere else,
will establish a euro-oil-exchange,
perhaps in brussels .
there is one `solution' --
scrap the dollar and print a whole
new currency for the us . this will
destroy 66% of the rest of the
world's savings/reserves in
one swoop. imagine the
implications? such are the
desperate things now swimming
around heads in the white house,
wall street and pentagon.
another is to do as germany did,
just before invading poland in
1938. the nazis filmed a mock
polish army attack on germany , to
win hearts and minds at home. but
again, this is a finger in the dam.
so, how is the us going to escape
this time? the only global arena of
total superiority left is military.
who knows what horrors lie ahead. a
new world war is one tool by which
the us could discipline its
`allies' into keeping the
dollar in their vaults.
the task of socialists today is to
explain to as many as possible,
especially our class, that the
coming crisis belongs purely to
capitalism and (dollar)
imperialism. not people of other
cultures, not islam, not the axis
of evil or their so-called wmds.
their system alone is to blame.
the new iranian oil bourse, the
iob, is situated in a new building
on the free-trade-zone island of
kish , in the persian gulf .
it's computers and software
are all set to go. the iob was
supposed to be up and running last
march, but many pressures forced a
postponement. where the pressure
came from is obvious. it was
internationally registered on 5th
may and supposed to open mid-may,
but its opening was put off, some
saying the oil-mafia was involved,
along with much international
pressure.
...........................
in 2007 crude was traded around
60 usd. everyone know dollar was
getting weaker and weaker day by
day. then us with the help of their
two nymex & ipe exchange
started raising the price of crude
by future trading on crude( called
speculation). today crude is around
140 usd. it means whole world who
were paying 60 usd, now paying 140
usd, means demand of dollar
increase to 230% and dollar start
again rising.
even opec recently that in hike og
crude, 60% contribution is due to
speculation (future market).
moral of story is usa has &
will go to destroy any nation to
keep its monopoly of dollar in
world.
Just woke up.....It's all anti American propaganda |
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