It appears that the real reason for the USA waging war on Iraq and now looking for a pretext to start a war with Iran is not just about oil or nuclear weapons, but about saving the Yankee dollar from being wiped out as the world reserve currency. Not being an economist, I originally thought it was preposterous that the Americans would wage war for this reason, but after seeing the evidence showing that the USA invaded Iraq because Saddam Hussein had cut a deal in his Oil-for-Food program to only accept Euro and not US dollars, my whole perspective changed.
William Clark, author of the highly respected book "Petrodollar Warfare" provides the context and background necessary to understanding what the Americans are really up to. Clark points out that Operation Iraqi Freedom was a war designed to install a pro-US government in Iraq, establish multiple US military bases before the onset of global Peak Oil, and to reconvert Iraq back to petrodollars while hoping to thwart further OPEC momentum towards the Euro as an alternative oil transaction currency.
Renowned economist Professor Krassimir Petrov has written a fascinating article called The Iranian Oil Bourse about how the American Empire has been taxing the rest of the world by forcing all oil-buying nations to use US dollars to buy oil and thus literally giving the USA a free lunch for the past 35 years. This article is available in PDF format on the Download page and should be carefully read and absorbed by anybody who really wants to know the truth about the world economic situation, rather than the propaganda emanating from American spin doctors.
But to really get a grip on how the world's entire monetary and finance system has been manipulated for centuries until the present day, read the amazing article called Extraordinary Times, Intentional Collapse and Takedown of the USA by Richard C Cook, a former US federal government analyst, whose career included service with the US Civil Service Commission, the Food and Drug Administration, the Carter White House, NASA, and the US Treasury Department. This long essay is available in PDF format on the Download page and is essential reading for any person who wants to know how the people of this planet have been manipulated and scammed by international financiers working in collusion with governments.
American author Joe Schembrie has written a fantastic exposť of how the US Federal Reserve has been raping the world for so many years by manipulating the global financial system and forcing the use of the US dollar as the world reserve currency, when in reality it is not worth a cracker. His article, The US Federal Reserve's War Against The Human Race is essential reading for anybody who wants to know how this scam operates and why certain nations have been attacked by the USA and those that are in the firing line for bucking the US monetary scam. This article can be found on the Downloads page.
An extract from an article by Dr Aref Assaf called The Slow Death Of The US Dollar explains how the US dollar scam came into existence in 1971 under the presidency of Richard Nixon. It is just amazing how the other nations of the world not only fell for it and allowed themselves to be robbed blind for decades, but still succumb to being fleeced by the Americans. However, the scam is slowly coming to an end, as these nations finally discover an alternative to the dollar dominance under which they have suffered. This article is available on the Downloads page.
The world is now teetering on the brink of what could become World War 3 because once again, the USA is trying to prop up its currency and prevent America from sliding into a massive economic depression, far worse than the depression of the 1930s. This situation is being compounded by the disastrous financial policies that caused the sub-prime lending catastrophe and the Wall Street crash in September 2008 that saw the biggest pillars of the US finance sector, such as Bears Stern, Lehman Brothers, AIG Insurance, Freddie Mac, Fannie Mae, Washington Mutual and Wachovia go bankrupt.
The USA is experiencing the worst financial crisis since the Great Depression of the 1930s and the government bailout of the financial sector is merely a bandaid solution in the short term. The USA has been living on borrowed time and indeed, borrowed money for far too long and its credit with the world is shot to bits. In fact, many creditor nations have instructed their central banks and financial institutions not to lend the USA any money, simply because those creditor nations now realise that accepting any more American debt is a recipe for disaster.
There is no way that the USA can repay what it has already borrowed. Still, the government continues to spend more and borrow more. The USA is in a unique position because the Bretton Woods agreement in 1944 made the dollar the world reserve currency. As a result, the USA is the only country in the world that can pay its debts by simply printing more of its own money. That is what the Federal Reserve has been doing, more aggressively than ever in recent years. In his first term of office, US President Barack Obama added as much to the national debt as all the presidents from George Washington through George W Bush combined. In the fifteen months following the collapse of the housing/mortgage bubble in 2008, the Federal Reserve created more money than in all the years combined since 1913 when it was founded.
So the USA has to find a way out of this crisis even more and prop up the US dollar by giving it more artificial value to keep it as the world reserve currency. The only way the Americans can do that is to continue to try and force any nation that sells its oil for other currencies to denominate those sales back to US dollars. Iran and Venezuela are prime targets for this pressure.
This may also sound ludicrous, but think about the consequences. Iraq was initially a pushover for the invading US forces, because Saddam Hussein's regime was universally hated and had no allies to speak of. Furthermore, the USA knew that Iraq had no Weapons of Mass Destruction (WMD), because they would not have dared invade and risk seeing tens of thousands of American troops being wiped out en-masse by nuclear or biological weapons.
But the first thing that the Americans did after they occupied Baghdad was to scrap the sale of Iraq's oil for Euro and revert sales back to the US dollar. This was supposed to send a warning to all other nations that if they stop using American money to buy or sell oil, they will be destabilised and most probably invaded by the USA. In fact the Americans have a long history of doing just that - overthrowing democratically elected governments to further US economic interests.
A good example occurred in 1953 and 1954, when the CIA, along with finance and assistance from the US United Fruit Company, engineered the overthrow of the government of Jacob Arbenz in Guatemala because he wanted to nationalise fruit production for the benefit of Guatemalans, not an American company. Another good example and one of the main reasons that Iran is so angry at the USA occurred in 1953 when popular democratically elected President Mohammed Mossadeq was deposed in a coup orchestrated by the CIA and the British Secret Service called Operation Ajax, because he wanted to nationalise Iranian oil for the benefit of the people of Iran instead of British and US oil companies.
This is also the reason why the USA, a nation that is constantly building new weapons and refining existing armaments including nuclear bombs, is constantly pushing other nations to disarm, eradicate WMD and cease any nuclear weapons work. It is not because the Americans fear that those nations will attack them, but because nations that possess adequate WMD can deter attacks and invasions by the USA. The reason that the USA has around 800 military bases in 140 nations is just for the purpose of intimidating any nation that dares to challenge the USA's control of economic and financial markets. Virtually no other nation has military bases in other countries.
Now the world is seeing the USA performing the same routine on Iran as it did on Iraq, not really because Iran is developing nuclear bombs, but because Iran is selling its oil for currencies other than US dollars. Oil-buying nations of the world can see Iran doing this and now realise that they can ditch their reserves of dollars and use their own currencies to buy oil and gas, which will eventually make the US dollar more or less a worthless scrap of paper, which it really is, if it wasn't being propped up by oil. The problem is that Australian currency is also a fiat currency, really only worth the paper it is printed on. Being loosely tied to the US dollar, Australia will suffer greatly if the USA economy is demolished.
Worse than this, because Australia is an ally of the USA, it may be dragged into a conflict with Iran that could precipitate World War 3. If you think that this would not happen, imagine this scenario - the USA bombs the daylights out of Iran's nuclear plants, the ones they can get at, because most of them are underground and in unknown locations. This will not eliminate Iran's nuclear program but merely delay it. It would definitely drive Iran into leaving the nuclear Non-Proliferation Treaty and then being legally free to develop any nuclear weaponry it sees fit. Iran will then be totally convinced that it MUST HAVE nuclear weaponry to protect itself in the future.
Furthermore, Iran will not just sit there like Iraq and allow itself to be bombed from on high. Iran will most probably take the following actions:
But here comes the worst part. Just to show you how really dire this situation is, remembering that Australia will surely be dragged into the forthcoming mess, read the article called The End Of Dollar Hegemony, written not by some left-wing loony propagandist, but by none other than long-standing US Republican Congressman Ron Paul from Texas. Now this politician is right in the information loop and he is not deluding himself or making this up.
It is very complex and long, but if you understand the ramifications of it, you should be very worried. If you have children, they may very well find themselves embroiled in a world war for no other reason than to rescue the US currency from oblivion. Read it, absorb the implications and make sure that you nail any politicians you know with this information. In fact I suggest you send it to your local government member and demand to know why we followed the USA into Iraq on the basis of a pack of lies and why we should possibly follow the USA into what might become a global conflict, just because the Americans want to keep taxing the rest of the world and keep getting their free lunch. This article is available on the Downloads page.
A documentary in March 2008 on the US cable TV History Channel noted that most shipping containers that arrived from China filled with merchandise, were being shipped back to China empty. The USA sends almost nothing back on most container ships to China and other Asian nations.
A respected economist stated that from an international trade perspective, the USA is no longer primarily a manufacturing country, a natural resources country or an agricultural country, but is a producer of "deals". In other words, what the Americans mostly produce for international trade is complex financial paperwork, hedge funds, repackaging of mortgage contracts and the creation of Treasury instruments, backed by the "full faith and credit of the United States" which is used to borrow money from China and the oil-producing countries.
As the relative value of the dollar keeps falling, that "faith and credit" is worth less and less. It does not take much imagination to picture what will happen when there no longer is a lender for all the money the Americans want to borrow to support the US national debt and no other nation will accept US dollars for any payments.
The Americans do one thing very well - they invent fancy legal-sounding names for their scams and manipulation. Who could ever imagine that "extraordinary rendition" could mean kidnapping? The same goes for "quantitative easing" that is really nothing more than the US Federal Reserve printing or creating more Monopoly money with nothing tangible with which to back it up.
Normally the US Federal Reserve buys government bonds passively to maintain its interest-rate target. With quantitative easing, the Federal Reserve aggressively buys government bonds and other securities in large quantities.
So how does the Federal Reserve print money? First, it buys government bonds and other financial securities from big New York City banks. It pays for these bonds with newly created electronic money, using computers to change the records of the banks' accounts at the Fed. If the banks want paper dollars, Federal Reserve Notes, the Department of the Mint at the US Treasury prints and sends crisp new dollars to the Federal Reserve, which forwards them to the banks.
It is an amazing scam which relies on the fact that that US dollar is the world reserve currency and most nations are forced to buy this Monopoly money so that they can buy oil because of the Petrodollar scam that the Americans have been running since around 1971. But the Americans don't have to buy dollars to pay their debts - they just print as many of them as they need, which gives them a huge advantage over every other nation, but at a massive cost to the rest of the world.
Letís now remove 8 zeros and pretend that this is a household budget.
REALITY CHECK - So the USA receives a pittance in revenue compared to what it spends each year, but still continues to spend borrowed money and bury itself deeper in debt, while cutting a completely insignificant amount from its operating costs.
In the example of the family, their annual income cannot hope to service the debt on the credit card, so eventually the credit card provider will cut off any further credit, while proceeding to bankrupt the family to recover some of the money owed. Then the family will not only find itself out on the street, but will not be able to even feed itself because it has no idea how to cut its spending to below its income.
Hereís another way of looking at the US Debt Ceiling. Letís say you come home from work and find there has been a sewer backup in your neighbourhood and your home has sewage all the way up to your ceilings. What do you think you should do? Raise the ceiling or remove the shit?
REALITY CHECK - Instead of stopping the profligate spending by borrowing and printing ever-increasing amounts of Monopoly money (removing the shit), the USA continues to raise the debt ceiling (allowing the shit to increase) and thus dig itself deeper into debt until one day, creditor nations will not only refuse to accept more American debt, but will call in the loans. That is when the USA will collapse totally and nothing will save this nation from complete and utter financial ruin, except possible another world war - and that is something that is an increasing possibility.
Many large industrial nations have become fed up with the power of the USA to merely print paper money and force the rest of the world to accept it. For instance, according to a report in The China Daily in November 2010, China and Russia decided to renounce the US dollar and resort to using their own currencies for bilateral trade. The formal announcement was made by Premier Wen Jiabao and Russian Vladimir Putin.
But this is merely the start of the collapse of the US dollar as a global currency. Putin also proposed to the European Union that the Euro should become the reserve world currency. If China, India, Brazil and the EU nations and hopefully OPEC nations decide to renounce the US dollar and only trade in Euro or even gold, the USA as an economic power will be finished.