"That the US dollar is still accepted in the financial markets (specifically by central banks) has nothing to do with it being a reserve currency, but rather that the US$ is backed/supported by the armed might and nuclear blackmail of the US Military-Industrial Complex. The nuclear blackmail of Iran is the best example following Iran's decision to trade her crude in other currencies and gold instead of the US$ toilet paper.
If the United States were not a military threat and a global bully that can blackmail with impunity the oil exporting countries in the Middle East, the global financial system which hinges on the US$ toilet paper would have collapsed a long time ago."
An imperialistic regime extends its power and dominion over other nations through military, economic, and cultural means. This involves the military acquisition of territory, gaining control over the political and economic life of subject groups, and imposing its money system on conquered peoples.
The Assyrian, Egyptian, Chinese, Roman, and British Empires all established a single currency standard for the regions over which they ruled. The British forced their colonies and most other nations of the world to use the British pound sterling as the international monetary standard during its world rule in the eighteenth, nineteenth and early twentieth century.
The Rule of the Yankee Dollar
When America emerged from the second world war as the most powerful nation in the world, both economically and militarily, the demonic cabal that had seized political, economic, and social control of the United States in the first decades of the twentieth century was able to impose the American dollar on the world as the standard currency. In 1944, even before the war was over, the Western nations met at Bretton Woods, New Hampshire, to agree on the American dollar as the world currency. Bretton Woods established a dollar standard to replace the gold standard. The value of the dollar was fixed to gold at $35 to the ounce, and the world's currencies were fixed to the dollar.
Following World War II, the international cabal wanted to make sure its dollar would be the international currency standard, so it created, among other processes, the Marshall Plan, named after Truman's secretary of state, George Marshall. The plan loaned American dollars to all the nations of Europe to "assist in the return of normal economic health in the world."
The cabal propaganda promised that as the European economies improved, their currencies would stabilize and there would be a return to European economic prosperity. The real reason for the Marshall Plan was that once these countries had been put back on their feet by American aid, their currencies would be tied to the American dollar and they would be forced to buy American products, benefiting the economy of the United States. Also, the Marshall Plan forced any European country wanting aid to denounce communism and socialism. Even Britain had to renounce its ties to earlier socialist policies.
The Marshall Plan offer of financial help to European countries had an underlying catch: it involved establishing the Organisation for European Economic Co-operation (OEEC) that controlled how the money was spent. All countries requesting aid had to join the OEEC, meaning they had to trade with each other, accept capitalism as their economic system, and agree that their currencies would be tied to the American dollar.
Eventually, sixteen European countries accepted Marshall Aid and by 1953 the United States had provided $17 billion in relief. It was offered to all the nations of Europe even those in the east but understandably Stalin refused to allow them to accept it! The Soviets forbade countries under their control from accepting Marshall Aid. Stalin quite correctly saw the Plan as "dollar imperialism." He believed that the United States was trying to bribe countries to join the American side in the developing Cold War and the global currency war of the American dollar versus the Soviet ruble.
In response to the Marshall Plan, the Soviets established Comecon which was Stalin's attempt to thwart dollar imperialism. The East and West were now tied into two economic blocs, which had entirely different political, economic, and social aims. Marshall Aid further increased tension between the two sides and led to each bloc consolidating its hold over its European allies. The Iron Curtain had slammed shut across eastern Europe.
"The cardinal purpose of the imperialist camp is to strengthen imperialism, to hatch a new imperialist war, to combat socialism and democracy."
Andrei Zhdanov, Politburo member and Leningrad party boss,
September 22, 1947, a report to the first conference of Cominform,
the international communist information bureau
The United States adopted what was called the Truman Doctrine, a policy of "containment" against the Soviet Union, attempting to stop the spread of communist regimes--and the Soviet ruble. The Truman Doctrine was given the cabal's imprimatur by George Kennan in an article under the pseudonym "Mr. X" in the Foreign Affairs quarterly.
The international cabal upheld the Bretton Woods agreement until August of 1971, when Nixon declared US bankruptcy--the US would no longer redeem dollars in gold. This occurred because the costly Vietnam war, beginning in the 1960s, had drained US gold reserves. By 1968 the redemption of US dollars for gold had reached crisis levels, since foreign central banks holding dollars feared that US deficits would make their dollars worthless, preferring gold instead. Nixon reneged on the Bretton Woods agreement, refusing to redeem dollars for gold. After 1971, the dollar was no longer fixed to an ounce of gold, something measurable, it was fixed only to the printing press of the cabal's Federal Reserve System.
Dollar Imperialism's Cat's Paws: EuroDollar, PetroDollar, and IFI
Two cabal extortion schemes--Eurodollars and Petrodollars--continue to impose the American dollar on the world, forcing other nations to trade in the U.S. currency and support the dollar by buying American treasury bonds. After World War II, the dollar became the only global reserve currency. This meant that other nations' central banks had to hold dollars in reserve to guarantee against currency crises, to back their export trade, and to finance imports of oil and other goods and services. Today, some 67% of all central bank reserves are in dollars, with only about 15% in Euros. Until the creation of the Euro, there had not even been a theoretical rival to the dollar reserve currency role.
Dollar imperialism is based on global extortion: you either use dollars and follow cabal directives or your economy goes into the toilet and you're branded a terrorist nation. With nothing to control the cabal's creation of U.S. dollars, it prints more bills than the American economy justifies. It buys foreign goods and services with dollars that cost almost nothing to print. When the US was still on the Bretton Woods gold standard, between 1945 and 1965, total supply of dollars increased only some 55%. The world experienced low inflation and stable growth. After Nixon's break with gold, dollars expanded by more than 2,000% between 1970 and 2001!
Since most commodities are tied to dollars, this means that if you want to buy a barrel of Saudi oil, a German auto, or an American computer, you must have dollars. In 1972-73, the cabal made an iron-clad arrangement with Saudi Arabia to support the power of the House of Saud in exchange for their accepting only U.S. dollars for its oil. The rest of OPEC was to follow suit and also accept only dollars. Because the world had to buy oil from the Arab oil countries, it had this additional incentive to hold dollars as payment for oil. The cabal's "trade partners" [dollar imperialism victims] throughout the world hold so many dollars that they're afraid to create a dollar crisis. Other nations inflate or deflate their own currencies relative to the U.S. dollar, actually weakening their own economies, to support the Dollar Syndicate, fearing a global collapse.
As nations throughout the world began to use the U.S. dollar as reserves for their own currencies, two large pools of dollars in foreign hands were created: Eurodollars and Petrodollars. It works like this: a German company, say BMW, sells its cars in the U.S. for dollars. BMW exchanges those dollars for Marks or Euros through currency transfer with the Bundesbank or European Central Bank (ECB). The ECB thus builds up its dollar currency reserves: Eurodollars. Those nations that supply or purchase energy commodities amass the same kind of dollar pool and the result is the Petrodollar.
Since the oil shocks of the 1970's, when the price of oil increased by 400%, nations have felt the need to have large reserves of dollars to pay for oil. Since that energy scare, creating a large U.S. dollar reserve has become a national security policy for many countries. Boosting export sales denominated in dollars is a national priority. But the Bundesbank or the ECB can no longer receive gold for their dollars, so they have to decide what to do with the mountain of dollars their trade is earning. Most nations have decided to at least earn interest on their dollars by buying supposedly safe, secure U.S. Treasury bonds. The cabal thugs are certain that foreign "trade partners" will be forced to continually buy more U.S. debt to prevent the global monetary system from collapsing, as threatened to happen in 1998 with the Russian default and the LTCM hedge fund crisis.
Nations throughout the world now hold an estimated $1 trillion to $1.5 trillion in U.S. Government debt. If we look at the essence of this process, we can recognize it as global coercion, pure and simple. In effect, the cabal has become addicted to foreign borrowing. They're able to spend as much as they want on military expenditures--putting huge sums into the hands of their capitalist supporters--because they don't have to use savings to finance their consumption. The cabal lives off creating by fiat the U.S. dollars that the rest of the world is forced to use.
The difference between what a nation sells to the U.S. and what the U.S. sells to that nation is called the trade deficit. The country today with the largest trade deficit with the U.S. is China. The Chinese Yuan is fixed to the dollar. The U.S. is being flooded with cheap Chinese goods, often outsourced by U.S. multinational corporations such as Wal-Mart. As of 2003, China's trade surplus with the U.S. was more than $100 billion a year, Japan $70 billion, Canada $48 billion, Mexico $37 billion, and Germany $36 billion; a total deficit of almost $300 billion of the colossal $480 deficit in 2002.
The total U.S. debt--public and private--has more than doubled since 1995. It is now officially over $34 trillion. It was just over $16 trillion in 1995, and "only" $7 trillion in 1985. Most alarmingly, it has grown faster than income to service it, as indicated by U.S. gross domestic product (GDP). The U.S. economy--as subverted by the cabal--now requires a daily fix of $2.5 billion to stay afloat.
All this huge trade surplus with foreign nations benefits only the wealthy upper 1% in the U.S.--the members and supporters of the demonic cabal. American workers are losing jobs and retirement funds, their income is decreasing rapidly, and their standard of living is deteriorating alarmingly. Globalization is just a euphemism for dollar imperialism.
Dollar Imperialism Is Beginning to Crack
Within the last fifteen years, dollar imperialism has faced new challenges and dangers. The cabal's impoverishment and devastation of Third World states through its international financial institutions (IFI) such as the World Bank (WB) and the International Monetary Fund (IMF) has drained the wealth of local economies. The IFI structural adjustment policies, free trade doctrines and privatization directives fragment and weaken the client states, causing widespread corruption as politicians and private sector elites, such as Enron, pillage the treasuries of the victim nations.
This crisis situation now requires a "new imperialism," as journalist Martin Wolf made clear in an October 10, 2001 propaganda piece in the Financial Times. Wolf argued that bombs and marines must supplement IMF and WB functionaries [debt-masters] in "restructuring" economies and ensuring the subordination of Third World States. He asserted: "To tackle the challenge of the failed [pillaged and depleted] state what is needed is not pious aspirations but an honest and organized coercive force."
In other words, dollar imperialist wars throughout the world, which have left nations in debt-slavery to the IMF, must now be supplemented by new military conquests such as those in Afghanistan, Iraq, Tunisia, Egypt, Libya, and next: Somalia, Syria and Iran? Recolonization through pre-emptive invasion of "bad countries" is the new dollar imperialism strategy, a process already underway in the Middle East and Latin America.
All of this dollar imperialism will be masked as the "spread of democracy," as Bush's 2005 inaugural speech and Obama's and Trump's continuing imperialism make clear. Robert Kagan used his column in the Washington Post to praise Bush's inaugural speech as a new U.S. foreign policy break-through. Kagan wrote: "The goal of American foreign policy is now to spread democracy, for its own sake, for reasons that transcend specific threats." The Nation magazine, in like fashion, praised Obama's military onslaughts in relation to the spread of fake democracy.
Dollar Imperialism: Petrodollar Warfare and Oil Depletion Warfare
Dollar Imperialism's "center of gravity" 1 is the rising depletion of oil supplies throughout the world and the military, political, and economic struggles that accompany this global flash point. One of the ways the U.S. keeps control over Europe and Japan is by having a stranglehold on their energy supply.
According to the Department of Energy, oil consumption by the developing world will increase by 96% between 2001 and 2025, while consumption of natural gas will rise by 103%. For China and India, the rate of growth is even more dramatic: China's oil consumption is projected to jump by 156% over this period and India's by 152%.
It's highly unlikely that energy-exporting countries will actually be able to deliver such increased quantities of oil and gas in the coming decades, whether for political, economic, or geological reasons--no matter what nations such as Saudi Arabia claim. Dollar imperialism energy corporations have deliberately reduced their refinery resources, causing shortages in gasoline and oil, resulting in oil and gas prices skyrocketing all over the world--bringing windfall profits to the cabal energy conglomerates.
Since 1950, worldwide oil consumption has grown eightfold, from approximately 10 to 80 million barrels per day; gas consumption, which began from a smaller base, has grown even more dramatically. Hydrocarbons now satisfy 62% of the world's total energy demand, approximately 250 quadrillion BTUs out of a total supply of 404 quads. But no matter how important they may be today, hydrocarbons are sure to prove even more critical in the future. According to the Department of Energy, oil and gas will account for 65% of world energy in 2025, a larger share than at present; and because no other source of energy is currently available to replace them, the future health of the global economy rests on our ability to discover and harness more and more of these hydrocarbons.
To understand the crisis in world oil supply, we must define precisely what is meant by "peak oil." Peak oil occurs when half the oil in the ground around the world has been pumped out. From that moment on the remaining oil is harder to extract, so you must pump water and natural gas into the oil field to maintain pressure as the production in barrels per day declines. Using more energy to pump it out and less of an outflow means oil is more expensive to produce and there's increasingly less of it to go around. Peak oil is a simple geological fact: there's no more cheap oil.
America has long since hit the peak of oil production and is now in decline. World oil production will hit that same peak within the next few years. Many oil industry people and independent geologists believe that peak oil has already arrived, with a plateau in global oil production in 2005, midpoint peak by 2008 and only slight increase into 2012.
With the onset of Peak Oil, the world has entered the end-game phase of the industrial revolution. The dollar imperialists are trying to grab a stranglehold on world resource streams, so that China--now the world's largest consumer of steel, grain, meat, and coal--will be left out in the cold--literally. But China is steadily securing long-term oil contracts with Saudi Arabia, Iran, Venezuela, and Nigeria; the Chinese are even seeking a sizeable portion of Canadian oil production, and in 2005 attempted to buy an American oil company, Unocal.
While on the surface the U.S. and China seem to be trading politely--Americans buy cheap Chinese goods, the Chinese invest their earnings in U.S. Treasury Bills to enable Americans to purchase even more Chinese imports--beneath the surface both are angling for a superior position in the ongoing dollar imperialism conflict. If China were to decide to declare open war against the dollar imperialists, it would sell off its dollar holdings, tie its currency to the Euro, cooperate with the other countries in forming a coalition to oppose the dollar imperialists, and the American economy might be destroyed, with America landing on the ash heap of failed empires. However, to maintain control of global resource flows, the dollar imperialists have clearly demonstrated that they're willing to play their most monstrous card--their spectacularly lethal weapons of mass death and destruction.
Dollar imperialist hired gun during the Bush II regime, Secretary of State Condoleezza Rice, had the job of going around the world threatening other nations with first-strike, unprovoked retaliation against their going up against the cabal in competing for oil and gas reserves or in trying to use any other currency than the American dollar.
In March, 2005, Condy tried to intimidate Indian Foreign Minister Natwar Singh in New Delhi to back away from India's plan to import natural gas by pipeline from Iran, claiming that any such endeavor would frustrate U.S. efforts to isolate the hard-line clerical regime in Tehran. Indian leaders let it be known that their desire for additional energy supplies trumped Washington's ideological opposition to the Iranian regime. Declaring that the proposed pipeline will be necessary to meet India's soaring energy needs, Foreign Minister Singh told reporters, "We have no problem of any kind with Iran."
Following her attempt at extortion in New Delhi, Rice flew to Moscow and demanded of President Vladimir Putin that he cease his crackdown on the privately-owned energy giant, Yukos, and allow increased investment by American firms in Russia's energy industry. She threatened that the Bush junta would stop "collaborating" in the development of Russia's vast oil reserves. While embracing Rice's call for enhanced U.S.-Russian relations, Putin showed no inclination to back away from his plans to increase state control over Russian energy companies and to use this authority to advance Moscow's geopolitical objectives. Condi's animosity toward Putin really stems from the fact that he's been moving against the handful of billionaire plutocrats in Russia (many of whom also hold Israeli citizenship) who grabbed control of the Russian economy with the open connivance of then-Russian leader Boris Yeltsin, following the collapse of the old Soviet Union.
Emerging Coalitions Against the Cabal's Dollar Imperialism
At the beginning of 2012, Iran signed agreements with Russia, India, Japan, and China to denominate their trade in their own national currencies instead of the dollar. At the end of 2011, China and Japan signed an agreement to denominate their trade in the Yuan and the Yen, not the dollar.
| "Since at least 2005, China has been taking the exact steps required to counter the brunt of a global debt collapse; not enough to make it untouchable, but enough that its infrastructure will survive. . . China started with the circulation of Yuan denominated bonds, like T-Bonds, meant to securitize Chinese debt, creating an outlet for the currency to go global.
"China knew ahead of schedule that the U.S. was no longer going to be a viable customer, and reliance on such a country would spell disaster. They have been preparing to break away from America's consumer markets and the dollar for some time.
"In 2009 and 2010, it became absolutely clear that China (with the help of global corporate entities) was developing the skeleton of a new system; a trade network that had the capacity to supplant the U.S. and end the dollar's world reserve status. . . First was the the
announcement that China was actively and openly pursuing the establishment of a central bank for the whole of ASEAN, with the Yuan utilized as the reserve currency instead of the dollar."|
We can now see how the capitalist cabal's dollar imperialism dovetails precisely with its military imperialism. At the end of 2011, the Obama administration announced a strange change in military strategy. While visiting Australia, Obama told the Australian Parliament: "Our enduring interests in the region demand our enduring presence in this region. The United States is a Pacific power, and we are here to stay." Recognizing that China and other members of the ASEAN coalition are breaking away from its dollar death-grip, the capitalist cabal is beefing up its military presence in the Asian Pacific (USPACOM), to warn China, Japan, Indonesia, Korea, and India that the cabal will retaliate against any threat to its dollar imperialism policies or tactics.In this essay, I'm exposing the imperialistic machinations of the demonic cabal in the sphere of currency warfare. The dollar imperialistic cabal perpetually struggles against enemy regimes. But, even more importantly, dollar imperialism involves the cabal's continual warfare against the interests of American workers--and working people throughout the world.
China, not to be intimidated totally, warned the cabal in January, 2012, of its military buildup in the Pacific.
The Hidden Reasons for the Invasion and Occupation of Iraq
The entire misadventures of the Bush junta in Afghanistan and Iraq can best be understood as Eurasian salvos in the cabal's ongoing dollar imperialism. The international cabal was not responding to the trumped-up threat from Saddam's non-existent WMD program and certainly was not fighting International terrorism. The junta's invasion of Iraq involved much more than most people are aware of. Among the more obvious purposes were:
- The neo-colonial theft of Iraqi oil
- The funnelling of oil and no-bid contracts to cabal corporations
- The installation of multiple U.S military bases in the region
- The installation of a cabal puppet in control of Iraq
Some of the hidden reasons the cabal invaded and occupied Iraq are:
- To reconfigure the Middle East geopolitically
- To gain strategic control over Iraq's--and the surrounding territory's--hydrocarbon reserves to establish a cabal-based energy market
- To maintain the U.S. dollar as the monopoly currency for the critical international oil market
Saddam Hussein's cardinal sin had been to tie Iraq's oil sales to the Euro. Saddam announced in September 2000 that Iraq was no longer going to accept dollars for oil being sold under the UN's Oil-for-Food program, and the switch to the Euro as Iraq's oil export currency. This was one of several dangerous steps towards establishing the Euro as an alternative oil transaction currency--the "PetroEuro"--that nations--including those within OPEC--had begun to contemplate seriously. The international cabal felt it had to show the world--through pre-emptive invasion of a sovereign nation without provocation or reason--that it would not tolerate any attempt to displace the U.S. dollar as the sole oil transaction currency. A Financial Times article dated June 5, 2003, confirmed that Iraqi oil sales had returned to the international markets and were once again denominated in U.S. dollars--not Euros.
The Bush junta implemented this currency transition despite the adverse impact it had on profits from Iraq's export oil sales. In mid-2003 the Euro was valued approximately 13% higher than the dollar. The conversion from the Euro to the dollar negatively impacted the ability of future oil proceeds to rebuild Iraq's infrastructure. This sabotaging of Iraqi oil revenues was never mentioned in the five U.S. major media conglomerates who control 90% of information flow in the U.S. Surprise, surprise.
The Petro-Euro Coalition
In January 1999, members of the European Union introduced a single currency, the Euro, a new basis for European and world trade. In 2002, the euro replaced national European currencies. The euro was now a defacto competitor with the American dollar for world trade--including energy transactions. Momentum is building toward at least the dual use of euro and dollar pricing.
The Zones of Influence of the Euro and the Dollar
Nations using Euro Official use Partial use Influenced by the Euro Nations using Dollar $ Official use $ Influenced by the Dollar
The European Union has a bigger share of global trade than the U.S. [do you now understand why Brexit was created by the same people who stole the 2016 US election for Trump?]. While the U.S. has a huge current account deficit, the EU has a more balanced external accounts position. The EU enlarged in May 2004 with ten new members. It has a population of 450 million and an oil consuming-purchasing population 33 percent larger than the U.S. Over half of OPEC crude oil was sold to the EU as of mid-2004.
In order to reduce currency risks, Europeans may sooner or later pressure OPEC to trade oil in euros. Countries such as Algeria, Iran, Iraq, and Russia export oil and natural gas to European countries and in turn import goods and services from them. OPEC member countries and the euro-zone have strong trade links, with more than 45 percent of total merchandise imports of OPEC member countries coming from the countries of the euro-zone, while OPEC members are the main suppliers of oil and crude oil products to Europe.
"Not a single government in Europe was, or is, prepared to oppose American militarist aggression. The disastrous polices of US imperialism in Iraq have also accelerated the decline and crisis in Europe. . .
"The European Union (EU) is in severe crisis. Apart from the expansion of police powers, the process of unification has experienced one setback after another. The European constitution failed because of differences between the various European governments, and in the face of widespread opposition from French and Dutch voters. There is no trace of a common foreign policy today. Militarily, the US-dominated NATO calls the tune in Europe. Britain will not join the euro-zone in the foreseeable future. And in the absence of any common financial and tax policy, the euro is increasingly less credible.
"The US has used its powerful position in Europe to encourage intra-European conflicts."
Uli Rippert, "The dead-end of European capitalism and the tasks of the working class," (Uli Rippert is national secretary of the German Partei fur Soziale Gleichheit)
A powerful new coalition has been formed to struggle against the cabal's dollar imperialism. This coalition includes nations that possess economic and military might. Venezuelan leader Nicolas Maduro is continuing former president Hugo Chavez's established barter deals for trading its oil with twelve Latin American countries as well as Cuba. The Trump fascist regime pulled a "Bay of Pigs" type operation against Venezuela in early May, 2020. The operation was a complete disaster, with all the American-hired operatives being captured and Trump's complicity exposed.
These new coalition partners--as much concerned with geostrategic issues as purely economic issues--are also being joined by nations such as Japan, Pakistan, North Korea, and the OPEC and European Union countries in combating dollar imperialism. The coalition and its supporting nations all have good reason to be fed up with the cabal's imperialistic offensives. Many of them had legitimate energy and manufacturing contracts with Iraq totaling trillions of dollars. The cabal brazenly nullified all those contracts when it invaded Iraq and took control of the country. The ongoing assaults on their economies by the cabal's dollar imperialism leaves all of them working toward a way to get out from under the American puppet junta's thumb. They are forming agreements and joint ventures among themselves to achieve their goal of independence from the cabal.
The OPEC countries know that the cabal has set up its Caspian Sea pipelines in an effort to undercut it, and the European Union countries have experienced continual threats and assaults on their economies from the cabal. The cabal Treasury Secretary, for example, threatens to weaken the dollar whenever the European Union nations are perceived to be getting out of line with cabal policy. A weaker dollar is a direct attack on the other economies of the world.
Many regimes throughout the world are equally fascistic and dictatorial in the treatment of their people. However, in numerous ways average Americans are far worse off than our European counterparts in this age of dollar imperialism. Though there have been recent cutbacks, most Europeans still have free health care, free education through the university level, adequate retirement for the elderly, an average of five weeks paid vacation, and sick leave and parental leave. Spending for social programs in Europe runs about 50 percent above that in the United States. Alternate energy development (wind, hydro, tidal and hydrogen cell power), food safety, organic and anti-GM laws, and labor laws are already in place--the envy of ecology activists in the U.S.
Coalition Energy and Military Might
These coalition nations wield political and economic clout because of their vast energy reserves and their growing military might. In 2006 Russia surpassed Saudi Arabia as the world's largest oil exporter. Both Japan and China are trying to negotiate with Russia to build a pipeline that would serve their energy needs.
Iran is currently producing about 4 million barrels per day, but is thought to be capable of boosting its output by another 3 million barrels or so. According to Oil and Gas Journal, Iran has an estimated 940 trillion cubic feet of gas, or approximately 16% of total world reserves. (Only Russia, with 1,680 trillion cubic feet, has a larger supply.)
As it takes approximately 6,000 cubic feet of gas to equal the energy content of 1 barrel of oil, Iran's gas reserves represent the equivalent of about 155 billion barrels of oil. This, in turn, means that its combined hydrocarbon reserves are the equivalent of some 280 billion barrels of oil, just slightly behind Saudi Arabia's combined supply. At present, Iran is producing only a small share of its gas reserves, about 2.7 trillion cubic feet per year. This means that Iran is one of the few countries capable of supplying much larger amounts of natural gas in the future.
China is aggressively pursuing oil and gas supplies, and has already signed delivery contracts with Angola, Canada, Indonesia, Iran, Kazakhstan, Nigeria, Saudi Arabia, Sudan and Venezuela. In November 2004, a mega-gas deal between Beijing and Tehran worth $100 billion was finalized. Billed as the "deal of the century" by various analysts, this agreement is likely to increase by another $50 to $100 billion, bringing the total close to $200 billion, when a similar oil agreement, currently being negotiated, is completed.
The gas deal between China and Iran entails the annual export of some 10 million tons of Iranian liquefied natural gas (LNG) for a 25-year period, as well as the participation, by China's state oil company, in such projects as exploration and drilling, petrochemical and gas industries, pipelines, services and the like. The export of LNG requires special cargo ships, however, so Iran is currently investing several billion dollars adding to its small LNG-equipped fleet.
Putin is now contemplating the possibility of being supplanted by China if Russia loses the confidence of Tehran and appears willing to trade favors with Washington over Iran. Russia's Gazprom may now finally set aside its stubborn resistance to the idea of entering major joint ventures with Iran.
China is also using some of its new trade income to purchase relatively modern arms from Russia, including fighter planes, diesel-electric submarines and destroyers. China is also expanding its arsenal of short-range ballistic missiles, many capable of striking Taiwan and Japan. None of these systems compare to the most advanced weaponry in the American arsenal, but the cabal is making loud noises about neutralizing Chinese military capabilities.
In January, 2005, Russian President Vladimir Putin announced that Russia is fitting its strategic bombers with cruise missiles capable of delivering a massive precision strike thousands of miles away. These are hypersonic intercontinental missiles that use cruise missile technology to zigzag and avoid being shot down once they re-enter the earth's atmosphere.
Petro-Euros and The Dreaded Bourse
The idea of Russia and other countries breaking away from the stranglehold of the U.S. dollar and adopting the euro as a reserve currency in place of the dollar was endorsed by Putin as early as 2004."President Vladimir Putin has stated both publicly and privately that invoicing Russia's crude-oil and gas exports to the European Union in euros instead of in dollars makes very good sense for both Russia and the EU. Putin is known to have very close relations with "old Europe", primarily Germany and France. His statements and those of German and French leaders have even on occasion drawn attention to the fact that US global dominance fundamentally rests on the fact that the dollar is the international currency, and that if an exit from the dollar were to occur in the sphere of global petro-transactions, the effect would be seriously to undermine that global dominance.
"Furthermore, a number of oil-exporting countries have already gone on public record as to their preference to make an exit from petro-dollars in favor of petro-euros. They have indicated that if Russia begins such a move to petro-euros, they will rapidly follow Russia's lead. The net effect would be a rapid international abandonment of the dollar as the international currency, which would in turn 'bring down the towers' of the heavily debt-ridden US economy." 2
The first coalition member nation to actually announce plans to break away from the dollar death-grip was Iran. The Tehran government announced that beginning in March 2006 it would start competing with New York's NYMEX and London's IPE with respect to international oil trades, using a Euro-based international oil-trading mechanism, a bourse. A bourse is a stock exchange for securities trading; the word is derived from the French stock exchange in Paris, the Federation Internationale des Bourses de Valeurs.
On May, 2008, Iran announced that it had dumped the dollar and all its oil trade will henceforward be in Euros. When oil is trading at over $140 per barrel, President Mahmoud Ahmadinejad of Iran is claiming that "the dollar is not money any longer but a handful of paper distributed in the world without commodity support" and claiming that oil is undervalued at present levels when priced in US petrodollars. That's why the Bush junta has ramped up its war against Iran, because without some sort of U.S. intervention the Euro will become a major competitor with the U.S. dollar in the international oil trade.
The reason Iran has chosen to make this bold move is undoubtedly the cabal's ongoing clandestine war against its civilian and military infrastructure. In January 2005, Seymour Hersh reported in the New Yorker that the Central Intelligence Agency and U.S. Special Operations Forces (SOF) had begun in 2004 flying unmanned "Predator" spy planes over Iran and sending small reconnaissance teams directly into Iranian territory. These invasions of a sovereign territory, are supposedly intended to pinpoint the location of hidden Iranian weapons facilities for possible attack by U.S. air and ground forces. "The goal," Hersh explained, "is to identify and isolate three dozen, and perhaps more, such targets that could be destroyed by precision [air] strikes and short-term commando raids."
Military analyst William Arkin, believes it highly probable that CENTCOM is probing Iran's air and shore defenses by sending electronic surveillance planes and submarines into--or just to the edge of--Iranian coastal areas. "I would be greatly surprised if they're not doing this," he said in an interview. "The intent would be to 'light up' Iranian radars and command/control facilities, so as to pinpoint their location and gauge their effectiveness." It was precisely this sort of aggressive probing that led to the collision between a U.S. EP-3E electronic spy plane and a Chinese fighter over the South China Sea in April 2001.
"Iran shows signs of being a dictatorship."
Secretary of State Hillary Clinton, February 15, 2010
The next offensive in the cabal's dollar imperialism war will thus most likely be the unprovoked attack of Iran. The hidden reason for this attack is Iran's huge energy reserves--and its daring to create an oil bourse linked to the euro. The international cabal's attack on Iran is almost inevitable, because Iran is about to commit a far more unforgivable "offense" than Saddam Hussein's conversion of Iraq's oil exports to the euro in the fall of 2000; Iran is also encouraging other nations of the world to join them in setting up an international energy market linked to the Euro.
Iran's Shiite theocracy is certainly a questionable factor in the Middle East, and the cabal's destruction of Iraq's Sunni power has somewhat played into Iran's hands.
That an attack by the cabal on Iran would be insane, does not seem to make any real difference to the Neanderthal reactionaries who create cabal policy.
Most of the coalition leaders have said that they would stand by Iran if the American puppet junta attacks it. On December 18, 2005, Foreign Minister Khursheed Kasuri said Pakistan strictly opposed any expected U.S. attack on Iran, and would stand by Iran if this extreme step were taken by Washington. Japan has indicated its solidarity with Iran--most likely because Japan obtains about fifteen percent of its oil from Iran and has few easy alternative sources to make up the difference in the event of a cabal offensive.
In February, 2006, France, Germany, Russia, and China allowed themselves to be bullied by the cabal into voting in the International Atomic Energy Agency (IAEA) to report Tehran to the UN Security Council. This act lays the basis for sanctions and future military action against Iran. On February 15, 2006, Secretary of State Condoleezza Rice, speaking to the Senate Foreign Relations Committee, declared that the US would "actively confront" Iran and called for $85 million to fund anti-Tehran propaganda and to support opposition groups inside and outside the country.
However, on February 13th, Syria announced that it is switching the primary hard currency it uses for foreign goods and services from the U.S. dollar to the euro in a bid to make it less vulnerable to pressure from Washington. This appears to be an act of solidarity with Iran in response to the caving in of other nations to the cabal's pressure.
Iran has spent the past few years cementing economic and military ties with Russia, China, and the EU. The leaders of China, Russia--and to a lesser extent even those of the EU--would be acting in self-defense by drawing a line in the sand around Iran. In fact, both China and Russia seem to be doing just that. In February, 2006, Russia thumbed its nose at Washington by announcing it would go ahead and honor a $700 million contract to arm Iran with surface-to-air missiles, slated to guard Iran's nuclear facilities. In 2005 Russia had gone ahead to sell some of its more advanced missiles to Syria, Venezuela, and Iran, just as the cabal amped up its rhetoric against these countries. Russia is also continuing to negotiate with Iran concerning its nuclear program, in an effort to avoid UN sanctions. Even as late as February, 2006, China is announcing that it intends to finalize its energy contracts with Iran worth more than $100 billion. National Developmental Reform Commission chief Ma Kai will lead a delegation to Tehran as early as March to sign agreements for massive exports from the Yadavaran oil fields.
The cabal has been engaged in a clandestine war against Iran for a number of years--as Seymour Hersh's 2005 New Yorker articles documented. With the threat of the Iranian bourse establishing the Euro as a competing energy currency, the cabal has begun planning for a horrifying new offensive against Iran. Recent reports reveal active Pentagon planning for operations against Iran's suspected nuclear facilities. The publicly stated reasons for any such overt action will be masked as a consequence of Iran's nuclear ambitions.
Most frightening of the cabal's plans were those announced in August, 2005 by intelligence analyst Philip Giraldi in an article in the American Conservative: "In Case of Emergency, Nuke Iran." Giraldi reported the resurrection of active U.S. military planning against Iran, including the shocking disclosure that in the event of another 9/11-type terrorist attack on U.S. soil, Vice President Dick Cheney's office wants the Pentagon to be prepared to launch a potential tactical nuclear attack on Iran--even if the Iranian government was not involved with any such terrorist attack against the U.S.
"The Pentagon, acting under instructions from Vice President Dick Cheney's office, has tasked the United States Strategic Command (STRATCOM) with drawing up a contingency plan to be employed in response to another 9/11-type terrorist attack on the United States. The plan includes a large-scale air assault on Iran employing both conventional and tactical nuclear weapons. Within Iran there are more than 450 major strategic targets, including numerous suspected nuclear-weapons-program development sites. Many of the targets are hardened or are deep underground and could not be taken out by conventional weapons, hence the nuclear option. As in the case of Iraq, the response is not conditional on Iran actually being involved in the act of terrorism directed against the United States. Several senior Air Force officers involved in the planning are reportedly appalled at the implications of what they are doing - that Iran is being set up for an unprovoked nuclear attack - but no one is prepared to damage his career by posing any objections. 3
Tehran possesses a real arsenal of accurate, destructive weapons, unlike Saddam Hussein's illusory WMD concocted by rabid right extremists such as Wolfowitz and Cheney. Iran has purchased the Russian-made Sunburn cruise missile, specifically designed to defeat the US Aegis radar defense system and said to be the most lethal anti-ship weapon in the world.
If attacked, Iran would likely stir up increased Shi'ite rebellion in Iraq against U.S. occupation forces (yes, there are still thousands of U.S. troops stationed in Iraq), an insurgency that might far surpass in extent and deadliness the current Sunni-led resistance. Tehran might also unleash its 300 North Korean-engineered Shahab-3 ballistic missiles on U.S. bases in Qatar, Saudi Arabia, Uzbekistan, Afghanistan, and Iraq. If the cabal invades it, Iran's response would be to wage a guerilla war similar to that undertaken by the Sunni-led resistance in Iraq. Tehran has already announced efforts to increase the size of its seven-million-strong "Basiji" militia forces, which were deployed in human wave attacks against Iraq during the 1980s. Recent news reports from Iran indicate that tens of thousands of rifles are currently being handed out.
"Even if the Iranian regime were to abandon all nuclear programs and completely demolish its nuclear facilities, Washington would invent another pretext for its provocative actions, which are aimed at establishing US ascendancy in the region over America's European and Asian rivals."
Editorial Board of the World Socialist Web Site, 1/21/06
A likely scenario in this cabal assault on Iran is that an American city might be attacked from within by "terrorists," with Tehran again being assigned the guilt, and Israel allowed to "retaliate" against Iran. In a replay of 9/11, the Iranian mullahs would be blamed for the terrorist bombing of an American city. Even as you read this, cabal planners are concocting various "strategic concepts" and "strike packages" for possible action against Iran. International press reports confirm that Pentagon officials have met recently with their Israeli counterparts to discuss the possible participation of Israeli aircraft in some of these scenarios. The Obama puppet administration has recently declared that it would join forces with Israel if the Israelis decided to act first.
In 1981, the Israeli Air Force destroyed Iraq's Osirak reactor, setting its nuclear program back several years. But the situation in Iran is now both more complex and more dangerous, according to Shahram Chubin, an Iranian scholar who is the director of research at the Geneva Centre for Security Policy. The Osirak bombing "drove the Iranian nuclear-weapons program underground, to hardened, dispersed sites," Chubin told Seymour Hersh. "You can't be sure after an attack that you'll get away with it. The U.S. and Israel would not be certain whether all the sites had been hit, or how quickly they'd be rebuilt. Meanwhile, they'd be waiting for an Iranian counter-attack that could be military or terrorist or diplomatic. Iran has long-range missiles and ties to Hezbollah, which has drones--you can't begin to think of what they'd do in response."
Ominously, in June 2005, Israel ordered nearly 5,000 "smart bombs" from the United States that can penetrate six-foot concrete walls such as those that might encase Iranian nuclear sites. The deranged cabal strategists may decide that the only way to take out Iran's hardened nuclear sites is to use nuclear bombs. If so, Christian fundamentalists in many parts of the world may experience "rapture" before they expected it.
Whatever the nature of a strike against Iran by the cabal, Iran might retaliate with missile strikes on oil tankers in the Persian Gulf, covert aid to the insurgency in Iraq, or even an attack on Israel's main installations at Dimona that house a large arsenal of around 200 nuclear missiles. At that point, the world's biggest nuclear power, the U.S. forces commanded by cabal puppets, would move in strength against an Iran painted as an enemy beyond the pale.
We might wonder why Iran is continuing it nuclear program, but we have to remember that in today's world only those nations with already-established nuclear weapon capability are somewhat less vulnerable to attack from the capitalist cabal.
The cabal has already begun its counterattack against the ideas expressed in this essay. The first of these attacks has been fired off by a Professor Robert Looney, professor at the Naval Postgraduate School in a paper published in the Middle East Policy journal. Note that Professor Looney is a member of a military installation and that his paper was not published in an economics journal but in a foreign policy journal.
Looney offers no genuine argument against the four major claims made in this essay:
- That the hegemony of the dollar is essentially a monetary and political extortion scheme
- That the dollar is kept in its position as sole world exchange currency through military threat by the cabal
- That the cabal attacked Iraq because Saddam was moving to the Euro
- That Iran is now being diplomatically and politically attacked (likely soon to escalate to military attack) because it is planning to move to the Euro through its international bourse
Professor Looney can only offer this feeble rebuttal:"Even though the United States may derive some economic benefit from having its currency serve as the dominant international reserve currency, the gains are not nearly as great as is often assumed--around 0.5 percent of GDP at best, much of which is offset by lost manufacturing exports and jobs associated with the strong dollar.
"It follows that the notion that the United States undertook the Iraq war over its concern with the consequences of Saddam Hussein's denominating Iraq oil sales in euros (and the direction that might lead other producing countries) is little more than another web-based conspiracy theory."
Note that Professor Looney does not explain what is meant by his unsupported claim that the gain for the U.S. in having the dollar remain the sole transactional currency is only 0.5 percent of GDP. How is that figure arrived at? Who is the beneficiary of that amount of gain--the people or the politicians? This is clearly a phony statistic created to befuddle those ignorant enough to swallow it. Having failed to disprove any of the claims of this and similar essays (see below), Looney reverts to the mere assertion that this is a vast web-based conspiracy theory--and pretends that he has proven his claims.
Dollar imperialism explains all of Trump's current seemingly insane foreign policies and strategies, including his selling arms to Saudi Arabia, his using the UK (post-Brexit) as a wedge against the European Union, and his incipient wars against China, Venezuela, and Iran.
As Americans, we must be aware of what the junta that seized control over our country is doing to us and to others throughout the world. They're exposing Americans to extreme danger from other nations because of their militaristic, economic despotism. Americans are placed in a terrible bind in which we have to dissent from the thugs who run our government, while at the same time try to preserve our nation's heritage. The best way to be loyal to our American values is to struggle against the un-American, extremist junta trying to destroy our nation.
In our discussion of dollar imperialism, it's incorrect to say that the United States or America is attacking the world economically. It is not the U.S. as a nation that is perpetrating these imperialistic horrors, but the capitalist cabal that controls the American federal government. The American people are not at war economically with the rest of the world, only the international cabal and its puppet figures.
The common people in all nations must jointly rise up against this international cabal and take back our rights and liberties--our countries, creating commonwealth communities.
Updates and References:
- 9/9/2019: Hastening the dollar's demise
- 9/1/2019: The end of the dollar?
- 7/24/2019: JP Morgan Chase recommends dumping US dollar
- 7/23/2019: Iran to use cryptocurrency to thwart Trump sanctions
- 6/26/2019: How the Fed creates unceasing booms and busts
- 6/5/2019: Economic World War III
- 6/5/2019: China and Russia to trade using national currencies
- 6/2/2019: China will not be contained by Trump's trade war
- 5/24/2019: Trump mafia sanctions nations that protect their currencies against dollar-imperialism
- 1/10/2019: Russia will buy Bitcoin to avoid US sanctions
- 1/2/2019: Top 5 countries opting to ditch US dollar
- 11/19/2014: Dollar imperialism video
- 4/14/2014: BRICS Countries Set Up Their Own IMF
- 4/4/2014: Russia and Iran Attack Petrodollar
- 1/18/2014: Gold Price Manipulation
- 5/15/2013: BRICS Vs. US Dollar
- 4/5/2013: Fed Assault on Gold
- 2/22/2013: Buyout Parasitism
- 2/19/2013: Why Competition Between Global Players Is Heating Up
- 11/5/2012: Juan As World Reserve Currency?
- 10/23/2012: Gold Rush
- 9/4/2012: Cabal Goal: One Central Bank
- 1/31/2012: Currency War: Iran Embargo
- 1/26/2012: Will Iran Kill the Petrodollar?
- 8/8/2011: The Dollar Falls Officially
- 7/18/2011: Iran Finally Activates Its Bourse
- 7/26/2010: The Death of Paper Money
1 The classical military strategist Carl von Clausewitz defined the center of gravity as the one element within a combatant's entire structure or system that has the necessary centripetal force to hold that structure together.
2 W. Joseph Stroupe, "Crisis Towers Over the Dollar," Asia Times Online, Nov 25, 2004
3 Philip Giraldi, "In Case of Emergency, Nuke Iran," American Conservative, August 1, 2005