Posts Tagged ‘Dollar’

Counterpunch on Washington’s Fear of a Russia-EU Superstate

March 23, 2017

There’s a very interesting article in today’s Counterpunch by Mike Whitney, which suggests that the current demonization of Russia and its president, Vladimir Putin in the American media and the build up of troops and military installations on Russia’s borders – in Poland and Romania, for example – is to prevent Russia joining the EU. It begins with a speech by Putin, from February 2012, in which Putin declared that Russia was an inalienable part of greater Europe, its people think of themselves as Europeans, and that is why Russia is moving to create a greater economic space, a ‘union of Europe’, stretching from the Atlantic to the Pacific. The carefully orchestrated ‘Orange Revolution’ in Ukraine, which saw the pro-Russian president ousted in favour of the current, pro-Western government, which includes unreconstructed Nazis, is part of Washington’s programme to prevent the emergence of this massive superstate.

The article revisits the Mackinder doctrine. This was the thesis, put forward by a geographer in the early 20th century, that the crux for global power is control of the Eurasian landmass. Mackinder believed that the powers that ruled it would become the dominant global power, while those on the Atlantic fringe of the landmass, such as Britain, would be doomed to decline. He notes that Russia is rich in supplies of oil and natural gas, which it can easily supply through the construction of projected pipelines, to Europe.

Whitney states that the Americans are also concerned at the way the Chinese are also increasing their economic connections across Eurasian through the construction of roads and railways allowing the rapid and efficient transhipment of their consumer goods. Hence the construction and reinforcement of American military bases in South Korea and in the Far East. The Americans hope to block China’s economic growth by dominating the sea lanes militarily.

Whitney also argues that the Russians and Chinese are emerging as the new, global economic powers against America because they are actually better at capitalism than the Americans are. They are building new infrastructure – roads, railways and pipelines, to allow them to exploit the markets in central Asia and Europe, while the Americans can only try to compete with them through threatening them with military force. Hence the continuation of the conflict in Syria with as a proxy war against Russia.

Whitney also makes the point that blocking the emergence of a single free trade block in Eurasia is vital for the survival of the American economy. The moment such a free trade zone stopped using the dollar it would knock one of the key financial supports out of the American economy, causing markets to collapse, the dollar to slump and the economy to fall into depression.

See: http://www.counterpunch.org/2017/03/23/will-washington-risk-ww3-to-block-an-emerging-eu-russia-superstate/

This is very interesting, as it shows just how far current international tensions with Putin’s Russia are caused by America’s fears of a resurgent Russia and China, and its own looming economic irrelevance. The use of the dollar as the international currency is absolutely critical in this. One of the reasons why Colonel Gadaffy was overthrown was because the ‘mad dog of the Middle East’ wanted to create an Arab economic bloc like the EU, which would use the dinar rather than the dollar as its international currency. America’s economy is propped up to a very large degree through the use of the dollar as the international currency of the petrochemical industry. Once that goes, the American economy, and its status as the world’s only superpower, goes up. Hence the Americans determination to have him overthrown, even if that meant the collapse of Libya as a functioning state and the replacement of its secular welfare state by a hardline theocratic regime.

There’s a considerable amount wrong with the EU, but it also has enormous economic, legal and political benefits. In the 19th century, British companies played a large part in Russia’s industrialisation. Before the Revolution, one of the main Russian cities was called Yusovska, a name derived from ‘Hughes’, the surname of the British industrialist, who had set up a company there. By voting to leave the EU, we may also have missed the opportunity to benefit from closer economic contacts with Russia and China. Or rather, England has. Scotland voted to remain, and this may well begin the break-up of the United Kingdom. In which case, Scotland may well be in an economically stronger position than England. We English may well have consigned ourselves to increasing irrelevance and decline on the global stage, just to satisfy the xenophobic wishes of the Tory right.

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American Comedian Lee Camp on the Real Reason Iran’s Been Put ‘On Notice’

February 11, 2017

This week Trump’s administration officially put Iran ‘on notice’ for the crime of testing a ballistic missile in their own country. The missile wasn’t capable of carrying a nuclear warhead, but nevertheless Trump and his Nazis accused it of preparing to acquire them.

In this edition of RT’s Redacted Tonight, the host, comedian Lee Camp, suggests the real reason Trump has warned Iran of a possible invasion should they not comply with America’s wishes, has nothing to do with weapons of mass destruction. No, it’s for the simple reason that Iran is planning to ditch the dollar as the currency for trade in oil. He cites newspaper reports and Perkins’ Confession of an Economic Hitman to show that one of the reasons for the Iraq invasion was that Saddam Hussein was also considering abandoning the dollar. As was Colonel Gaddafi. Gaddafi wanted to set up the gold dinar as Africa’s and the Middle East’s rival to the dollar and euro.

As for Iran being put ‘on notice’, Camp remarks that they just might have worked out that America was threatening to invade them through the number of US bases encircling the country.

Camp then contrasts the ire of America’s corporate elite to this financial outrage, with the way Trump tolerates and encourage the destruction of the environment. BP has just been allowed to resume drilling again in the Gulf of Mexico, despite the oil spill that devastated the region’s ecosystem the other year. And what are they calling their new rig? Mad Dog II.

He also discusses Nancy Pelosi’s terrified reaction when a young member of a TV audience put her on the spot by telling her that Millennials don’t support capitalism. This is true. A recent poll showed that American young people don’t. Cue nervous laughter from Pelosi and the hurried response that ‘We’re capitalists’. She then went on to burble bilge about ‘stakeholder capitalism’, and so, as Camp remarked, try to position herself as supporting capitalism and working people simultaneously. He also jokes about the Democrats’ extremely weak response to opposing the Republicans.

He also talks to Naomi Karavani about the Republican’s criminalisation of the DAPL protestors. North Dakota is considering passing legislation to allow drivers to run down protestors. They also have footage of some politico claiming that the protestors were all paid and bussed in specially, and that after leaving the DAPL protests they will simply go on to the next one. He also reports how the DAPL protestors, including elderly ladies, who have done nothing except peacefully block the way and pray, are now ‘terrorists’. They also want to amend the laws on rioting so it includes simply standing there when told to go away.

Finally on the show he talks to John F. O’Donnell about Trump’s intention to repeal the Dodd Frank Act. This is the act that obliges the big financial firms to put away hundreds of millions of dollars to provide against another financial crash. This would allow the banks to pay out millions to shareholders, but it would mean that they would once more become that bit more vulnerable to financial collapse. O’Donnell also discusses Trump’s abolition of the financial regulator, that has forced pay day loan companies and other companies to pay money back to victims of financial wrongdoing.

He reports Bernie Sanders’ response to this, in which the veteran left-wing Democrat called Trump what he is: a fraud. Trump had promised during his election campaign that he was going to reign in Wall Street. Now he’s doing his best to strengthen it and expand its power.

Warning: Camp is one of the young, edgy comedians, so there is language and some might find some jokes offensive. Like when compares the tired excuses of the American military for their warmongering, that they’re attacking to prevent the other side from acquiring weapons of mass destruction, to a couple with Alzheimer’s in a retirement home.

Camp is, however, exactly right in his criticisms and the report about Iran and its intention to move to an alternative currency instead of the dollar has more than the ring of truth. Greg Palast in his discussion of the Iraq invasion in his book, Armed Madhouse, states that the American economy is to a very large extent insulated from many of the financial crises that hit the rest of the world’s countries because the dollar is the world currency for the oil industry. The moment an alternative currency is set up – such as Gaddafi’s Gold Dinar – much of America’s economic strength is wiped out. Hence the aggressive response to any oil producing state that dares to do so.

We’re being threatened with being taken into another war, simply to keep American oil billionaires rolling in it. More of our brave squaddies may die, and the innocent people of another country massacred and its oil and other industries looted.