Impending Dollar collapse- update

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Impending Dollar collapse- update

Post by sulehri on Mon Apr 28, 2008 12:26 pm

All praise is due to Allah, and I invoke peace and blessings upon our
> Prophet Muhammad (Sall Allah Ho Alaihe Wa Sallam), his family and upon
> all of his Companions.
>
>
>
> IRAN HAS REALLY DONE IT…more deadlier than the nuclear..
>
> No, they haven't sent their first nuclear sub in to the Persian Gulf.
> They are about to launch something much more deadly – 'Iran Oil
> Bourse' will open to trade oil, not in dollars but in Euros'
> This apparently insignificant event has consequences far greater for
> the US people 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! The US 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 Ohio University) 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 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. Just google `pertroeuro' , and the story lies
> before you.
>
> From now on, anyone in the know will wake up every morning and, even
> before coffee, will check out the latest exchange rate between the
> euro and dollar.
>
> And Allah knows all!
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sulehri
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