imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Iran War for Dollar Hegemony

by Jurgen Wagner Wednesday, Jun. 28, 2006 at 9:09 AM
mbatko@lycos.com

The run on the US currency has already begun. Preventing the IOB may help explain the extreme aggressiveness of the US toward Iran. Mending our own pockets and recalibrating energy and security policies are more sensible than the Bush doctrine.

IRAN WAR FOR DOLLAR HEGEMONY

By Jurgen Wagner

[This article published in: Friedensjournal Nr 3, May 2006 is translated from the German on the World Wide Web, http://www.uni-kassel.de/fb5/frieden/regionen/fran/dollar.html. Jurgen Wagner is director of the Tubingen Information on Militarization Institute (IMO).]




The aggressiveness of US war policy has triggered discussions within the left about the driving forces of this offensiveness. In this context, the thesis is often defended in view of the obvious war preparations against Iran that the “war against terror” is essentially nothing but a crusade to maintain the dollar hegemony. The mass medias try to either ignore or make fun of this theme (e.g. Spiegel, 3/10/2006). What is involved is merely an “implausible legend” of conspiracy theoreticians. While mono-causal explanations should be avoided, there are good reasons for giving more attention to this “legend.”

THE TRIBUTE SYSTEM OF THE US EMPIRE

Two members of George W. Bush’s party, his former Secretary of the Treasury Paul O’Neill and Representative Ron Paul, are chief witnesses for the connection of monetary- and war policy. In an interview, O’Neill gave revealing insights into the mentality of the Bush administration. When he spoke out internally against more tax cuts since they would further enlarge the gigantic US deficit, he was reprimanded by Vice-president Dick Cheney as follows: “You know Paul, Reagan proved deficits aren’t important.” The significance of this sentence cannot be overrated. Common sense says that whoever imports (consumes) more goods than he exports (produces) engenders a balance of trade deficit that cannot be endlessly financed through indebtedness since the creditors will refuse some time or other.

In fact, this happened at the beginning of the 1970s when expenses for the Vietnam War led to a rapidly inflated indebtedness of the United States. As a result, Washington could not maintain exchanging the dollar for gold at a fixed exchange rate ( per ounce) guaranteed up to this time. Since then, the dollar has been nothing but a piece of paper, a currency without any backing.

Only two options existed at that time. If a radical revitalization and drastic military disarmament were refused, a possibility had to be found for becoming endlessly indebted so states would need to buy dollar reserves or US treasury notes. Henry Kissinger, the architect of the modern American tribute system, found the following solution. In exchange for the security of US rule – and with massive aggressive threats – Kissinger induced the Saudi royal house to calculate its oil in dollars. The other Opec states joined so the two central trading centers for oil and gas, the International Petroleum Exchange (IPE) in London and the New York NYMEX are both based on the dollar. This mechanism leads to a gigantic demand for dollars and supports the role of the greenback as the leading world currency. “Everyone accepts dollars to buy oil.” (Asia Times, 4/11/2002).

As long as dollars are demanded, the US can become indebted almost at will without having to declare bankruptcy. Any other state with comparable statistics would be forced to declare bankruptcy. In a speech before the House of Representatives (2/15/2006), the republican representative Ron Paul clearly described the functioning of the US tribute system: “Our whole economic system depends on the present recycling system. We borrow 0 billion annually from our generous benefactors who work hard and accept our dollar bills for their products. We borrow all the money we need for the security of the empire (defense budget 0 billion) and more. The military power that we enjoy becomes the support of our currency… Maintaining the dollar-oil relation and securing it as the dominant currency is most important. Any attack on this relation will be powerfully defeated – as has always happened.” Does the currency question play a role regarding the offensive plans against Iran?

IS THE IRANIAN OIL BOURSE THE END OF PETRODOLLAR IMPERIALISM?

For the first time, a serious alternative to the dollar exists in the euro. The run on the US currency has already begun. More and more countries – particularly Russia and China – systematically rearrange their currency reserves. The falling demand for dollars is a logical consequence. Some recent headlines show the greenback has lost considerable value and is under massive pressure: “The Asian Development Bank sounds the alarm over the dollar” (International Herald Tribune, 3/28/2006); “Dollar begins nosedive against other important currencies” (The Sunday Times, 4/30/2006); “Dollar falls after Federal Reserve Chief’s Speech” (The Times, 4/26/2006).

On this background, the Iranian plans to establish an oil bourse (Iranian oil bourse, IOB) on the Kish Island that accepts euros as a means of payment are explosive. The original starting date of March 20 was postponed. However government officials will carry out the project. The oil bourse makes sense from an economic perspective. Teheran does 45% of its trade with the euro zone where a third of its oil flows. Thus the IOB avoids price fluctuation risks and transaction costs by bypassing the dollar. Both China and India are interested in negotiating future oil through the IOB. Potential sellers could be Venezuela and Russia that for a long time considered calculating their oil in euros. French industrial minister Francois Lous already urged a greater role of the euro in the oil business. The euro gains attractiveness for these countries that in one way or another feel the US thumb most clearly. This is not an accident. Several respected US experts like George Perkovich of the Carnegie Endowment for International Peace have no illusions about how the Iranian plans are interpreted. “The IOB is part of a very intelligent and creative Iranian strategy – taking the offensive in every conceivable way and mobilizing other actors against the US.”

The US is scraping the barrel in the currency question. The US Federal Reserve stopped publishing the money supply statistics since March 2006 as the most important indicator for the worldwide dollar supply in circulation. This decision was an awkward attempt to hide the shaky foundations of the US Empire. In this precarious situation, Washington will consider any step that could cause a sudden drop in the dollar as a declaration of war. Whether the IOB can do this is a completely different matter.

The European Union also cannot accept a total crash of the dollar since their economies would also be severely stricken. While a gradual changing of the guard could bring advantages, an essential change of restrictive EZB (European Central Bank) monetary policy is necessary. This change is not in sight at present. More than instituting an Iranian oil bourse is needed to make the dollar fall. Seeing the only reason for the US offensive plans in this bourse would exaggerate its significance. Preventing the IOB and simultaneously giving a sign to other countries that Washington is ready to march into war with any country that seriously tries to shake the dollar hegemony may help explain the extreme aggressiveness of the US toward Iran.



Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Paraphysique de psychosomatique S22 6:58AM

Chuck Grassley: Women Abusing, Animal Murdering, Illegal War Supporting Criminal S22 2:58AM

Finance Capitalism and the Digital Economy S21 4:45PM

Muselières syndicales, muselières patronales S21 7:19AM

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Creative Destruction Hack Diamonds Windows/iOS/Android - Creative Destruction Generator S19 12:51AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Creative Destruction Hack Mod Generator S15 3:49AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Propagande de virus, virus de propagande S10 7:34AM

Steer clear of work morality! S09 12:10PM

Sweatshop Lodge Ceremony Continues in US Fed Prisons Led by Inmates S08 6:17PM

Paraphysique de l'origami S08 7:11AM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Du réussissement putréfié S06 10:55AM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Log S06 4:25AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy