imc indymedia

Los Angeles Indymedia : Activist News

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




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities 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 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

Is the Dollar Hegemony Ending?

by Volker Brautigam Saturday, Jul. 08, 2006 at 9:49 AM

The demand for dollars will fall significantly when oil is transacted in euros. The US must control its twin deficits and reduce its foot-print to keep the confidence of foreign credi-tors. Radical restructuring and removal of incompetent leadership could avert crash.


By Volker Brautigam

[This article published in: Ossietzky 10/2006 is translated from the German on the World Wide Web,]

Whoever goes shopping in the People’s Republic of China sees top-flight products comparable with western goods. The difference is they cost merely a tenth of what we in the West must pay. Because of this difference, goods from China arrive in the US in abundance at unbeatable cut-rate prices.

For equalization, Peking must make its currency freely convertible or at least upgrade the Yuan in relation to the dollar. As an immediate result, fewer Yuan and more US dollars will flow into the Chinese state treasury. Where will the enormous amount of stored dollars be invested? How can Peking separate itself at least from part of its dollar reserves without sustaining great loss?

This question leads us directly to the cause of the highly infectious monetary instability in the whole Far East.

One answer could be that Peking changes to the “Petro-Euro.” If that happens and oil business is transacted at Euro-prices and not in dollars as in the past, oil would be more inexpensive at least temporarily which would not only be interesting for China. Experts expect the price drop because the euro offers greater stability compared to the US dollar. Instead of per barrel, the oil could be purchased for 42 to 45 euro. Referring to the current oil price of a barrel, a price of 54 to 57 euro could be expected. The countries of the euro zone could buy oil with their own money weakening the US dollar. This could even lead to a devaluation spiral for the US dollar. Thus the prognosis is well founded that the US dollar will not maintain its role as the leading currency of the world any more.

Big banks and international investment companies (including Citi-bank and Goldman Sachs) see a potential for considerable Far East economic and political conflict in the conceivable fall of the dollar. On the other hand, Europe could protect its economies relatively well on the euro basis. Europe’s monetary stability even provides a certain guarantee against a world recession of catastrophic dimensions. The People’s Republic of China also has considerable surpluses in the euro currency though far less than in the US dollar. Europe’s economic interactions concentrate on the inner-European exchange of goods and services. Beside several oil states, the Russian Federation increasingly turns to Europe. Europe’s global exchange of goods excepting the US could be organized on the euro basis without great conversion problems.

New monetary policy scenarios are possible. Only a few experts believe in radical changes. Outsiders like the macro-economist Krassimir Petrov think the Euro could gradually establish itself as the leading currency of the world alongside or even replacing the US dollar.

In the opinion of the majority of economists, the danger for the global economy threatens from the imminent drying up of oil wells, not from the US currency and the US debt mountain. Why is this? If there is no oil any more, whether the nothing is paid in dollars or euros makes no difference.

Who wonders about this? Even in Germany, the theme “energy supply of the future” is not on the agenda. In Germany, oil and oil products have the lion’s share in primary energy consumption: 36.4 percent. Coal is only 24.9 percent and natural gas 22.4 percent of total consumption. Nuclear energy amounts to 12 percent and renewable energy almost six percent (statistical data from 2004).

Energy consumption altogether has slightly declined while renewable energy’s share in the energy supply has slowly risen. However the German government only prepares for a 20 percent share of renewable energy in its energy supply. This goal should be reached within the next 15 years. When no oil is available any more, the gap will not be covered with greater use of coal, more gas or more nuclear energy. What will happen? What should happen? Berlin owes us an answer.

A permanent and adequate energy supply is only possible with conversion to ethanol (bio-alcohol) and hydrogen as sources of energy. Hydrogen can only be produced by means of nuclear energy or fossil fuels. Hydrogen production must run through renewable energy. This can only be reasonably financed through supra-national cooperation (cf. “Is Hydrogen the Future?” Ossietzky 2002, 15 and 16).

In the absence of supporters, Sweden is attempting a single state solution. The ministry for sustainable development in Stockholm plans to completely renounce on oil as a source of energy by the year 2020. At the same time, the consumption of other fossil sources of energy should be drastically reduced. Sweden will entirely renounce on nuclear power. The complete supply is planned with renewable energy from wind power, solar power, waterpower, biogas and tidal power plants combined with a strict energy savings program. The ambitious concept was presented at the beginning of March 2006.

Let me sum up the discussion about the US dollar, US hegemony and global energy questions. The US gave an inestimable gift to humanity with the revolution of 1776, contributed to the end of the era of mysticism and helped the European enlightenment breakthrough. The US never tried to do justice to its ideals. Instead the American dreams has long been changed into a nightmare, as in the past in the times of genocide on the aboriginal American population and in the times of “slavery.” This time they drag the rest of humanity with them into this nightmare. They will not lose their role as world ruler on account of their inner social contradictions, trifling economic output, debts, ailing currency or because they could not win in the struggle for the remaining oil despite all their military superiority. The last wars for oil will not only be waged by states with armies and weapons. The US will not break down because it bled itself white financially with its mad weapons reaching to outer space. The ever-stronger rival the People’s Republic of China will not defeat them. They will not come to nothing on account of the inhumanity of capitalism. The US was the central home of that inhumanity. US world domination will not end because the US fettered its own citizens with laws like the “Patriot Act” and delivered them up to a band of arch-reactionary, deceitful-lying, murderous-selfish, Christian-fundamentalist fanatics and oil lobbyists like Dick Cheney and Donald Rumsfeld. None of these reasons alone will bring the end of the US era but rather all of them together.

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


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

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

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

Please Oppose Warmonger, Execution and Torture Supporting Bush Operative Brett Kavanaugh A31 10:45PM

Paraphysique d'exploitation occultation A31 10:24PM

Ryan Zinke Is Charging Taxpayers For A Trophy Hunters' Council A31 2:10PM

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