US dollar is still officially the world's reserve currency, but
it cannot purchase the services of Brazilian supermodel Gisele
Bundchen. Gisele required the US$30 million she earned during
the first half of this year to be paid in euros.
not alone in her forecast of the dollar's fate. The First Post
(UK) reports that Jim Rogers, a former partner of billionaire
George Soros, is selling his home and all possessions in order
to convert all his wealth into Chinese yuan.
American economists continue to preach that offshoring is good
for the US economy and that Bush's war spending is keeping the
economy going. The practitioners of supply and demand have yet
to figure out that the dollar's supply is sinking the dollar's
price and along with it American power.
super patriots who support the Bush regime still haven't caught
on that US superpower status rests on the dollar being the reserve
currency, not on a military unable to occupy Baghdad. If the dollar
were not the world currency, the US would have to earn enough
foreign currencies to pay for its 737 oversees bases, an impossibility
considering America's $800 billion trade deficit.
dollar ceases to be the reserve currency, foreigners will cease
to finance the
US trade and budget deficits, and the American Empire along with
its wars will disappear overnight. Perhaps Bush will be able to
get a World Bank loan, or maybe one from the "Chavez bank," to
bring the troops home from Iraq and Afghanistan.
observing that offshoring and war are accelerating America's relative
economic decline, no longer treat the US with the deference to
which Washington is accustomed. Ecuador's president, Rafael Correa,
recently refused Washington's demand to renew the lease on the
Manta air base in Ecuador. He told Washington that the US could
have a base in Ecuador if Ecuador could have a military base in
president Hugo Chavez addressed the UN, he crossed himself as
he stood at the podium. Referring to President Bush, Chavez said,
"Yesterday the devil came here, and it smells of sulfur still
today." Bush, said Chavez, was standing "right here, talking as
if he owned the world."
the dollar were not the world currency, the US would have
to earn enough foreign currencies to pay for its 737 oversees
bases, an impossibility considering America's US$800 billion
trade deficit. When
the dollar ceases to be the reserve currency, foreigners
will cease to finance the US trade and budget deficits,
and the American Empire along with its wars will disappear
In his state
of the nation message last year, Russian president Vladimir Putin
said that Bush's blathering about democracy was nothing but a
cloak for the pursuit of American self-interests at the expense
of other peoples. "We are aware what is going on in the world.
Comrade wolf knows whom to eat, and he eats without listening,
and he's clearly not going to listen to anyone." In May 2007,
Putin criticized the neocon regime in Washington for "disrespect
for human life" and "claims to global exclusiveness, just as it
was in the time of the Third Reich."
America's British allies regard President Bush as a threat to
world peace and the second most dangerous man alive. Bush is edged
out in polls by Osama bin Laden, but is regarded as more dangerous
than Iran's demonized president and North Korea's Kim Jong-il.
Bush has achieved his dismal world standing despite spending $1.6
billion of hard-pressed Americans' tax money on public relations
between 2003 and 2006.
America's leader and America's currency are poorly regarded. Is
there a solution?
answer lies in those 737 overseas bases. If those bases were brought
home and shared among the 50 states, each state would gain 15
new military bases.
this would mean: The end of the housing slump. A reduction in
the trade deficit.
And the end
of the war on terror.
dare attack a country with 15 new military bases in every state
in addition to the existing ones? Wherever a terrorist turned,
he would find himself surrounded by soldiers.
All of the
dollars currently spent abroad to support 737 overseas bases would
be spent at home. Income for foreigners would become income for
Americans, and the trade deficit would shrink.
of the 737 military base payrolls on the US economy would end
the housing crisis and bring back the 140,000 highly paid financial
services jobs, the loss of which this year has cost the US $42
billion in consumer income. Foreclosures and bankruptcies would
American empire is being unwound on the battlefields of
Iraq and Afghanistan. Bush's wars have endangered America's
puppet regimes. Bush's Pakistani puppet, Musharraf, is fighting
for his life... There
isn't any money with which to fund Bush's lost war. It will
have to be borrowed from China.
If this isn't
enough to turn the dollar around, President Bush's pledge not
to appoint an Attorney General if Michael Mukasey is not confirmed
offers more promise. If the Democrats will defeat Mukasey's nomination,
there are other superfluous cabinet departments that can be closed
down in addition to the US Department of Torture and Indefinite
American empire is being unwound on the battlefields of Iraq and
Afghanistan. The year is two months from being over, but already
in 2007, despite the touted "surge," deaths of US soldiers are
the highest of any year of the war.
are the ones who are surging. They have taken control of a third
district in Western Afghanistan. Turkey and the Kurds are on the
verge of turning northern Iraq into a new war zone, another demonstration
of American impotence.
have endangered America's puppet regimes. Bush's Pakistani puppet,
Musharraf, is fighting for his life. By resorting to "emergency
rule" and oppressive measures, Musharraf has intensified his opposition.
When Musharraf falls, thanks to Bush, the Islamists will have
generals used to say that the wars Bush started in the Middle
East would take 10 years to win. On Oct. 31 General John Abizaid,
former commander of US forces in the Middle East, put paid to
that optimistic forecast. Speaking at Carnegie Mellon University,
Gen. Abizaid said it would be 50 years before US troops can leave
the Middle East.
no possibility of the US remaining in the Middle East for a half
century. The dollar and US power are already on their last legs,
unbeknownst to Democratic leaders Pelosi and Reid who are preparing
yet another blank check for Bush's latest request for $200 billion
in supplementary war funding.
any money with which to fund Bush's lost war. It will have to
be borrowed from China.
brought on their own demise, but it took them centuries. Bush
has finished America in a mere seven years.
Even as Gisele
throws off the dollar's hegemony, Brazil, Venezuela, Ecuador,
Bolivia, Argentina, Uruguay, Paraguay, and Columbia are declaring
independence of the IMF and World Bank, instruments of US financial
hegemony, by creating their own development bank, thus bringing
to an end US suzerainty over South America.
that has lost its backyard is finished.
Paul Craig Roberts was Assistant Secretary of the Treasury in
the Reagan administration. He was Associate Editor of the Wall
Street Journal editorial page and Contributing Editor of National
Review. He is coauthor of The
Tyranny of Good Intentions. He can be reached at: PaulCraigRoberts@yahoo.com
articles by Paul Craig Roberts:
The Wages Of Hegemony
Hypocrisy Rules The West
American Economy, R.I.P.
The War Criminal In The Living Room
More War On The Horizon
China Is Not The Problem
China's Threat To The Dollar Is Real
In The Hole To China
A Free Press Or A Ministry Of Truth?