The End Of Dollar Hegemony is looming in the horizon, whether or not we attack Iran. If we do, Iran has threatened to close off the Straits of Hormuz, and has the capabilities to do so, effectively closing one of the largest shipping lanes for the world's oil supplies and driving up oil costs per barrel dramatically. If we don't, Iran will open it's oil market plan to trade exclusively in euros, effectively closing off the country with one of the greatest oil reserves from the country that consumes the most oil.
Since 1971, when President Nixon, in a move to protect the US's remaining gold reserves, took the dollar off the gold standard, where one dollar was equal to 1/35 of an ounce of gold, the Federal reserve has been printing money on a fiat money system, backed not by gold, but by an agreement with oil producing nations to accept only dollars for their oil. Many nations now had to keep dollars as a reserve currency, and pegged their monetary system to that dollar. In November of 2000, Saddam Hussein, having suffered under economic sanctions imposed on Iraq following the first Gulf War by the US and UK, moved to accept only the euro as payment for his oil. This means that all the billions of dollars he was holding in reserve like an I.O.U. could now be called in by Mr. Hussein for payment. Thus we have one of the major factors of why the US went to war in Iraq, as the sanctions against Iraq were due to be lifted and the flow of Iraqi oil could continue at full speed, only in euros instead of dollars.
Now we have news of Syria snubbing the dollar, just another of a list of countries that the Bush administration has been pressuring, following Venezuela and Iran. At this point it would be fair to point out that Bush is not the one responsible for the dollar's loss of value, and that he's dealing with it the only way he knows how.
Eventually, if and when the dollar is replaced as the major reserve currency, all the countries that now hold dollars in reserve will send those dollars here, demanding payment. And so the foreclosure sale has begun. First, Bush has given away $7 billion in oil royalties to oil companies for exploration in the Gulf of Mexico. Following that, Bush is planning on selling $800 millionof forest lands set aside as a legacy for our children and grandchildren.
Now the Department of Homeland Security has approved the sale of six major US ports to a company owned by the United Arab Emirates. This has created a bipartisan uproar in Congress as UAE was the operational and financial base for the alleged hijackers who carried out the 9/11 attacks. UAE was also a transfer point for smuggled nuclear components by a Pakastani scientist.
So, this is how it declines. Piece by piece our country is sold off to the highest bidder while our hope of manufacturing something to sell the world is traded off for tax breaks for billion dollar corporations and the blame is placed on the labor force that built this great country for wanting the dignity of making a living wage. The ones who children are now off fighting a war of conquest designed to insure that those who have profitted most from this system never have to face the consequences of their actions.