Attack on U.S. Dollar and Energy Needs

Attack on U.S. Dollar and Energy Needs
Written by Alan Caruba
Tuesday, March 21, 2006


It’s bad enough that the Middle East has us over a barrel of oil thanks to our continued dependency on access to its huge reservoirs of crude, but largely unknown to most Americans, the Organization of Islamic Conference (OIC) and the Islamic Development Bank have a long-term goal of replacing the U.S. dollar as the reserve currency for world trade.



In March the Iranians will open an Iran Oil Bourse that will trade oil and products in the Euro, not the dollar. They will not be alone in pegging their nation’s currency to the Euro. Syria already does and Venezuela, another major oil producer, has announced plans to do so as well.



As David J. Jonsson, the author of “Clash of Ideologies,” pointed out in a recent article, the United States “relies on approximately 70 percent of all foreign-exchange currency to be held in dollars because we sell Treasury debt into that foreign-exchange market.” A flight of foreign-exchange reserves away from the dollar would depress its value and, conversely potentially increase the value of the Euro by 20 to 40 percent.



This is extremely bad news for the United States and for the West in general. While Americans focus on the shooting war in Iraq, we are in an even more serious economic war with an axis that spreads from South America to the Middle East. Bear in mind that many South American nations have been electing Socialist governments and that some Middle Eastern nations have flirted with socialism for decades. The Baathist Party in Saddam’s Iraq is an example of this.

More @ http://tinyurl.com/hr7zv ChronWatch

See Red Dawn. It's one of my favorite movies and one that I think in time will play out. The circle of enemies is tightening.