Guest Brother Ben Posted February 16, 2003 Share Posted February 16, 2003 - Thompson Bradley, Emeritus Professor of Russian, Swarthmore College info.@.why-war.com The Currency War If a nation expects to be ignorant and free, it expects what never was and never will be ... The People cannot be safe without information. When the press is free, and every man is able to read, all is safe. Our news media is hiding the truth. Well, I'm going to give their game away - the core driver for toppling Saddam is actually the euro currency. Why ? Because Saddam requires payment in the common Euro currency. Although completely suppressed in the U.S. media, the answer to the Iraq enigma is simple yet shocking. The real reason for the up comin g war in Iraq is to insure that The fiat reserve currency for global oil transactions remains the U.S. dollar (and dollar only) The Real Reason for this upcoming war is this administration's goal of preventing further OPEC momentum towards the euro as an oil transaction currency standard. However, in order to pre-empt OPEC, they need to gain geo-strategic control of Iraq along with its 2nd largest proven oil reserves. The Federal Reserve's greatest nightmare is that OPEC will switch its international transactions from a dollar standard to a euro standard. Iraq actually made this switch in Nov. 2000 (when the euro was worth around 80 cents), and has actually made off like a bandit considering the dollar's steady depreciation against the euro.Did you know the dollar declined 15% against the euro in 2002.) "The real reason the Bush administration wants a puppet government in Iraq - or more importantly, the reason why the corporate-military-industrial network conglomerate wants a puppet government in Iraq - is so that it will revert back to a dollar standard and stay that way." (While also hoping to veto any wider OPEC momentum towards the euro, especially from Iran - the 2nd largest OPEC producer who is actively discussing a switch to euros for its oil exports). Furthermore, despite Saudi Arabia being our 'client state,' the Saudi regime appears increasingly weak/threatened from massive civil unrest. Some analysts believe a "Saudi Revolution" might be plausible in the aftermath of a U.S. invasion of Iraq (ie. Iran circa 1979). [1] Undoubtedly, the Bush administration is acutely aware of these risks. Hence, the conservative framework entails a large and permanent military presence in the Persian Gulf region in a post-Saddam era, just in case we need to surround and grab Saudi's oil fields in the event of a coup by an anti-western group. But first back to Iraq. Saddam sealed his fate when he decided to switch to the euro in late 2000 (and later converted his $10 billion reserve fund at the U.N. to euros) - at that point, another manufactured Gulf War become inevitable under Bush II. Only the most extreme circumstances could possibly stop that now and I strongly doubt anything can - short of Saddam getting replaced with a pliant regime. Further, the dollar-euro threat is powerful enough that they'll rather risk much of the economic backlash in the short-term to stave off the long-term dollar crash of an OPEC transaction standard change from dollars to euros. All of this fits into the broader Great Game that encompasses Russia, India, China. This information about Iraq's oil currency is censored by the U.S. media as well as the Bush administration and the Federal Reserve as the truth could potentially curtail both investor and consumer confidence, reduce consumer borrowing and spending, create political pressure to form a new energy policy that slowly weans us off Middle Eastern oil, and of course stop our march towards war in Iraq. This quasi-"state secret" can be found on a Radio Free Europe article discussing Saddam's switch for his oil sales from dollars to the euros on Nov. 6, 2000. [2] Baghdad's switch from the dollar to the euro for oil trading is intended to rebuke Washington's hard-line on sanctions and encourage Europeans to challenge it. But the political message will cost Iraq millions in lost revenue. At the time of the switch many analysts were surprised that Saddam was willing to give up millions in oil revenue for what appeared to be a political statement. However, contrary to one of the main points of this November 2000 article, the steady depreciation of the dollar versus the euro since late 2001 means that Iraq has profited handsomely from the switch in their reserve and transaction currencies. The euro has gained roughly 17% against the dollar in that time, which also applies to the $10 billion in Iraq's U.N. "oil for food" reserve fund that was previously held in dollars has also gained that same percent value since the switch. What would happen if OPEC made a sudden switch to euros, as opposed to a gradual transition? The effect of an OPEC switch to the euro would be that oil-consuming nations would have to flush dollars out of their [central bank] reserve funds and replace these with euros. The dollar would crash anywhere from 20-40% in value and the consequences would be like those one could expect from any currency collapse and massive inflation (think Argentina currency crisis, for example). You'd have foreign funds stream out of the U.S. stock markets and dollar denominated assets, there'd surely be a run on the banks much like the 1930s, the current account deficit would become unserviceable, the budget deficit would go into default, and so on. It would be your basic third world economic crisis scenario. Brother Ben Shelah Link to comment Share on other sites More sharing options...
Matthitjah Posted February 16, 2003 Group: Royal Member Followers: 4 Topic Count: 1,285 Topics Per Day: 0.16 Content Count: 17,917 Content Per Day: 2.27 Reputation: 355 Days Won: 19 Joined: 10/01/2002 Status: Offline Share Posted February 16, 2003 Very enlightening Brother ben, :thumb: This merits further investigation on all our part's. From the moment the euro began to rise against the dollar. I told friends and family this could be our demise. Suppose world sympathy towards our diplomatic strategy's changed and caused divestiture from the U.S. dollar into the Euro. We would be in heep big trouble. Our vulnerability on 9/11 caused some to question our capital markets thereafter. I remember reading about some foreign Govt's taking interest in the Euro after 9/11. I think we may be on the precipice waiting to be pushed. Peace :inlove: Amen Link to comment Share on other sites More sharing options...
Matthitjah Posted February 16, 2003 Group: Royal Member Followers: 4 Topic Count: 1,285 Topics Per Day: 0.16 Content Count: 17,917 Content Per Day: 2.27 Reputation: 355 Days Won: 19 Joined: 10/01/2002 Status: Offline Share Posted February 16, 2003 P.S. Where did you find these articles? That link you have at the top of the post is an E-Mail? Peace :inlove: Amen Link to comment Share on other sites More sharing options...
rollinTHUNDER Posted February 18, 2003 Group: Royal Member Followers: 6 Topic Count: 83 Topics Per Day: 0.01 Content Count: 2,985 Content Per Day: 0.37 Reputation: 433 Days Won: 2 Joined: 04/23/2002 Status: Offline Author Share Posted February 18, 2003 Thanks Brother Ben, I do believe that a U.S. economic collapse is on the horizon, which would also cause a world wide economic collapse. Link to comment Share on other sites More sharing options...
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