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If you look at the state of the dollar from a global or macro perspective, you can see that this problem has been brewing for quite some time.
Take dollar hegemony, for example, as it relates directly to the sales of oil. OPEC agreed back in the '50's to sell oil only for U.S. dollars, meaning that every nation on earth needed to keep dollars in their central banks to meet their energy needs. It was a huge trump for the U.S. because it created a self-perpetuating cycle that ensured continued global proliferation of U.S. dollars. This led to the dollar becoming the premier currency for all other forms of trade and to massive investment in T-Bills and other U.S. securities as nations struggled to keep supplied with U.S. currency to maintain their economies.
Now enter the removal of the gold standard. In times past, as a nations wealth grew, it could be measured in terms of gold bullion. Now, the only way to tie value of currency to something tangible is to assign it to a product or a commodity. In the past, if you had a million dollars, it was worth x amount of gold. Now, it is worth either a house, some portion of commodities, or a percentage share of a company. The value has become purely speculative, based on consumer confidence.
This has been successfull over the last several decades because dollar hegemony has endured - primarily because oil has continued to sell for U.S. dollars. Now enter the Euro dollar. It was established in 1999 as a unified European currency. The U.S. economic comfort zone ended in November, 2000 when, contrary to OPEC's agreement, Saddam Hussein began selling oil for Euro's. For the first time in almost half a century, other nations in the world could turn to another currency besides the U.S. dollar in order to meet their energy needs, and global investment in the Euro began a sharp climb as many nations began dropping U.S. dollars in exchange for Euro's.
Among other accomplishments, the war in Iraq put an end to that. Meanwhile, other oil producing nations such as Venezuela, Iran, and Sudan are changing their central banks over to Euro's, and Iran is preparing to open the worlds fourth oil exchange which will be the first global exchange to allow the sale of oil in non-U.S. dollar denominations. The three existing exchanges sell oil only for U.S. dollars.
The result is that many nations - with China taking a huge lead - are rapidly pushing dollars off of their plates in exchange for Euro's. As a result, the dollar is losing value at an unprecedented rate and will continue to do so until something dramatic takes place - either economicaly, politicaly, militarily, or some sort of combination of the three. The only assured way to stabalize - not improve - is to maintain direct control of global energy reserves. According to U.S. policy, controlling access to oil reserves is CENTCOM's primary role within it's theater of operations - especially with regard to both Iraq and Iran. A successful effort will result in the short term assurance that nations will re-invest in the dollar in order to keep up with growing energy demands.
In the long run, our current economic system is doomed to fail us. It is dependent upon continued investment in order to remain fluid. Even if continued military aggression in the Middle East enables short term footholds, it places us in direct competition with other economic and military giants like China and Europe who also realize that the nation(s) in control of oil will also control their own destiny - hence the current Sino-Russo joint military excercises meant to show the U.S that their is determination to prevent further hegemony, and the recent blatant accusations by Russia of U.S. election tampering in Ukraine, as Russia allies with the Euro and Russia struggled to place a Ukranian candidate who would follow.
In short, we're in a whole new world of mess that the U.S. has never before witnessed. Our current economic system has been established, built, maintained, and praised by both Democrats and Republicans alike. They've shared a common goal in gaining a global advantage and controling every nation as a result. That shared vision continues today as the economy wanes and we are faced with prospects that may eventually entail fully uniting our economy and our nation with other countries in order to avoid a complete economic collapse. This is plainly evident in one way that sends a message that is loud and clear. Although the federal government has been preparing for and fighting in this battle for almost a decade, neither party has spoken out and told the American people the truth. They continue with their co-agenda, and they will continue to use the American citizenry as their pawns to achieve their goals, as the economy and the nation begin to crumble around us.
Shame on them.
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