Tuesday, May 02, 2006
The Euro and the Dollar, the real war
In November 2000 Saddam Hussein committed his gravest crime. No, he didn't gas any Kurds. No he didn't crush any Shiite rebellions. He began trading Iraqi oil for Euros. Economists will point out that by itself Iraq would't be able to harm the U.S. dollar that much, but obviously were dealing with people who see dominoe theories everywhere. If Iraq does it then Iran...actually Iran is setting up to do just that.
In 2005-2006, The Tehran government has a developed a plan to begin competing with New York's NYMEX and London's IPE with respect to international oil trades - using a euro-denominated international oil-trading mechanism. This means that without some form of US intervention, the euro is going to establish a firm foothold in the international oil trade. Given U.S. debt levels and the stated neoconservative project for U.S. global domination, Tehran's objective constitutes an obvious encroachment on U.S. dollar supremacy in the international oil marketOne of the first things we did when we conquered Iraq was to start trading its oil for U.S. dollars again. Funny how the saber rattling with Iran directly coincides with their decision to go Euro, too.
It's not that this is the only reason we are preparing for war with Iran, but it's a prime consideration. Oil, the dollar, strategic positioning in the heart of the world's energy reserves, these are all key reasons why we are in the Middle East.
Most people understand that the we are dedicated to defeating competing capital forms, like communism, socialism, syndicalism or whatever you want to call it. But most people seem unaware of the fact that we are also dedicated to defeating competing formations of capitalism. The E.U. is just such a formation and the Euro does threaten dollar hegemoney.
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No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."
-- Cecil Day-Lewis from Where Are The War Poets?
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