The US dollar is still officially the world's
reserve currency, but it cannot purchase the services of Brazilian super model
Gisele Bundchen. Gisele required the $30 million she earned during the first
half of this year to be paid in euros.
Gisele is not alone
in her forecast of the dollar's fate. The First Post (UK) reports that Jim
Rogers, a former partner of billionaire George Soros, is selling his home and
all possessions in order to convert all his wealth into Chinese yuan.
economists continue to preach that offshoring is good for the US economy and
that Bush's war spending is keeping the economy going. The practitioners of
supply and demand have yet to figure out that the dollar's supply is sinking
the dollar's price and along with it American power.
The macho super
patriots who support the Bush regime still haven't caught on that US superpower
status rests on the dollar being the reserve currency, not on a military unable
to occupy Baghdad. If the dollar were not the world currency, the US would have
to earn enough foreign currencies to pay for its 737 oversees bases, an
impossibility considering America's $800 billion trade deficit.
When the dollar
ceases to be the reserve currency, foreigners will cease to finance the US
trade and budget deficits, and the American Empire along with its wars will
disappear overnight. Perhaps Bush will be able to get a World Bank loan, or
maybe one from the "Chavez bank," to bring the troops home from Iraq
observing that offshoring and war are accelerating America's relative economic
decline, no longer treat the US with the deference to which Washington is
accustomed. Ecuador's president, Rafael Correa, recently refused Washington's
demand to renew the lease on the Manta air base in Ecuador. He told Washington
that the US could have a base in Ecuador if Ecuador could have a military base
in the US.
president Hugo Chavez addressed the UN, he crossed himself as he stood at the
podium. Referring to President Bush, Chavez said, "Yesterday the devil
came here, and it smells of sulfur still today." Bush, said Chavez, was
standing "right here, talking as if he owned the world."
In his state of the
nation message last year, Russian president Vladimir Putin said that Bush's
blathering about democracy was nothing but a cloak for the pursuit of American
self-interests at the expense of other peoples. "We are aware what is
going on in the world. Comrade wolf knows whom to eat, and he eats without
listening, and he's clearly not going to listen to anyone." In May 2007,
Putin criticized the neocon regime in Washington for "disrespect for human
life" and "claims to global exclusiveness, just as it was in the time
of the Third Reich."
British allies regard President Bush as a threat to world peace and the second
most dangerous man alive. Bush is edged out in polls by Osama bin Laden, but is
regarded as more dangerous than Iran's demonized president and North Korea's
President Bush has
achieved his dismal world standing despite spending $1.6 billion of
hard-pressed Americans' tax money on public relations between 2003 and 2006.
leader and America's currency are poorly regarded. Is there a solution?
Perhaps the answer
lies in those 737 overseas bases. If those bases were brought home and shared
among the 50 states, each state would gain 15 new military bases.
Imagine what this
would mean: The end of the housing slump. A reduction in the trade deficit. And
the end of the war on terror.
Who would dare
attack a country with 15 new military bases in every state in addition to the
existing ones? Wherever a terrorist turned, he would find himself surrounded by
All of the dollars
currently spent abroad to support 737 overseas bases would be spent at home.
Income for foreigners would become income for Americans, and the trade deficit
The impact of the
737 military base payrolls on the US economy would end the housing crisis and
bring back the 140,000 highly paid financial services jobs, the loss of which
this year has cost the US $42 billion in consumer income. Foreclosures and
bankruptcies would plummet.
If this isn't enough
to turn the dollar around, President Bush's pledge not to appoint an attorney
general if Michael Mukasey is not confirmed offers more promise. If the
Democrats will defeat Mukasey's nomination, there are other superfluous cabinet
departments that can be closed down in addition to the US Department of Torture
and Indefinite Detention.
The American empire
is being unwound on the battlefields of Iraq and Afghanistan. The year is two
months from being over, but already in 2007, despite the touted
"surge," deaths of US soldiers are the highest of any year of the
The Taliban are the
ones who are surging. They have taken control of a third district in Western
Afghanistan. Turkey and the Kurds are on the verge of turning northern Iraq
into a new war zone, another demonstration of American impotence.
Bush's wars have
endangered America's puppet regimes. Bush's Pakistani puppet, Musharraf, is
fighting for his life. By resorting to "emergency rule" and oppressive
measures, Musharraf has intensified his opposition. When Musharraf falls,
thanks to Bush, the Islamists will have nukes.
used to say that the wars Bush started in the Middle East would take 10 years
to win. On Oct. 31, General John Abizaid, former commander of US forces in the
Middle East, put paid to that optimistic forecast. Speaking at Carnegie Mellon
University, Gen. Abizaid said it would be 50 years before US troops can leave
the Middle East.
There is no
possibility of the US remaining in the Middle East for a half century. The
dollar and US power are already on their last legs, unbeknownst to Democratic
leaders Pelosi and Reid who are preparing yet another blank check for Bush's
latest request for $200 billion in supplementary war funding.
There isn't any
money with which to fund Bush's lost war. It will have to be borrowed from
The Romans brought
on their own demise, but it took them centuries. Bush has finished America in a
mere seven years.
Even as Gisele
throws off the dollar's hegemony, Brazil, Venezuela, Ecuador, Bolivia,
Argentina, Uruguay, Paraguay, and Columbia are declaring independence from the
IMF and World Bank, instruments of US financial hegemony, by creating their own
development bank, thus bringing to an end US suzerainty over South America.
An empire that has
lost its backyard is finished.
Craig Roberts [email him] was Assistant Secretary of the Treasury in the
Reagan Administration. He is the author of Supply-Side
Revolution : An Insider's Account of Policymaking in Washington; Alienation
and the Soviet Economy and Meltdown:
Inside the Soviet Economy, and is the
co-author with Lawrence M. Stratton of The
Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the
Constitution in the Name of Justice. Click here for Peter
Brimelow�s Forbes Magazine interview with Roberts about the recent epidemic of