China Warns U.S. to Stop Its Ukrainian Proxy War Against Russia

It was the biggest news story of last weekend but because it was not favourable to the pro Obama, pro Corporate global dictatorship narrative that is imposed in us by mainstream media, there was not a mention of it in mainstream media.

So where did Little Nicky find it? On a nutty right wing site? No.
On a crazy conspiracy theory site like Before Its News? No.
On David Icke’s site? No
In Nigel Farage’s weekly love letter to Vladimir Putin (one of our leftie visitors thinks Farage and Putin are involved in a hot relationship :)) )
Well not that either …

So whas it on a respected and reliable centre – right leaning news feed like Reuters. Coooooooolllllllllddddddd Be.

OK, that was just for people who remember Hong Kong Fooey. But yes, Reuters did carry a news item about China wasrning the USA to stop killing Ukranians in the desperate efforts to provoke the Russians into starting a shooting war.

http://www.reuters.com/article/2015/02/27/us-china-ukraine-idUSKBN0LV0H120150227

A much-ignored huge news report from Reuters on Friday, February 27th, was headlined “Chinese diplomat tells West to consider Russia’s security concerns over Ukraine

China’s Ambassador to Belgium said that the “nature and root cause” of the Ukrainian conflict is “the West,” (Little Nicky and his friends at The Daily Stirrer told you that a year ago of course, everybody who wasn’t brain dead knows the Ukrainian revolution was engineered and backed by the USA, EU and NATO) The ambassador also warned that “The West should abandon the zero-sum mentality, and take the real security concerns of Russia into consideration.”

By “real security concerns,” the Chinese are clearly referring to NATO’s expansion right up to Russia’s border, and America’s surrounding Russia with U.S. military bases, now increasingly including the most strategic of Russia’s bordering countries: Ukraine.

In other words, this diplomat says: “the West” has a “zero-sum” attitude toward Russia, instead of seeking to move forward with an approach in which neither side among the nuclear superpowers benefits at the other’s expense — the entire world moves forward together.

This is a direct criticism of Barack Obama, and of all of the pro-Obama, anti-Putin, EU leaders.

It’s also an implicit repudiation of Obama’s having repeatedly referred to the U.S. as “the one indispensable nation.” (Another example of that phrase is here.) Obama keeps saying: every other nation, except the U.S., is “dispensable.” He clearly thinks that Russia is.

That’s not merely an insult: it’s an act of provocation; it is virtually asking for a fight. And all for what? For whose geopolitical advantage? Cui bono?

This criticism of the aggressive nationalist Obama does not come from China’s top leadership, but it would not have come at all if they had not approved of it in advance.

China thus now tells Obama: Stop it. Stop it in word, and in deed.

Implicitly, China is also telling Obama: China is not dispensable, either. Don’t fuck with us. In fact don’t fuck with anybody without our permission.

Like Russia, China does not give a damn about American exceptionalism or the delusional American worldview. The entire mentality, which Obama embodies, is not just callous and insulting; it’s dangerous.

Like President G.W. Bush, Obama is increasingly an embarassment to his country.

RELATED POSTS:

De-Dollarization Du Jour: Russia’s Largest Bank Issues Yuan-Denominated Guarantees
Leading the charge to multipolarity and de-dollarization are Russia, resugent despite economic sanctions and the rising superpower in waiting, China. The downgrading of the dollar is clearly demonstrated in the launch of the BRICS bank and the establishment of the AIIB.

Why Libya is ringing alarm bells in Italy
We have followed the deterioration of Libya since the Obama led FUKUS axis decided to overthrow Gaddafi because he was no longer doing what America wanted. It has not been a pretty story. Now, as Rome rings alarm bells over the deteriorating situation in Libya, The Daily Stirrer looks at the likely consequences in mainland Europe of a failed state across the Mediterranean.

EU and US talk of war with Russia
The European People’s Party (EPP) is the largest political group in the European Parliament, and they are unerringly supportive of America’s efforts to start a war with Russia. “The time of talk and persuasion with Russia is over,” MEP and Vice-President of the EPP told a meeting on Tuesday, 21 April, “Now it’s time for a tough policy, and concentration on defence and security …”
Russia Responds To Threats From EU’s Juncker With Typical BluntnessAmerica Becomes More Belligerent Towards Russia. Is It Time To Prepare For War
As USA politiians and military leaders in Washington beat the war drum more loudly and European leaders, particularly in Germany and France get more jittery, we ask will there be war and why do the Americans seem so set in a shooting war.

European Federalists Plan Military Dictatorship
EU on the fast track to pan Eurpean fascism
EU / US TTIP trade deal will put corporate power above national sovereignty
Eurogeddon: The European Union’s debt problem
The anti – integration rebellion in Europe
Plans for bigger Europe, extended to include Africa, middle east
European meltdown; the EU coming unglued
Does It matter If The Dollar Is Replaced?
De-Dollarization Accelerates As More Washington “Allies” Follow Australia To China-Led Bank

2015 The Story Of China, Russia, Iran and The Petrodollar Death

Not long ago as mainstream media prematurely celebrated Obama’s vicory over Putin in the Currency Wars we took a look at some economic fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%. If we assume a US GDP of $16.8 trillion (the figure for 2013, its $18.4 trillion today), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks and foreign investors and institutions (including the Dutch and British monarchies would you believe?), although it passes itself off as a state institution. US publicly held debt (The Fed’s holding of US Government treaury bonds) is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%.

The declaration of economic war by the US and EU on Russia, via the run on the rouble and the oil futures attack, was essentially a derivatives racket. Derivatives in theory may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem there is that the Russian economy is more soundly financed than America’s.

Read our economic war predictions for 2014. We will not be 100% correct and we would not even dream on trying to match our critics 110% record – of being utterly wrong in their case, but we will be around 80%ish. If our governments could get even half that, the country might have a future.

READ MORE OF OUR ECONOMIC INSIGHT

RELATED POSTS:

Russia throws down the gauntlet: energy supply to Europe cut off; petrodollar abandoned as currency war escalates
There are some big moves taking place on the global stage that you need to know about, as this could all lead to World War III. Yesterday Russia cut off its natural gas supply to Europe, “plunging the continent into an energy crisis ‘within hours’ as a dispute with Ukraine escalated,” the Daily Mail reported. “This morning, gas companies in Ukraine said that Russia had completely cut off their supply. Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of …Read all

Believe The Phoney Narrative Or Be Branded a Conspiracy Theorist.
Right now the west is in big trouble, the move led by Russia and China to dump the petrodollar as global currency has provoked the Americans to lead the wesern allies into an economic war that we cannot win. Why not? One word: debt. A shooting war is the only option but it’s by no means certain the allies would win that.

It’s Staring To Dawn On Economists That The Developed World’s Economic Problems Are Structural

Bombshell: It Has Begun — Germany to Break from US/UK, Join Russia/China Alliance!

I don’t think there is much substance in this report, but it’s worth looking at.

via The Event Chronicle

It is finally happening in full view, in unmistakable manner, in a way that the awake, the aware, and the conscious can perceive in alarming stunning terms.

The central force of Europe, the industrial juggernaut, the stable core, has begun to pivot East.

The Germans have had enough, fed up with destructive US activities of all kinds. For the last few months, they have been laying out their indictment, their justification, their reasons to abandon the corrupt US-UK crowd. The bank wreckage, the market rigging, the endless wars, the sanctions which backfire, the sham monetary policy, the economic sabotage, the spying, the gold gimmicks, it has finally reached a critical level.

Germany has begun to move East in full view. Only the deaf dumb and blind cannot notice, and they will probably never notice. They are fodder.

The awaited signals seen by the Jackass have finally arrived.

Continue Reading

China Warns Obama “US Is Moving In A Direction We Don’t Want To See”

Dispensing with the usual diplomatic language of nuanced bollocks, the Chinese government have been speaking unusually directly to US Defense Secretary Chuck Hagel as he tries to smooth the ground ahead of the Rent Boy President’s Asia trip later this month (scheduled to visit Japan, Malaysia, and the Philippines – all in direct territorial conflicts with China). Reuters reports, “Obama needs to pay serious consideration to this issue when he comes to Asia… China has already put this message across during the meetings with Hagel,” Ruan Zongze, a former diplomat with the China Institute of International Studies in Beijing said. “The United States is moving in a direction we don’t want to see, taking sides with Japan and the Philippines, and China is extremely unhappy about this.”

So All Quiet On The Western Front for a few days, but things are popping out east.

Kiss Your Money Goodbye – China Sells $48bn US Treasury Bonds

I told you so. Yes once again Little Nicky Machiavelli called it correctly and said the Chinese were ready to take down the US dollar and replace it with a new reserve currency based on the Renminbi.

What do you mean you didn’t read it here, Little Nicky has been blogging a long time and has always warned (since the days of Bush2) that the dollar was very fragile and as soon as China felt ready they could stage a coup and replace the USA as the world’s foremost economic power.

And it looks as if they are ready. The sell off of US treasury bonds spells out the message very clearly.

$48 billion may be a mouse turd sized chunk of the US paper the government of China holds but it’s a hell of a lot to sell in one chunk

Watch this Bloomberg video that explains fully the significance of the move.

RELATED POSTS: death by debt
The US dollar ponzi scheme
Feeding the monster
Fears about the US dollar
Politics – economy menu
Debt crisis menu

USA Talks War With Another Foreign Power

Remember the great peacemaker and joybringer, the man who promised he would succeed where King Canute failed by turning back the tide (well OK, stopping rising sea levels due to global warming – sea levels were not rising due to global warming but were and still are rising in subduction zones which is not quite the same thing) He was also the man who would unite the races of the world (in hatred of whitey) and unite the religions of the world (in hatred of Christianity.

And now he says he will tread in Mandela’s footsteps and be the first great liberator of the 21st century. Bet the people of Iran, Saudi Arabia, Burma, Syria etc. are shitting themselves.

All we hear from the great wannabe liberator is talk of war. A couple of months ago he wanted to attack Syria. Last month he wanted to attack Iran. Now we hear this:

“The U.S. needs to prepare for a potential war with China, according to a group of defense analysts at a U.S. House armed services subcommittee hearing this week.

At the hearing, the defense analysts told the U.S. House Armed Services’ Seapower and Projection Forces Subcommittee that the Pentagon should begin a massive arms build-up, including additional nuclear submarines, for a possible war with China.

“Chinese leaders are ambitious and they are moving toward great power status,” Seth Cropsey, a senior fellow at the D.C.-based Hudson Institute, said according to DoD Buzz. “The U.S. is not taking this possibility as seriously as it should.”

To respond to this threat, he added, the U.S. needs to develop a detailed war plan involving U.S. military assets.”

Read more at the US Military website DoD Buzz

Russia, China On War Alert As FUKUS Axis Prepares To Attack Syria

Another world shaking story that the free world’s mainstream media chose not to tell us about even though it should have dominated newspaper headlines and broadcast news bulletins for months. It tells of how Russia and China knew of Military / Industrial / Banking New World Order office boy Obama making plans with UK and France (the FUKUS Axis Of Evil) to start World War Three back in 2011. Everything Russian and Chinese intelligence predicted then has happened …

Read full post:
As FUKUS axis of evil prepares to attack Syria, Russia and China put on war alert

China has the back door.

In the previous post I reported that Russia had stationed six warships in the Mediterranean, presumably to deter US / Israeli / European ambitions to install a puppet govErnment in Syria and open the back door for a western strike on Iran (that’s what military experts are saying anyway)

Now we read this:

TOKYO: Three Chinese government ships entered the waters of disputed islands on Friday, Japan’s coastguard said, more than a year after the then-Tokyo governor set off the row by announcing plans to buy them.

The Chinese maritime surveillance vessels were spotted off the Senkaku islands, which China calls the Diaoyus, in the East China Sea at around 2:30 pm (0530 GMT), the coastguard said.

It is the latest episode in a fraught few months that has seen repeated stand-offs between official ships from both sides as they have jostled over ownership of strategically-important and resource-rich islands.

The territorial row blistered in September when Tokyo nationalized three islands in the chain, in what it said was a mere administrative change of ownership and one intended to pre-empt a more volatile purchase by nationalist Tokyo governor Shintaro Ishihara.

Tokyo’s move prompted angry anti-Japan demonstrations across China, which has intensified claims to the islands it says should have been “returned” in the post-World War II settlement Tokyo made. (full story, BBC News)

Unusually you can read about this in mainstream media.

Little Nicky Machiavelli will keep you updated on the progress towards World War Three. But do not despair, we can stop it even now. Minimize your lifestyle, stop consuming, send a message to the international bankers who are driving this push to conflict.

IT’S OUR WORLD, NOT YOURS

RELATED POSTS:
More posts on war

MORE FROM THE GREENTEETH STABLE

Boggart AbroadDaily Stirrer homeGreenteeth BitesBoggart BlogGreenteeth LabyrinthAuthorGatherBubblewsAuthorsdenScribd

Ian Thorpe at Facebook

Chinese Economy Heads For Crash – Little Nicky Told You So.

I told you and so did my friends at The Daily Stirrer. As demand in the west for China’s manufactured goods dried up due to falling economic activity in developed nations the Chinese economy would crash.

Well the depth of the recession in western nations might have been disguised by printing money (aka quantitative easing) but that inevitably results in inflation which erodes the value of earnings and savings.

Ergo people have less to spend on cheap tat from China.

So how does that affect us? It means China will have less money to buy the bonds western governments must sell to underwrite the value of the bonds they sell. Which will mean the value of money will fall further. Which will mean peoples’ earnings and savings will buy less. Which will mean economic activity will fall further which will mean … oh you should know how it works by now.

Anybody fancy a weekend break in Weimar?

RELATED POSTS:
China heads for deflationary shock

As Britain Goes Jubilee Mad It’s Business As Usual In The Eurozone

Little nicky’s friends at The Daily Stirrer has consistently reported the truth about the Euro crisis while mainsteam print and broadcast media have consistently tried to suggest there was nothing wrong that could nut be put right by simply mugging German taxpayers to bail out debt problems in basket case nations like Greece, Portugal, Ireland and Italy. Another basket case nation, one that compounded it’s economic folly by committing to expensive and almost totally inefficient “green” energy projects is Spain. Now as a Spanish economic collapse that will need another massive bail out from north Europeran taxpayers draws closer every day we hear that another small EU nation, Cyprus, has at last admitted it is bankrupt

Spain’s ruling party, only recently elected, has begun to crack under pressure, signalling for the first time that the country may need a European rescue to shore up its banking system.

Meanwhile even the mighty German economic behemoth is faltering as one of it’s main customers, China, feels the pich due to Economic contraction in the USA and Europe.

While British financial markets remained closed today for the Jubilee celebrations, the German stock market fell sharply on fears of US economic relapse after last Friday’s terrible employment figures and news of a sharp slowdown in China. Spanish, Italian and French shares rose slightly on hopes of new eurozone fiscal authority to control national budgets and manage debts As any such scheme depends on German financial stability a news pan European financial policy already looks a forlorn hope..

G8 Leaders Will Talk About Reducing The Price Of Oil

Leaders of major economic powers including David Cameron will arrive today at a G8 summit in the USA on the back of promises to help families “struggling with the impact of oil prices.” The summit, at the Camp David presidential retreat, will tomorrow discuss a US call for developed economies to release oil from their strategic reserves to try to bring down world oil prices. The White House is arguing that an EU embargo on Iranian oil will soon start to push up prices, a potential threat to Mr Obama’s reelection campaign.

“With families across the world struggling with the impact of oil prices and a fragile global economy, we must renew our joint efforts to support growth, financial stability and energy security,” Mr Cameron writes in an article published today.

In a newspaper article today, Mr Cameron will hint at plan to deplete oil reserves which will reduce prices temporarily but make the developed nations more vulnerable to oil exporting nations, many of which are hostile to the west, holding us to ransome in future by limiting supplies.

The Prime Minister first discussed the oil plan with mr Obama in March, when he said the idea was “worth looking at”. Diplomats said the oil plan will be discussed at Camp David on saturday morning, although no action will be announced this weekend.

Now Little Nicky does not like to pour cold water on good ideas but this is not a good idea. In fact, with oil prices being the biggest issue in the USA at the moment it looks very much like a stitch up to help Obama’s re – election bid. So in the end we the people are going to end up paying to get our greatest enemy, thre New World Order’s houseboy, the fifth-columnist-in-chief a second term in office.

It is all likely to be in vain however. Though Russia is not a G8 nation Vladimir Putin declined an invitation to a to attend while China has let it be know the USA is no longer the world’s most influential economic power (The Cinese government and its banks hold a huge amount of American debt and could reduce the USA to another Greeece tomorrow if they wished,) so things are not looking good for the G8 plan even before it gets off the ground.

RELATED POSTS:
The True hockey Stick

The Dollar Is Sinking – Man The Lifeboats

Quite recently, back in August I think, The Daily Stirrer, the publication that Little Nicky Machiavelli does most of his work for now, predicted the demise of the $US as China decided not to buy any more US Treasury bonds and to demand interest payments due on the $2trillion of US bonds they hold in gold bullion rather than cash.

Last week the United States suffered the indignity of having to stand by, powerless as small South East Asian nations including Malaysia, Singapore and Hong Kong (not acutally a nation but an autonomous province of China) had to step in and buy up billions of dollars that were flooding the world markets in order to protect the value of their own holdings.

Is this another example of the “change” Barack Obama promised?

The old Chinese curse goes, “May you live in interesting times.”

We do, we surely do.

The Dollar Is Sinkng, Man The Lifeboats.

Labour, Mandy and the Glasgow Drunk.

Billy Connolly used to do a routine about a Saturday night drunk in Glasgow staggering to the all night bus stop but only striding forward with one leg and so going round in circles. In bringing back the universal sleazebag Peter Mandelson to mainstream politics, Gordon Brown is, is he not, at risk of turning the reinvented Labour Party (NuLab) into a pastiche of that comedy routine.

As if to underline the point Mandelson’s first pronouncement on rejoining the government concerned the economic crisis. The man who once wore a dead slug on his top lip (the gayest moustache east of San Francisco) informs us the only way to get out of the mess that has caused meltdown in financial markets around the world is MORE globalisation.

Is this political homeopathy I wonder or is it the alcoholic’s hair of the dog approach to curing hangovers. I lean toward the hair of the dog myself (it could actually have been a dog turd Mandy had on his top lip) because Mandelson is a hooked on power as any alkie is on booze.

Solving the problems of globalisation by pushing more globalisation is not an answer for the simple reason that China and India rather than the western economies are in the driving seat now. Advocates of globalisation claim it has reduced poverty but that is just spin and statistical trickery. Which is probably why Mandelson is a fan.

Since 1981 which was about the beginning of globalisation addiction among politicians and economists the number of people living on less than a pound a day has fallen. This is not due to the opening of third world markets to the west but to industrialisation in China and India. The measure of poverty is spin also. Since 1981, despite inflation statistics being rigged by spin doctors the cost of living, particularly of basic items like food and fuel has risen astronomically. People now living on £2 per day are now poorer that people who were living on £1 a day in 1981.

So Mandelson has not even taken his seat at a cabinet meeting yet and already he is peddling the lies of his corporate paymasters.

Good work Mandy, keep it up. Single handedly you could ensure Labour is totally wiped out at the next election.

Keep trackof our blogs and comments at Greenteeth Blog Index

Interesting Times

“May you live in Interesting Times” goes the old Chinese curse.
We do, we do.
In the past few months the American government has been negotiating with the right – leaning regimes in new EU member nations Poland and The Czech Republic with the intention of putting “Son of Star Wars” Missile Defence Shields in those countries. In both nations public opinion polls consistently show two thirds of the population are against their nation’s involvement in America’s world domination plans.
Despite that and despite Russia’s warnings that if there is to be an American presence in bordering states it will have to “review its defence strategy” both governments are eager to go ahead. Since the break up of the Soviet Union the EU has benefitted from improving relations with Russia.
America also has plans to put “SoSW” bases in friendly Pacific Rim countries.
Only last week China tested a missile powerful enough to use as a “battering ram” that could take out spy satellites without having to carry a warhead.

In the Middle East a build up of U.S. troops and military hardware puts pressure on Iran but at the same time brings Iran (and Syria and Egypt) closer to China and Russia. Which way India and Pakistan will go is anybody’s guess, but you gan bet they will go in opposite directions.

You just have to join up the dots to see the big picture.

How Saddam May Yet Win The War

When Saddam Hussein is not in a courtroom he is safely locked up in prison somewhere in Iraq and like all right minded people I hope he stays there once his trial is ended. Unfortunately that hope may be in vain for even from a prison cell the old tyrant may yet disrupt our lives. When the neo – cons in the White House were whipping up the American people and Tony Blair to support the case for invading Iraq and overthrowing the regime, they failed to see the big picture. Economic tunnel vision seems to run in the Bush family but I suspect some of the others did realise what was going on in the world economy but chose to exploit short term economic opportunities and let the ordinary people of America suffer later.
It is about four years now since Saddam made his most astute move ever although it was probably done in a fit of petulance rather than with foresight. Maybe however some Iraqi economists did know the true state of the American economy when they advised their president to demand payment in Euros for Iraq’s oil. The U.S.A. far more than any other nation except perhaps Switzerland depends on the strength and stability of its currency. Exports are weak, the national debt is out of control and trade deficits are insupportable. If the dollar was not the currency the world trades, the U.S.A would be, if not quite a basket case of African levels then certainly in no better economic shape than “walking wounded” like Brazil and Mexico.
The American economy is both beneficiary and victim of the fact that the dollar is the world’s reserve currency. Whatever nations buy from across national borders they must pay for in dollars and whatever they bring to the world market to trade they want to be paid in dollars for. So it does not really matter how big the US deficit on oil, steel, foodcrops and coffee because what Uncle Sam is really selling in the world market is the dollar. This means the Federal Reserve Bank can print dollars to buy whatever the consumers demand.
The situation had persisted since the British economy crashed and burned in the early nineteen – sixties. The pound is still a trading currency but mostly within the British Commonwealth. In the world market a wodge of British wonga no longer begs the question “how much of our stuff would you like, sir?” but “how many dollars will that monopoly money buy, schmuck?” No matter, we own enough of America to ensure we have a ready supply of dollars flowing in through our holdings in the Caymans, Bermuda, The Isle of Man etc. World trade is truly wonderful.
The happy situation of dollar supremacy would have continued but for the push towards European integration. After the fall of the Soviet Union certain economists and political philosophers (mostly in France and Germany) decided that to have only one superpower would be bad for the world community. Another trading bloc was needed and the European Union could easily be adapted to fill the void.
It is easy to follow the reasoning, around 70% of the world’s currency reserves are held in dollars which of course means that essential commodities, particularly oil, are valued in dollars. While the U.S.A. controls the money supply in effect it gets imports for free. As a bonus most of the dollars that other nations have worked hard to earn have to be invested back in the U.S. economy. It is so smart we should be surprised the Mafia did not think of it first.
In spite of its recent enlargement the European Union’s economy suffers from none of the systemic weaknesses of the American economy. This being so, the Euro is the only serious competitor to the Dollar as a world currency. There we have one of the true, but unmentionable, reasons why The White House was so anxious to bring about regime change in Iraq. Now American interests control Iraq’s oil it is once more priced in dollars.
The lesson has not been lost on people who are not friends of America however.
The nations of the Middle East do more trade and have better political relationships with Europe, the EU imports more oil and the European economies are cashflow based rather than debt based and so are more sustainable in adverse trading conditions. There have already been rumblings from within OPEC (the Organisation of Petroleum Exporting Countries) that a switch from dollars to euros for pricing oil could be a serious option. Should Europe’s two main oil producers, Britain and Norway adopt the euro it could well be the tipping point at which a switch by OPEC becomes not possible but inevitable. On top of that there is another risk. Western News Media portray Al Qaeda as an organisation intent upon destroying western civilisation but this is a dangerous over estimation of terrorist ambitions. There are surely terrorist cells around the world who meet in gloomy basements and mutter darkly through beards of mass destruction about the downfall of the decadent west and the triumph of Islam but Osama bin Laden is certainly neither mad nor stupid. He knows well the American collective psychology, the siege mentality that sees enemies (and Satan) lurking behind every rock and tree along the borders. The destruction of the World Trade Centre was a perfect tactical move and in his response George W. Bush played right into the terrorists hands. Now with the threat is inflated beyond all feasibility in the American psyche and the death toll in Iraq creeping past a thousand, isolationism is starting to look like a good option to American voters. A shift to a more inward looking stance on foreign policy could well open the way for a Bin Laden inspired coup in Saudi Arabia, overthrowing the House of Saud and replacing it with an Islamic fundamentalist regime. And with the fundamentalists pulling the strings in the world’s main oil producing area you can bet the exodus from the dollar would be rapid and total.
The American currency is already weak in world markets, the past twelve months have seen first a decline against other major currencies and now a resurgence. The situation is so far out of America’s control that with either a weak or a strong dollar they are the losers. The weak dollar mean imports, particularly oil, get more expensive and Americans regard the right to cheap gasoline alongside the right to free speech and the right to have bed dress sense. A strong dollar means America’s exports get dearer and a country already up to its neck in debt cannot afford a drop in its income from exports. Finally the American domestic economy is consumer led. A few hikes in the price of gasoline will cause panic to set in and people will stop spending. And then the trouble starts.
Central banks have started to shift reserves into more stable currencies and create a snowball effect. With demand for its main trading commodity diminishing the US economy faces possible collapse and America’s position as the world’s strongest nation looks precarious.
Europe may constitute a significant threat to America’s domination in trade but whereas the Soviet Union was a military superpower but an economic island, Europe and the U.S.A. are allies militarily but economic competitors that, under the unwritten rules of free market economics, would have go head to head in a trade war like two bull elephants. Free market economics compels all participants to compete for a bigger share of the cake at a time when America is more vulnerable than it has been in well over a century.
The problem in predicting how this poker game will be played out is that there is a third power and nobody truly know what kind of hand they hold. The Chinese are a military power, not so well armed in high – tech weaponry but with strength of numbers and a more compliant population. The risk of upsetting China, and the possible consequences of that may thwart America’s political ambitions but all the while the vast dollar reserves China holds can be used to influence the world economy in ways that suit the Chinese government.
The only way to avert a series of economic crises in the coming is for the other nations of the industrialised world to persuade America to adopt a more responsible and internationalist attitude to the obligations that go with its role as the world’s most powerful nation. Before we can begin to do that though, the American people must play their part by making sure the political establishment understands that being the biggest and the richest does not absolve a nation from its moral duty to the world community as a whole.
Before plunging into a war in Iraq, a war that Saddam Hussein knew he could not win on the battlefield, the U.S. Government and that of Britain should have consulted with experienced diplomats of other nations. In the west we are ruled by short – termism. The troops were in Baghdad within a month, a great triumph was proclaimed. It should have been all over but anyone experienced in Middle Eastern affairs would have advised that the Arab mindset is different and well suited to playing a long game.
So far the war has gone the way Saddam would have predicted. He knew his army could not withstand the assault, even if the British had not been involved the Iraqis would have been overwhelmed. But America has been sucked into a prolonged and costly occupation that has done inestimable damage to its standing in the world.
The consequences of a collapse of the global economy could result in global cultural war and plunge the world into a new dark age. The message that G8 has failed to send to the White House is that the world needs a strong and confident and outward looking America but America needs a supportive world community in order to regain its confidence and its sense of moral duty. If that message is not heeded soon then Saddam will truly have won the war.

Ian slams the madness of free market economics in
Holy City, a savage indictment of the attitudes that let to the global economic meltdown.