TO STRENGTHEN THEIR FAILING DOLLAR & WEAKEN THE EURO, WHAT THE AMERICAN POLITICIANS NEEDED WAS A DEADLY ATTACK ON THE USA SIMILAR, SIMILAR TO JAPAN'S ATTACK ON PEARL HARBOR; & IT HAPPENED THRU THE TERRORIST ACT - A FALSE EXCUSE TO CONQUER & CONTROL THE MIDDLE EAST -  FROM CONQUERING AFGHANISTAN & IRAQ TOWARDS THEIR REAL GOAL A NUCLEAR ATTACK ON IRAN IN THE NEAR FUTURE

Understanding the war on gives great insight to Bush's war on Iraq & eventually Iran.

IN 2002 MOST JOURNALISTS WERE BLIND TO SEE WHAT WERE BEHIND THE ACCUSATIONS THAT IRAQ STILL HAD THE WEAPONS OF MASS DESTRUCTION, SUPPLIED TO SADDAM BY THE AMERICANS. THE PUBLIC WAS BRAINWASHED - FROM BUSH'S SEEKING OUT TERRORISTS TO DESTROYING WMD TO ENDING TYRANNY; NO DIFFERENT THAN TODAY'S PROPAGANDA WHEREAS MOST PEOPLE ARE BEING BRAINWASHED INTO BELIEVING THE AMERICAN/ISRAEL ACCUSATIONS THAT IRAN HAS PLANS FOR NUCLEAR WEAPONS. IRAN DOES HAVE PLANS FOR ITS NUCLEAR POWER [AS WELL AS OIL & WATER EXPORTS] IN REGARDS TO HYDRO SALES TO COUNTRIES LIKE INDIA & PAKISTAN.

• Nearly the whole world needed American dollars, so they were accepted nearly everywhere.

• For decades, the amount of dollars outside the US was generally growing. Then came the Euro.

• Throughout 2003-2004 both Russia & China significantly increased their central bank holdings of the euro, which appears to be a coordinated move to facilitate the anticipated ascendance of the euro as a second World Reserve Currency.

• WITHIN THE NIXON ERA, C/W VIETNAM - THE USA HAD TO HAVE ENOUGH GOLD TO COVER THE AMOUNT OF AMERICAN DOLLARS PRINTED - THAT WENT ASTRAY & THE AMERICAN WORLD CREDIT CARD TOOK OVER.

• IT IS NOT A POINT OF OIL SHORTAGE, BUT A LACK OF AMERICAN DOLLARS TO FILL THE GOLD RESERVES THAT THEY DO NOT HAVE.

Iraq's destiny had already been sealed in the neo-conservatives' plans even before Bush Jr. entered the White House.

• The US is world's biggest oil consumer (25 percent of global oil consumption) & most of world's oil reserves are in the Middle East: Saudi Arabia (26 percent), Iraq (11.5 percent), Kuwait (10 percent) and Iran (13 percent).

• Iraq seemed already under control, as it had been paralyzed since 1991 by the embargo.

Sadam seemed already beaten.

• However, in 1997, Iraq had been allowed to export oil in the Oil For Food program. In 2000 Sadam asked the UN to convert the account of the Oil For Food program from dollars into euros . The UN had no legal base to refuse it.

• From November 2000 Iraq sold its oil in euros. A political move & one that improved Iraq's recent earnings thanks to the rise in the value of the euro against the dollar.

• AMERICANS HAD TO BUY IRAQ OIL IN EURO CURRENCY AS WOULD EVENTUALLY BE THE CASE WITH THE FUTURE IRAN'S PLAN TO ALSO GO TO THE EURO DOLLAR

• WHEN SADDAM HUSSEIN DENIED THE AMERICAN DOLLAR FOR OIL SALES, HE SEALED HIS FATE,

• HIS DEMAND OF ONLY USING THE EURO DOLLAR IN 2000 CREATED A NEED TO RID HIM

• SADDAM & IRAQ WERE JUST A CONTINUATION OF AMERICA'S WAR AGAINST

• ISRAEL NEEDS OIL & IS  ASSURED OF IT, INDIRECTLY FROM IRAQ THRU THE USA & ISRAEL NEEDS LEBANON PIPELINES ALSO FOR OIL & FOR

   

  THE AMERICAN DOLLAR EXCHANGE IS WHAT THE MIDDLE EAST CRISES IS ABOUT

  When Iraq switched to the euro it reduced the market share for the permanent demand for dollars, & thus this reduced the upward force on the dollar rate.

  It  permanently limited America's free shopping. The USA lost its unlimited access to Iraqi oil & had to buy euros.

  In 2002 the White House began spreading rumors of Iraq's WMDs & prepared to invade Iraq.

  In March 2003, the US overruled the Security Council & attacked Iraq.

  ON JUNE 6/03 THE IRAQI OIL TRADE WAS SWITCHED BACK FROM EUROS TO THE AMERICAN DOLLAR

It is obvious the invasion of Iraq had less to do with any threat from Saddam's long-gone WMD & less to do with fighting International terrorism, but a lot to do with gaining strategic control over Iraq's hydrocarbon reserves.

Ironic is the fact that the Taliban are friends of the USA & supported in it's fight to rid Afghanistan of the USSR, but when the job is done, friendship is over; Bin Laden is friends of Bush & his elite, []  but when the job is done, so is the friendship; Saddam Hussain is the puppet friend of the USA under Reagan, but when his use to attack Iran with USA's was over, so was the friendship.

The USA's Bush/Cheney administration entered into office with full intention of toppling Saddam. Operation Iraqi Freedom was obviously a war designed to install a pro USA government & place U.S. military bases throughout Iraq & reconverting Iraq back to American oil dollars.

IRAN'S REAL THREAT IS NOT NUCLEAR, but far more dangerous to the US.

Iranian Oil Bourse threatens the historic role of the US dollar as the world's reserve currency.

• The word "bourse" refers to a stock exchange for securities trading, & is derived from the French stock exchange in Paris.

• Prior to the 1979 Iranian revolution, Iran, which was on friendly terms with Israel, provided its oil requirements. That arrangement ended in 1979 when the new Iranian revolutionary regime cut ties with Israel. Such action towards Israel  also involves the USA's wrath.

• Recent articles have revealed active Pentagon planning for operations against its suspected nuclear facilities. While the publicly stated reasons for any such overt action will be premised as a consequence of Iran's nuclear ambitions, there are again unspoken macroeconomic drivers underlying the second stage of petrodollar warfare - Iran's upcoming oil bourse.

• In essence, Iran is about to commit a far greater "offense" than Saddam Hussein's conversion to the euro for Iraq's oil exports in the fall of 2000. The Tehran government has plans to begin competing with New York's NYMEX & London's IPE with respect to international oil trades - using a euro-based international oil-trading mechanism.

• The proposed Iranian oil bourse signifies that without some sort of US intervention, the euro is going to establish a firm foothold in the international oil trade.

• the Iran/India pipeline, as well as the United Arab Emirates is a concern [more Euro trading]

• the Iran/Pakistan is a concern [more Euro trading]

• Given U.S. debt levels & the stated neoconservative project of U.S. global domination, Tehran's objective constitutes an obvious encroachment on dollar supremacy in the crucial international oil market.

• The oil price pumps the dollars into the oil trade; for each extra dollar needed by the USA, seven times more dollars are needed abroad - 85 percent of the international oil trade takes place outside the USA. To make up for the loss of the Iranian trade the oil dollar increase had to be substantial. A few hurricanes helped the USA & the rest of the world's oil consumers accepted that this was the cause of the fuel shortage.

• "A successful Iranian bourse will solidify the petro-euro as an alternative oil transaction currency, & thereby end the petrodollar's hegemonic status as the monopoly oil currency.

  • Up to 1971, each US dollar represented a fixed amount of gold.

  • During the Vietnam War, the US had printed & spent more money than their gold reserves allowed.

  • President Nixon had to abandon the gold guarantee.

  • Since then the dollar value is determined by the law of offer & demand on the exchange market.

  The year Nixon abandoned the gold standard, the Oil Producing & Exporting Countries (OPEC) agreed they would only accept US dollars in payment for their oil.

  • This had a major advantage for the US: all other countries would have to buy dollars first before they can obtain oil. This creates a permanent demand for dollars.

  • Those foreign countries account for roughly 85 percent of the international oil trade.

  • This is the part of the oil trade that takes place outside the US, between oil producing countries & foreign countries.

  • Oil commerce always consumes more dollars. Global consumption increases, which raises demand for the dollar & allows the US to increase its production of dollars.

  • Since these dollars are needed outside the US, they have to be made available abroad.

  • Each additional dollar abroad has meant it had to leave the US, the US has spent it abroad, & it has increased the US debt.

  • As a spiral the annual amounts have gone up & continue to increase, the national debt is increasing explosively now, at over eight trillion dollars ($8,000,000,000,000). 45 percent is owed to foreign creditors.

As Iran creates a growing demand for euros the results effect the exchange rate between dollars & euros.

• If oil prices in euros get lower than the oil prices in dollars, there will be a rush on euros & the opposite holds true.

• As other oil producing countries switch to the euro, there will be flood of superfluous dollars on the exchange market, dropping the value of the American dollar.

• Until the USA has Iraq under its control they cannot Invade Iran & turn the Iranian oil trade back into dollars, so a less popular method had to be used, [of course an invasion from Israel towards Iran would be American supported & backed].

Iran's move to the euro is logical; Iran sells 30 percent of its oil production to Europe & the rest mainly to India & China. The Iranian oil price was still labeled in US dollars, but customers do not have to exchange their money into dollars anymore.

Germany & Japan control the world's credit, providing more than half the world's "surplus" savings. If they ever decided to stop lending to their prime debtors, Britain & the United States, the world economy would quickly change.

• Since 2000, the percentage of U.S. public debt owed to foreigners has doubled. Foreigners hold just over $2 trillion, or 44 percent, of federal public debt outstanding. Japan alone now holds more than $680 billion; China, $242 billion; United Kingdom, $160 billion; & Caribbean Banking Centers, $103 billion (U.S. Department of the Treasury).
  The total national debt of the United States was $7.9 trillion.

• Every man, woman & child in the United States owes more than $26,500 in federal debt & it is steadily increasing.

• & that is just the federal debt, which does not include the $53 trillion hidden debt that USA Today says the "federal, state & local governments need immediately to repay debts & honor future benefits promised under Medicare, Social Security & government pensions" (Oct. 3, 2004).

• Added to personal debt, the article estimates the hidden debt weighing on each household's obligation as taxpayers to be about $473,000!

In mid-2003 the euro was valued approx. 13% higher than the dollar, & thus significantly impacted the ability of future oil proceeds to rebuild Iraq's infrastructure).

Not surprisingly, this detail has never been mentioned in the five U.S. major media conglomerates who control 90% of information flow in the U.S. [ & ];this vital fact provides insight into one of the crucial overlooked rationales for 2003 the Iraq war.

More nations are starting to diversify their reserves out of U.S. assets. One way a country reduces its exposure to reserves of another nation is by selling that nation's bonds; in other words, selling that nation's currency. When a country sells American dollars, it increases the dollar supply relative to demand, causing the value of the dollar to drop.

1. the falling American dollar increases the cost of imports, giving rise to inflation. Any goods manufactured in foreign countries, whose currencies are increasing in value versus the dollar, would become more expensive. Companies like Wal-Mart, which sell mostly foreign-produced goods, will suffer big time.

2. America is falling from its seat of power & will be replaced on the world scene - just as Britain was toppled & every other empire that has dominated the world. That is the main lesson America is forgetting: The nation is proving to be no different than any other nation that has risen to power & then fallen.

3. America's ballooning debt will contribute to the greatest fall in history. At some point, the huge increases in American debt will help to convince foreigners that America is not a safe place to invest in. If America is ever considered economically unsafe for foreign money, that money will rapidly disappear. & once the foreign money is gone, it will leave Americans with a mountain of debt that cannot be easily repaid.
    

Graphic of Dollar rate versus euro from 1998 to 2006, made with data from http://fx.sauder.ubc.ca/data.html

Current geopolitical tensions between the United States & Iran extend beyond the publicly stated concerns regarding Iran's nuclear intentions, & likely include a proposed Iranian "petro-euro" system for oil trade. Similar to the Iraq war, military operations against Iran relate to the macroeconomics of 'petrodollar recycling' & the unpublicized but real challenge to U.S. dollar supremacy from the euro as an alternative oil transaction currency.

HOW FAR WILL THE WHITE HOUSE GO TO KEEP WORLD DOMINATION

From the autumn of 2004 through August 2005, numerous leaks by concerned Pentagon employees have revealed that the neoconservatives in Washington are quietly - but actively - planning for a possible attack against Iran. In September 2004 Newsweek reported:

• Deep in the Pentagon, admirals & generals are updating plans for possible U.S. military action in Syria & Iran.

• The Defense Department unit responsible for military planning for the two troublesome countries is "busier than ever," an administration official says.

• Some Bush advisers characterize the work as merely an effort to revise routine plans the Pentagon maintains for all contingencies in light of the Iraq war.

An article in The American Conservative by intelligence analyst Philip Giraldi:

• "In Case of Emergency, Nuke Iran," suggested the resurrection of active U.S. military planning against Iran - but with the shocking disclosure that in the event of another -type terrorist attack on U.S. soil, Vice President Dick Cheney's office wants the Pentagon to be prepared to launch a potential tactical nuclear attack on Iran - even if the Iranian government was not involved with any such terrorist attack against the U.S.:

The Pentagon, acting under instructions from Vice President Dick Cheney's office, has tasked the United States Strategic Command (STRATCOM) with drawing up a contingency plan to be employed in response to another 9/11-type terrorist attack on the United States.

• The plan includes a large-scale air assault on Iran employing both conventional & tactical nuclear weapons.

• Within Iran there are more than 450 major strategic targets, including numerous suspected nuclear-weapons-program development sites. Many of the targets are hardened or are deep underground & could not be taken out by conventional weapons, hence the nuclear option.

• Iran is being set up for an unprovoked nuclear attack

• October 28, 2004 Iran & China signed a huge oil & gas trade agreement (valued between $70 - $100 billion dollars.) China currently receives 13% of its oil imports from Iran. In the aftermath of the Iraq invasion, the U.S.-administered Coalition Provisional Authority (CPA) nullified previous oil lease contracts from 1997-2002 that France, Russia, China & other nations had established under the Saddam regime. The nullification of these contracts worth a reported $1.1 trillion created political tensions between the U.S & the European Union, Russia & China. The geopolitical risks of an attack on Iran's nuclear facilities would surely create a serious crisis between Washington & Beijing.

THE USA's POLITICIANS & MILITARY LEADERS PUSH DEMOCRACY ON ARAB NATIONS, LIKE IRAQ, PALESTINE & LEBANON; WHEN THESE VOTE IN A GOVERNMENT THE USA/ISRAEL DOES NOT LIKE, THEY ARE ATTACKED IN MERCILESSLY WITH WMD.

YET THE USA BUYS 90% OF THEIR GOODS FROM ONE COMMUNIST COUNTY CHINA LOSING THOUSANDS OF AMERICAN JOBS IN DOING SO. IF THE MILITARY BROUGHT HOME ALL ITS SOLDIERS THERE WOULD PROBABLY EXIST UNEMPLOYMENT SO GREAT THAT THE USA COULD BE LABELLED A BANKRUPT COUNTRY & THE AMERICAN DOLLAR WOULD BE WORTHLESS.