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The Dollar Paper Tiger

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    Coup d Etat in Washington and The Dollar Paper Tiger Fiery Dragon in Asia and the Pacific by Andre Gunder Frank 3 June 2004
    Message 1 of 1 , Jun 7, 2004
      Coup d'Etat in Washington and "The Dollar Paper Tiger"
      Fiery Dragon in Asia and the Pacific

      by Andre Gunder Frank
      3 June 2004


      Editors note

      We bring to the attention of our readers this essay by Professor
      Andre Gunder Frank, one of the World's leading and most distinguished
      political economists.

      Frank analyses the relationship between militarisation and the crisis
      of the US dollar as a World currency.

      The essay provides a comprehensive perspective on the evolving New
      World Order, its structural weaknesses and contradictions.

      More importantly, it enables us to understand the economic
      underpinnings of the Neocons "war on terrorism."

      This essay consists of the following parts:

      Coup d' État in Washington

      Paper Tiger - The United States and the World

      Fiery Dragon: China in East Asia

      André Gunder Frank is currently an Associate of the Luxembourg
      Institute for European and International Studies, Luxembourg and
      Senior Fellow, World History Center, Northeastern University, Boston,

      For details on André Gunder Frank`s writings, see


      Political Background

      Recent events in Iraq that require no further elucidation here make
      this essay now more timely than when it was written.

      For this essay is a combination of two related articles:

      First, my earlier paper focusing on the 2000 [Election] Coup d'Etat.
      This paper related to the illegitimacy of the Bush government and the
      long standing agenda of the Cheney group which has made another Coup
      within the Bush Coup.

      Secondly, my paper on the paper tiger, concerning the underlying
      Achilles heels vulnerability of American power that rests only on the
      paper dollar and the military Pentagon.

      Vice President Gore's major speech damning the policy of the Bush
      administration and calling the President himself incompetent, as he
      surely is, nonetheless judiciously avoided any direct mention of the
      illegitimacy of the president and his administration.

      Bush's presidency was derived from a veritable coup d' Etat, not in
      having lost the popular vote, but first in having also lost the vote
      in the key state of Florida and "won" it through fraud and violence.

      And then they violated the fourteenth amendment of due process
      through the stacked vote in the Supreme Court and its refusal to let
      anybody abide by due process.

      Moreover, not only did Dick Cheney manage the entire transition to
      and construction of the Bush administration, but as Vice President he
      has continued to run the President's show from behind the scenes.
      That is so much so that after their joint three hour testimony to the
      9/11 commission about their Iraqi malfeasance, the New York Times was
      moved to editorialize that it made evident that the President is no
      more than a puppet managed by the Vice-President.

      And as we know and the coup part of this essay further documents, the
      Vice-President himself was captured and molded to its own ends of
      long standing by a team of the PNAC – Program for the New American
      Century – maniacal adventurers, led by "Wolfowitz of Arabia."

      This illegitimacy of the President and his administration's
      inauguration now takes further significance with the revelations that
      after having lied to the electorate, they have continued to lie and
      mislead the American public and the world regarding the State of the
      Nation and that of the world, as well as with regard to the
      devastating impacts of their foreign and domestic policies.

      The documentation is overwhelming, but not even the tip of the
      iceberg is yet emerging that the Administration and President Bush
      himself have consistently lied and covered up about September 11,

      They have lied about security and have deliberately weakened it and
      have themselves terrorized the American public, not to mention that
      they have torn the Bill of Rights to shreds and otherwise have
      violated the Constitution.

      By sending the machine gun toting National Guard into every airport
      in the country, they are every day violating the Posse Comitatus Act
      that prohibits military participation in domestic civilian affairs
      that has stood since 1878. They have also violated a more recent law
      prohibiting the CIA from doing so as well. All this only to scare the
      public and Congress into accepting their unconstitutional Patriot
      Acts and other measures from the agenda of a small right minority.

      And of course they have perpetrated monstrous lies about their war
      against Afghanistan and now against Iraq.

      Thus, an illegitimate president who promised "gentle conservatism"
      has instead taken the most radical departure of militarizing American
      society at home, privatizing the US Military abroad, and antagonizing
      the rest of the world by his unilateral militarism and anti-
      environmentalism, not to mention his administration's
      befuddled `'justification."

      His and his government's verbal denunciation combined with de facto
      generation and sponsorship of terrorism is wearing thin and has in a
      totally irresponsible fashion led them and us into a Catch 22 damned
      if you do, damned if you don't debacle.

      The one in Iraq demonstrates one of several underlying
      vulnerabilities of American reliance on the Pentagon.

      The Paper Tiger Dollar

      As this essay argues, this military Achilles heel also further
      weakens the other one, which is based on the paper tiger dollar. That
      has declined in value against the Euro and the Yen since I first
      wrote about this threat and how it in turn would weaken the Pentagon
      that must be financed by devalued dollars, especially in its
      increasing ventures abroad.

      At the same time, while the revelations and soul searching about
      American torture in Iraq – and now we know long since also in
      Afghanistan and Guantanamo - the US occupation in Iraq is proceeding
      relentlessly with its major agenda there: OIL and the economy.

      The Cheney sponsored oil pipeline through Afghanistan that the
      Taliban was supposed to implement but was unable to guarantee, thus
      converting it from friend to enemy, is now in the hands of the new
      American appointed government in Kabul.

      In Iraq, it is yet difficult to tell WHAT the US occupation is doing –
      nobody even bothers to look beyond the torture any more - about the
      oil and the economy, other than that they are being privatized and
      sold off at bargain basement prices to big American companies, with
      Vice President Cheney's Haliburton in the lead. He still derives
      income from it, although his super-hawk friend Richard Perle resigned
      his high Defense Dept position so that his conflict of interest
      would `'not hurt the President's re-election chances.''

      Meanwhile President Bush himself defends giving a near monopoly of
      contracts for `'re-building Iraq'' to US near monopolies on the
      grounds that `'WE'' put our lives on the line and so are we
      legitimately entitled to the economic rewards there from.

      But more important, with the region's second largest oil deposits in
      Iraq , what is the US really doing there on the world oil market and
      its efforts to control or break OPEC?

      One thing is sure, and the oil section of the paper tiger part of
      this essay speaks to this issue: Iraqi oil is again being priced in
      US dollars and no longer in Euros as under Saddam Hussein.

      In the meantime also, the dollar has indeed fallen significantly
      against the Euro and the Yen. This devaluation of the dollar would at
      least make US industrial and agricultural products more salable on
      the world market – if they were otherwise competitive . But the
      industrial ones are not and the agricultural ones thrive only thanks
      to the huge government subsidy, the same as in Western Europe and

      On the other hand, a devalued dollar makes the US less attractive for
      the continued inflow of foreign capital from overseas savings on
      which the US economy and the American standard of living and way of
      life is so vitally dependent.

      All presidential administrations have lied to the American public
      about the sources of their well being that are allegedly based on
      American efforts and skills promoted by healthy government domestic
      and foreign economic policies. But nothing could be further from the

      The Clinton boom years of the 1990s – after the 1989-92 recession -
      were based entirely on the suction and flight of capital first from
      the former Soviet Union and Eastern Europe who were forced into a
      depression far deeper than that of the 1930s and after the financial
      crisis of 1997 in Southeast Asia that was deliberately sponsored by
      Larry Summers, now President of Harvard but then at the World Bank
      and the US Treasury.

      That resulted in declines of income by 40 and 50 percent and the
      deliberately managed misery and death of millions in East Asia – and
      the flight of their own and foreign speculative capital to the US
      safe haven of Treasury certificates (where it permitted a sudden but
      temporary balanced budget) and into Wall Street. There it fired the
      bull market that attracted Main Street to invest in Wall Street and
      made Mr. And Mrs. America feel rich and able to spend – also on $ 100
      billion of excess imports of textiles and gadgets from China.

      The Chinese in turn also sent the dollars they earned thereby back to
      Washington to buy Treasury certificates, so that the poor Chinese are
      by now the world's largest creditors to the rich Americans.

      More recently however, China has begun to import more itself, in
      particular from Southeast Asia and using it's American earned US
      dollars to get at least something more that worthless Treasury
      certificates on which the US is bound to default, because it will be
      neither able nor willing to make good.

      All depends on how long the rest of the world is still willing to put
      up with the US dollar as the world currency and what alternatives
      thereto there are. And this brings us back to the Pentagon as a shaky
      support for the dollar and the Iraq debacle as yet another chink in
      the rusty armor of confidence in the US in general and its money in

      And it leads us forward to examine the expanding role in the world of
      China, whose ten percent annual economic growth has been duplicating
      income every six years and making it a, and soon perhaps the, major
      player in the world economy.

      What is the basis and security of the United States position and
      power in the world? The answer is the twin pillars of the Dollar and
      the Pentagon.

      The dollar is a paper tiger – literally so, much more than when Mao
      applied this term to the US. The Pentagon's strength and mobility is
      dependent on the dollar, which in turn is supported by US military
      might. But these two supporting towers of the US are also its two
      Achilles heels. Through them, like the twin towers of the World Trade
      Center in New York, the entire US edifice can come crashing down in
      one morning – not by terrorism but through the operation of the world
      market economy and the foolish policies of the United States
      government itself.

      With the end of the cold war in 1989 and the subsequent decline of
      Russia as a serious immediate contender, as well as the decline
      during the 1990s of the hype of JAPAN AS # 1 [Vogel 1979] two other
      regions, states and powers came into contention. They are the United
      States whose fortunes and prospects seemed to have declined after
      1970 but recovered in the 1990s; and yet it is a paper tiger. The
      other is the rising Fiery Chinese Dragon In global terms, we could
      regard this as a process of continued shift of the world center of
      gravity west-ward around the globe, from East Asia/China to Western
      Europe, then across the Atlantic to the United States, and there then
      from the eastern to the western seaboard, and now onwards across the
      Pacific back to East Asia, as observed in my "Around the World in
      Eighty Years" [Frank 2000]. Let us inquire further into the so far
      last part of this historical process.

      Coup d'Etat in Washington
      Be wary of conspiracy theories, beware of real conspiracies, and be
      aware of a grab of power.

      It has happened in Washington and its instigators are pursuing a
      policy of (several) faits accomplis that attracts ever more people to
      jump on the band wagon. The Busch administration has made a real Coup
      d'Etat and achieved its apparently unknowing acceptance by America
      and the World. Even Hitler and Mussolini came to power by electoral
      routes and Stalin and Latin American dictators had to resort to
      violence to make their coups d'etat. Busch and his small coterie
      required none of these to get to the seat of power.

      The Coup

      To begin with, Bush's accession to the Presidency was in violation to
      the Constitution. It is not that he received a minority of the
      popular vote, because the Constitution provides for the President's
      election by the Electoral College. But Bush received the Electoral
      College vote by fraud, for he lost the decisive popular and thereby
      electoral vote in Florida. His brother Jeb as Governor of Florida
      with the help of Mrs Harris as Secretary of State first deprived
      hundreds of thousands of African American and presumably Democratic
      voters of the vote through incarceration, intimidation, and other

      The Republican Cuban Mafia sent its goon squads physically to prevent
      a recount in Broward County. Mrs. Harris did all she could, which was
      plenty, to interfere with recounts in other counties in Florida. The
      alleged recounts that were made were a sham. They only recounted
      votes that were NOT counted in the first count by voters who had been
      unable to punch holes all the way through the voting cards without
      leaving the infamous hanging chads. Yet much more importantly one
      either before the decision or afterwards when the newspapers did it
      again, NO one ever recounted the votes that HAD been for the
      Democrats but were discounted because voter mistakenly also punched a
      second hole on a confusing ballot. Yet even the third and most
      conservative candidate Pat Buchanon declared publicly that these
      duplicate votes in heavily Jewish and Democratic counties were surely
      not for him but for the Democratic Party candidate. These votes [or
      even half of them if they had been allotted also to other candidates]
      would have given a decisive majority of the popular vote and
      therefore of the Electoral College votes in Florida to the Democrats.
      Yet they were never counted or recounted for the Democrats.

      In the end Bush was not elected, but was SElected in the Supreme
      Court by the decisive political swing vote of Justice Kennedy. The
      Supreme Court's appeal to the 14th amendment, which guarantees due
      process of Law to all, was ironically biased. For it was selectively
      applied without due process to squash the popular vote in Florida,
      but the same due process procedures were not applied to challenged
      votes in any other State. That in itself was already a de facto coup
      d' Etat.

      Then, several members of the House of Representatives called for a
      challenge of the Electoral College under Constitutional provisions
      that permit the Congress to do so if the challenge has the support of
      at least one member of both houses. Yet they were not joined by even
      a single Senator, who would have made the challenge legally
      effective. In other words, the Congress simply acquiesced to this
      power grab by the Bush administration through a Coup d'eat with the
      help of the Supreme Court but in clear violation to the Constitution.

      That was the beginning of the violation of the Constitutional
      separation of powers and checks and balances. Since then, the Bush
      administration has carried these violations farther than any previous
      one in the history of the United States. Not even President Lincoln
      in the Civil War, nor President Roosevelt in the Second World War nor
      his previous attempt to stack the Supreme Court, ever grabbed and
      concentrated as much power for the executive branch while
      marginalizing the Legislative branch and the Judiciary.

      Beware of Conspiracy Theories. But be aware that it was really Vice-
      President elect Dick Cheney who then put together the Bush
      Administration, selecting whom to place in which positions of power,
      especially in defense affairs. And beware of PNAC, the Project for a
      New American Century, which was already lobbying Washington with
      their plans for a "Pax Americana" in 1992, 1997, and 2000 among other
      notable dates.

      PNAC issued a long report in September of 2000 entitled "Rebuilding
      America's Defenses: Strategy, Forces and Resources for a New
      Century." Its statement of principles calls for a massive increase in
      military power, U.S. military domination of Eurasia to prevent the
      rise of hostile powers; and pre-emptive [not just pre-ventive]
      military action against states suspected of developing weapons of
      mass destruction. PNAC's prescriptions have been converted into
      official US policy and praxis by the Bush Administration.

      PNAC founding members and signatories of its statements include;

      Cheney himself,

      Lewis Libby, Cheney's top national security assistant and now the
      Vice-President's chief-of-staff

      Donald Rumsfeld, also a founding member, now Secretary of Defense

      Paul Wolfowitz [of Arabia], now Deputy Defense Secretary and arguably
      the groups ideologue

      Eliot Abrams, pardoned by Bush Sr. in the Iran/Contra scandal and now
      member of the National Security Council

      John Bolton, Undersecretary for Arms Control and International

      Richard Perle, the most outspoken hawk in the Reagan administration
      who advocates dumping the United Nations, then chairman of the
      powerful Defense Policy Board, who was forced to resign one of his
      positions over a conflict of interest scandal,

      Randy Scheunemann, President of the Committee for the Liberation of
      Iraq, who was Trent Lott's national security aide and who served as
      an advisor to Rumsfeld on Iraq in 2001

      Bruce Jackson, now Chairman of PNAC and former vice president of
      weapons manufacturer Lockheed-Martin who headed the Republican Party
      Platform subcommittee for National Security where he called for – as
      had Wolfowitz for some years - the removal of Saddam Hussein

      William Kristol, noted conservative writer for the Weekly Standard, a
      magazine owned along with the most hawkish Fox News Network owned by
      Ruppert Murdoch

      Norman Podhoretz, editor of the right wing New Republic

      and others, like Norman Kaplan and Douglas Feith.

      The core group of the PNAC now hold the highest positions of policy
      making power in the Pentagon and much of it in the White House.

      They have also planted one of their group in the State Department to
      keep an eye and check on Colin Powell who is the only major foreign
      policy player who is not a member of this inner sanctum.

      An interesting sidelight is that Wolfowitz , Perle and Feith also
      went to Israel to serve as advisors to Prime Minister Ariel Sharon,
      for whom they drew up a battle plan against the Palestinians. Behind
      them lies the strange ideological bed-fellow political alliance of
      two of the most powerful lobbies in the United States: Organized
      Zionism and Christian Fundamentalism. For good measure, throw in the
      Cuban Mafia as well.

      Another matter to consider are some of the connections of these same
      people with the private sector. Two examples should suffice to give a
      general idea. Cheney was chairman of Halliburton Inc., which in turn
      owns Brown & Root and other habitual contractors of the Defense
      Department for major construction and/or petroleum projects around
      the world.

      One of these companies was awarded a 1 Billion dollar contract to re-
      build the Iraqi oil fields in case they should be damaged in the war.
      Another, of which the now "Prime Minister" of Afghanistan was a
      former employee, namely UNOCAL, is first in line to build the
      proposed oil and gas pipeline across Afghanistan from Central Asia to
      the Indian Ocean. The Bush family and George W. Bush himself have
      long standing business relations with the Carlyle Group, which also
      represents the Bin Laden family (including Osama), with whom they
      have also maintained direct relations.

      The White House and the Executive Branch generally has made full use
      of its new power to serve its economic and political allies. Those
      who made the largest campaign contributions have been handsomely
      rewarded with government hand-outs and regulations, or rather de-
      regulation. The Bush administration has issued at least 200 separate
      executive orders to roll back regulations enacted by previous
      administrations, even Republican ones, to protect the environment
      and/or Public Health and Safety. Executive Order has received a whole
      new meaning: Special interests write an order that is passed to the
      President for his signature, whereby mostly without knowing what he
      is doing he converts it into an Executive Order.

      The Pentagon has petitioned the White House to exempt it from
      existing environmental protection regulations that hamper their
      disposal of spent munitions and other hardware and thereby interfere
      with `'national security. " The President deliberately appointed as
      Secretary of the Interior a person known for her ties to the timber
      and oil industries to whose exploitation she seeks to open thousands
      of acres of federally owned lands as well as the Alaska Wilderness
      for the construction of a new pipe-line – all in the interest of
      course of `'national security."

      The Bill Of Rights and the Constitution

      More serious still, the Bush administration has shredded the Bill of
      Rights, abrogated the Constitution, and even violated the age - old
      common law of Habeus Corpus, which prohibits the detention and
      holding of anybody against his will without due process of law.

      Elsewhere in the Executive Branch, President Bush appointed and lent
      full support to Attorney General John Ashcroft who was already known
      for his racist and authoritarian inclinations. Although many Senators
      had doubts about his appointment, the Senate ratified it anyway.
      Since then, Attorney General Ashcroft and his staff have converted
      several arms of the Department of Justice into those of a police
      state. The Executive has encouraged and permitted the Attorney
      General and the Department of Justice Judiciary Branch to violate the
      Bill of Rights and the Constitution on multiple counts. For instance,
      the US Government already claims the right to monitor all e-mail and
      to bug telephone conversations without specific judicial permission.

      The Bush Administration brought Admiral Pointdexter back into
      government after his participation in the Iran-Contra Scandal and
      lyiung about it to Congress. His new mission is a project, called
      Total Information Awareness Project (TIAP): to develop computers to
      monitor "vast quantities of data generated by US civilians in their
      daily lives: Academic transcripts, ATM receipts, prescription drugs,
      telephone calls, driving licences, airline tickets, parking permits,
      mortgage payments, banking records, emails, website visits and credit
      card slips" [The Guardian November 23, 2002].

      In critique of all this and the Patriot Act, only the lone voice in
      Congress of Representative and presidential candidate Dennis J.
      Kucinich (D-Ohio) has asked

      "How can we justify in effect canceling

      - the First Amendment and the right of free speech, the right to
      peaceably assemble?

      - the Fourth Amendment, probable cause, the prohibitions against
      unreasonable search and seizure?

      - the Fifth Amendment, nullifying due process, and allowing for
      indefinite incarceration without a trial?

      - the Sixth Amendment, the right to prompt and public trial?

      -the Eighth Amendment, which protects against cruel and unusual

      - And Justice for All?"

      The Constitution makes all the rights it guarantees extensive to
      anybody in the US, but the Attorney General has declared that non-
      citizens are not worthy of protection by the Constitution.

      We do not know yet how much of a loss that is because the Department
      of Justice and its Immigration and Naturalization Service[INS] have
      also taken it upon themselves also to divest naturalized and even
      native-born American Citizens of their citizenship, again in clear
      violation of the Constitution.

      And even those who remain citizens are under constant threat to have
      their rights violated without due process under the fourteenth
      amendment, or to be detained in violation of Habeus Corpus.

      They are denied representation by legal counsel and trial in civil
      courts, as provided for by the Constitution. In particular, hundreds
      of thousands of American residents and Citizens of Arab descent or
      even of features that appear to individual agents of the Department
      of Justice or the police's racial profiling as perhaps being Arab, or
      Muslim, or who knows what else have been called in for questioning.
      When they appeared in Los Angles, they were detained without charge.
      They now live in constant fear of the infamous knock on the door at
      3AM that was made infamous by Hitler's Gestapo and Stalin's GPU. That
      is so if they are even favored by a knock on the door before a blast
      of gunfire of shooting first and asking questions later.

      So far as we know of over 700 people who have remained in detention
      since September 2001; though there may be many more, since nobody
      knows or says where they are, or who they are, or what they are
      accused of. Indeed, only a dozen of these have ever been charged with
      anything. The others remain out of sight and out of mind except for
      their families who are not allowed even to secure legal
      representation for them. So do the innocent Afghani prisoners the US
      keeps in in Guantanamo and the countless ones still detained under
      horrible conditions in Afghanistan. How come there is no public
      outcry about any of these?

      On the other hand, the same Executive Branch has divested the
      Judiciary of powers and the citizenry of judicial protection by
      illegally transferring powers of the Judiciary to itself. Perhaps
      only the most visible tip of the iceberg of this process is the Bush
      Administration and Pentagon declaration that it will bring normal
      civil suits before military tribunals that operate under rules of
      court marshal and other procedures of Military "Justice" that can
      order death sentences without appeal. Moreover, the accused do not
      know whereof, cannot chose legal counsel, and their conversation with
      whom can be overheard by the authorities. The prestigious very
      conservative publicist William Saffire refers to them as `'kangaroo
      courts" and observes that "no longer does the judicial branch and an
      independent jury stand between the government and the accused.

      In lieu of those checks and balances central to our legal system, non-
      citizens face an executive that is now investigator, prosecutor,
      judge, jury and jailer or executioner. In an Orwellian twist, Bush's
      order calls this Soviet-style abomination "a full and fair trial."

      The Land of the Free?

      John Ashcroft has also issued instructions to the Department of
      Justice to resist as far as possible the delivery of documents under
      the Freedom of Information Act.

      And the Executive itself has severely restricted the kind and number
      of documents of its own that it is prepared to make public. In other
      words, transparency and therefore control or even critique of the
      ever widening powers and their use by the Executive Branch is itself
      being severely restricted.

      On the other hand, the Executive Branch has multiplied its own access
      to information. During the congressional debate on John Ashcroft's
      USA Patriot Act, an American Civil Liberties Union fact sheet on the
      bill's assaults on the Bill of Rights revealed that Section 215 of
      the act "would grant FBI agents across the country breathtaking
      authority to obtain an order from the FISA [Foreign Intelligence
      Surveillance Act] court . . . requiring any person or business to
      produce any books, records, documents, or items." That includes
      bookstores and public libraries being obliged to divulge who is
      reading what. This is now the law,

      Alas, the Congress has been intimidated into passive acceptance of
      virtually everything and anything the Executive proposes and demands.
      It passed the Patriot Act that severely restricts civil liberties
      virtually without reading it.

      The proposed Patriot Act # 2 has not even bee submitted to the
      Congress for study and yet the version leaked by the Press suggests
      that it proposes even more of a police state than the first one. When
      the Leader of the Democratic Majority in the Senate voiced only the
      mildest doubts about Bush's military moves, he was immediately
      reprimanded by his Republican Majority Leader counterpart Lott,
      for `'how dare he criticize the President in time of war!" Both have
      been forced to resign since then, but for scandals unconnected to
      that one.

      Moreover, the Executive has been more than secretive about the events
      and circumstances of September 11, 2001; and the Congress has not
      launched any serious inquiry of its own. Neither have the Media.
      There has not even been any public inquiry or disclosure into the
      failure of the Air Force or National Guard to scramble fighter
      aircraft to investigate the airliners that had clearly gone off
      course. That is every day routine standard operating procedure, but
      it was called off or at least not enacted during the 90 minutes that
      elapsed between the crash into the first World Trade Tower and the
      one into the Pentagon – that is IF the Pentagon was damaged by an
      aircraft which has been seriously questioned if only because no
      evidence has ever been made public for such an occurrence.

      Nor has the government given any account of its receipt and disregard
      of multiple forewarnings from intelligence agencies among its allies
      in Pakistan, Russia, Germany, France, Israel. In other words, the
      very circumstances that allegedly require all these domestic and
      foreign responses by the Bush Administration are themselves wrapped
      in a shroud of self-imposed secrecy.

      The violation of the Constitutional provisions for the separation of
      powers is particularly flagrant regarding the powers reserved to the
      Legislative Branch of the Congress and the Constitutional prohibition
      against military action in domestic civil affairs.

      Bush also disregards the Constitutional provision that only Congress
      may declare war, and it violates the 1976 War Powers act that
      Congress passed to regulate that Constitutional provision after it
      had been grossly violated in the Vietnam War. The Bush administration
      has de facto-also abrogated the 1878 Posse Comitatus Act that
      prohibits military participation in the enforcement of civil law, and
      it violates the general Constitutional provision against the military
      action in domestic affairs.

      Instead, the Bush Administration has visibly mobilized the Armed
      Forces and National Guard around all US airports and elsewhere, and
      the Pentagon is drawing up plans for its intervention in endless
      domestic affairs. It stands to reason that the machine gun toting
      military presence in the passenger areas of airports has not added
      one iota to security but serves only to terrorize the public into
      blind and passive acceptance of the violation of their civil rights
      there and elsewhere. Even the government has stated repeatedly that
      any other terrorist attack on the US is not likely to copy that of
      September 11, 2001 but to take totally different forms against which
      this military presence would offer no defense. Indeed, it would not
      have prevented that of September 11 either. The pretext that the
      country is at war is being used as cover for US government terror of
      its own at home and abroad; and the country is being militarized as
      never before, not even in war time.

      The Pentagon is extending its actions in American Civil Affairs ever
      more, also by establishing a new office of Under Secretary of Defense
      for Homeland Security, which then created a northern command to
      coordinate military response to domestic threats. The Pentagon also
      has a new Under Secretary for Intelligence,

      Stephen Cambone, who said the existing agencies will continue with
      their work but that his unit will ensure that they are meeting the
      intelligence needs and priorities laid out by the Pentagon, also at
      home. [Boston Globe June 8, 2003].

      Pax Americana

      The Pentagon is also expanding into previously unimagined places and
      roles overseas. There are now well over 100 US military bases around
      the world. and current US military operations in Iraq, Afghanistan,
      the Horn of Africa, Colombia, the former Yugoslavia, South Korea, the
      Philippines, and former Soviet states such as Georgia. The latest
      details, disclosed by the Wall Street Journal on June 10th 2003,
      include plans to increase U.S. forces in Djibouti on the Horn of
      Africa across the Red Sea from Yemen, setting up semi-
      permanent "forward bases" in Algeria, Morocco, and possibly Tunisia,
      and smaller facilities in Senegal, Ghana, and Mali that could be used
      to intervene in oil-rich West African countries, particularly
      Nigeria. Similar bases--or what some call lily pads--are now being
      sought or expanded in northern Australia, Thailand, Singapore, the
      Philippines, Kenya, Georgia, Azerbaijan, throughout Central Asia,
      Poland, Romania, Bulgaria, Qatar, even Vietnam, and Iraq. [Needless
      to say that the construction of these military bases constitute
      lucrative multimillion contracts for US corporations including
      Bechtel and Halliburton. (Edtor)]

      The new republics in former Soviet Central Asia and the former Soviet
      satellite states in Eastern Europe are a particularly strong magnets
      for U.S. military presence, and a glance at the map will show that
      the US is systematically encircling China. Moreover, the Pentagon
      military missions are marginalizing the State Department diplomatic
      ones, with the senior military officer having more resources and
      greater influence than the US ambassador [Boston Globe, June 8 2003].

      Even so, the Associated Press reports on February 24 that " senior
      U.S. officials have been quietly dispatched in recent days to the
      capitals of key Security Council countries where they are warning
      leaders to vote with the United States on Iraq or risk "paying a
      heavy price." Although this kind of blackmail has been SOP in all
      American administrations, the Bush Administration has carried the
      threat and practice to previously unheard of new heights. As
      President Bush declared in his State of the Union address "Those who
      are not with us, are against us" – and will pay a heavy price.

      "We are in the process of taking a fundamental look at our military
      posture worldwide, including in the United States," said Deputy
      Defense Secretary Paul Wolfowitz on a recent visit to Singapore,
      where he met with military chiefs and defense ministers from
      throughout East Asia about U.S. plans there. "We're facing a very
      different threat than any one we've faced historically." But recall
      that this is the same Wolfowitz of Arabia talking who drew up his and
      PNAC's plans to face this different threat already in his memos of
      1992, 1997 and 2000.

      The Law of the West

      The Bush administration has also set aside centuries of International
      law. It wages illegal war, prohibited by numerous international
      treaties and by the United Nations Charter. Indeed it makes war
      without even declaring it, which even Hitler took the trouble to do.

      The US armed forces wantonly violate Geneva conventions of crimes
      against humanity, genocide, weapons of mass destruction such as
      depleted uranium, cluster bombs, massive `'Daisy Cutter" bombs,
      destruction of civilian facilities to provide as power, water, and
      sanitation, and even neutral international waterways as when it
      deliberately blocked shipping on the Danube.

      The Bush Administration (though Presidents Clinton and Bush Sr. also
      already earlier) have completely emasculated the United Nations
      instruments and procedures set up by the US and its allies after
      World War II to preserve the peace. Bush even had the gall to go to
      the UN and charge it with dereliction of duty and of its reputation
      by failing to give its stamp of approval for his War against Iraq –
      when the clear duty of the UN and especially of its Security Council
      is not to make war but to keep the peace.

      His government and his lackey press mislead the public into believing
      that a Security Council resolution could legalize his war. The fact
      is that even with a SC resolution, his father's War against Iraq in
      1991 was in clear violation of Articles 2, 27, 41, 42, 43 and 53 of
      the UN Charter, among others.

      The NATO states and President Clinton failed even to consult the UN
      before going to War against Yugoslavia. Then the present President
      waged War against Afghanistan without the slightest provocation from
      its government, without UN approval. And then it made War on Iraq in
      clear violation of the expressed desires of the UN membership. What
      this illustrates is the total abandonment of the UN as an institution
      and instrument for peace.

      The demise of the UN as an International Body

      After the US bombs a country into shambles, it then goes to the UN to
      ask it to pick up the pieces, or in plain English allegedly to
      legitimize the US military occupation of the country it had just

      But not only that, the violation of international law also
      constitutes ipso facto a violation of national law, because Senate
      ratification of an international treaty converts it into US law as
      well. Moreover, domestic democracy has been sacrificed to waging
      international war as well, as when NATO did so against Yugoslavia
      without even a single member country government troubling itself to
      ask its parliament or Congress for authorization to do so.

      In a word, the US has replaced existing International law by new Law
      IN the West on the model of its own old Law OF the West. Then in the
      19th century, vigilante lynch mobs formed ad hoc to go hang whomever
      they wanted; and now the US is imposing this Vigilante "Law" on the
      rest of the world by force. And as the vigilantes bought off or
      terrorized the sheriff and the judge to `'legitimize" themselves, so
      is the US, doing the same world wide in the real world, following the
      scripts of fictitious Spaghetti Western movies.

      The Media
      And what of the Fourth Estate – the Media?

      They are strictly the mouthpiece of the Administration.

      Note their behavior at White House, State Department, or Pentagon
      news conferences. All their questions are limited to technicalities
      about the implementation of Administration policies that are
      themselves accepted as cartes blanches.

      Never ever has any representative of the US media posed a question
      that challenges the basis of the official policy in even the most
      timid way.

      Indeed, not only what the press says or does not say reflects the
      policy and press- releases of the Administration. The very Media
      selection of what is or is not `'news,'' e.g on the 6.30 pm Evening
      News of ABC, NBC, CBS, CNN, Fox, and shame on PPS for carrying the
      just as bad Jim Lehrer News Hour, is a simple reflection of what the
      White House or the State Department have declared to be `'news'' that

      No matter how world shaking an event, if it has not shaken the piper,
      it does not merit mention by the media. But whatever the White House
      or the State Department declares to be news IS news. And even they
      have been obliged to make an agonizing reappraisal , albeit still
      only partial, of their own, after the revelations of torture of
      Iraqis has cast a shadow on their previous glowing reports about
      bringing democracy to them.

      Their pieces in the press are little better. In a survey of op-eds in
      the Washington POST over four months, Russell Mokhiber and Robert
      Weissman found twice as many columns for as against the war, and in
      February 2003 the count was 24 in favor and 10 against, while the
      POST itself brought 9 editorials of its own to support the war. And
      that was regarding a war that had the highest popular opposition
      ever.The TV and radio talk shows are even more dominated by defenders
      of Administration policy. No matter that the Administration cooks,
      blends, massages and even simply invents the news; as is finally
      emerging regarding the non-existent weapons of mass destruction,
      which were the alleged reason for waging War against Iraq.

      The Home of the Brave from 1984 to 2003

      George Orwell would have to regard his dire predictions of Big
      Brother for 1984 as a benign Alice in a charming Wonderland version
      of Animal Farm. The latter is to be compared to the 2003 Bush and
      Ashcroft reality of double-think and new-speak in which, however,
      some are no longer equal than others, either at home or abroad, but
      still WAR IS PEACE – really – the President said so.

      But the capacity of the United States to rule the world is more than
      questionable, especially after its 2003 debacle in Iraq.

      Paper Tiger - The United States and the World
      The US still has the world's largest economy, which saw boom times
      during much of the 1990s, and it has unrivalled military power
      exceeding the total of the next dozen or more military powers
      combined. Moreover, the present Bush administration makes use of both
      of them in unilateral policies to impose its will on the rest of the
      world, friend and foe alike, to all of which Bush threw down the
      gauntlet of `'you are either with us or against us."

      With means you do as we say, and against means you are under threat
      to be destroyed economically and politically, as well as militarily
      if we wish.

      In case there be any doubt about our intentions and capabilities,
      Russia and Argentina are prime examples on the economic front as are
      Iraq through the boycott, Serbia and Afghanistan are so on the
      military front as well. The latter – but really both – are what
      President Bush father called THE NEW WORLD ORDER when he bombed Iraq
      in 1991. I termed it THIRD WORLD WAR in two senses, one that it takes
      place in THE THIRD WORLD and secondly that this war against the Third
      World constitutes a THIRD World War [Frank 1991].

      The prosperity and welfare of the American people rests primarily on
      its position in the world today as Britain's did in the nineteenth
      century. That observation is fundamentally different from the
      political and media hype about the sources of American exceptionalism
      that are supposedly in its genius, morality, productivity, and other
      characteristics that allegedly differentiate America from the rest of
      the world. On the contrary, America rests on two – maybe three-

      1.The DOLLAR as the world currency whose monopoly privilege the US
      has to print at will, and

      2. The PENTAGON with its unrivalled military capacities.

      3. A third pillar perhaps is the government, educational and media
      fed IDEOLOGY that obscures these simple facts from public view.
      Moreover each supports the other: It costs dollars to maintain the
      Pentagon, its bases in 80 countries around the world, and the
      deployment of its military forces around the globe. Military
      expenditures are the prime causes of the twin American deficits, in
      the federal budget and in the balance of trade. Conversely, Pentagon
      strength helps sustain global confidence in the dollar.

      But this same mutual reliance for strength, therefore, also
      constitutes two mutually related American Achilles heels.

      The dollar is literally a Paper Tiger in that it is printed on paper
      whose value is based only on its acceptance and confidence in the
      same around the world. That confidence can decline or be withdrawn
      altogether almost from one day to the next and cause the dollar to
      lose half or more of its value.

      Apart from cutting American consumption and investment as well as
      dollar-denominated wealth, any decline in the value of the dollar
      would also compromise US ability to maintain and deploy its military

      Conversely, any military disaster would weaken confidence in and
      thereby the value of the dollar. Indeed, at the 2003 World Economic
      Forum in Davos, the assembled world political and business elites
      expressed very serious fears that the mere deployment of the US
      military, e.g. against Iraq, would bring on a world depression. TIME
      Magazine this week reports on a comprehensive study of the US airline
      industry, which concludes that a war against Iraq would drive half of
      it into immediate bankruptcy. If so, what of still weaker non-
      American airlines? The insecurity that comes with military saber
      rattling and threats undermine confidence in the dollar and put
      brakes on investment. And no amount of ideology is sufficient
      completely to obscure that economic situation.

      In fact, the world already is in depression, from which so far only
      the United States, Canada and Western Europe are partially exempt.

      And the latter is so, because of the privileged position of the
      American economy within the global one, from whose mis-fortune
      Americans have been deriving the benefits of that position, which to
      repeat is essentially derived from the privilege of printing the
      world currency with which Americans can first buy up the production
      of the rest of the world at depressed prices and then have the same
      dollars be returned from abroad to be invested in Wall Street and US
      Treasury certificates for safe-keeping and/or higher earnings than
      are available elsewhere.

      In the mid 1980s James Tobin [the inventor of the Tobin tax on
      financial transactions] and I were to my knowledge the only ones
      already to published predictions of DE-flation as the coming world
      economic danger. Economic policy makers however ignored these
      warnings and this risk [not really risk, but necessary consequence]
      while continuing their policies designed to fight IN-flation.

      Nonetheless, since then commodity prices have fallen sharply and
      consistently and more recently industrial prices have fallen as well.
      Moreover in WORLD economic terms, high inflation in terms of their
      national currencies [pesos, rubles, etc.] and their sharp DEVALUATION
      against the DOLLAR world currency has been an effective de facto
      major DE-flation in the rest of the world. That has reduced their
      prices and made their exports cheaper to those who buy their
      currencies with dollars, primarily of course consumers, producers and
      investors in - and from ! - the United States. These additionally,
      which is hardly ever mentioned!, can and do buy up the rest of the
      world with dollars that ''cost'' only their printing and
      distribution, which for Americans have virtually no cost. [The $ 100
      dollar bill is the world's most used cash currency on which runs the
      entire Russian economy, and there are two to now three times as many
      of them circulating outside as inside the US].

      The American boom and welfare and then ''balanced'' federal budget
      1992-2000 Clinton administration, contrary to its populist claims,
      only happened to coincide with this boom. The also same 8 year long
      prosperity of the United States was entirely built on the backs of
      the terrible depression, deflation and thus generated marked increase
      in poverty in the rest of the world. During this one decade,
      production declined by over half in Russia and Eastern Europe and
      life expectancy in Russia declined by 10 - ten - years, infant
      mortality, drunkenness, crime and suicide increased as never before
      in peacetime. Since 1997, income in Indonesia declined by half and
      generated its ongoing political crisis. That is dissipation of
      entropy generated in the US and its export abroad to those who are
      obliged to absorb it in ever greater DISorder. It would be difficult
      to find better examples – except the destruction of the entire
      society in Argentina, Rwanda, Congo, Sierra Leone, previously
      prosperous and stable Ivory Coast – not to mention the countries that
      have been visited by destruction through American military power

      All this has among others the following consequences: in the US. it
      can export inflation that would otherwise be generated by this high
      supply of currency at home, whose low rate of inflation in the 1990s
      was therefore no miracle result of domestic ''appropriate'' Fed
      monetary policy.

      The US has been able to cover its twin balance of trade and budget
      deficits with cheap money and goods from abroad. The US trade deficit
      is now running at over 500 billion dollars a year and still growing.
      Of that, 100 billion are covered by Japanese investment of their own
      savings in the US that saves nothing and which the Japanese may soon
      have to repatriate to manage their own banking and economic crisis –
      especially if an American war against Iraq causes a n even temporary
      spike the price of oil on whose import Japan is so dependent.

      Another $ 100 billion comes from Europe in the form of various kinds
      of investment, including direct real investment, which could dry up
      as the European recession continues, the Europeans become exasperated
      with American policy, or they have any number of other reasons to
      reduce their dollar reserves and put them into their own Euro
      currency instead.

      A third 100 billion is supplied by China, which first sells the US
      its cheap manufactures for dollars and then accumulates those dollars
      as foreign exchange reserves – thus in effect giving away its poor
      producers' goods to rich Americans. China does this to keep its
      exports flowing and its industries going, but if it decided to devote
      these goods to expanding its own internal market more, its people
      would gain in income and wealth, and the United States would be out
      of luck. The remaining $ 200 billion of deficit are covered by other
      capital flows, including debt service from the poor Latin Americans
      and Africans who have paid off the principal of their debts already
      several times over and yet keep increasing the total amount owed by
      rolling it over at higher rates of interest. The idea of declaring US
      chapter 11 or 9 type insolvency is however finally catching on.

      Thus, deflation / devaluation elsewhere in the world has like a
      magnet attracted speculative financial capital from the rest of the
      world - both American owned and foreign owned – into US Treasury
      certificates [ stopping up the US budget deficit] and into Wall
      Street. That is what fed and supported its 1990s bull market, which
      in turn has increased, supported and spread wider a speculative and
      illusory in increase in wealth for American and other stock holders
      and through this also illusory ''wealth effect'' has supported higher
      consumption and investment. The subsequent and present bear market
      decline in stock prices nonetheless is a still a profit boon for
      enterprises who issued and sold their stocks at bull market high and
      rising stock prices. For they are now buying back their OWN stocks at
      what for them are bargain basement low prices, which represent an
      enormous profit for them at the expense of small stock holders who
      are now selling these stocks at low and declining prices. The
      US ''prosperity'' now rests on the knife edge also of an unstable
      enormous domestic corporate and consumer [credit card, mortgage and
      other] debt.

      Moreover, the US is also vastly over-indebted to foreign owners of US
      Treasury certificates, Wall Street stock and other assets, which can
      be called in by foreign central banks who have been keeping reserves
      in US dollars and other foreign owners of US debt. Indeed, it is the
      very US policy that has contributed so much to destabilization
      elsewhere in the world [e.g. through the destabilization of Southeast
      Asia that undermined the Japanese economy and financial system even
      more than it would otherwise have been] that now threatens and now
      soon makes much more likely that especially Japanese and European
      holders of US debt must cash it in to shore up their own ever more
      unstable instable economic and financial systems. The liabilities of
      the US to foreigners now equal two thirds of annual US GNP – and
      therefore can and will never be paid off. However any hick in rolling
      this debt over and over, can result in foreign attempts to get out as
      much money as they can – resulting in a crash of the dollar.

      Another major consequence is that the US - and world! - economy is
      now in a bind from which it most probably can NOT extricate itself by
      resorting to Keynesian pump priming and much less to full scale macro-
      economic policy and support of the US and Western/Japanese economy,
      as the Carter and Reagan administrations did. Military Keynesianism,
      disguised as Friedman/Volker Monetarism and Laffer Curve Supply-
      Sideism, was begun by Carter in 1977 and put into high gear in 1979,
      when Carter the Fed was run by Carter appointee Paul Volker, who in
      October 1979 switched Fed monetary policy from high money creation /
      low interest price thereof to attempted low money creation / high
      interest [ to 20 percent monetary! ] to rescue the dollar from its
      1970s tumble and attract foreign capital to the poor US. At the same
      time, Carter began Military Keynesianism in June 1979., which was
      then escalated further by President Reagan In that they then

      It is highly unlikely however that analogous policies could succeed
      again now. The US would need to invoke the same re-flationary policy
      again for itself and its allies, now. but it can not do so! The Fed
      has already lowered the interest rate so far that it cannot go much
      lower and is not likely to stimulate investment by doing so. On the
      other hand, raising the interest rate to continue to attract funds
      from abroad would risk choking off all domestic investment and
      working capital. Brazil tried that, admittedly with extravagant
      monetary interest rates at 60 percent to attract foreign capital, and
      ruined its domestic economy.

      The US may [should? must ??] now attempt a repeat performance of the
      1980s to spend itself and its allies [now minus Japan but plus
      Russia?] out of the present and much deeper world recession and
      threatening globe encompassing depression. The US would then again
      have to resort to massive Keynesian deficit [ using September 11 as a
      pretext for probably military] RE-flationary spending as the
      locomotive to pull the rest of the world out of its economic
      doldrums. However, the US is already the world consumer of last
      resort, but it can be so with the savings, investments and cheap
      imports from abroad, which themselves form part of the global
      economic problem.

      Moreover, to settle its now enormous and ever growing foreign debt,
      the US may chose also to resort to IN-flationary reduction of the
      burden to itself of that debt and its also ever growing foreign debt
      service. But even the latter could - in contrast to the above
      summarized previous period- NOT avoid generating a further SUPER
      trade balance particularly if market demand falls further and
      pressure increases abroad to export to the US demand/er of last
      resort. But this time, there will be NO capital inflows from abroad
      to rescue the US economy. On the contrary, the now downward pressure
      to devalue the US dollar against other currencies would spark a

      capital flight from the US, both from US Government bonds and from
      Wall Street where significant stock price declines generate further
      price declines and deflation in world terms even if the US attempts
      domestic inflation.

      The price of oil is yet another fly in the political economic
      ointment, whose dimension and importance is inversely proportional to
      the health or illness of the ointment itself. And today that is quite
      sick and deteriorating already. The world price of oil has always
      been a two edged sword whose double cutting edges can be de-sharpened
      with the help of successful alternative economic and price policies.
      On the one hand, oil producing economies and states and their
      interests need a minimum price floor to produce and sell their oil
      instead of leaving it underground and also postponing further oil
      productive investment while waiting for better times. The US is a
      high cost oil producer. A high oil price is economically and
      politically essential also for important states like Russia, Iran and
      especially Saudi Arabia, as well as US oil interests. On the other
      hand, a low price of oil is good for oil importing countries, their
      consumers including oil consuming producers of other products, and
      supports state macro economic policy, eg in the US, where low oil
      prices are both good politics and good for the economy. These days,
      the high/low price line between the two seems to be around US$ 20 a
      barrel - at the present value price of the dollar! But nobody seems
      to be able to rig the price of oil at that level. The present
      conflict, long since no longer within OPEC, is primarily between OPEC
      that now sells only about 30 to 40 percent of the world supply and
      other producers that supply 60 percent, today especially Russia but
      also including the US itself as both a significant producer and a
      major market, although that is increasingly shifting to East Asia.
      Recession in both and the resultant decline in demand for oil drags
      its price downward. US strategy and wars against Afghanistan and
      Iraq. is to gain as much CONTROL of oil as it can and for now to
      share as little of it as it must with Russia in Central Asia, Caspian
      Sea and Persian Gulf regions. And that control, even if it cannot
      control the price of oil, is to be used as an important geo-political
      economic lever to manipulate against US oil import dependent allies
      in Europe and Japan and ultimately its strategic enemy in China.

      For US Keynesian spending re-flation as well as in-flation can no
      longer put the floor under the price of oil needed today and
      tomorrow. No policy, but only recovery generated world market demand
      I- and/or limitations in the supply of oil -can now provide a floor
      to and prevent a further fall in the price of oil - and its
      deflationary pull on other prices. And further deflation in turn will
      increase the burden of the already vastly over-indebted US, Russian
      and East Asian, not to mention some European and Third World,

      Thus the political economy of oil is likely to add to further
      deflationary pressure. That would - indeed already does - again
      significantly weaken oil export dependent Russia. But this time it
      would also weaken US oil interests and their partners abroad,
      especially in Saudi Arabia and the Persian Gulf. Indeed, the low
      price of oil during the 1990s has already transformed the Saudi
      economy from erstwhile boom to a bust. That has already generated
      middle class unemployment and a significant decline in income that
      has also already generated widespread dissatisfaction and now
      threatens to do so even more at precisely the time when the Saudi
      monarchy is already facing destabilizing generational transition
      problems of its own. Moreover a low oil price would also make new
      investment unattractive and postpone both new oil production and
      eliminate potential profits from laying new pipelines in Central Asia.

      indeed, there is an even more immediate urgent need for the US to
      control Iraqi oil reserves, the second largest in the region and the
      most under-drilled with a large capacity to increase oil production
      and drive down prices. But that is not all or even the heart of the
      matter. Many people were surprised when President Bush added Iran and
      North Korea to his `'axis of evil." Though they may not be so
      surprised at American efforts to promote a coup and change of regime
      in Venezuela, which supplies about 15 percent of US imports. So what
      do these countries have in common, many people ask. Well, three of
      them have oil, but not North Korea. So what is its threat that puts
      it in Bush's axis. Surely not geography or alliances [Iraq and Iran
      were mortal enemies, and North Korea does not play ball in their

      The answer is simple and resolves not only that puzzle but what
      could otherwise appear as a rather confused and confusing US foreign

      [1.] Iraq changed the pricing of its oil from dollars to Euros in

      [2] Iran threatens to do so.

      [3] North Korea has changed to deal only in Euros.

      [4] Venezuela has withdrawn some of its oil from dollar pricing and
      is instead swapping it for goods with other third world countries.
      Besides an old friend of mine, Venezuela's Fernando Mires at OPEC
      headquarters in Vienna, proposed that all of OPEC should switch from
      pricing its oil in dollars to pricing it in Euros!

      OPEC has recently re-examined his possibility and now Russia has as
      well. Nothing else, no amount of terrorism, could be more threatening
      to the US; for any and all of that would pull all support out from
      under the dollar as oil importers would no longer buy dollars but
      instead Euros to buy their oil. Indeed they would want also to switch
      their reserves out of the dollar and into the Euro. Iraq, prior to
      the invasion, already gained about 15 percent with its switch as the
      Euro rose against the dollar.

      And besides, the Arab oil states who now sell their oil for paper
      dollars would be unlikely to continue turning around and spending
      them again for US military hardware. It is this horrific scenario
      that US occupation of Iraq is designed to prevent, with Iran next in
      line. Curiously, this oil-dollar-euro `'detail'' is never mentioned
      by the US government or media. No wonder that major European states
      are opposed to Bush's Iraq policy, which is supported only by the UK,
      which is a North Sea oil producer itself. Simple how one little piece
      of incidental information can make the other pieces of the entire jig-
      saw puzzle fall into place!

      All of these present problems and developments now threaten to
      [will?] pull the rug out from under US domestic and international
      political economy and finance. The only protection still available to
      the United States still derives from its long since and still only
      two pillars of the ''NEW WORLD ORDER'' established by President Bush
      father after ''Bush's Gulf War" against Iraq and the dissolution of
      the Soviet Union in 1991. President Bush son is now trying to
      consolidate his father's new world order [no doubt with the latter
      still as a power behind the throne] beginning with the WAR AGAINST
      AFGHANISTAN and threatening once again against Iraq, and the Bush-
      Putin effort now also to construct a US-Russian Entente - or is it

      The dollar pillar is now threatening to crumble, as it already did
      after the Vietnam War but has so far remained standing through three
      decades of remedial patch work.

      But as we have seen, the US is now running out of further economic
      remedies to maintain the dollar pillar upright. It's only protection
      would be to generate serious inflation in the short run by printing
      still more US dollars to service its debt, which would then undermine
      its strength and crack the dollar pillar and weaken the support it
      affords still more.

      That would leave only the US military pillar to support US political
      economy and society.

      But it and reliance on it also entails dangers of its own. Visibly,
      that is the case for such countries as Iraq, Yugoslavia, and
      Afghanistan and of course all others who are thereby deliberately put
      on notice to play ball by US rules in its new world order on pain of
      eliciting the same fate for themselves.

      But the political blackmail to participate in the new world order on
      US terms also extends to US - especially NATO - allies and Japan. It
      was so exercised in the Gulf War [other states paid US expenses so
      that the US made a net profit from that war], the US war against
      Yugoslavia in which NATO and its member states were cajoled to
      participate, and then by the War against Afghanistan as part of
      President Bush's new policy pronouncement. He used the early Cold WAR
      terminology of John Foster Dulles that ''You Are Either With Us Or
      Against Us"] But US reliance on this, the then only remaining,
      strategy of military political blackmail can also lead the US to
      bankruptcy as the failing dollar pillar fails to support it as well;
      and it can come also to entail US ''OVERSTRETCH'' in Paul Kennedy
      terms and ''BLOWBACK' in CIA and Chalmers Johnson terms.

      In summary and plain English, the US has only two assets left to rely
      on, both admittedly of world importance, but perhaps even so
      insufficient. They are the dollar and its military political assets.
      For the first, the economic chickens in the US Ponzi scheme pyramid
      of cards are now coming home to roost even in the United States

      The second pillar is now in use to prop up the new order the world
      over. Most importantly perhaps is the now proposed US/Russia entente
      against China instead of [or to achieve?] a US defense against a
      Russia/China [and India?] entente. The NATO War against Yugoslavia
      generated moves toward the latter, and the US War against Afghanistan
      promotes the former]. God/Allah forbid that any of these nor their
      Holy War against Islam blow us all up or provoke others to do so.

      However that<br/><br/>(Message over 64 KB, truncated)
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