The US dollar is still officially the world`s reserve currency, but it
cannot purchase the services of Brazilian super model
. Gisele required the $30 million she
earned during the first half of this year
to be paid in euros.
Gisele is not alone in her forecast of the dollar`s fate. The First
that Jim Rogers, a former partner of
billionaire George Soros, is selling his home and all
possessions in order
to convert all his wealth
into Chinese yuan.
Meanwhile, American economists continue to preach that
is good for the US economy and that
Bush`s war spending is keeping the economy going. The
practitioners of supply and demand have yet to figure
out that the dollar`s supply is sinking the dollar`s
price and along with it American power.
The macho super patriots who support the Bush regime still haven`t caught
on that US superpower status rests on the dollar being
the reserve currency, not on a military unable to occupy
If the dollar were not the world currency, the US would have to earn enough
foreign currencies to pay for its 737 oversees bases, an
impossibility considering America`s $800 billion trade
When the dollar ceases to be the reserve currency, foreigners will cease to
finance the US trade and budget deficits, and the
American Empire along with its wars will disappear
Perhaps Bush will be able to get a World Bank loan, or maybe one from the
, to bring the troops home from Iraq and
Foreign leaders, observing that offshoring and war are accelerating
America`s relative economic decline, no longer treat the
US with the deference to which Washington is accustomed.
Ecuador`s president, Rafael Correa, recently refused
Washington`s demand to renew the lease on
the Manta air base
in Ecuador. He told Washington
that the US could have a base in
Ecuador if Ecuador could have a military base in the US.
When Venezuelan president Hugo Chavez addressed the UN, he crossed himself
as he stood at the podium. Referring to President Bush,
"Yesterday the devil came here, and it smells of sulfur
Bush, said Chavez, was standing "right here,
talking as if he owned the world."
In his state of the nation message last year, Russian president Vladimir
that Bush`s blathering about democracy was
nothing but a cloak for the pursuit of American
self-interests at the expense of other peoples: "We
are aware what is going on in the world. Comrade Wolf
knows whom to eat, and he eats without listening, and
he`s clearly not going to listen to anyone."
regime in Washington for "disrespect for
and "claims to global exclusiveness,
just as it was in the time of the Third Reich."
Even America`s British allies regard President Bush as a threat to world
peace and the second most dangerous man alive. Bush is
edged out in polls by Osama bin Laden, but is regarded
as more dangerous than Iran`s demonized president and
North Korea`s Kim Jong-il.
President Bush has achieved his dismal world standing despite spending $1.6
billion of hard-pressed Americans` tax money on public
relations between 2003 and 2006.
Clearly, America`s leader and America`s currency are poorly regarded. Is
there a solution?
Perhaps the answer lies in those 737 overseas bases. If those bases were
brought home and shared among the 50 states, each state
would gain 15 new military bases.
Imagine what this would mean: The end of the housing slump. A reduction in
the trade deficit. And the end of the war on terror.
Who would dare attack a country with 15 new military bases in every state
in addition to the existing ones? Wherever a terrorist
turned, he would find himself surrounded by soldiers.
All of the dollars currently spent abroad to support 737 overseas bases
would be spent at home. Income for foreigners would
become income for Americans, and the trade deficit would
The impact of the 737 military base payrolls on the US economy would end
the housing crisis and bring back the 140,000 highly
paid financial services jobs, the loss of which this
year has cost the US $42 billion in consumer income.
Foreclosures and bankruptcies would plummet.
If this isn`t enough to turn the dollar around, President Bush`s pledge not
to appoint an Attorney General if Michael Mukasey is not
confirmed offers more promise. If the Democrats will
defeat Mukasey`s nomination, there are other superfluous
cabinet departments that can be closed down in addition
to the US Department of Torture and Indefinite
The American empire is being unwound on the battlefields of Iraq and
Afghanistan. The year is two months from being over,
but already in 2007, despite the touted "surge,"
deaths of US soldiers are the highest of any year of the
The Taliban are the ones who are surging. They have taken control of a
third district in Western Afghanistan. Turkey and the
Kurds are on the verge of turning northern Iraq into a
new war zone, another demonstration of American
Bush`s wars have endangered America`s puppet regimes. Bush`s Pakistani
is fighting for his life
. By resorting to
and oppressive measures, Musharraf
has intensified his opposition. When Musharraf falls,
thanks to Bush, the Islamists will have nukes.
American generals used to say that the wars Bush started in the Middle East
would take 10 years to win. On Oct. 31 General John
Abizaid, former commander of US forces in the Middle
East, put paid to that optimistic forecast. Speaking at
Carnegie Mellon University, Gen. Abizaid
it would be 50 years
before US troops
can leave the Middle East.
There is no possibility of the US remaining the Middle East for a half
century. The dollar and US power are already on their
last legs, unbeknownst to Democratic leaders Pelosi and
Reid who are preparing yet another blank check for
Bush`s latest request for $200 billion in supplementary
There isn`t any money with which to fund Bush`s lost war. It will have to
be borrowed from China.
The Romans brought on their own demise, but it took them centuries. Bush
has finished America in a mere 7 years.
Even as Gisele throws off the dollar`s hegemony, Brazil, Venezuela,
Ecuador, Bolivia, Argentina, Uruguay, Paraguay, and
Columbia are declaring independence of the IMF and World
Bank, instruments of US financial hegemony, by creating
their own development bank, thus bringing to an end US
suzerainty over South America.
An empire that has lost its backyard is finished.
CREATORS SYNDICATE, INC.
Paul Craig Roberts
him] was Assistant
Secretary of the Treasury in the Reagan Administration.
He is the author of
Supply-Side Revolution : An Insider`s Account of
Policymaking in Washington;
and the Soviet Economy and
Meltdown: Inside the Soviet Economy,
and is the co-author with Lawrence M. Stratton of
The Tyranny of Good Intentions : How Prosecutors and
Bureaucrats Are Trampling the Constitution in the Name
of Justice. Click
here for Peter
Brimelow`s Forbes Magazine interview with Roberts
about the recent epidemic of prosecutorial misconduct.