Super model spurns the dollar
Dollar's Fall Collapses American Empire
By Paul Craig Roberts
11/08/07 "ICH" --- - The US dollar is still officially the
world’s reserve currency, but it cannot purchase the services of
Brazilian super model Gisele Bundchen. Gisele required the $30
million she earned during the first half of this year to be paid
Gisele is not alone in her forecast of the dollar’s fate. The
First Post (UK) reports that Jim Rogers, a former partner of
billionaire George Soros, is selling his home and all
possessions in order to convert all his wealth into Chinese yuan.
Meanwhile, American economists continue to preach that
offshoring is good for the US economy and that Bush’s war
spending is keeping the economy going. The practitioners of
supply and demand have yet to figure out that the dollar’s
supply is sinking the dollar’s price and along with it American
The macho super patriots who support the Bush regime still
haven’t caught on that US superpower status rests on the dollar
being the reserve currency, not on a military unable to occupy
Baghdad. If the dollar were not the world currency, the US would
have to earn enough foreign currencies to pay for its 737
oversees bases, an impossibility considering America’s $800
billion trade deficit.
When the dollar ceases to be the reserve currency, foreigners
will cease to finance the US trade and budget deficits, and the
American Empire along with its wars will disappear overnight.
Perhaps Bush will be able to get a World Bank loan, or maybe one
from the “Chavez bank,” to bring the troops home from Iraq 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, Chavez said, “Yesterday the devil came here, and
it smells of sulfur still today.” Bush, said Chavez, was
standing “right here, talking as if he owned the world.”
In his state of the nation message last year, Russian president
Vladimir Putin said that Bush’s blathering about democracy was
nothing but a cloak for the pursuit of American self-interests
at the expense of other peoples. “We are aware what is going on
in the world. Comrade wolf knows whom to eat, and he eats
without listening, and he’s clearly not going to listen to
anyone.” In May 2007, Putin criticized the neocon regime in
Washington for “disrespect for human life” and “claims to global
exclusiveness, just as it was in the time of the Third Reich.”
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
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
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 Detention.
The American empire is being unwound on the battlefields of Iraq
and Afghanistan. The year is two months from being over, but
already in 2007, despite the touted “surge,” deaths of US
soldiers are the highest of any year of the war.
The Taliban are the ones who are surging. They have taken
control of a third district in Western Afghanistan. Turkey and
the Kurds are on the verge of turning northern Iraq into a new
war zone, another demonstration of American impotence.
Bush’s wars have endangered America’s puppet regimes. Bush’s
Pakistani puppet, Musharraf, is fighting for his life. By
resorting to “emergency rule” and oppressive measures, Musharraf
has intensified his opposition. When Musharraf falls, thanks to
Bush, the Islamists will have nukes.
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 said it would be 50 years before US
troops can leave the Middle East.
There is no possibility of the US remaining the the Middle East
for a half century. The dollar and US power are already on their
last legs, unbeknownst to Democratic leaders Pelosi and Reid who
are preparing yet another blank check for Bush’s latest request
for $200 billion in supplementary war funding.
There isn’t any money with which to fund Bush’s lost war. It
will have to be borrowed from 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
An empire that has lost its backyard is finished.
Craig Roberts wrote the Kemp-Roth bill
and was Assistant Secretary of the
Treasury in the Reagan administration.
He was Associate Editor of the Wall
Street Journal editorial page and
Contributing Editor of National Review.
He is author or coauthor of eight books,
including The Supply-Side Revolution
(Harvard University Press). He has held
numerous academic appointments,
including the William E. Simon Chair in
Political Economy, Center for Strategic
and International Studies, Georgetown
University and Senior Research Fellow,
Hoover Institution, Stanford University.
He has contributed to numerous scholarly
journals and testified before Congress
on 30 occasions. He has been awarded the
U.S. Treasury's Meritorious Service
Award and the French Legion of Honor. He
was a reviewer for the Journal of
Political Economy under editor Robert
Mundell. He is the co-author of The
Tyranny of Good Intentions. He is also
coauthor with Karen Araujo of Chile: Dos
Visiones – La Era Allende-Pinochet
(Santiago: Universidad Andres Bello,
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