Why is America intentionally confusing the issues about the war on terrorism and during its time, the war on communism? Why all the propaganda and the disinformation? Why all the secrecy in the mainstream media on these issues? Here’s why:
Coilin Nunan: Oil, Currency and the War on Iraq: “The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.
Since so many foreign-owned dollars are not spent on American goods and services, the US is able to run a huge trade deficit year after year without apparently any major economic consequences. The most recently published figures, for example, show that in November of last year US imports were worth 48% more than US exports1. No other country can run such a large trade deficit with impunity. The financial media tell us the US is acting as the ‘consumer of last resort’ and the implication is that we should be thankful, but a more enlightening description of this state of affairs would be to say that it is getting a massive interest-free loan from the rest of the world.
Countries switching to euro reserves from dollar reserves would bring down the value of the US currency. Imports would start to cost Americans a lot more and as increasing numbers of those holding dollars began to spend them, the US would have to start paying its debts by supplying in goods and services to foreign countries, thus reducing American living standards. As countries and businesses converted their dollar assets into euro assets, the US property and stock market bubbles would, without doubt, burst. The Federal Reserve would no longer be able to print more money to reflate the bubble, as it is currently openly considering doing, because, without lots of eager foreigners prepared to mop them up, a serious inflation would result which, in turn, would make foreigners even more reluctant to hold the US currency and thus heighten the crisis.
There is one major obstacle to this happening: oil…”
What does this tell you? America’s economic stability is in peril. Nobody wants to talk about it because the American Administration thinks that distracting the public by confusing the issues–weapons of mass destruction, bombings, the lumping of anti-American Arabs under the Al-Qaeda umbrella, terror-mongering and war-mongering–the real problem might just go away.