"Why the Dollar Bubble is about to Burst - by Steve Masterson
"Iran has really gone and done it now. No, they haven't sent their first nuclear sub in to the Persian Gulf. They are about to launch something much more deadly -- next week the Iran Bourse will open to trade oil, not in dollars but in euros." This apparently insignificant event has consequences far greater for the US people, indeed all for us all, than is imaginable." (The Voice - London)
(snip)"Currently, almost all the world's oil is sold on either the NYMEX, New York Mercantile Exchange, or the IPE, London's International Petroleum Exchange. Both are owned by US citizens and both sell and buy only in US dollars. The success of the Iran Oil Bourse makes sense to Europe, which buys 70% of Iran's oil. It makes sense for Russia, which sells 66% of its oil to Europe. But worse for the US, China and India have already stated they are very interested in the new Iranian Oil Bourse.
If there is a tactical-nuclear strike on - deja-vu - `weapons of mass destruction' in Iran, who would bet against a certain Oil Exchange and more, being bombed too?
And worse for Bush. It makes sense for Europe, China, India and Japan -- as well as all the other countries mentioned above -- to buy and sell oil in Euro's. They will certainly have to stock-up on euros now, and they will sell dollars to do so. The euro is far more stable than the debt-ridden dollar. The IMF has recently highlighted US economic difficulties and the trade deficit strangling the US -- there is no way out.
The problem for so many countries now is, how to get rid of their vaults full of dollars, before it crashes? And the US has bullied so many countries for so many decades around the world, that many will see a chance to kick the bully back. The US cannot accept even 5% of the world's dollars -- it would crash the US economy dragging much of the world with it, especially Britain.
To survive, as the Scottish Socialist Voice article stated, "the US, needs to generate a trade surplus to get out of this one. Problem is it can't." This is spot on. To do that they must force US workers into near slavery, to get paid less than Chinese or Indian workers. We all know that this will not happen.
What will happen in the US? Chaos for sure. Maybe a workers revolution, but looking at the situation as it is now, it is more likely to be a re-run of Germany post-1929, and some form of extreme-right mass movement will emerge.
Does Europe and China/Asia have the economic independence and strength to stop the whole world's economies collapsing with the US? Their vaults are full to the brim with dollars.
The US has to find a way to pay for its dollar-imperialist exploitation of the world since 1945. Somehow, eventually, it has to account for every dollar in every vault in the world."(snip)



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