Friday, March 23, 2007

Wars to Secure Overseas Integrity of the Dollar

Wars to Secure Overseas Integrity of the Dollar


I really want to discuss this issue based on friendship with American people and Muslims, especially for future generations.
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"What Americans have done in these 30 years is simply printing more and more bank notes in order to sustain its economy.

They have had foreign countries substantially make up their deficit, while printing more and more bank notes for payments to those foreign countries.

Though the U.S. has 2.5 trillion dollar foreign credits, the difference between its income and expenditures in its financial account balance has been reduced. In 2005, its black figure was just one billion dollars, which is remarkably small.

If foreign countries judge that the U.S. cannot pay interest of its foreign debts, which are huge, credibility of the dollar will be lost. Printing more and more bank notes may not work any more."

Mr. Akio Akagi, a prominent professor of the University of the Air in Japan, wrote so in his book with the theme of "oil and dollars."
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The key is overseas integrity of the dollar.

(If nobody in the world trusts in the dollar, the U.S. cannot simply print dollar bills and pay its debts with the bills. The U.S. must first get euros or yen. Then the economic power of the US will be significantly decreased. But, the dollar supremacy makes the world economy very vulnerable due to too much reliance on the US.)

The core of this integrity is deeply linked with oil. As oil producing countries accept the US currency (dollars) in payment for oil, integrity of the dollar is being secured.

In this respect, the key figure is Saudi Arabia.

If Saudi Arabia has more confidence in "yen" or "euro," and thus refuses to accept "dollars" from oil-purchasing countries, including the U.S. and Japan, other oil producing countries will come into line with Saudi Arabia where Islamic holy places are located.

If Saudi Arabia undergoes political upheaval, it may change its policy adopted so far to sustain the critical link between oil and dollars.

That is why the U.S. Government cannot withdraw its troops from Iraq as long as the Saudi Arabia Government wants them to stay there for protection of the kingdom from terrorists.
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This is one theory. But, American citizens should think about it as the 2008 Presidential Election is getting closer.

The fact that the 9/11 Terror was planned, ordered, and carried out mainly by Saudi-Arabia-born terrorists cannot be accidental.

The future of Saudi Arabia economy itself is not necessarily rosy.
(In 40 years, the world oil reserves are expected to be depleted...)
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There must be surely some way to correct the potentially-risky supremacy of the dollar in the world economy, which might someday trigger crash of the value of the dollar and hard-landing of the world monetary system.

How much Americans can accept decline in their standard of living may be another big issue. If they cannot, they have to continue to rely on military power to maintain the present system based on the oil-dollars linkage.
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When you are called by the God, you may be allowed to keep your conventional living standard you have enjoyed so far, if you honestly obey the God. But, probably, not more than that.

(When you die, how much money do you want to leave in this world? Jesus Christ left no dollars. Probably, I will do the same. My family should understand it.)


"THOSE WHO PILE UP RICHES FOR THEMSELVES BUT NOT RICH IN GOD'S SIGHT"