Euro Versus Dollar

PART 1 of why reserve currencies are now fighting to the death. The road that led to Washington's attempt to slow down USA's collapse by collapsing a rival for reserve currency



It appears that the American regime believes that its geopolitical survival through postponement of structural economic collapse depends on collapse of the Euro zone first. This involves making sure that the financial gambling elites around the world prefer the dollar over the euro as the safety reserve investment of choice. Within the global monetarist system that is collapsing on itself (drastically more debt than money in the world), this course of action makes temporary "sense". Although a lot more states within American Union are severely more bankrupt than states in European Union, having E.U. "pop" first would artificially prolong the existence (and therefore looting by Wall Street) of regions like California and U.S. in general.

In the 1990s, Washington was always split between promoting the EU monetary union (thus weakening Russia by absorbing and transforming her neighbors in a neoliberal NATO dominated oligarchical structure) and retarding EU as a project itself (thus maintaining dollar as primary reserve so Washington's money borrowing could continue). United States chose the middle path of trying to weaken EU and Russia through destabilization campaigns to demonstrate the impotence of both. An example was the Anglo led Yugoslavian bombardment and occupation that showed Germany, France, and Russia that the Balkans was now an American backyard. The regional players were too self absorbed to meaningfully deal with such shocking behavior that was not the business of a player thousands of miles away (imagine EU bombing Mongolia for supposed human rights abuses).

Post-Soviet world saw frantic efforts to peddle dollars everywhere, even if it meant creating propped narcostates like Kosovo to do it. As US was busy stripping and cannibalizing the economies of Eastern Europe (and pumping dollars into the region to preemptively compete with the Euro), Germany was an introvert and consolidating its now united territory. Meanwhile Russia was totally focused on inner management of its 1998 controlled national bankruptcy (US, UK, Greece, Spain, etc can take notes on how to say no to financial overseas parasites and then recover).

Just a few years after euros appeared in the hands of Europeans and gave a glimmer of competition to the dollar, Germany was able to shrug off its imperial masters in DC. Berlin now took a proactive role in expanding the Eurozone eastward (thus becoming coequal with France in the continental project), began close bilateral economic cooperation with Moscow, and actually said no to the heavy pressure to participate in the aggression against Iraq in 2003. There was an attempt ("new Europe" vs "old Europe") by Washington to gain a permanent foothold in central Europe but that possibility began to rapidly erode during the international financial crisis (more on dangers of potential power vacuum in the area).

In the last 10 years every course of action in Europe, that was suggested in 1997 by Zbigniew Brzezinski in The Grand Chessboard (in regards to maintaining American imperial base for expansion in Western Europe), was not done or done very poorly. Peddling dollars could only go so far. The fruits of Bush administration's total geopolitical incompetence was recently seen in 2010 with France declaring the same desire to engage in cooperation with Russia as Germany was doing for years. The recent agreement to sell NATO Mistral carriers to Moscow was just a beginning. Recently there has been talk of Russian Federation being able to sell its weapons to NATO countries in exchange for help in Afghanistan. Cooperation in weapons trade and perhaps eventual cooperation in development would further marginalize American influence on the continent (and cut into profits of the only U.S. lobby stronger than the financial one, the military-industrial complex). Major NATO allies taking matters into their own hands, bypassing Washington, and independently managing the continent with Moscow is unacceptable to the pentagon (even though that is desperately needed right now to maintain security).

Such a combination of factors may now create a consensus among US power elites (military and financial) to start pushing for a severe economic collapse in Western Europe. It would have been unthinkable to do this to NATO allies before but desperate times call for desperate measures. For this, Washington has amazingly effective historic weapons at its disposal. Primarily, they are the three major credit rating agencies that are all based in United States and which have always given Cold War NATO allies best triple A ratings while suppressing investment ratings of geopolitical enemies and collapsing entire nations so they can be looted by Washington's allies on Wall Street. More on the absurdity of these organizations here. The mere fact that instruments of the Anglo international financial oligarchy such as IMF, World Bank,  Moody's, and Standard and Poor's are still effective at shaping reality (and psychologically influencing entire governments and mobs of gamblers) is an absurd phenomenon that is on its last legs.

It would be too obvious and blatant for the Washington-Wall Street complex to order credit rating agencies to sink Greece, Spain, Portugal, and others all at once. To maintain an illusion of competence and wage effective informational warfare, the totally discredited (no pun intended) and fraudulent credit agencies need to subject their target countries to a death by a thousand cuts stretched over months. Allies in the corporate media do everything possible to help in the project of building mass perceptions of reality. Although the US and UK have become very skilled at cannibalizing entire societies, the current project is curious in that the legalized organized crime that is the Anglo financial houses is also destroying last life support systems of the very societies that maintain it. That doesn't really matter for organized thieves who deal internationally who in time will try to find new hosts in Brazil, China, or Russia.

Part 2 will focus on pros and cons of both the American and European unions to try to see who will prevail in achieving monetary collapse last.