A high-stakes drama is playing out now between the United States and Iran. On this blog, in our book Secret Weapon, in speeches and media interviews, we have been warning about the reality of global economic warfare. For several years, our government has ignored this reality. The good news is that just recently the government has begun to recognize economic weaponry. The bad news is that the government has approached the subject with typical American arrogance. The worse news is that we may all be hurt as a result.
The economic weapon the government is using against Iran is sadly exposing our greatest vulnerability. In essence, to punish Iran for continued nuclear development, we have threatened to deprive them access to the U.S. dollar. That is a serious threat and has serious implications for the domestic Iranian economy. The problem is that at the end of the day, the world may prefer to have their oil rather than our paper. Certainly that is what the market is telling us as the price of oil in dollars has been rising.
Given the global situation, do we remain so arrogant as to believe that the world prefer's American paper to oil from any source? At a minimum, we know that the amount of American paper available (whether in the form of currency or Treasury debt) has and continues to grow exponentially while the amount of available oil reserves are reasonably stagnant (at least by comparison). Add to this the fact that oil has enormous use and the demand for it will grow markedly over the long term. As for American paper? Nearly every major nation of the world including our best trading partners have begun to question (some publicly, some privately) its long-term usefulness.
Here's an interesting article from a clearly non-American perspective: http://english.al-akhbar.com/blogs/sandbox/how-iran-changed-world?
Here is a UK view: http://www.telegraph.co.uk/Iran-presses-ahead-with-dollar-attack
Read the two articles carefully. Then step back and ask yourself this simple question: At the end of the day, which will win, our paper or their oil?
There should be no doubt. We are in the midst of a Global Economic War as we have been warning. Unfortunately, because of our arrogance, we are fighting back with paper weapons. This is Phase Three as explained in the book Secret Weapon. Learn more at www.secretweapon.org.