Western Economic Crisis: Why the Dollar Bubble Is About to Burst

Western Economic Crisis: Why the Dollar Bubble is about to Burst

Saturday, 17 May 2008

Steve Masterson

The Voice (issue 264 - 11th May) ran an article beginning, "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.

Currently almost all oil buying and selling is in US-dollars through exchanges in London and New York. It is not

accidental they are both US-owned.

The Wall Street crash in 1929 sparked off global depression andWorld War II. During that war the US supplied provisions

and munitions to all its allies, refusing currency and demanding gold payments in exchange.

By 1945, 80% of the world's gold was sitting in US vaults. The dollar became the one undisputed global reserve currency

-- it was treated world-wide as 'safer than gold'. The Bretton Woods agreement was established.

The US took full advantage over the next decades and printed dollars like there was no tomorrow. The US exported

many mountains of dollars, paying for ever-increasing amounts of commodities, tax cuts for the rich, many wars abroad,

mercenaries, spies and politicians the world over. You see, this did not affect inflation at home! The US got it all for free!

Well, maybe for a forest or two.

Over subsequent decades the world's vaults bulged at the seams andmore and more vaults were built, just for US

dollars. Each year, theUS spends many more dollars abroad that at home. Analysts pretty much agree that outside the

US, of the savings, or reserves, of all other countries, in gold and all currencies -- that a massive 66% of this total wealth

is in US dollars!

In 1971 several countries simultaeously tried