[Peace-discuss] Euro vs. Dollar

[Paul M. King]

As reported by C.G. Estabrook (see below), the dollar has slid
against the euro yet again with a rather significant
devaluation that has surprised even Greenspan. This is bad,
particularly when exacerbated by disastrous fiscal policies
such as the dramatic tax cuts. Central banks have been dumping
the dollar by eschewing American bonds for their euro
counterpart for several years now (since early 2001, I
believe), thereby converting large portions of their reserves
into the euro.

If we cannot continue selling bonds (due to a poorly
performing dollar), we cannot continue to service our
obnoxiously monstrous American debt. Raising interest rates
will help somewhat in luring international investors back, but
this seems like a short-term fix and will probably mark the
beginning of a speedy downward spiral...perhaps the beginning
of the actual end.

Given these (somewhat uneducated) speculations, what
advantages are there for the neocons by appointing Wolfowitz
to the World Bank? American capital will indeed be in sore
need of the services offered by the World Bank and it's
sibling organization, the IMF when our economic house of cards
collapses. And as such, the infamous structural readjustment
programs proscribed by the IMF and responsible for
privatization across the globe could then be fairly levied on
U.S. citizens on a large scale, impoverishing many - if not
most - of us. This privitization frenzy would undoubtedly
greatly enrich the neocon corporatists.

Are they readying themselves for the inevitable demise of the
United States of America? Is power ascending like a wisp of
vapor from the rubble of the nation-state? Geopolitical
boundaries, after all, seem somewhat obsolescent due to
well-oiled mechanisms of borderless capital as well as the
militaristic stalemate of nuclear proliferation.

Can anyone comment on what the long-term strategy here is? Or
am I naive in thinking that one exists?

..:: Paul King


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The US current account deficit reached a record $665.9bn in
2004 -- driven by rising oil imports and consumers' appetite
for foreign goods ... the deficit as a percentage of the total
economy also set a record, rising to 5.7% from 4.8% in 2003
... the fourth quarter current account deficit had widened by 13%

The dollar slid against the euro Wednesday on data that
showed the U.S. current account deficit soaring more than
expected in the fourth quarter and far exceeding its previous
record for the full year Greenspan says, "we were all wrong,"
about rosy surplus forecasts he used to support Bush's 2001
tax cuts

As the FT predicted two weeks ago, Bush names Paul Wolfowitz
World Bank president; "Wolfowitz told reporters he's
determined to 'wage war on poverty' [but not] unilaterally.
Instead, he will seek out a broad coalition of "Europe and
others" before attacking the world's poor people." He's
supported by Biden and other NatSecDems -- and by Sen. Leahy