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Ron Paul – US sanctions on Russia may sink the dollar

 

sinkingdollar1

US  Sanctions on Russia May Sink the Dollar

…by the Ron Paul Institute

 

Despite the criticism of the Carter presidency, he stands alone on his service in retirement

Despite the criticism of the Carter presidency, he stands alone on his service in retirement

[ Editor’s note: I continue to be amazed at how few insiders who leave government do not begin a whole new career serving their country by explaining to the public that it is not really their country anymore.

We have a “mirage” democracy, with gerrymandering being only the first step to undermining our ability to challenge the elites from the commanding position our numbers should give us in a real democracy.

The current US economic war strategy is doomed to failure. No effort was ever made to sell the public on a strategy that would have more impact on the future of all Americans than any other decision. So they just cut us out of the process. Imagine that… both the Bush gangsters, and to a different degree, the Obama bunch, where no one ever gets fired no matter what they screw up.

If you think you are living in a democracy, and yet something this important can be carjacked and made into a bureaucratic prerogative that Congress or Presidential authority can handle “without hurting our little heads with all the pros and cons details ” – then you have erased yourself from the equation.

Stimulating what, I suspect, they feel will be small scale wars is also part of this strategy. They have taken our measure and concluded that if no US military body bags are coming home, and no huge funding appropriations adding to our deficit are going before Congress, then Johnny Public can be distracted by any of the myriad of diversion issues that magically seem to dominate front page news to help Johnny keep his eye off the ball.

We will have to up our game to survive this. And that starts first with some good leadership. We don’t have much, but will have to build on what we have, not competing with, but cross supporting, each other as much as we can to gain more leverage. That is why VT made the strategic decision to expand our growth internationally.

The War on Terror has come full circle to a War of Terror, with the West now the biggest terrorism supporter

The War on Terror has come full circle to a War of Terror, with the West now the biggest terrorism supporter

Why? Well, that’s because we can’t count on Americans to do it, that’s why. We feel it will take a more coordinated worldwide effort. This is why we are backing off the endless debates with the one man army blogger folks living in their “head of state” fantasy world and wanting tons of attention.

They don’t deserve it. They are hurting more than helping. And more than a few work for the bad guys for just that reason.

We teamed up early with Press TV to help build their commentary section that had been buried on the back page. Two years later, VT articles can often be found, not only on the top daily reads but, on the weekly and even the monthly ones, something unprecedented in the history of journalism.

That was followed last year with our strategic partnership with New Eastern Outlook, to give us a deeper bench of writing talent from the other side of the planet.

We thank our readers for the role they played, as we did not get the attention of these major players on our own. The other partners have been following VT and the unique platform and style that we have, and wanted to cross pollinate their own people by working with us.

My trip to Syria as an election monitor was a result of that synergy, as has the doubling of our radio and TV interview exposure now.

Next year will bring more changes as we take VT up another notch by expanding our support staff. The first outreach got a better than expected response. We found we have a deep talent bench among our readers, especially from those who have been avid VT readers but have not been in the comment boards for us to see them.

This will help us become much stronger and be able to focus more time on major investigative journalism stories…the big ones. We have to up our game, too… and we are taking you with us. Enjoy the ride, as it is going to be one hell of a journey… Jim W. Dean ]

___________________________________

 –  First published August 10, 2014  -

 

Ron Paul...still on the front lines

Ron Paul…still on the front lines

The US government’s decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself.

While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar’s eventual demise as the world’s reserve currency. 

Not only is the US sanctioning Russian banks and companies, but it also is trying to strong-arm European banks into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, European sanctions could hurt Europe at least as much as Russia.

At the same time the US expects cooperation from European banks, it is also prosecuting those same banks and fining them billions of dollars for violating existing US sanctions. It is not difficult to imagine that European banks will increasingly become fed up with having to act as the US government’s unpaid policemen, while having to pay billions of dollars in fines every time they engage in business that Washington doesn’t like.

European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS’s quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system.

As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself. 

American Worldwide economic war is backfiring

American Worldwide economic war is backfiring

Another effect of sanctions is that Russia will grow closer to its BRICS (Brazil/Russia/India/China/South Africa) allies. These countries count over 40 percent of the world’s population, have a combined economic output almost equal to the US and EU, and have significant natural resources at their disposal.

Russia is one of the world’s largest oil producers and supplies Europe with a large percent of its natural gas. Brazil has the second-largest industrial sector in the Americas and is the world’s largest exporter of ethanol. China is rich in mineral resources and is the world’s largest food producer.

Already Russia and China are signing agreements to conduct their bilateral trade with their own national currencies rather than with the dollar, a trend which, if it spreads, will continue to erode the dollar’s position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40 percent of the world’s gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar.

US policymakers fail to realize that the United States is not the global hegemon it was after World War II. They fail to understand that their overbearing actions toward other countries, even those considered friends, have severely eroded any good will that might previously have existed. And they fail to appreciate that more than 70 years of devaluing the dollar has put the rest of the world on edge.

There is a reason the euro was created, a reason that China is moving to internationalize its currency, and a reason that other countries around the world seek to negotiate monetary and trade compacts. The rest of the world is tired of subsidizing the United States government’s enormous debts, and tired of producing and exporting trillions of dollars of goods to the US, only to receive increasingly worthless dollars in return.

The US government has always relied on the cooperation of other countries to maintain the dollar’s preeminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot.

If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar’s slide into irrelevance.

Editing:  Jim W. Dean

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____________________________________

 

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20 Comments for “Ron Paul – US sanctions on Russia may sink the dollar”

  1. “still on the front lines”.. HAH!

  2. It’s the Hegelian Dialectic, thesis, anti-thesis. Create the problem, create the solution. The solution will be “One World Government”, (and where have you heard that phrase before?). America in its current form is toast if this goes through… assuming it hasn’t gone through already.

  3. I always wanted to ask that smart-ass Ben Bernake
    Sir, could you please explain to the world how it is that you can pay a debt with debt?!

    You guys, I am getting frightened. I sure hope the hell Dr. Preston James article last week comes to fruition and the tables come crashing down on the banksters.

  4. QUESTION FOR ANYONE…..

    I WANT TO GET THE HELL OUT OF DODGE. HOW CAN WE LEAVE AND STAY IN ANOTHER COUNTRY LEGALLY? I NEVER WANT TO COME BACK. DOES ANYONE KNOW?

  5. The dollar system is much stronger than the euro system. It will “sink” only if and after the euro system shatters – something possible around 3rd quarter 2015. In contrast, Asia becomes relatively stronger. Consequences to The USA of a Euro fail are… not yet clear!?

  6. my comment is about the pauls!!!!both father and son never ever us the nouns jew or zionists.and very few times and never from the son””ISRAEL””.they sell gold as the answer.think again who has it all.and china india is not the right answer. the pauls to me are alex jones material not here on vt .where its supposedly honest and true ..lets forget the pauls and let them make millions running for a presidency they will never get.not even the rand paul trip to israel with his son wearing their yarmulkes and kissing the wailing wall and tochus of the chief rabbi last oct.will do it.

  7. It’s even worse than that, Jim though I think your article is excellent.
    The neocons who ruined Ukraine are not done. They have brainwashed and trained legions of color revolution maniacs, thousands with dual russian citizenship, to infiltrate Russia during September in a major destabilisation push.
    This is what happens when you allow neocons to pull their stunts unpunished. These freaks will cause trouble during elections, first in Kaliningrad, then St Petersburg, then in Yekaterinburg in the Urals, and other places. A guy called Fedorov is warning of this. Turn on the English captions (and insert colon), here — https //www.youtube.com/watch?feature=player_embedded&v=WNAPbuwLMHg
    As usual credit must go to Thierry Meyssan, who exposed this. The Kaganites will do what they did in Kiev on a larger scale. the traitor Navalny and his cohorts tried it earlier and Russians smelled a rat. This time, Americans will be going violent in Russia.
    The USA’s weakness is shown by the fact they have no carrots to offer, only sticks. that won’t work. Assad beat them, Cairo’s Sisi is organising a Middle East NATO and a free trade zone. What goes around comes around, but neocons never get that. Best choice to neutralise them, are their fellow Yanks.

    • You are exactly right. I do not watch TV but last night I turned it on for 1st x in 3 weeks. The minute I heard about the rioting in Ferguson, Missouri, and the rioters supposedly throwing molative(sp?) cocktails I thought……John McCain Isis blah, blah, blah behind it. My God, its in Rex 84 or that other one that ANY social unrest, THEY WILL CALL MARTIAL LAW. AND PEOPLE…THERE IS SOMETING ELSE….THEY CAN CALL EASIER SOMETHING CALLED MARTIAL RULE. I have forgotten what the difference between them, but that is how they can more easily get away with it. Pass it on to everyone in your email list and tell them to pass it on….NO RIOTS, OR CIVIL DISTURBANCE OF ANY KIND. DEAR GOD PLEASE DO NOT LET THEM CALL THIS BEFORE THE DOLLAR COLLAPSES.

  8. Why are we so weak, and so apathetic? If someone steals my wallet a crime is committed. The cops may even execute the perpetrator during the arrest. When someone…something robs everyone (daily) we sink into collective ignorance and change the channel. Oh well.
    Here is a question. What service does the Fed provide that is so valuable that we owe so many trillions in interest debt? And who gets the interest payments? Never a word about who profits. We are left with the feeling that these serious looking men are hard working and doing it for free. Can anyone shout … AUDIT!!!! …
    Years ago my uncle told me … “if you earn 10 dollars there are 11 men waiting to take it away”. A very base definition of our banking system.

  9. Failed leadership has certainly put America in a wonderful position hasn’t it? From the first idiot Bush to this Kenyan born Oblunder, we Americans have been hoodwinked and fleeced without awakening.
    Everyone wants to come to America, and America wants everyone to come here. “Give us your poor and tired…yearning to be free…” says the inscription on the old lady on the harbor. Says nothing about putting them on a government program, but the good-heated American taxpayers (who are raped repeatedly each day,) don’t seem to mind the lessen income, forced sex and loss of space. So if the U.S. dollar sinks I guess we can all go down together fighting for the lifeboats which, by the way, have been reserved first and foremost for the many illegal immigrants who cannot take care of their own home country. We were once a great nation but now we have no respect for ourselves, nor enough intelligence to see if we do not take care of this country first, we cannot take care of anyone else legal or illegal.

    • “” we Americans have been hoodwinked and fleeced without awakening.””

      The Wash DC fedgov would not allow any serious opposition to their status quo to arise from the people even if they awakened and the masses know it . They saw what happened with the OWS movement . The fascist system of mind-control is very effective in keeping the sheeple masses pacified .
      The mind-controlled majority of sheeple cannot defeat any evil that they are not allowed to recognize nor act against .

  10. I am no longer in the UK I have tasted freedom and personal responsibility I like it. A picture is said to be worth a thousond words take a close look at this one. The Ruskies are dropping a big fat hint as to the true nature of our oppressors a gift from Russia with love.

    Recall how many innocents died under the Bolshevik ZioSoviets and consider the picture, is your nation infected ?

    Quisling whores Blair and Cameron have opened the gates it is up to you to close them.

    add http to the following link //en.itar-tass.com/russia/744815

  11. I do not believe the “dollar’s demise” results from stupidity, incompetence, lack of vision, etc. The take down of this fiat currency (Federal Reserve [debt] Notes, for Heaven’s sake! as if DEBT were MONEY!!) and, by extension, the gradual or sudden, peaceful or violent, destruction of our (former constitutional republic) USoA seems deliberate and very well engineered over many decades if not centuries. Social, political, moral, economic, even scientific domains appear systematically, progressively, and intentionally degraded. Revisionist historians, some labeled as such, some not, have documented a story of our decline about which most of us, I feel sure, still feel shell-shocked to learn. As a people in the remnant of the (former) USoA, we stand transfixed, most of us, even more so than a deer staring into the on-coming headlights of a SWAT-team truck hurrying to the scene of uppity people making noise.

    Ron Paul, perhaps for his own safety and the preservation of family members (open to argument, I know), always seems to address causal factors a level or three more distal to the ultimate outcome. This commentary seems par for that course. Reminds of of Dwight Eisenhower — after decades of service to the very military-industrial complex he served so well, he gave a brief warning no one then could fully understand, then went into retirement, comfortably silent. We have become comfortably numb since then (kudos Waters and Gilmour et al.).

  12. Preston James, Ph.D

    This is history in the making, the decapitation of the WZs from their “money-from-nothing” power. The sooner we get it over with and federalize the private WZ Federal Reserve System and create our own real currency instead of these phony debt-notes which must be repaid interest and principal, the better.

  13. I cannot wait for the Petro dollar to go ‘poof’.
    It will be painful, but this is worse, waiting for
    the other shoe to drop!

    Regina

    Regina

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