Retiring the American dollar

Off into history’s sunset, like the cowboy. This image (modified) is called ‘Dollar Green’ by the artist mancaalberto (http://mancaalberto.deviantart.com/)

Seventy years ago, to the very month, a man named Henry Morganthau celebrated the creation of a “dynamic world community in which the peoples of every nation will be able to realise their potentialities in peace”. It was the founding of what came to be called the Bretton Woods institutions (named after the venue for the meeting, in the USA) and these were the International Bank for Reconstruction and Development – better known as the World Bank – and the International Monetary Fund.

None of the lofty aims that seemed so apposite in the shattering aftermath of the Second World War have been achieved, although what has been written are libraries of counter-factual history that claim such achievements (and more besides) commissioned by both these institutions and their web of supporting establishments, financial, academic, political and otherwise. Instead, for the last two generations of victims of ‘structural adjustment’, and of ‘reform and austerity’ all that has become worthwhile in the poorer societies of the world has been achieved despite the Bretton Woods institutions, not because of them.

Now, seventy years after Morganthau (the then Treasury Secretary of the USA) and British economist John Maynard Keynes unveiled with a grey flourish a multi-lateral framework for international economic order, the Bretton Woods institutions are faced with a challenge, and the view from East and South Asia, from Latin America and from southern Africa is that this is a challenge that has been overdue for too long.

Let’s get the de-dollarisation of the world started.

It has come in the form of the agreement between the leaders of five countries to form a development bank. Russia’s President Vladimir Putin, China’s President Xi Jinping, India’s Prime Minister Narendra Modi, Brazilian President Dilma Rousseff and South Africa’s President Jacob Zuma made formal their intention during the sixth summit of their countries – together called ‘BRICS’, after the first letters of their countries’ names – held this month in Brazil.

What has been set in motion is the BRICS Development Bank and the BRICS Contingency Reserves Arrangement. Both the new institution and the new mechanism will counter the influence of Western-based lending institutions and the American dollar, which is the principal reserve currency used internationally and which is the currency that the IMF and the World Bank conduct their ruthless business in (and which formulate their policies around, policies that are too often designed to impoverish the working class and to cripple labour).

At one time or another, and not always at inter-governmental fora, the BRICS have objected to the American dollar continuing to be the world’s principal reserve currency, a position which amplifies the impact of policy decisions by the US Federal Reserve – the American central bank – on all countries that trade using dollars, and which seek capital denominated in dollars. These impacts are, not surprisingly, ignored by the Federal Reserve which looks after the interests of the American government of the day and US business (particularly Wall Street).

In the last two years particularly, non-dollar bilateral agreements have become more common as countries have looked for ways to free themselves from the crushing Bretton Woods yoke. Only this June, Russia’s finance minister said the central banks of Russia and China would discuss currency swaps for export payments in their respective national currencies, a direction that followed Putin’s visit to China the previous month to finalise the gigantic US$400 billion deal between Gazprom and China National Petroleum Corporation (CNPC). It is still early, and the BRICS will favour caution over hyperbole, but when their bank opens for business, the sun will begin to set on the US dollar.

The encirclement of Syria

A map prepared by German magazine Der Spiegel to show areas of control in Syria.

Update: Samples collected by the UN chemical experts team in the Damascus suburb will be transferred to laboratories for analysis “within hours,” a spokesperson for UN Secretary-General Ban Ki-moon has said in a note to correspondents. “The samples were shipped this afternoon from The Hague and will reach their destination within hours,” the note said. It added that the designated laboratories are prepared to begin the analyses “immediately after receipt of samples.”

Ria Novosti has quoted Alexei Pushkov, who heads the international affairs committee in the lower chamber of the Russian parliament, the State Duma, as having said: “By sending the Nimitz nuclear aircraft carrier to Syria’s shores, Obama demonstrates that the military action has been postponed, but not cancelled, and that he is determined to start a war.”

Press communiqués from Russia indicate that President Vladimir Putin’s government in Moscow wants any military action to go through the UN Security Council, but will likely block any resolution to authorise it, citing lack of conclusive evidence that the Syrian government, not the insurgents, was behind the attack.
Moscow will continue to support the Assad government with weapons and humanitarian aid, as it has in the past. The view of Russian analysts is that this is so because Moscow has invested a considerable sum in Assad’s government through loans and financial support.

A readers’ poll by presseurop shows 65% want nothing to do with war.

Der Spiegel has a longish news feature in which it has explained that the USA has stepped back from an immediate response to the alleged use of chemical weapons in Syria on 21 August 2013. But the Obama regime in Washington continues to profess “certainty” that Syrian president Bashar Assad is behind the attack. Der Spiegel’s tone is pro-White House and certainly not objective enough for even a third-rate district newspaper, but this sort of Europedantry is useful for indicating how the autocratic regimes in Berlin, Paris and London are currently thinking.

Russian Foreign Minister Sergey Lavrov has said secrecy by the West is unacceptable with regard to Syria and evidence of the use of chemical weapons there. He added that “what our American, British and French partners have shown us before – as well as now – does not convince us at all. There are no supporting facts, there is only repetitive talk in the vein of ‘we know for sure’. And when we ask for further clarification, we receive the following response: ‘You are aware that this is classified information, therefore we cannot show it to you.’ So there are still no facts.”

An article in Counterpunch has said that “having been released prior to even preliminary reports from UN chemical weapons investigators on the ground in Syria, the (American) document (claiming proof of the Syrian government’s use of chemical weapons on its own population) is as much a work of fiction as it is fact.”

Outside the cosmeticised clutter of the world’s mainstream and corporate media, a number of information channels are citing interviews with doctors, Ghouta residents, rebel fighters in Syria and their families, from which a very different picture emerges. Many believe that certain rebels received chemical weapons via the Saudi intelligence chief, Prince Bandar bin Sultan, and were responsible for carrying out the dealing gas attack.

In a recent article for Business Insider, reporter Geoffrey Ingersoll highlighted Saudi Prince Bandar’s role in the two-and-a-half year Syrian civil war. Many observers believe Bandar, with his close ties to Washington, has been at the very heart of the push for war by the U.S. against Assad. Ingersoll referred to an article in Britain’s Daily Telegraph about secret Russian-Saudi talks alleging that Bandar offered Russian President Vladimir Putin cheap oil in exchange for dumping Assad.

“Prince Bandar pledged to safeguard Russia’s naval base in Syria if the Assad regime is toppled, but he also hinted at Chechen terrorist attacks on Russia’s Winter Olympics in Sochi if there is no accord,” Ingersoll wrote. “Along with Saudi officials, the US allegedly gave the Saudi intelligence chief the thumbs up to conduct these talks with Russia, which comes as no surprise. Bandar is American-educated, both military and collegiate, served as a highly influential Saudi Ambassador to the US, and the CIA totally loves this guy.”

A picture drawn by a Syrian child, living through the conflict. Image: CBBC Newsround (www.bbc.co.uk/newsround/21771713)

Update: The rush to attack Syria by the Obama administration is being prepared in contempt of international law, democratic processes and in contempt of public opinion in the USA itself. This was made abundantly clear in the presentation US Secretary of State John Kerry delivered from the State Department on Friday, 30 August.

On Saturday, 31 August, Russian President Vladimir Putin dismissed as “utter nonsense” the US claims that the Syrian government forces have used chemical weapons. “The Syrian government troops are on the offensive … So giving a trump card to those who are calling for a military intervention is utter nonsense,” Putin told reporters in Vladivostok.

The so-called US ‘Government Assessment of the Syrian Government’s Use of Chemical Weapons’ contains not one shred of probative evidence. As emphasised by the website of the International Committee of the Fourth International, the document, barely three pages long, includes a series of unsubstantiated assertions that are tailored to the US policy aim of manufacturing a pretext for direct intervention in a US-provoked civil war aimed at toppling the Syrian regime of Bashar al-Assad.

To the question, put to him by Syrian playwright Mohammad Al Attar, which was, “You have a cautious stance on recent Western statements about arming opposition fighters. Why is this?”, Noam Chomsky, interviewed in July 2013, replied: “It is linked to an evaluation of the consequences. Once again, I believe there are much simpler ways that the West can take before making the leap to military aid, some of which I have mentioned above, but which further include providing increased levels of humanitarian aid. If we are serious, we must look at the consequences of such an action. What would be the result on a humanitarian level? My question is practical, not ethical.” More from the Heinrich Böll Stiftung Middle East.

A page extract from NBC’s poll on US military action against Syria.

But the views of the reasonable and pacifist many have rarely halted the war charges of the White House. A poll carried out by the American broadcaster NBC has showed that nearly 80% of those polled want approval from the US Congress for military action against Syria. “Nearly 80 percent of Americans believe President Barack Obama should receive congressional approval before using force in Syria, but the nation is divided over the scope of any potential strike,” the NBC report has said.

The raw poll findings, which I have extracted from the document helpfully posted in full by NBC, show the clarity with which the polled public view the recklessness of the Obama administration. In particular see the “no, will not improve the situation” and “no, not in our national interest” responses.

Older post: There is little point now in switching on any of the mainstream television news channels, for the propaganda campaign has shifted into high gear. The last decade has provided enough practice for such a campaign – war and unrest have become orchestrated as spectacles. There has been Iraq, Afghanistan, Libya, Egypt, Somalia and Al Qaeda. Hence the machinery used to package another war for the public has been well used. The official reasons given for the imminent attack on Syria are unsubstantiated and lies that are fashioned crudely into a bloodthirsty collection of pretexts to justify a policy planned well in advance.

Shoved aside are the voices that are calling for the investigations to find evidence of the alleged gas attacks inside Syria, to let dialogue and diplomacy dominate all interactions, to give all sides a hearing and count all views.

The voices are there and this is what they have said and are saying:

On 28 August 2013, with United Nations Secretary-General Ban Ki-moon and other UN officials urging continued cooperation, the UN team investigating alleged use of chemical weapons in Syria visited several locations in the suburbs of Damascus, including impact sites, where it collected additional information and samples. That work must continue, as Syria itself has asked the UN, speaking through its permanent representative to the UN speaking on 28 August 2013 (see this video clip).

On 25 August 2013 the Spokesperson for UN Secretary-General Ban Ki-moon said on 24 and 25 August 2013, the High Representative for Disarmament Affairs, Angela Kane, met with senior officials of the Government of the Syrian Arab Republic. “The purpose of her visit was to seek cooperation of the Government in facilitating an expeditious investigation of the incident in the Ghouta area on 21 August involving the alleged use of chemical weapons,” noted the statement.

The UN Secretary-General instructed the investigating mission which began its on-site fact-finding activities on 26 August 2013, that is, only three days ago. And yet the governments in Washington and London are ferociously claiming there is no need for a UN Security Council resolution on what form of intervention to make in response, and indeed for the investigations to cease so that war can commence immediately.

For the USA and Britain – and their supporters in Germany and France and a few other countries – to threaten to or to militarily strike at Syria is a blatant violation of the United Nations Charter – which has not been mentioned by Barack Obama or David Cameron. The UN Charter requires countries to settle their international disputes peacefully. Article 2(4) makes it illegal for any country to either use force or threaten to use force against another country. Article 2(7) prohibits intervention in an internal or domestic dispute in another country. The only time military force is lawful under the Charter is when the Security Council approves it, or under Article 51, which allows a country to defend itself if attacked. None of the governments now howling for war were attacked.

A graphic by Ria Novosti showing the build-up of military in the Mediterranean and surrounding Syria.

Writing in The Guardian, Hans Blix reminded us that “In 2003 the US and the UK and an alliance of ‘friendly states’ invaded Iraq without the authorisation of the UN Security Council. “A strong body of world opinion felt that this constituted a violation and an undermining of the UN charter,” wrote Blix. “A quick punitive action in Syria today without UN authorisation would be another precedent, suggesting that great military powers can intervene militarily when they feel politically impelled to do so.” Blix was the head of the UN monitoring, verification and inspection commission from March 2000 to June 2003. In 2002, the commission began searching Iraq for weapons of mass destruction, ultimately finding none.

We can expect that Russia and China, on the UN Security Council, will use their veto to halt an Anglo-American war on Syria. That is why the USA and Britain have been assembling warships in the Mediterranean – were these warships there before the alleged gas attacks in Syria? That is what responsible media should be asking governments in Washington and London.

Nonetheless, there are more reliable news sources to turn to. The Russian news website RT is running a ‘Syria ‘chemical weapons’ crisis live updates’ page. Ria Novosti is also covering the crisis and you will reports such as “Russian President Vladimir Putin and his Iranian counterpart, Hassan Rouhani, have discussed the situation in Syria, condemned the use of chemical weapons, and called for a political settlement”.

And the People’s Republic of China has its global news service, Xinhua, which has reported Syrian President Bashar al-Assad as having said that his country “would defend itself against any foreign aggression, stressing determination to ‘eliminate terrorism’ in the war-weary country”.

Occupy Kremlin

Protesters seen during a mass rally to protest against alleged vote rigging in Russia's parliamentary elections in Moscow, Russia, Saturday, Dec. 10, 2011. Many thousands of Russians angered by allegedly fraudulent parliamentary elections are protesting Saturday in cities from the freezing Pacific Coast to the southwest of Russia, eight time zones away, a striking show of indignation, challenging Prime Minister Vladimir Putin's hold on power. Photo: Sergey Ponomarev