In today’s world of un backed fiat currencies, credibility is all there is. Unfortunately, we in the U.S. have now lost any and all credibility we had accumulated over the last 200+ years. Before I go any further I’d like to make a couple of points clear so there are not any misconceptions. First, I really do not like writing about politics. “Politics” is about opinions and everyone is entitled to theirs but in the long run it is the changing and shifting of political views that either improve or impede the underlying economy and society. As for my views, I consider myself a libertarian with staunch fiscal ideals and some liberal views on several social issues.
I also want to point out that my opinions below are not “Obama bashing” because starting with Bill Clinton, followed by George Bush and culminating now, the U.S. has morally, financially, socially, economically and nearly any other adjective you can think of…gone bankrupt. No matter where you look, the banks, the justice system, the regulators, Congress or the Executive branch, we don’t even resemble what we were 50 years ago. We have gone from THE shining beacon of truth and justice to one of the most corrupt systems in the world. Not only that, the world knows this and would be laughing at us publicly if we did not have the potential to blow up the entire world. That said the following is the way I see it for the truth, not as political commentary or “taking sides.”
President Obama plain and simple blew this one. He (and Kerry) immediately and without any proof of “who” delivered the chemical weapons attack “declared war” on Syria. Without a better analogy, Yosemite Sam comes to mind. The Constitution requires a vote of Congress, yes I know…Bush did an end around this but it still didn’t make it right. The UN will obviously not vote a resolution as the Russians have veto power so no go here. Britain’s Parliament voted no on going to war for the first time in over 200 years when requested by the Prime Minister. Only the French will stand with us…there is no coalition, no allies, and no “no one” on this one.
Now, Congress will be “consulted” and President Obama has backed off. So, we have now 2 options. Congress votes to attack or they vote no. If we do attack, it is a good bet that with the current stance of the rest of the world, World War III will have started. If Congress votes no then the US which has swung a big stick since WW II will look like a toothless abominable snowman. Or of course there is one more option where President Obama says he has the power to attack even if Congress votes not to…in which case he would be judged by the international community as a war criminal if he wasn’t impeached beforehand for treason against the United States and the Constitution. I would hope that his handlers would explain that this “option 3” is not really an option but then again on the other hand, his “handlers” are the ones who “need” the war to prolong the petrodollar.
I could probably write a book on this situation about the pros, cons, potential winners and losers…and the “why’s” for the various positions taken. Very briefly, this is about natural gas. It is about oil. It is about a proposed pipeline through Syria that Assad (and the Russians) does not want. This is about the “petrodollar.” It is about the fact that the Fed needs the military industrial complex to go to another war so that the deficits SPEND which will allow the Fed to PRINT. …And it is ALL HAPPENING just before the G-20 conference IN RUSSIA which President Obama has already cancelled his meeting with Mr. Putin because of the asylum given to Edward Snowden.
“Dots,” lots and lots of “dots” to connect here and these are not even all of them. My point is that now no matter what we do, we will look stupid. We have boxed ourselves in so far that any move we choose to make will be the wrong one. My personal opinion is that the chemical attack was a false flag in order to get the war started. Maybe I am wrong in this opinion but let me point a couple of things out. First off, John Kerry said that it will take “a couple of weeks” to get results back from the weapons inspectors…Why so long?…they were able to get DNA results back (in an airplane) in less than 24 hours “proving” that they had killed Osama Bin Laden. Secondly, what business is this of ours? Syria is in the middle of a civil war (and yes I know that we have supplied the rebels), what if the situation was reversed? What if we had civil strife here in the U.S.? What if Texas and Oklahoma were locked in a pissing match and some other power parked attack vessels (loaded with cruise missiles and presumably nuclear weapons) outside of Houston harbor?
Just food for thought. As a side note, I must say that it is more than obvious that chemical weapons were used…the question is who delivered them? This I do not believe can be proven in any manner other than “he said she said.”
So, war, no war, vote, no vote or a no vote and we still attack… I want to remind you that “the dollar” when all is said and done will bear the brunt of this. The dollar is the equivalent of “the common stock” of the United States. If you thought that foreigners were already backing away from using the dollar just wait and see what this travesty will bring. I was already of the opinion that the G-20 had cut some sort of deal, now I will be shocked if the US and the dollar are not “castigated” with foreign and public laughter.
We used to be the “politically safe haven” for the world’s capital. We were known for having free, fair and justly regulated markets. Our opinion used to be “followed” because it made sense and was based in logic. It has taken roughly 20 years but we have given ALL of the accumulated goodwill away. We have said one thing, done another and then used illogical lies to cover past lies…our credibility are gone. As I said, the loss of credibility will show itself in a weaker dollar and in inflation because our trading partners will shy further away from dollars.
I do want to mention one other dangerous angle that now comes into play. In the past, the world could absolutely bet that we would do whatever we said we would. This has now changed and this change brings with it uncertainty. The current Syrian event (especially after all of the other recent and numerous scandals) makes us look like “loose cannons.” No one knows what to expect. No one can gage whether we will or will not do what we say. Will we really back an ally? Will we really perform on a contract?
Naturally this spills over to “investment.” Are the banks really “solid” like we say? Are the financial reports real or “fudged?”…Is the gold really in the bank? All questions like these and similar where the “benefit of the doubt” was given because it was the “United States” may not play so well in the future. And please remember that the US (dollar) is THE cornerstone to the global financial system…one that is based entirely on faith. We have and are “breaking faith” with the rest of the world every single day and now doing in a very public and in your face way. The word “DANGEROUS” comes to mind!