[Marxism] The demise of the dollar

S. Artesian sartesian at earthlink.net
Tue Oct 6 08:43:25 MDT 2009

I don't see exactly how this squares with the fact that China and Japan have 
increased their purchases of US Treasurys, but hey, you never know what the 
bourgeoisie will come up with in their grand game of beggar thy neighbor.

In any case, first a correction, or addendum to Fisk's presentation.  Iraq 
has blacklisted Sinopec from bidding on concessions in the next round after 
Sinopec bought Swiss oil company Addax Petroleum.

Perhaps Russia does want to get away from the dollar, and Iran did announce 
its determination to price its oil in Euros, but I don't see any exporter 
accepting a basket of currencies for payment that includes the recently 
collapsed rouble, particularly when corporations in Russia are increasingly 
unable to make payments on their debts to European banks.

And oil importers?  Why would Japan, or the EU want oil currency priced in 
appreciating euros and yen, thereby effectively raising the price of their 
oil?  To further appreciate the value of their currencies?  Doesn't quite 
make sense, given the statements of the ECB "worrying" over the recent 
appreciation of the euro and its negative impact on exports and overall 
growth, and the critical role dollar depreciation played in the US, and 
global recovery, 2003-2007.

I don't accept that "currency rivalry" will cause greater competition in the 
Mideast, or between the US and China.  For one thing, for the yuan, or its 
foreign trade form the renminbi, to operate in a basket of currencies, the 
yuan would have to become fully convertible with other currencies--- and 
when that occurs,  US private hedge funds, currency traders, etc.  with many 
more hard currency reserves than all the central bankers in the world, will 
start whipsawing the yuan through the markets, eventually ripping a hole in 
the thin tissue supporting China's economic miracle, and then the run will 
start-- with capital flight and the ensuing economic disorder putting an end 
to that miracle.

However, I do think that these notions of "currency rivalry" reflect the 
drastic decline in profits for the oil exporters, the oil majors due to the 
overproduction of oil, and for 35 years nothing has worked against and 
hand-in-hand with overproduction to boost profits like increasing tensions, 
threats, then promises and the delivery of war. I too do not believe that 
things have to get worse to make things better, but I have no doubt things 
are going to get much worse, with much more hostility being directed at 

----- Original Message ----- 
From: "Louis Proyect" <lnp3 at panix.com>
To: "David Schanoes" <sartesian at earthlink.net>
Sent: Tuesday, October 06, 2009 9:05 AM
Subject: [Marxism] The demise of the dollar

The demise of the dollar

In a graphic illustration of the new world order, Arab states have
launched secret moves with China, Russia and France to stop using the US
currency for oil trading

By Robert Fisk

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