Petrodollar Warfare & Collapse of U.S. Dollar Imperialism Report Page 3

 This geopolitical paradigm is occurring when the US dollar pillar is at its weakest point in history and is rarely being reported outside intelligence circles. America’s ideological enemies are moving into position to inflict a devastating blow at the US economic center of gravity. China and Russia are talking about reducing their US currency reserves and favoring the euro. At a recent Economic Forum in Davos, Switzerland the Chinese indicated they are seeking a “more manageable reference” for their enormous currency reserves. Russia currently exports 81% of its oil to the EU and 65% of its trade is in the Eurozone. In 2003, Putin told the German press that he would “not rule out” invoicing crude oil in the euro. “That would be interesting for our European partners,” Putin slyly added. Interesting? Try apocalyptic or a broadside attack against the US dollar! The largest currency exchange reserves in the world are now held by China ($1.3 trillion), Japan ($914 billion), the EU ($440 billion), and Russia ($411 billion – called petrorubles in 2007). At least 70% of these reserves are in the US dollar, or eurodollars. Add to this fact the largest oil companies in the world are now lining up against the US. According to the Financial Times (3/1//07) the new “Seven Oil Sisters” are Aramco (Saudi Arabia), Gazprom (Russia), CNPC (China), NIOC (Iran), PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Mal-aysia). As you can see, this new political-economic-petroleum axis has enough leverage and motivation to challenge the US dollar and propose a petroeuro exchange system. As Bill Engdahl sees it, “A full challenge to the domination of the US dollar as the world central-bank reserve currency entails a de facto declaration of war on the ‘full-spectrum dominance’ of the United States today.”[36] To be more precise this kind of challenge would be a form of petrodollar warfare since US dollar imperialism is the key to America’s military/political strength. This is the fatal flaw of the petrodollar exchange system and it can deal a fatal blow to America.

Can this scenario really unfold in the near future? It is being analyzed, debated, and probably even anticipated at the highest levels of government. A collective move into the euro as a new reserve currency would deliver a tremendous shock wave to the US. The fact that China-Russia-Iran have formed a hostile troika to US interests in the world is reason enough for serious pause. Some have suggested that a preemptive strike against Iran could galvanize the Islamic world and also draw Iran’s trading partner China into the fray, which might be the tipping point for China to start converting to euros. “The moment China starts selling dollars the rest of the world will crash down the doors of the bank to get rid of theirs as quickly as possible,” says Michael Ruppert. “[And] the run on the dollar will be short, bloody, and catastrophic.”[37] This contagion can spread into the US Treasury bond complex as nations liquidate government assets and OPEC will obligingly adopt a new petroeuro standard for crude oil contracts. A former government analyst describes this nightmare as follows:

The effect of an OPEC switch to the euro would be that oil-consuming nations would have to flush dollars out of their (central bank) reserve funds and replace these with euros. The dollar would crash anywhere from 20-40% in value and the consequences would be those one could expect from any currency collapse and massive inflation (think Argentina currency crisis, for example). You’d have foreign funds stream out of the US stock markets and dollar-denominated assets, there’d surely be a run on the banks much like the 1930s, the current account deficit would become unserviceable, the budget deficit would go into default, and so on. This could result in your basic Third World economic crisis (emphasis added).[38]

This kind of Third World crisis is drawing near to America’s doorstep and it is very real. What is being described here is a hyperinflationary depression and when you add massive bond liquidations the dollar will suffer a complete collapse. I develop this theme more fully in my book. For the unsuspecting American people they will have absolutely no idea why all of this happening and the government will have no way to stop this macroeconomic meltdown. Because of America’s “imperial overstretch,” a term used my military strategists, we are vulnerable to this kind of economic warfare – and our ideological enemies know this. The neocons are miscalculating our interventionist policies on the geopolitical chessboard and its resulting blow-back.

Many are hopeful that there can be an orderly transition to the euro, perhaps even a dual currency standard. But due to mounting hostility toward the US it is likely to be abrupt. The intention will be to destabilize our monetary system, check US military power, and create a multipolar world between China, Russia, and the EU. The euro is growing in capital markets and the euro accounts for almost 50% of all currency transactions on the FOREX exchange. As T. R. Reid predicted in his book The United States of Europe, “the success of Europe’s common currency could bring America’s financial house of cards tumbling down.”[39] Just as the Fed replaced the Bank of England in 1945 the European Central Bank (ECB) is poised to rise in prominence.

The loss of American leadership in the world is a sobering prospect. In a recent article in the Miami Herald (7/22/07) Richard Haass, president of the CFR in New York, stated that “no country or group of countries has the capacity to replace the United States.” He adds, “The alternative to a US-led global order is disorder.” This is neocon bravado. The EU has the second largest combined army after China (2.2 million) and is prepared to lead a new global order resting on the strength of the euro. America’s “Achilles’ Heel” has always been its fiat currency and the loss of our dual pillars will render us a Third World trading bloc trying to compete with the EU. Impossible you say? General Eisenhower clearly warned us about “the disastrous rise of misplaced power” within “the councils of government” and it would appear that Establishment insiders have been drawing up contingency plans to force the US into tri-national trading bloc with Mexico and Canada known as the North American Union and the adoption of a new basket currency called the “amero” (www.spp.gov). Robert A. Pastor is the main architect for this scheme with a convergence fulfillment by 2010 if not sooner. In a recent comment Pastor tipped his hand when he indicated that a major crisis like another 9/11 would be sufficient enough to force democratic governments to adopt this political merger:
 
What I am saying is that a crisis is an event which can force democratic governments to make difficult decisions like those that will be required to create a North American Community. It’s not that I want another 9/11, but having a crisis would force decisions that otherwise might not get made. When there’s a crisis, people accept proposals they wouldn’t have otherwise accepted (emphasis added).[42]

It would be hard to find a more authoritative quote than what has been said here. With all the shrewdness and cunning of Professor Strauss himself, the global elitists are preparing to exploit a crisis to advance their hidden agenda to control the ignorant masses. A currency crisis – like the one described in this special report – would certainly fit into Kissinger and Brzezinski’s ideas on “progressive regionalization” and the need for “integration” within the Western Hemisphere. This is a classic example of the Hegelian dialectic of thesis, antithesis, and synthesis in which a problem is allowed to develop, resulting in a panicked response, and then providing a predetermined solution. For more on this general topic I urge you to educate yourself at www.augustreview.com and support the World Research Library and its Executive Director Patrick M. Wood.

Not mentioned by Mr. Pastor and his regional commissars is the fact that a crisis can also lead to a more oppressive government and degradation of civil liberties. As Congressman Ron Paul has been warning people for years, “During a crisis, the rights of individuals…are more easily trampled, which is more likely to condition a nation to become a police state than a military coup.”[43] A police state in America? No wonder the Establishment media relegates Paul as a “third tier” candidate who only appeals to the lunatic fringe. Yet more and more people are waking up to this inherent danger. In 2001, the Patriot Act was rammed through Congress which lays the groundwork for a police state. In 2005, the REAL ID Act (national ID card) was snuck through Congress and will be implemented by 2009. On October 17, 2006 Bush secretly signed the Defense Authorization Act (Public Law 109-364) and the Military Commissions Act (Public Law 109-366) to use the armed forces as domestic police and federalizing local police. These acts violate the Posse Comitatus Act of 1878 which prohibits the military being employed in law enforcement. On May 9, 2007 Bush also signed a President Directive (NSPD-51) that consolidates extraordinary police state powers to the White House and DHS in case of a “catastrophic emergency.” This directive also makes sure that “appropriate support is available to the Vice President” (our acting neocon president). These kind of enabling acts have been adopted to fight the “war on terror” and protect the Homeland. But as William Pitt warned, “Necessity is the argument of tyrants, and the creed of slaves.” Samuel Johnson also chided that “patriotism is the refuge of a scoundrel."

In conclusion, it is imperative for us to understand the petrodollar exchange system and the macroeconomic implications that I have outlined in this report. The collapse of this monetarist model will effect us all and is affording an opportunity for government insiders to restructure our beloved country. In their book Power Surge: The Constitutional Record of George W. Bush, Gene Healy and Timothy Lynch charge that, “President Bush’s constitutional vision is, in short, sharply at odds with the text, history, and structure of our Constitution, which authorizes a government of limited powers.” President Bush has wrapped himself in the American flag to deflect public criticism, but Teddy Roosevelt reminds, “To announce that there must be no criticism of the president, or that we are to stand by the president, right or wrong, is not only unpatriotic and servile, but it is morally treasonable to the American public.” Thomas Paine said, “It is the duty of the patriot to protect his country from the government.” Thomas Jefferson further stated, “All tyranny needs to gain a foothold is for people of good conscience to remain silent.” It is time for good people to wake up and realize the internal and external threats that we are all facing as a nation. It is also time to consider some serious contingency planning for the difficult times that lie ahead. As Patrick Henry said back in 1776, “We are apt to close our eyes against a painful truth.” But we must all take personal responsibility for what we know and then we must act accordingly.

US dollar imperialism has caused tremendous economic distortions in the US and abroad and it is going to end badly. “A great empire is to the world of geopolitics what a great bubble is to the world of economics,” writes Bill Bonner in his book Empire of Debt: Rise of an Epic Financial Crisis. “It’s attractive at the outset but a catastrophe eventually.” One of the best ways to protect your dollar-denominated assets from America’s financial reckoning day is to have some sensible diversification and hedge strategies. “Divide your portion to seven, even eight,” wrote King Solomon, “for you do not know what misfortune may occur on the earth” (Eccl. 11:2). In my book (and this website) I have illustrated an “investment triangle” that features precious metals & tangible assets as a core investment at the base. On each side of this triangle I have cash & savings and growth & income.

The precious metals complex represents a necessary component for privacy and asset protection and serves as an excellent hedge against monetary (hyper) inflation. It has been estimated that all the gold ever mined would fit into a 60 foot square cube. With $100 trillion in paper assets worldwide and only $1.7 trillion in above ground inventory it isn’t hard to see how gold will appreciate during a crisis! Silver is more affordable and arguably has more upside potential. Approximately 90% of all the silver mined in history has been used up by modern industrial demand. The historic ratio for gold to silver is around 15:1 and this ratio is currently 50:1, which suggests that silver is undervalued. I recommend an equal amount in gold and silver and can also assist clients with coverting their qualified plans and pension funds into a Precious Metals IRA for safe-keeping and tax-deferred gains. You are strongly advised to place 30-50% of your liquid assets into gold and silver. If I can assist you please contact me through this business website at this link and leave your contact information, or you can also call me at 1-928-793-4269 (12-6 PM PST).

Concerning cash & savings accounts I highly recommend that my clients lower their exposure to the banking system due to massive credit derivatives and dollar volatility. At this link I list several good T-bill money market accounts and bank rating services. I also recommend a World Currency Access Deposit Account in euros available only at www.everbank.com. With regard to growth & income I suggest that you purchase my book for a complete summary. Basically, I focus on the commodity-mining-energy complex in addition to inverse index funds and foreign bonds which have a negative correlation to US stocks. I also have some offshore strategies for sophisticated contrarian investors. You can also click here for my 2007 Update and a 12-minute video clip of GAO Comptroller David Walker's warning of US fiscal bankruptcy on CBS 60 Minutes.

My final recommendation is that my clients have some quality food storage for their families. As my friend Steve Shenk, director of www.efoodsdirect.com, says “Think of food as cheap insurance you can eat.” They have affordable storage systems ranging from $350 to $1,600. You can call them at 1-800-409-5633 (MST). If you would like to purchase an autographed copy of my book you can go to www.chuckcoppes.com or call 1-800-775-6394 (9-5 PM PST). All book orders will include this free 20-page special report to pass along to friends and family. As I have stated in my book Introduction, it is my goal to challenge people’s thinking and move them to make personal and financial decisions. But our most important decision is to trust God. “God is our refuge and strength, a very present help in trouble; therefore we will not fear” (Ps. 46:1). He will see us safely through "this present evil age" if we completely put our trust in Him (Gal. 1:3-5). This is the eternal truth that sets us all free (Jn. 8:31-32).

Charles H. (Chuck) Coppes has been a licensed securities broker and is the founder and president of IDP Consulting Group, which is an independent precious metals and consulting firm. A summa cum laude graduate with a degree in Christian Apologetics he has been a featured guest on national radio programs. For media contact or press kit please call 1-928-369-9923 or email him at CHC@ChuckCoppes.com.This e-mail address is being protected from spam bots, you need JavaScript enabled to view it