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The Rise of the 'Petro-yuan' and the Slow Erosion of Dollar Hegemony For seventy years, one of the critical foundations of American power has been the dollar’s standing as the world’s most important currency. For the last forty years, a pillar of dollar primacy has been the greenback’s dominant role in international energy markets. Today, China is leveraging its rise as an economic power, and as the most important incremental market for hydrocarbon exporters in the Persian Gulf and the former Soviet Union to circumscribe dollar dominance in global energy—with potentially profound ramifications for America’s strategic position.

31 July 2014read on...

New Post
MEMORANDUM FOR: The President

FROM: Veteran Intelligence Professionals for Sanity (VIPS)

SUBJECT: Intelligence on Shoot-Down of Malaysian Plane

31 July 2014read on...

Stop! Thief! Stop! — The Looting of Ukraine
Kiev’s hastily assembled, post-coup coalitions couldn’t hold, and Ukrainian PM Arseniy Yatsenyuk threw in the towel last Thursday. On his way out, news stories said, the PM expressed his “disappointment with Ukrainian parliament’s decision to reject a bill that allows the government to hand over up to 49 percent of the country’s gas transport system to investors from the European Union and the United States.”

30 July 2014read on...

On Dominoes, WMDs And Putin’s 'Aggression': Imperial Washington Is Intoxicated By Another Big Lie
Imperial Washington is truly running amuck in its insensible confrontation with Vladimir Putin. The round of new sanctions is a counter-productive joke. Apparently, more of Vlad’s posse will be put on double probation, thereby reducing demand for Harry Macklowe’s swell new $60 million apartment units on Park Avenue. Likewise, American exporters of high tech oilfield equipment will be shot in the foot with an embargo; and debt-saturated Russian state companies will be denied the opportunity to bury themselves even deeper in dollar debt by borrowing on the New York bond market. Some real wet noodles, these!

29 July 2014read on...

In Foreign Affairs, Not Doing Anything Is The Thing To Do
The heartbreaking violence in the Middle East, Ukraine, and elsewhere carries many messages, but here’s one Americans shouldn’t miss: The United States — no matter who the president is — cannot manage world conflict. The corollary is that when a president tries to manage it, things will usually get worse. Foresight is always defective, and tragic unintended consequences will prevail.

29 July 2014read on...

The Absurd, Bureaucratic Hell That Is the American Police State
Whether it’s the working mother arrested for letting her 9-year-old play unsupervised at a playground, the teenager forced to have his genitals photographed by police, the underage burglar sentenced to 23 years for shooting a retired police dog, or the 43-year-old man who died of a heart attack after being put in a chokehold by NYPD officers allegedly over the sale of untaxed cigarettes, the theater of the absurd that passes for life in the American police state grows more tragic and incomprehensible by the day.

28 July 2014read on...

End Torture, Shut Down the CIA!
Remember back in April, 2007, when then-CIA director George Tenet appeared on 60 Minutes, angrily telling the program host, “we don’t torture people”? Remember a few months later, in October, President George W. Bush saying, “this government does not torture people”? We knew then it was not true because we had already seen the photos of Iraqis tortured at Abu Ghraib prison four years earlier.

27 July 2014read on...

Israel's 155mm Cure For ‘Terrorism’ In 1956, Britain and France were convinced that Egypt’s charismatic nationalist leader, Gamal Abdel Nasser, was threatening what was left of their Mideast and African colonial empires. London branded Nasser, “Hitler on the Nile.”

27 July 2014read on...

Another 'Saigon': US Evacuates From Libya
One month ago today, President Obama was congratulating Libya on a "milestone" election -- even though the disintegration of the country after the 2011 US invasion was ongoing.

26 July 2014read on...

What Does the U.S. Support When It Supports Israel?
According to the Congressional Budget Office, “Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. To date, the United States has provided Israel $121 billion (current, or non-inflation-adjusted, dollars) in bilateral assistance. Almost all U.S. bilateral aid to Israel is in the form of military assistance, although in the past Israel also received significant economic assistance.”

26 July 2014read on...

Featured Articles

Will Egypt Implode Tomorrow?


The Egypt experiment is falling apart. The crisis point may be reached as early as tomorrow, June 30th, when massive demonstrations are expected to rock the rule of Muslim Brotherhood's Mohamed Morsi. It has been a slow-motion disintegration from the begining, however.

US-backed liberal Egyptians took to Tahrir Square in 2011, trained by the State Department to mobilize masses through social media to overthrow Mubarak rule. Their success resulted in their being shunted aside in favor of the real power in Egypt, post-Mubarak: the Muslim Brotherhood and the military.

Since then, contrary to US government predictions, democracy and freedom has not broken out bringing with it economic prosperity and social harmony. History teaches us that revolutions are not as simplistic and binary (bad out, good in) as their supporters would like us to believe. The Egyptian economy, dependent on tourism, has been in free-fall since the unrest, leading to deep layers of resentment in those who were told that overthrowing Mubarak would bring economic growth.

Why did the US support both the position (Mubarak) and the opposition (April 6 Movement, Kifaya, etc.)? It is not as uncommon as it might seem. Mubarak's sclerotic rule was coming to an end anyway, Egypt's population was young and frustrated, and though the US did not necessarily wish to spoil its relationship with the Egyptian dictator it did seek maximum influence on the coming succession struggles.

Additionally, as Mubarak explains in an interview this month, he was proving an irritation to the US over his refusal to allow permanent US military installations in Egypt and his refusal to allow the US to "help" with establishing a communications network in Egypt.

Said Mubarak this month:

“[Late defense minister Abdelhalim] Abu Ghazleh came once to me and said the Americans requested to build a base here and I agreed. I told him: You have no authority to approve that and neither do I. You don’t own (Egypt) and neither do I.

“When I later met with the then-U.S. Secretary of Defense during an official visit to the U.S., he told me Abu Ghazleh approved establishing a military base. I told him the Egyptian constitution allows neither Abu Ghazleh nor me to approve that. Such an issue requires the approval of the parliament, and even if the latter approves, a popular referendum is required. I ended the subject there. They have more than once requested establishing bases in West Cairo and Burj al-Arab. They wanted bases at any expense.”

Mubarak also stated that the U.S. had attempted to assert control over Egypt’s communications systems.

“Then they wanted to establish an electronic network for the armed forces. This is of course so Israel and America monitor [the armed forces]. I told the defense minister to make them forget about it. But they returned later wanting to connect all Cairo central terminals with Ramsis’, and they actually agreed on that with the telecommunications minister.”

Mubarak said that he was informed of the American plan by the armed forces and realized that such a plan, if carried out, would allow the U.S. to paralyze all communications in Egypt.

“This means that when work at Ramsi's central terminal stops, all communications in Egypt stop. I summoned the telecommunications minister and told him: ‘So in this case, any phone call made passes through Ramsis central.’ He said the Americans will do this for free.’ I told him: ‘Don't you dare approve that. He said that the Americans had already connected Giza’s central terminal with Ramsi's. So I told him to just obstruct the plan at this point.”

It is easy to dismiss this interview as the revisionist mutterings of a former US concubine tossed aside in favor of a more youthful suitor. But considering revelations about US/UK spying not just in far flung areas but even in the heart of Europe, suddenly such claims seem less far-fetched. And reports that the US military is deploying to Egypt suggest its new rulers may welcome a bit more foreign muscle to keep unrest from becoming too threatening.

Unrest is reaching a crisis point, though. Clerics are warning of a civil war. And the US is worried. In Africa, President Obama has expressed concerns over the increasing likelihood of major violence and has taken steps to protect the US Embassy in Cairo.

Tomorrow's protests will pit various factions against each other, including the reformists, Morsi's Islamists, and the increasingly restive military. The stakes could not be higher.

When Egypt falls apart completely, which is likely, the result will be even more chaos, economic collapse, and bloodshed. Blame will be apportioned to the rulers, the opposition, the military, the Mubarak-era decay, the economy. All have a role, to be sure. But what we will not see, particularly in the US mainstream media, is the blame that should be laid at the foot of a decades-long wrongheaded US foreign policy, which props up one corrupt regime, finances armies of regime-change specialist NGOs, switches sides, calls a revolution in the streets "democracy", and looks on seemingly-puzzled at the dislocated and desperate society left in its wake. The role of US interventionism in the destruction will not be raised in the US media or by US politicians pretending to seek answers. Interventionism can never be blamed because...well...we meant well.

Copyright © 2013, The Ron Paul Institute for Peace and Prosperity. Permission to reprint in whole or in part is gladly granted provided full credit is given and a live link provided.


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