This week marks the end of the dollar’s reign as the world’s reserve currency. It
marks the start of a terrible period of economic and political decline in the
United States. And it signals the last gasp of the American imperium. That’s
over. It is not coming back. And what is to come will be very, very
painful.
There are meetings
being held Monday and Tuesday in Yekaterinburg, Russia, (formerly
Sverdlovsk) among Chinese President Hu Jintao, Russian President Dmitry
Medvedev and other top officials of the six-nation Shanghai Cooperation
Organization. The United States, which asked to attend, was
denied admittance. Watch what happens there carefully. The
gathering is, in the words of economist Michael Hudson, “the most
important meeting of the 21st century so far.”
“This means the end of the dollar,” Hudson told me. “It means China,
Russia, India, Pakistan, Iran are forming an official financial and military
area to get America out of Eurasia. The balance-of-payments deficit is mainly
military in nature.
The architects of this new global exchange realize that if they break the
dollar they also break America’s military domination. Our military spending
cannot be sustained without this cycle of heavy deficit borrowing. The
official U.S. defense budget for fiscal year 2008 is $623 billion, before we
add on things like nuclear research. 'Black budgets' could put this figure at
well over $1 trillion. The next closest national military budget is
China’s, at $65 billion, according to the Central Intelligence
Agency.
Come, Lord Jesus.