By Rob Allan
There continues to be much debate about the future of the US economy. Many economists are absolutely convinced that the mighty US dollar will implode. Many books have been written about currency wars, negative inflation and Weimar-like hyperinflation. The Federal Reserve continues to inject massive amounts of dollars each month into five insolvent too-big-to-fail US banks to help these institutions maintain an appearance of stability. Last year, the post WWII Bretton Woods system was directly assaulted by a block of emerging nations who were acting in concert to throw off the yoke of dollar hegemony in favor of a new fiat system—a BRIC denominated system governed by a new World Bank. In the meantime, China continues to buy up as much gold as it can get its hands on—while the gold market is manipulated. The stock market too has become increasingly inflated thanks to all the easy money being created by the world’s central banks. We now find ourselves at a cross roads. Will America continue to dominate the world stage, or has this superpower reached its zenith—and will she go quietly into the night?
The fact that America, a nation now more than $17T in debt, is still able to exert her imperial will on the world speaks volumes about the incredible strength and resilience of the dollar as fiat currency. No other nation on earth has such an advantage as the US—and this is the main reason why the US economy hasn’t already crashed into oblivion. Even now, the US has an edge over other powers vying for succession—enough of an edge, perhaps, to tip the scales in her favor one last time. While emerging powers sense blood in the water and are jockeying for position to take on the elusive mantle of global imperialism, the path is not clear. There are strong trade interdependencies that limit bold moves.
It is in this desperate, raging sea of uncertainty that the US is, primarily through its net of Western controlled multinational corporations, attempting to draw up new trade alliances in both the pacific and atlantic regions. These are the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) agreements respectively. These trade agreements will align large swaths of the globe with the US through perceived economic commonalities. Interestingly, those sovereign nations who have been invited to the TPP and TTIP meetings give the US sufficient advantage over the emerging economic threat posed by China and Russia. However, the agreements are written in such a way that the powerful new trade policies trump many long standing sovereign laws practiced by the member nation states.
The TPP and TTIP are very risky for the US. The meetings are being held in secret with very little media coverage. The Obama Administration is fast tracking the agreements in the US. Far and away regular citizens in the nations who are participating in the trade talks are completely unaware of their country’s involvement. Sensitive legislation like SOPA and PIPA are being integrated into the trade policies so that these laws can be forced downward upon member nations regionally thus bypassing individual nation state legislation processes. If the US is successful in signing members up to these trade deals, it will deny these members access to other blocks that are simultaneously forming. Most importantly, for the US, these trade deals would insure the US dollar’s role as fiat currency for years to come—it could even pave the way for these trade nations to accept the dollar as their own currency to further simplify trade within the block.
Those who have been predicting the collapse of the US economy could still be proven correct should these trade deals fail. After all, why would any European or Pacific-Rim nation agree to such a trade deal? The truth is, these nations are already under the strong influence of the dollar. The US has become lawless—we spy on our friends, we initiate drone strikes on women and children, we arm terrorists and we foment wars with our spy agencies. Where is the global outcry against this lawlessness? Who was willing to take in the whistleblower who warned us about big brother? The sad fact of the matter is that the rest of the world has already turned a blind eye to US lawlessness. The rest of the world has already been corrupted by the dollar and may, therefore, agree to TPP and TTIP. If they do, the dollar’s reign as fiat could be extended with new life—and America may take the next critical step towards becoming a true global empire.