The US economy depends on access to energy and the role of dollar as the reserve currency. Take those two things away and the source of funds to finance the US military-industrial interests shrink rapidly. This has devastating consequences for businesses around the world that feed into the machinery or simply generate sales in dollars while incurring expenses in a different currency. This means that the erosion in the value of the US currency is significantly increasing the chances of an attack on Iran by the US this year.
After Iraq, Cheney in Oman for Iran-Focused Talks
By Olivier Knox – Yahoo News (18 Mar 2008)
While a falling dollar and rising precious metals prices are long-term primary trends, an attack on Iran could produce a significant short-term reversal. We are in a political economy. Politics depends on the ability of the system to generate income to its constituents. Fundamental economics and power politics are out of alignment.
The double bind is tightening.
