Time is running out for the US dollar

Фото: SXC.hu

It is often speculated that some members of the US establishment are pushing Ukraine towards a military conflict with Russia. But why do it in such a hurry? A Russian economist claims t hat he know s the answer, alluding to the link between the latest international crisis and the fate of the US currency.

Russian diplomats have repeatedly criticized the US for not trying to restrain their Ukrainian underlings in order to make them respect the agreement reached during the recent Geneva meeting. US-sponsored Ukrainian junta is trying to provoke Russia to intervene in Ukraine in order to protect ethnic Russians and supporters of federalization. There can be only two results for such policy. Ukraine will either become the battleground for a long and bloody civil war or will become the target for a Russian military intervention. From the American point of view it is a win-win situation. If there is a civil war, the delivery of natural gas to Europe will be disrupted hurting both the European and the Russian economy. If Moscow decides that it has to intervene in Ukraine, Washington will ignore the ethic Russians killed by the US-sponsored junta and will claim that Russia is an aggressor. Such a strategy will give Washington a chance to force the EU to institute hard economic sanctions against Russia, but such sanctions will hurt the EU even more than Russia . According to Sergey Glazyev, economic advisor to President Putin, European Union stands to lose 1 trillion euro, if hard economic sanctions against Russia are enacted .

Mikhail Khazin, the president of Neokon economic advisory company, believes that the US is trying to preemptively hurt the regional currencies and their associated economies before the US dollar loses its status as the main global currency:

“ The US doesn't have that much time in order to prepare for a serious weakening of the US dollar on the global stage and, conversely, for a serious strengthening of regional currencies' role. The maximum amount of time they can count on is 18 months. During this period they must prepare for a situation in which their main instrument of global control, i.e. the control of the circulation of the main global reserve and trade currency, will become seriously weakened,” he wrote in a recent blogpost cited by the Russian media outlets.

During Obama's second term, the relations between the US and most global players including China, Russia, India and, to a certain extent, the EU have reached new low points. This situation is somewhat similar to the situation before WWII and WWI when America benefited from global conflicts that destroyed the economies of America's competitors. It is said that third time is charm, but the rest of the world would be better off if Washington can't pull the same trick for a third time in a row. The era in which Washington was the main beneficiary of global instability and regional conflicts must come to an end.