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Monday, February 20, 2006

Rep. Ron Paul on "The End of Dollar Hegemony"

A little over a month ago I wrote here about how the value of the American dollar was being underwritten by how it is used on the global oil trade. Countries such as Iran and now, as of last week Syria, are beginning to make the transition from the dollar as the standard unit of exchange to the euro, which may dramatically increase the euro's value while significantly decreasing that of American currency.

Now Ron Paul, member of the House of Representatives (and one of the few in government today that I feel is worthy of being addressed as "Honorable") weighs in on this, with very much the same perspective. In "The End of Dollar Hegemony" Rep. Paul outlines the history of the American dollar as a tool for diplomacy and effecting foreign policy over the past century, and how there is now the threat of this being undermined by (a) a long-standing disastrous policy of fiat currency and artifically inflating what value the dollar already had, and (b) the growing disuse of the "petro-dollar" as the currency of international oil markets. A very sober read for anyone who's paying attention to this sort of thing.