Reflections by comrade Fidel
THE BELLS ARE TOLLING FOR THE DOLLAR
The Empire has ruled the world through economy and
deceit rather than force. At the end of WWII, it had attained the privilege of
minting the convertible hard currency, the monopoly over the nuclear weapon and
the possession of most of the gold in the world while it was the only
large-scale producer of manufactured equipment, consumer goods, food and
services worldwide. However, there was a limit to the printing of paper money:
the gold standard at a regular price of 35 dollars a
troy ounce. This was the situation for over 25 years, until
More bombs were dropped on that small
The Treasury bonds and bills continued to circulate as convertible hard currencies. The states’ reserves continued feeding on that paper money that, on the one hand, could be used to buy raw material, properties, goods and services anywhere in the world while on the other favored American exports with respect to the rest of the economies of the world. Both, politicians and academics repeatedly mention the true cost of that genocidal war admirably portrayed in Oliver Stone’s film. Sometimes in their calculations people tend to overlook the fact that the millions of dollars of 1971 are not the same as the millions of dollars of 2009.
One million of dollars today, when the price of gold –a metal whose value has been the most stable through centuries-- exceeds one thousand dollars a troy ounce, is worth about 30 times its value when Nixon suspended the convertibility. Therefore, 200 billion dollars of 1971 amount to 6 trillion dollars of 2009. If this is not taken into account the new generations will not have an idea of the imperialist barbarity.
Likewise, when reference is made to the 20 billion dollars invested in Europe after the end of WWII --through the Marshall Plan to rebuild and control the economies of the main European powers which had the necessary labor force and technical culture for a fast development of production and services—people usually do not take notice of the fact that the real value of what the empire invested at that time amounts to 600 billion dollars at the current international value. They don’t realize that 20 billion dollars would hardly cover today the construction of three large oil refineries with a capacity of 800 thousand barrels of gasoline a day, in addition to other oil by-products.
The consumer societies and the absurd and whimsical waste of energy and natural resources that today threaten the survival of the human species could not be explained in such a short historical period without knowing the irresponsible way in which developed capitalism, in its highest stage, has governed the destiny of the world.
Such amazing waste explains why the debt of the two
most industrialized countries in the world, the
Of course, the
The press dispatches released today, Friday October 9,
bring some additional irrefutable data. An AFP
In the year 2007, the deficit had already been
one-third of that figure, and high deficits are expected in 2010, 2011 and
2012. That huge deficit has practically been mandated by the US Congress and
government to bailout that country’s large banks, to prevent unemployment from
rising beyond 10% and to release the
It is not possible to also inundate the world with dollars and believe that the paper money without a gold backing can retain its value. Other sounder economies have emerged. The US dollar is no longer the hard currency reserve of every state; actually, those who still have it wish to distance from it albeit trying, as much as possible, to prevent its devaluation before they can get rid of it.
The European Union Euro, the Chinese Yuan, the Suisse Franc, the Japanese Yen –despite this country’s debt—and even the Pound Sterling and other hard currencies have come to take the place of the US dollar in international commerce. Once again the metal gold is becoming a significant international reserve currency.
This is not a whimsical personal opinion, nor do I wish to slander that currency.
laureate in Economics, Joseph Stiglitz, has said --according
to a press dispatch-- that it is most likely that the green bill continues to
be downcast, that politicians do not determine the exchange rates neither do
speeches. He said this on October 6, at the IMF and World Bank Joint Annual
Assembly held in
Other news related that the European countries were
afraid of the negative effect of the dollar’s weakness with respect to the Euro
and its consequences for the European exports. The
The president of the World Bank, Robert Zoellick, had sounded an alarm a few days before and warned that the dollar would not be able to endlessly preserve its status as the reserve currency.
An outstanding professor of Economics at
The World Bank has stated that the International Monetary Fund (IMF) had showed that the world central banks had accumulated fewer dollars during the second semester of 2009 than at any other time during the past ten years while increasing the amount of Euros.
On October 6, the AFP published that gold had reached the record figure of 1,045 dollars for one ounce due to the weakening of the dollar and fear of inflation.
The news, either leaked or deduced with impressive logic, was denied by some of the countries supposedly interested in that protective measure. They do not want it to collapse, but they neither want to continue to accumulate a currency that has lost 30 times its value in less than three decades.
I cannot avoid mentioning a dispatch from EFE, that cannot be accused of being anti-imperialist press agency and that in the present circumstances carries especially interesting opinions:
“Experts in economics and finances agreed in
“Recession has changed the way in which the world
looks at the
“The financial world will be less focused in the
“…he described the problems the
“…the huge public debt, inflation, unemployment, the dollar’s loss of value as a reserve hard currency, the energy prices…”
“The government should reduce public expenses to cope with the debt problem and do something it does not like much: raise taxes.”
“We have left a system focused on the
“…twenty years of irresponsibility, first by Bill Clinton’s administration and then by George W. Bush’s, caved in to Wall Street pressures…”
“…the banks negotiated with ‘toxic assets’ to obtain easy money, Sachs explained.”
“What is important now is to recognize the unprecedented challenge of achieving a sustainable economic development that is consistent with the basic rules of physics and biology on this planet…”
On the other hand, the reports coming directly from
our delegation in
Our ministry of Foreign Affairs literally reported that “what was under discussion was basically whether or not to ratify the concept of common but differentiated responsibilities among the industrial nations and the so-called emerging economies, essentially China, Brazil, India and South Africa, and the underdeveloped countries.
“The figures of carbon emissions reductions under discussion do not correspond with those scientifically calculated to keep the rise in temperature under 2 degrees Celsius, 25-40%. At the moment, the negotiation is moving around a reduction of 11-18%.
In the morning of this Friday 9, the world woke up to the news that “the good Obama” of the riddle –as explained by Bolivarian President Hugo Chavez Frias at the United Nations—had been awarded the Nobel Peace Prize. I do not always agree with the positions of that institution but I must admit that, at this moment it was, in my view, a positive action. It compensates the setback sustained by Obama in Copenhagen when Rio de Janeiro, and not Chicago, was chosen as the venue of the 2016 Olympics, a choice that elicited heated attacks from his right-wing adversaries.
Many will feel that he has yet to earn the right to
receive such an award. Rather than a prize to the President of the
Fidel Castro Ruz