Who’s Really Pulling the Purse Strings? (Part 1 of 3)

Click here to read Part Two, Part Three

The struggle for world (currency) domination is an important front in both the war on terrorism, and the American struggle with globalism. For some time now, we’ve been reading of the threats of the devalued American dollar to other world currencies. To eradicate America using military power would be suicide for any country that tried, but to destroy it economically would allow its enemies just to walk in and take over.

The Fars News Agency reported a couple of weeks ago,

Iran has been trying to persuade Asian buyers to make payments in non-US currencies to reduce its US dollar holdings, a move that is seen as a response to the dollar’s recent weakness and the pressure from Washington to limit Iran’s dealings with the US financial system.

Ryan McGreal explained from Canada in RaiseTheHammer, that it’s not just Iran:

Iran is escalating its dollar counter-hegemony [via the petrodollar system] by reducing its dollar reserves and asking Japanese buyers to start paying for its oil in yen instead of dollars. Undermining dollar hegemony is only one aspect of this process. In a larger framework, Iran is building strategic alliances with Venezuela, China, Russia, and (to a lesser extent) India in a loose partnership that would engage the US not as a series of dependents but as a bloc with mutual interests and enough power to be taken seriously.

The Lyndon Larouch PAC reported that Russia wants a piece of the action:

Speaking July 21 to a summer camp meeting of the youth group Nashi, Russian First Deputy Premier Dmitri Medvedev said he thought the crisis of the U.S. dollar ‘may become general and global in nature.’ Interfax reported that Medvedev added, ’situation may arise where we, China, and some other Asian countries will talk about the emergence of a regional reserve currency. That may be the yuan, but it is in our interest that it be the ruble.’

Now, the Telegraph follows the money trail, and provides a little more insight as to where the battlefront for currency domination might actually be:

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

In part two and part three we will describe China’s role in world currency and how that affects the U.S. politics, then suggest what Americans need to do about it.