I have read Robert Fisk's article and what he has come out with is of no great surprise to me, in fact my personal reaction to it was, "it's a little bit to late now, if the governments he speaks of had taken that initiative 6 months ago, then yes there was hope". The reality is that all the money that was thrown into black holes to attempt to repair the international economy and markets, instead of using it to create a new sounder international economy steering away from the US$ as the worlds reserve currency has placed us in a situation not known before and no precedents in economic history in which to look back upon for guidance. We are now seeing the consequences of those moves of 6 months ago. The truth of the reality of the US$ in the international markets has hit worldwide governments hard and fast. Governments holding US$ treasuries and bonds are well aware of the situation and as has been seen in the past months have been getting rid of these bonds as fast as they can. I agree the sudden devaluation of the US$ is a no, no, for holders of such bonds, but sometimes a small loss is better than a total loss when governments make decisions to move away from the US$ as the international reserve currency. The time to mend the situation is now over and many countries in the world are now moving away from the US$. They are decoupling their economies from the international financial system, as we know it, and moving closer to doing trade in commodities in their own currencies. Therefore at some point in the future these economies may well decide to create a virtual currency solely for the purpose of trading. Brazil, Russia, India and China with the EU as the engineer for example. Already South American countries have already created their own form of the IMF to help poorer countries in South America without the crippling rent added to loans as what the IMF actually has done for many years. Even Iran has decided to trade its dollars in for Euros as it has seen their reserves dwindle at an increasing rate due to the rapid devaluation of the US$, and pricing their commodities in Euros. The international economy is in the phase of geopolitical dislocation and this dislocation may well be the way forward to international economic recovery. It is uncharted seas. Certain countries in Europe are moving to desperation methods to keep their economies afloat. Higher taxation, raising the age for old age pensions, all in a desperate move too pursue an economic recovery of a failed international economic system. Centuries ago people fled their countries of origin due to persecution of one form or another and set sail in leaky wooden ships voyaging into uncharted seas to find a place where they could live in peace, freedom and prosperity. In my view that is what is happening in the world economy now.

The first thing that countries like Russia, China, India and Brazil should do is to get rid of inferiority complex and stop relying on somebody when it comes to stability of their own currencies. They need to grow up, just like Russians did when they had finally realized that foreigners were not going to build democracy for them and that foreign economic or political models were not necessarily good for them. The new government of Japan (yet another major US dept holder) made it clear that they were not going to make their country's future dependent on US dollar and I think it's a good example for others to follow.

Its so complex its enough to make any ones head spin, but I’m not so sure, this thing is a system with all sorts of nasty feedback loops. I really don’t know why it has to be a secret and applauded or denied, if I was Obama, I would be saying, lets get another global currency ready and all sorted out soon, and no, not the Euro, an honest global currency. One-way to think about how a global currency works is that its like a fisherman casting out fishing lines into other economies. It’s so powerful that the head can become completely disconnected from the body of the local economy, and this is why countries that control the global currency tend to become all bank and no industry. The reason is that the real economy of a global currency is remote. So if the diamond mines that they bought simply by printing money (nice when you don’t have to work for a living hey) are now doing well in Africa, the head is happy and the currency remains strong, at the cost of local industry that cant compete because remote industries make the global currency too strong for local industry to survive… so now you know why the USA’s car industry never stood a chance, not because of bad management as espoused by bankers, but because the Dollar will never weaken to allow local industry to compete. The bankers hold the dollar high, and break all purchasing parity rules. Of course that will come back and bite you, but the bankers don’t care, they’ll just move to their office in China, or the nice hotel they bought in Dubai. As long the bankers are going to be ok, they make a quick buck now and who cares about the future, it’s nothing that a war won’t sort out, oh and sorry about that inflation diseased pension. So you can think of it as an octopus will tentacles siphoning on other countries, which those countries feel as a hidden tax, and now you know why Africa just wont start as well. The trouble with the simple trade model is that when the Dollar does start losing hegemony, to whatever, be that Venezuela trading goods for oil, or South Africa taking Yuan loans against gold surety, the dollar tentacles start breaking off. So I don’t think a new global currency needs to even attack the dollar directly, as countries start to free up their economies to try do things like give people a better salary than 50 Dollars a month, the tentacles start breaking, and remember that the body of the global currency is not a real economy. A huge problem because the rich west is no so rich when the tentacles start breaking off. Don’t kid yourself, these bankers have made an almighty mess of this planet, and they know, they are the dollars worst enemy now, they the ones killing it. The thing is that the Dollar doesn’t really belong to the USA, those tentacles don’t all go back to the USA, Europe/UK also sucks on the world through the Dollar tentacles, and as the USA takes the health care siphons back that I imagine Europe owns and this battle rages on, so the banks milk the dollar and promote the Euro. I think that’s the whole banker plan, to replace the Dollar with the Euro anyway, and what’s upsetting them is that China, Russia and the USA are now saying, but why should we let you bankers run it again, after all, you just broke the whole planet. What I think the article is getting wrong is that it assumes the USA is the Dollar, when in fact the USA is probably working with Russia and China to stop Euro hegemony, which are the same bankers that own the Dollar. Not simple at all… and I think this 10 year plan to a new world currency is a fairy tale, if we don’t put something together very soon, this planet is going to war, which will reset dollar debt and leave the Euro as the new global currency… which is the bankers plan, exactly what they did in WWII.

Peter, You say : ‘I must say the media storm surrounding British journalist Robert Fisk’s claim that key members of the international financial and monetary community are secretly preparing to dump the dollar anytime soon is rather naive. Of course another internationally accepted monetary unit of exchange is very necessary, but it won’t and can’t happen any time soon. The fact is the world is in a “dollar trap.” This means those with huge sums of dollars – including China, Russia, India and Brazil – can only lose in the short and medium term if the dollar is abandoned.’ I watched Robert Fisk on RT today and he said exactly this: that this is planned not for ‘anytime soon’ but to happen in nine years (he said ‘nine’). He did put forward same arguments as you why it can’t happen now; namely, the huge reserves of dollars in the BRICs, Japan and some Arab states; also he mentioned fear of US reaction directed at those states as a factor. “Fisk’s claim that there is a hidden conspiracy against the dollar is a total non-starter.” As said, basically from this interview I’ve heard today Fisk agrees with you – that this is to happen in some time and not immediately. And if you replace “a hidden conspiracy” with simply “a move”, you’ll see that “is nothing new” fits better than “is a total non-starter.” So I couldn’t agree more with “The American greenback is not on its deathbed, but its days of global hegemony are clearly coming to an end.” And this is good news for ordinary Americans and ordinary American businesses too, not just for the rest of the world; it’s bad news strictly for the ‘empire builders’ who have taken hostage first their own people and then the rest of us. But as I’ve heard the saying goes “Power corrupts, and total power corrupts totally.” I want to live in a strong state too, but definitely not in one that controls/wants to the rest of the world..now or in the future. BR Aleks

Yeah but what’s the geo-political scheme behind all of this there is no way Britain and the US will allow any other country to have equal footing in the economic and political sphere they have done overthrown governments, went to war with them and used subversive tactics to control competing nations that pose a serious economic and geo-political rival. They did this with Russia twice in 1917 and 89 and Germany during WW1 and WW2. The force that controls the US like Britain is not a static one limited to one or even a few of the most powerful nations on the planet. They control international currency and trading standards and control much of the vast oil and gas as well as a virtual monopoly in gold reserves and diamond trade. If I was Russia I would think 3 times and carefully evaluate any advice and joint policy and having a joint one world currency under the mandate of the IMF is not one of them. Remember Rothschild of London opened a foundation grooming the future leadership of Russia to replace Putin, Medvedev and there successors after he put there font man in jail Khoderkovsky and dismantled there oil company Yukos. Although I think he still has substantial shares in LukeOil.

"The American greenback is not on its deathbed, but its days of global hegemony are clearly coming to an end." Peter, I don't know how it looks like from Russia or other places, but, from my corner of the world it doesn't seem like this. The rate of innovations is not slowing down. By the way, somewhere on this site, I saw the picture of Medvedev have Apple laptop on his table. Which was invented and designed here, in this very place. I still see very capable individuals (all ages) around who do not have any plans to leave this country and as such still will be a driving force of the US economy in the foreseeable future. Now. Firstly, the current recession in the States is not the first one during its history. And, surely, this is not the last one. So far, the country recovered every time. As I see it the situation today, the US has all necessary capabilities to recover again. (Especially, because I am here. At least, for now. :-) Americans just need to realize that their salvation is in their own hands, stop whining, panicking, and pointing out to each other and the government, get out of the line for free soup, and start taking care of themselves. Secondly, I would like to know who are the challengers? I mean technologically. Lazy Europe? Aging Japan? Or Russia who is like a fly struggling to relinquish itself from the spider net of the bureaucracy? Other members of BRIC? With all that hype around BRIC these days, realistically, only China can approach the US in some near future. I do not see this happening, though, at least, within next 20 years or so.

Peter, You say : ‘I must say the media storm surrounding British journalist Robert Fisk’s claim that key members of the international financial and monetary community are secretly preparing to dump the dollar anytime soon is rather naive. Of course another internationally accepted monetary unit of exchange is very necessary, but it won’t and can’t happen any time soon. The fact is the world is in a “dollar trap.” This means those with huge sums of dollars – including China, Russia, India and Brazil – can only lose in the short and medium term if the dollar is abandoned.’ I watched Robert Fisk on RT today and he said exactly this: that this is planned not for ‘anytime soon’ but to happen in nine years (he said ‘nine’). He did put forward same arguments as you why it can’t happen now; namely, the huge reserves of dollars in the BRICs, Japan and some Arab states; also he mentioned fear of US reaction directed at those states as a factor. “Fisk’s claim that there is a hidden conspiracy against the dollar is a total non-starter.” As said, basically from this interview I’ve heard today Fisk agrees with you – that this is to happen in some time and not immediately. And if you replace “a hidden conspiracy” with simply “a move”, you’ll see that “is nothing new” fits better than “is a total non-starter.” So I couldn’t agree more with “The American greenback is not on its deathbed, but its days of global hegemony are clearly coming to an end.” And this is good news for ordinary Americans and ordinary American businesses too, not just for the rest of the world; it’s bad news strictly for the ‘empire builders’ who have taken hostage first their own people and then the rest of us. But as I’ve heard the saying goes “Power corupts, and total power corupts totally.” I want to live in a strong state too, but definitely not in one that controls/wants to the rest of the world..now or in the future. BR Aleks

The United States government is bankrupt, not just morally but financially as well. The only option left to keep things afloat is to print enormous amounts of money out of thin air. The 2009 budget deficit is estimated to be around $2 TRILLION and the national debt is now reaching towards $12 TRILLION. Add in unfunded liabilities for Medicare and Social Security and the government owes about $120 TRILLION, yet brings in only about $2 trillion each year in revenue. This is like owing $200,000 on a house and making $3,640 per year at your job! You will never be able to pay it off. It took nearly 200-years for the money supply to go from $0 to $800 billion, but in just the past year it is estimated to have more than doubled! This level of monetary expansion is absolutely insane, unsustainable and without historic precedence.

I have the same uneasy feeling that 007 is chronicling. We all see the tentacles, and all see the transformation that US and UK have gone through --- killing off their real economy and supplanted it with a financial/military tentacles. Those tentacles feed then the domestic economies. No wonder that 70% of US economy is consumption! Most people never asked the simple question: if our economy is based on our spending the money, how is this money earned and where is it coming from? Some questions are asked wrong. I do not think that the creditor nations do not wish to dump dollar simply because their own dollar savings would be slashed. That is only the stated reason. Many of these countries would probably do it in a heart-beat, as they still have reserves that are not dollar-tied. Many of them sit on physical gold reserves as well. And those who happen to have energy resources, will always have income, even by giving coupons to bankrupt nations to purchase it with in exchange for something else! The big advantage of cutting one's losses early is the prevention of future losses. Another benefit would be the freedom of action that such clean break will bring about. But there is --- a but. Once upon a time it was technologically advanced Germany that was reduced to rubble, and the world had to come up with a plan to rebuild it. It was not a charity, but a realization that population that had the know-how, and was used to civilized way of living --- cannot be returned to the pre-modern ages without causing another major upheaval. Now, without a war, population of many Western countries is used to living standards that cannot be crashed without potentially planet-destroying consequences. I just cannot imagine an American without a comfort of a shower, and the ease of supermarket. While Europe has been tightening belt for a while, they still enjoy living standards that cannot be shattered without consequences. And who do you think will be blamed? Of course, China, Russia, etc. Populations would fall for demagogues, and the consequences could be grave. It is therefore logical that the air of the non-existent consumer economy will be let out slowly. This is a plan, anyway. So, now the creditors will have to become the hand that feeds, with some caveats. But what happens when the hand that feeds gets bitten? Since the populace in Western countries does not really know who feeds them, it is utterly natural that they still demand that more soldiers be sent to Afghanistan, and keep indefinite occupation of Iraq, and continue the pursuit of many other large, small and tiny geopolitical projects as if there is no tomorrow and money is no object? What then? Bankers win, again, because the creditors are stuck with the mess. This is where we are. It is a high stakes game, because the bankers assets are fluid and they are all over the globe. They can always leave London if it turns into Detroit. They will move to where the prosperity is, provided that they will worm their way again into controlling some country's money. And they will be in business again. They just jump from one host body into another. But now, the creditor nations and other producing nations, have a decision to make. How to prevent the crash landing of advanced economies if they insist on rebuilding their tentacles with creditor/producer nations? If this continues, the tentacles may even get hooked into these creditor/producing nations? The dilemma is palpable. The tentacle rebuilding is enabled by weaker countries, hoping to feed off the tentacles themselves. If I were to guess, the creditor/producing nations will not dump the dollar, but will diversify --- everything from increased domestic spending and barter-like bilateral trade, to rapid investments in southeast Asia, Africa, Latin America and the down-and-out South-Eastern Europe. This will create pressure on the banking tentacles to try to cover their flanks on too many fronts. They will respond by trying to push their host nations (US and Europeans) into some more wars of choice, as wars are disruptive to world-wide trade and investments. Not only that, wars create divisions among various creditor/producing states, as their popular sentiments may be at odds in new conflicts. That would be the way to stem the strategy of diversification. That would again strengthen dollar and euro, as the perceived countries with military upper hand. In fear, many a country may choose to offer its body as a host to tentacles. Now, of course, you will say that this has already happened. In Iraq, Afghanistan and now Pakistan. The populace in the Western countries is so exhausted, that it even did not notice the creeping occupation of Pakistan. With MILLIONS of refugees, and the President, former Mr. 10% whose ship has finally come in --- Pakistan is ripe for a complete takeover. Of course, this has already been happening. But the diversification strategy --- once the idea of Saddam Hussein --- is now a legitimate tool in international trade and finance. Yet, so much is not clear. The position of Europe is very precarious. Euro was created as a competitor, but may have ended up being just a dollar derivative. While it is holding up well in the general chaos and fear of dollar future, it is not an independent currency. One of the strategies that creditors/producers can devise is a selective engagement with European countries. But the push for Lisbon, and bludgeoning Ireland, will result in one Foreign Policy of the EU. Does it mean that the behind the scene bankers won in Europe? Who knows. Countries that produce and export will have different interests from those that do not. This is a contradiction that may finally break up Europe, in spite of the Irish vote. If Europe continues to drift geopolitically, it will economically sink. If it puts itself in the role of the flag-bearer of the bankers in foreign policy, it may sink even faster. As of now, Germany has given some clear signals that it is not about to sacrifice its interests for the sake of being a flag-bearer of EU anti-Russian noises. The Opel deal, Nord Stream and others, are signs of new thinking in terms of relations with creditor/producer nations. The Nabucco pipeline has been delayed for two years. One clear example of US not being able to pursue geopolitics on too many fronts. And a recognition that the Central Asian energy cannot be easily unlocked without major geopolitical concessions. But the pressure on Bulgaria and Serbia is still high, as these geopolitical instruments do not cost money. But the problem is, one cannot just hector, put pressure and dictate. At some point, some nations will take a stock in their own geopolitical investment, and conclude that there is no prospect to earn a return. And this is where the changes will slowly emerge. Not as a bombastic secret meetings, but as a thousands little moves and in many little places. This is more oriental style; less wars and gradual adjustment. Provided that cowboy mentality can be kept in check.

@Peter and all, Sorry for posting twice. Just tought it did not work 1st time. @Bogdanov, Allow me to disagree on a few points: Quote: “I would like to know who are the challengers? I mean technologically. Lazy Europe? Aging Japan? Or Russia who is like a fly struggling to relinquish itself from the spider net of the bureaucracy? Other members of BRIC? With all that hype around BRIC these days, realistically, only China can approach the US in some near future. I do not see this happening, though, at least, within next 20 years or so.” Challenger #1. China: For all I know I heard that just very recently (I heard it on the news few weeks ago) China just passed the US as economy #1; correct me if I’m wrong, and I could be. If I’m wrong, then it’s just a matter of time: I mean China’s being growing something like 10% anually for the last 25/30 years, and remember this is 10% growth in a country of 1.3 billion people. Second, this famous Apple laptop you’re talking about: maybe designed in US, but by who is the question? I bet you by 1st or 2nd generation Asian (most probably Chinese) immigrants. And the real important question: where is this laptop produced?.. I think you know the answer too. Third, Europe may look lazy (as a whole) when compared to the mindless “just do it” Americans, but these same in a hurry Americans look like slow motion movie when compared to East Asia. I’ve personally seen how Chinese work 2 or even 3 jobs, 16h work day. And while Americans make fun of European lunch breaks of 1h (or even 2h in France), they can be just as good a joke for the Chinese workers who normally have 15 min: and if Chinese immigrants are a good orientation point, then this is the way they spend their 15 min lunch break – 5 min eating your sandwich as fast as possible and 10 min sleeping on your work place.. becase keeping 2/3 jobs is rather heavy. It all comes down to mentality/character if you will – the thing no banker or other force in the world can temper with simply because it takes many, many centuries (more like millenia I think..) to build. The reason why 300 spartans can stop a whole army; 600 gorkhahari (gurkas in English) can fight only with knives to a standstill the British (losing 500 in the process) army advancing in Nepal from colonised India; the reason why Obilich is a national hero in a neighbouring Balkan country; the reason why Yugoslavia (and let’s be fair – only Serbia in fact) kept resisting German ocupation during the entire WWII, while much bigger France and Poland were subdued in only 2 weeks. But it is history that is so useful because by lookine at it, you can predict/simply see the future. It was not then surprising that this same Yugoslavia resisted Stalin too – the only ones having the courage to do it against the new strong of the day. And then guess who again was the only one in the whole of E. Europe resisting the new strong of the day in the 90s, after the break up of the USSR. I can give examples like that till I drop: hisroty is full of them. Japan, just another example I can’t resist: while whole of Asia was colonised by the strong of the day at the time, Japan wasn’t – it proved to be such a strong culture that few W. European apetites were cut short there. Even at the time few of these wanna be colonisers predicted that with Western technology Japan will be dangerously powerful. Now about China: this is the country that inveted many a thing and one of them is the 1st central bank; now if you look a bit into Chinese mentality/culture you’ll see they’re not only capable of working 16h a day, but also are very fond of money and this is very old and traditional and even communism couldn’t change that. Yes, China is much more prepared to run a successful capitalist economy that the US simply because it’s in their culture: It’s cultural for them to work a lot, to save (not to get into debt), to own rather than to work for others, to invest, to have strong family unit, to respect their elders, to do everything to give their children the best education possible. Also, China was an empire in the past and empires are built by aggressive cultures. Now, when you take all this into account you see which way the winds blow. Challenger #2. “Aging Japan” Remember Asian cultures respect their elders. These same Aging Japanese are the ones that have automated their production lines seven times more than #2 in the world – the US. I guess they’re just too tired to do the work themselves . I see this as the average Japanese worker engaged in production as being 7 times more productive than his American counterpart.. . And Japan has a population only twice smaller than the US. I guess becase of same situation small England was able to colonise huge India once upon a time. And you know what is the economic realationship between Coloniser and Colonised? The Coloniser imports raw materials from the colony and exports back to the colony ready products; with relationship to the US and Japan today, just check who’s exporting raw materials and importing ready goods. Challenger #3. “Lazy Europe” Even the EU of old (the 15 member EC) had already a bigger economy than the US. They came up with “it’s not really a country” to keep officially the US as #1 economy in the world: this only comes to show you that the war is fought especailly fiercely on the psychological level. Simple Question Bogdanov: why are rich Americans then driving expensive cars produced in “Lazy Europe” or “Aging Japan”?.. My 3-year-old answer would be: because it takes time and wisdom to make something good rather than to.. “just do it.” I know this is not exacly the same answer as 007 as to why the American car industry is not doing so well, but I don’t believe all can be blamed on the overvalued dollar. @Bianca, As usual I’m impressed. First time I had the urge to actually print something. I think you’ve gone one step further than even very complicated (for me) 007. For my part I can just confirm 1st hand the pressure on Bulgaria. You can see it on the news, in politics, by what is being said, by what isn’t being said.. . Media has turned all powerful in this county, making sure we’re a good tentacle host. Changing gouvernments if necessary, I might add, to make sure the desired outcome. I’ve recently changed jobs. While searching I’ve come across an offer on an official job site: work in the US embassy, personal assistant to ambassador. Simply read the Bulgarian press and report to the ambassador.

yes, it'll take time to switch over. But, it's also amazing how the MSM continues to try and discredit Fisk. Why would somebody try to set him up with a rumour to destroy the markets? Why would an experienced journalist like Fisk allow himself to be set up?

It would be totally pointless for me to go with comparison of specific achievements made by different nations. Firstly, because I firmly believe that it is particular people who generate ideas, make discoveries, or pushing technological progress. And not groups of people or, especially, countries. Secondly, I am far from the idea that one country has everything and others has nothing. And thirdly, and the most importantly, my life taught me that nationality, race, gender, color of eyes or hair, or other features which make us being different has nothing to do with the capabilities of particular human beings. So, when I "called names" in my previous post, it was more for entertainment rather than expressing my real beliefs. But, in the essence , my message was simple -- I, personally, do not see any other country (or group of countries) who could match the Might of the United States within next quarter of the century. No matter how much noise is created around them these days. Not, because, they have some mental barrier to do so, but because they have to walk a long and not easy road to be where the States are today. And they should have the appropriate conditions for the progress. Even, Europe, Japan, or China with all their current achievements. Why is would be not easy from them to do? Lets see... Serbian Nikola Tesla was a key person behind that revolution in electricity and radio which made the world as we know it today. Bulgarian Atanasoff built the first digital computer. Russian Igor Sikorsky created first helicopter and made the first mass-production helicopter. German W. von Braun designed and built the rocket which delivered the first man to the Moon. Feng-hsiung Hsu - a Chinese researcher in IBM developed the Deep Blue algorithm, which beat World Chess Champion Garry Kasparov. Australian Rodney A. Brooks is a head of the world most advanced research group in the field of the computer-based Artificial Intelligence. ... I could continue this almost endless list... Guess, what is common between all of them. All of them are Americans! And this is the key, why other countries would have to work very hard to be on the same level with the US. America during all its existence attracted and still attracts the best minds from around the globe. And it will continue to do so. This is the magic of this land...

It will take time for countries to switch from the dollar. But I disagree when you're saying Fisk is being naive. Actually, Obama and his Wall Street advisors are being naive. I agree, endlessly printing money will only bring down the global economy. Then again, do you really expect Obama to fire Bernanke, Geithner? And to publically admit that everything he's done so far is a failure?