[Futurework] Petrodollar warfare

[Karen Watters Cole]

Many of you will recall we discussed the petrodollar issue as one of the reasons Iraq was targeted, Saddam having announced he was converting from dollars to euros. The first item alerts the public that emergency plans are underway in case of new attacks, although legal questions remain, in addition to questions about motivation and agenda, more so now than post 9/11 because the administration has credibility issues it didn’t have then.   Note bourse date below, and recall that the US is publicly airing preliminary plans for troop withdrawals from Iraq about the same time. KwC   Item #1. Opening and Closing graphs War Plans Drafted to Counter Terror Attacks “The U.S. military has devised its first-ever war plans for guarding against and responding to terrorist attacks in the United States, envisioning 15 potential crisis scenarios and anticipating several simultaneous strikes around the country, according to officers who drafted the plans.   The war plans represent a historic shift for the Pentagon, which has been reluctant to become involved in domestic operations and is legally constrained from engaging in law enforcement. Indeed, defense officials continue to stress that they intend for the troops to play largely a supporting role in homeland emergencies, bolstering police, firefighters and other civilian response groups.  But the new plans provide for what several senior officers acknowledged is the likelihood that the military will have to take charge in some situations, especially when dealing with mass-casualty attacks that could quickly overwhelm civilian resources.   According to military lawyers here, the dispatch of ground troops would most likely be justified on the basis of the president's authority under Article 2 of the Constitution to serve as commander in chief and protect the nation. The Posse Comitatus Act exempts actions authorized by the Constitution.   "That would be the place we would start from" in making the legal case, said Col. John Gereski, a senior Northcom lawyer.  But Gereski also said he knew of no court test of this legal argument, and Keating left the door open to seeking an amendment of the Posse Comitatus Act. One potentially tricky area, the admiral said, involves National Guard officers who are put in command of task forces that include active-duty as well as Guard units -- an approach first used last year at the Group of Eight summit in Georgia. Guard troops, acting under state control, are exempt from Posse Comitatus prohibitions.   "It could be a challenge for the commander who's a Guardsman, if we end up in a fairly complex, dynamic scenario," Keating said. He cited a potential situation in which Guard units might begin rounding up people while regular forces could not.   The command's sensitivity to legal issues, Gereski said, is reflected in the unusually large number of lawyers on staff here -- 14 compared with 10 or fewer at other commands. One lawyer serves full time at the command's Combined Intelligence and Fusion Center, which joins military analysts with law enforcement and counterintelligence specialists from such civilian agencies as the FBI, the CIA and the Secret Service. http://www.washingtonpost.com/wp-dyn/content/article/2005/08/07/AR2005080700843.html   Item #2. Opening and closing paragraphs Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse "This notion that the United States is getting ready to attack Iran is simply ridiculous...Having said that, all options are on the table."  -- Pres. George W. Bush, February 2005 By William R. Clark, Media Monitors, Aug. 08, 2005   William R. Clark has received two Project Censored awards for his research on oil currency conflict, and has recently published a book, Petrodollar Warfare: Oil, Iraq and the Future of the Dollar (New Society Publishers, 2005). He is an Information Security Analyst, and holds a Master of Business Administration and Master of Science in Information and Telecommunication Systems from Johns Hopkins University. He contributed this article to Media Monitors Network (MMN) from Maryland, USA.   Contemporary warfare has traditionally involved underlying conflicts regarding economics and resources. Today these intertwined conflicts also involve international currencies, and thus increased complexity. Current geopolitical tensions between the United States and Iran extend beyond the publicly stated concerns regarding Iran's nuclear intentions, and likely include a proposed Iranian "petroeuro" system for oil trade. Similar to the Iraq war, military operations against Iran relate to the macroeconomics of 'petrodollar recycling' and the unpublicized but real challenge to U.S. dollar supremacy from the euro as an alternative oil transaction currency. It is now obvious the invasion of Iraq had less to do with any threat from Saddam's long-gone WMD program and certainly less to do to do with fighting International terrorism than it has to do with gaining strategic control over Iraq's hydrocarbon reserves and in doing so maintain the U.S. dollar as the monopoly currency for the critical international oil market. Throughout 2004 information provided by former administration insiders revealed the Bush/Cheney administration entered into office with the intention of toppling Saddam.[1][2] Candidly stated, 'Operation Iraqi Freedom' was a war designed to install a pro-U.S. government in Iraq, establish multiple U.S military bases before the onset of global Peak Oil, and to reconvert Iraq back to petrodollars while hoping to thwart further OPEC momentum towards the euro as an alternative oil transaction currency ( i.e. "petroeuro").[3] However, subsequent geopolitical events have exposed neoconservative strategy as fundamentally flawed, with Iran moving towards a petroeuro system for international oil trades, while Russia evaluates this option with the European Union. In 2003 the global community witnessed a combination of petrodollar warfare and oil depletion warfare. The majority of the world's governments – especially the E.U., Russia and China – were not amused – and neither are the U.S. soldiers who are currently stationed inside a hostile Iraq. In 2002 I wrote an award-winning online essay that asserted Saddam Hussein sealed his fate when he announced on September 2000 that Iraq was no longer going to accept dollars for oil being sold under the UN's Oil-for-Food program, and decided to switch to the euro as Iraq's oil export currency.[4] Indeed, my original pre-war hypothesis was validated in a Financial Times article dated June 5, 2003, which confirmed Iraqi oil sales returning to the international markets were once again denominated in U.S. dollars – not euros.   Synopsis: It is not yet clear if a U.S. military expedition will occur in a desperate attempt to maintain petrodollar supremacy. Regardless of the recent National Intelligence Estimate that down-played Iran's potential nuclear weapons program, it appears increasingly likely the Bush administration may use the specter of nuclear weapon proliferation as a pretext for an intervention, similar to the fears invoked in the previous WMD campaign regarding Iraq. If recent stories are correct regarding Cheney's plan to possibly use a another 9/11 terrorist attack as the pretext or casus belli for a U.S. aerial attack against Iran, this would confirm the Bush administration is prepared to undertake a desperate military strategy to thwart Iran's nuclear ambitions, while simultaneously attempting to prevent the Iranian oil Bourse from initiating a euro-based system for oil trades. However, as members of the U.N. Security Council; China, Russia and E.U. nations such as France and Germany would likely veto any U.S.-sponsored U.N. Security Resolution calling the use of force without solid proof of Iranian culpability in a major terrorist attack. A unilateral U.S. military strike on Iran would isolate the U.S. government in the eyes of the world community, and it is conceivable that such an overt action could provoke other industrialized nations to strategically abandon the dollar en masse. Indeed, such an event would create pressure for OPEC or Russia to move towards a petroeuro system in an effort to cripple the U.S. economy and its global military presence. I refer to this in my book as the "rogue nation hypothesis."   While central bankers throughout the world community would be extremely reluctant to 'dump the dollar,' the reasons for any such drastic reaction are likely straightforward from their perspective – the global community is dependent on the oil and gas energy supplies found in the Persian Gulf. Hence, industrialized nations would likely move in tandem on the currency exchange markets in an effort to thwart the neoconservatives from pursuing their desperate strategy of dominating the world's largest hydrocarbon energy supply. Any such efforts that resulted in a dollar currency crisis would be undertaken – not to cripple the U.S. dollar and economy as punishment towards the American people per se – but rather to thwart further unilateral warfare and its potentially destructive effects on the critical oil production and shipping infrastructure in the Persian Gulf. Barring a U.S. attack, it appears imminent that Iran's euro-denominated oil bourse will open in March 2006. Logically, the most appropriate U.S. strategy is compromise with the E.U. and OPEC towards a dual-currency system for international oil trades.   See Footnotes Article in full at Information Clearing House (news you won’t find on CNN) http://www.informationclearinghouse.info/article9698.htm Original at Media Monitors http://usa.mediamonitors.net/content/view/full/17450 Contact me if you want a reader-friendly copy.   (In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. Information Clearing House has no affiliation whatsoever with the originator of this article nor is Information Clearing House endorsed or sponsored by the originator.)

_______________________________________________
Futurework mailing list
Futurework@fes.uwaterloo.ca
http://fes.uwaterloo.ca/mailman/listinfo/futurework