All Americans should know these facts, reach out beyound (censored and
self serviced) news from CNN / local news. US has more enemies than
most Americans realize, up to now, these "enemies" are nuisances; it
becomes more prominent as political and economical events take shape
after the USSR collapsed. After the invasion of Iraq, Bush put US in
danger of retribution in different forms to put a brake on US
aggression by her competitors and closest allies.


www.peaceinspace.com wrote:

Vladimir Putin and the rise of the petro-ruble

By Mike Whitney

05/22/06 "Information Clearing House" -- -- "If one day the world's largest
oil producers demanded euros for their barrels, it would be the financial
equivalent of a nuclear strike". Bill O' Grady, A.G. Edwards

On May 10, Russian President Vladimir Putin ignited a firestorm that is
bound to sweep across the global economy. In his State of the Nation speech
to parliament,, he announced that Russia was planning to make the ruble
"internationally convertible" so that it could be used in oil and natural
gas transactions. Presently, oil is denominated exclusively in dollars and
sold through the New York Mercantile Exchange (NYMX) or the London Petroleum
Exchange (LPE) both owned by American investors. If Russia proceeds with its
plan, the ruble will go nose to nose with the dollar on the open market
sending several billions of surplus greenbacks back to the United States.
This could potentially send the American economy into freefall; triggering a
deep recession and an extended period of hyper-inflation.

"The ruble must become a more widespread means of international
transactions," Putin said. "To this end, we need to open a stock exchange in
Russia to trade in oil, gas, and other goods to be paid for in rubles."

Currently, the central banks around the world carry large stockpiles of
dollars to use in their purchases of oil. This gives the US a virtual
monopoly on oil transactions. It also forces reluctant nations to continue
using the dollar even though it is currently underwritten by $8.4 trillion
national debt.

Putin's plan is similar to that of Iran, which announced that it would open
an oil-bourse (oil exchange) on Kish Island in two months. The bourse would
allow oil transactions to be made in petro-euros, thus discarding the
dollar. The Bush administration's belligerence has intensified considerably
since Iran made its intentions clear. In fact, just yesterday, Secretary of
State Condi Rice said that "security guarantees were not on the table"
regardless of any Iranian commitment to stop enriching uranium. In other
words, Washington will not provide Iran a "non-aggression pact" whether it
follows UN Security Council guidelines or not.

Surely, this is a sign that Uncle Sam is on a fast-track to war.

The United States must protect its dollar-monopoly in the oil trade or it
will lose the advantage of being the world's "reserve currency". As the
reserve currency, the US can maintain its towering $8.4 trillion national
debt and $800 billion trade deficit without fear of soaring interest rates
or hyper-inflation. Trillions of greenbacks are constantly circulating in
oil transactions just as hundreds of billions are stockpiled in foreign
banks. In effect, the Federal Reserve is issuing bad checks with every
dollar printed on the assumption that they will never reach the bank for
collection. So far, they've been right, and as the price of oil continues to
skyrocket, the Fed just keeps cheerily printing more worthless paper sending
it to the 4 corners of the earth. Regrettably, if Russia or Iran goes ahead
with their conversion plan, then the bad checks will flood back to their
source and precipitate a meltdown.

America's economic supremacy depends entirely on its ability to compel
nations to make their energy acquisitions in greenbacks. If the flaccid
dollar is not linked to the world's most vital resource, then banks will
dump it overnight. This extortion-racket is the system we are defending in
Iraq, not "democracy". It is a huckster's scam designed to perpetuate
American debt by forcing worthless currency on the developing world.

In a recent article by Dave Kimble, "Collapse of the petrodollar looming",
the author provides the details of Russia's importance to the world oil
market.

"Russia's oil exports represent 15.2% of the world's export trade in oil,
making it a much more significant player than Iran, with 5.8% of export
volumes. Russia also produces 25.8% of the world's gas exports, while Iran
is still only entering this market as an exporter.... Venezuela has 5.4% of
the export market."

Obviously, it is not in Russia's interest to trade with its European
partners in dollars any more than it would be for the US to trade with
Canada in rubles. Putin can strengthen the Russian economy and improve
Russia's prestige in the world as an energy superpower by transitioning to
rubles. But, will Washington allow him to succeed?

A growing number of nations are now focusing on the empire's Achilles' heel,
the dollar. Venezuela, Russia, Norway and Iran are all threatening to move
away from the greenback. Is this a spontaneous uprising or is it a new type
of asymmetrical warfare?

Whatever it is, Washington is bound to be reeling from the affects. After
all, war maybe possible with Iran or Venezuela, but what about Russia? Would
Bush be stupid enough to risk nuclear Armageddon to protect the drooping
dollar?

The administration is exploring all of its options and is developing a
strategy to crush Putin's rebellion. (This may explain why Newsweek editor
and undeclared spokesman for the Council on Foreign Relations (CFR), Fareed
Zacharia, asked his guest on this week's "Foreign Exchange" whether he
thought Putin could be "assassinated"?!? Hmmm? I wonder if we'll hear
similar sentiments from Tom Friedman this week?)

The Council on Foreign Relations (CFR), the secretive organization of 4,400
American elites from industry, finance, politics, media and the military
(who operate the machinery of state behind the mask of democracy) has
already issued a tersely worded attack on Putin ("Russia' Wrong Direction";
Manila Times) outlining what is expected for Russia to conform to American
standards of conduct. The missive says that Russia is headed in "the wrong
direction" and that "a strategic partnership no longer seems possible". The
article reiterates the usual canards that Putin is becoming more
"authoritarian" and "presiding over the rollback of Russian democracy". (No
mention of flourishing democracy in Saudi Arabia or Uzbekistan?) The CFR
cites Putin's resistance to "US and NATO military access to Central Asian
bases" (which are a dagger put to Moscow's throat) the banishing of
Washington's "regime change" NGOs from operating freely in Russia ("Freedom
Support Act funds") and Russia's continued support for Iran's "peaceful"
development of nuclear energy.

America has never been a friend to Russia. It took full advantage of the
confusion following the fall of the Soviet Union and used it to apply its
neoliberal policies which destroyed the ruble, crushed the economy, and
transferred the vast resources of the state to a handful of corrupt
oligarchs. Putin single-handedly, put Russia back on solid footing; taking
back Yukos from the venal Khordukovsky and addressing the pressing issues of
unemployment and poverty-reduction. He is a fierce nationalist who enjoys a
72% approval rating and does not need the advice of the Bush administration
or the CFR on the best path forward for his country.

The US has purposely strained relations with Russia by putting more military
bases in Central Asia, feeding the turmoil in Chechnya, isolating Russia
from its European neighbors, and directly intervening in its elections.

When the G-8 summit takes place next week, we should expect a full-throated
attack from the corporate media on Putin as the latest incarnation of Adolph
Hitler. Watch the fur fly as the forth estate descends on its newest victim
like feral hounds to carrion. (Putin's announcement that Russia would be
converting to rubles HAS NOT APPEARED IN ANY WESTERN MEDIA. Like the Downing
Street Memo, the firebombing of Falluja, or the "rigged" 2004 elections, the
western "free press" scrupulously avoids any topic that may shed light on
the real machinations of the US government)

Putin's challenge to the dollar is the first salvo in a guerilla war that
will end with the crash of the greenback and the restoration of parity among
the nations of the world. It represents a tacit rejection of a system that
requires coercion, torture and endless war to uphold its global dominance.
When the dollar begins its inevitable decline, the global-economic paradigm
will shift, the American war machine will grind to a halt, and the soldiers
will come home. Maybe, then we can rebuild the republic according to the
lost values of human rights and the rule of law.

Putin's plan is set to go into effect on July 1, 2006.

http://www.informationclearinghouse.info/article13141.htm