Monday, April 14, 2003

Does Bush Triumphalism Threaten Global Economic Order Bush, famous for his short temper, lack of intelligence, and simplistic thinking, may be about to smash the global economy in a fit of pique.   Today, there are more indications that Bush & Co., intend to treat countries that opposed the war as economic enemies, pointedly refusing to work with them whenever possible.   The result will be to harden the divide that Bush unnecessarily created at the UN.  Since many of the actions being contemplated are illegal under WTO rules, which are specifically designed to insulate trade issues from these kinds of political hissy fits, Bush appears to be setting up a battle between his righteous neo cons and stalwart allies like the Marshall Islands and Palau, and the rest of the global economy.   Like the small minded legislators in North Carolina, who started to bash French companies, only to discover the Michelin was one of the largest employers in North Carolina, Bush is about to embark on a rampage that will redound to economic disaster in the U.S.   Bush’s beloved deficits, though which he is paying off his rich political contributors, are possible for one reason only.  They are possible because the global economy is run on the dollar currency, and as a result there is a much greater demand for dollars than is actually needed for merchandise trade with the U.S.   Much like the advantage that comes from using the float during the time from when you write a check to when the money is withdrawn from your account, the dollar domination of the Global economy gives the U.S. enormous fiscal latitude in terms of deficits and inflation.   Bush is now threatening to politicize the dollar.  By making economic war on those countries that don’t except his bloodthirsty militarism, he will sow the seeds for Europe, China, and the oil countries to move towards a different global currency, such as the Euro, which will be seen as more ably managed and less subject to the political whims of the right wing fascist ideologues in America.   What is the result for the ordinary American.  Why continued economic turmoil, slow growth, and ultimately ruinous interest rates and high inflation.  Imagine Bush trying to justify 500 billion dollar deficits when treasury interest rates are back at 6% to 8% per year.  Imagine the baby boomers trying to maintain retirement income in a period of stagnant growth and rampant inflation.   I guess disaster comes in threes:  First the non-election of Bush, then Sept. 11th and the so-called “war” which gave carte blanche to extremists at home and abroad, and now the triumphalism of war with Iraq.  We will pay for this with our prosperity, our democracy, and ultimately the lives of our soldiers.  It is time to stop the madness. 4:28:11 PM   comment []

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