It is obvious to all observers that the US. dollar is about to lose its status as the world’s reserve currency, although what will replace it is not yet clear. Secret meetings behind Mr. Obama’s back have taken place, in which France, Russia, China, India, Saudi Arabia and the petrol producing states, have decided along with the IMF and the World Bank to put an end to this now worthless currency. The ability to print as many banknotes as desired to get out of a debt spiral has led the the world’s most powerful country to the brink of bankruptcy. Already owing 14 trillion, and in spite of whatever assurances Mr. Sarkozy has given the American president, the USA is today faced with the undeniable fact that the greenback is no longer wanted by anyone.
Forced to withdraw its troops from the four corners of the globe to deal with growing unrest at home, America, which will be crippled by hyper-inflation, risks a Tunisian type revolution when a poverty stricken people finds itself unable to pay for a loaf of bread. This nightmare scenario has already been hinted at by certain American observers.
However, in order to prevent a situation which led to the second world war, the G8 and G20 must somehow prevent the US unleashing a third one. This will not be easy given the American non-conservative lobby, which in a shit or bust situation could oblige the US military to bring down the rest of the world in its fall. The mistake made by the League of Nations at the end of the first world war, when Germany wasn’t financially aided, must not be repeated.
The real crisis is just beginning, and 2011 will be a year which sees many changes in everyone’s way of life. Western style capitalism is dead, and we’ll just have to learn to live with the fact.