tehrantimes.com/ Currently, and also from a historical perspective, the main feature of the U.S. economy, in addition to its free market system, is its dollar-supported, war-based, and debt-fueled (DWD) economic engine.
In other words, the U.S. market has outperformed other market systems not only due to its more purified or more liberalized structure, but basically because of its hostile DWD factor targeting other economies.
The “exorbitant privilege” of the U.S. dollar refers to the benefit the United States has acquired due to the fact that its own currency is the international reserve currency. With such a privilege, the U.S. can easily stimulate its economy and export its problems to the world. In fact, it has done just that for many decades.
The idea of “exorbitant privilege” was first devised by the French politician Valéry Giscard d’Estaing in the 1960s. According to the theory of exorbitant privilege, the U.S. has abused its role as issuer of the world’s reserve currency simply by absorbing the wealth of the world through its dollar printing machine.
By taking advantage of such leverage, the U.S. and its Federal Reserve can stimulate the U.S. economy by creating a huge pool of debt, export its inflation to the world, and rarely or hardly ever face a big balance of payments crisis because it imports the goods and services and pays its debts by printing more of its own paper currency. In this scheme, the U.S. Federal Reserve simply -- simple in comparison with the economies not in a position of exorbitant privilege -- injects its monetary policy into central banks around the world by issuing debt or printing money.
In fact, faced with a flood of U.S. dollars, other central banks find themselves in the trap of two alternatives: appreciation of local currency or printing more local currency to nullify the danger of depreciation of the U.S. dollar. At the same time, the inflation exported by the increase in U.S. dollars, or what we see today in the various forms of quantitative easing, will make the goods and services of the other economies less competitive.
On the other hand, the U.S. uses its military-industrial complex as one of the main “leading” sectors of its economy. A boom in the military sector “drags” many other sectors into the booming trend. So, the question is: What creates a boom for the military-industrial complex? The answer is war, and the U.S. econo-political history is full of wars.
It’s clear that the current level of economic prosperity in the United States is not proportionate to the productivity/size of the U.S. workforce or the capital utilized in comparison with other free markets. The bitter fact is that the exorbitant privilege and the blood-war money in the hands of the U.S. economy have been translated into growth, prosperity, and greater consumption in the U.S. and have created more poverty, more inflation, more trade deficits, and more econo-political problems in the rest of the world.
In such a situation, what can a non-U.S. world do to change the game or the rules of the game?
Don’t think about the UN, since it’s dominated by the U.S. and its Western lackeys.
Maybe the Non-Aligned Movement can be a good alternative. NAM is an international organization of states considering themselves not formally aligned with or against any major power bloc. NAM is the largest grouping of countries outside of the United Nations. NAM members represent more than half of the world’s population, constitute nearly two-thirds of the United Nations, and have a 25 percent share of the world economy. The 16th Non-Aligned Movement Summit will be held in Tehran from August 26 to 31.
Another question arises. What is the most essential approach for a big non-aligned movement in economic issues? Or, what kind of economic scenarios should it be non-aligned or aligned with and how? It seems that detaching the world economy and non-alignment from the DWD factor might be a good start.
Tohid Atashbar is a researcher in the Department of Planning of Iran’s Majlis (Parliament) Research Center.
- Meanwhile back in Zionist Psychoville, Israel is threatening to assassinate Mahmoud Ahmadinejad since Netanyahu is being refused US military backup for war by president Obama (hard to believe) and even boast Mossad's assassination savvy: Iranian leaders in Israel’s sights after calling for its destruction the video is laughable, the Jews themselves are translating Ahmadinejad for us!