The Ron Paul Institute for Peace and Prosperity
Subscribe to the Institute View Us on YouTube Follow Us On Twitter Join Us on Facebook Join Us at Google Plus

Latest Posts

Fragile Fact-Checking: How The Media Fell in And Out of Love With The Sikorski ‘Revelations’

What’s worse than a junior neocon? A junior neocon trying to make a name for himself. Ben Judah’s meteoric rise, aided by his staunch anti-Russian credentials in a climate of fear, has imploded as quickly as it began.



23 October 2014read on...

Hollow Justice and Courts of Order in an Age of Government-Sanctioned Tyranny

Justice in America makes less sense with each passing day. A Michigan couple that has been raising chickens in their backyard as a source of healthy food for their family could get up to 90 days in jail for violating a local ban on backyard hens. A Kentucky prison guard who was charged with 25 counts of sexual abuse against female inmates, trafficking controlled substances, and 50 counts of official misconduct walks away with no jail time and seven years’ probation.



22 October 2014read on...

The Cuban Embargo is an Attack on Both Cubans And Americans

In its October 11 Sunday edition, the New York Times published an editorial calling for the lifting of the 45-year-old Cold War-era economic embargo against Cuba.



20 October 2014read on...

National Service is Anti-Liberty and Un-American

 

Former Clinton Administration Labor Secretary Robert Reich recently called on the government to force young people to spend two years either “serving” in the military or performing some other type of government-directed “community service.” Neoconservative Senator John McCain has introduced legislation creating a mandatory national service program very similar to Reich’s proposal. It is not surprising that both a prominent progressive and a leading neocon would support mandatory national service, as this is an issue that has long united authoritarians on the left and right. 



19 October 2014read on...

The Real Secret of Iraq's Germ Weapons

 

Back in the 1990’s, journalists used to joke, “Of course we know Iraq has chemical weapons. We have the delivery receipts to prove it!” The joke turned out to be the exact truth.



18 October 2014read on...

The Neocons — Masters of Chaos

If you’re nervously watching the stock market gyrations and worrying about your declining portfolio or pension fund, part of the blame should go to America’s neocons who continue to be masters of chaos, endangering the world’s economy by instigating geopolitical confrontations in the Middle East and Eastern Europe. 



18 October 2014read on...

Warmongering Washington Hunting for Ebola, Russia and Islamic State

The US Secretary of Defense Secretary categorized Russia as a global threat – much like Obama in his UN address last month - in the same breath as Ebola and Islamic State.



17 October 2014read on...

Ron Paul Blasts 'Deeply Flawed' US Foreign Policy - Interview With Larry King

 

RPI Chairman Ron Paul appeared on Larry King's "Politiking" program this week to discuss Ebola, Obama, foreign policy and so much more. A big "thank you" to Larry King for mentioning the Ron Paul Institute in his introduction!




17 October 2014read on...

The Politicians Are Scaring You Again
They are doing it again. “They” are the war-party politicians, Democrats and Republicans. “It” is scaring you into supporting another war in the Middle East.

16 October 2014read on...

Seven Worst-Case Scenarios in the Battle With the Islamic State
You know the joke? You describe something obviously heading for disaster -- a friend crossing Death Valley with next to no gas in his car -- and then add, “What could possibly go wrong?”

16 October 2014read on...

Featured Articles

US Sanctions on Russia May Sink the Dollar


Rp Weekly Button

The US government's decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar's eventual demise as the world's reserve currency.
 
Not only is the US sanctioning Russian banks and companies, but it also is trying to strong-arm European banks into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, European sanctions could hurt Europe at least as much as Russia. At the same time the US expects cooperation from European banks, it is also prosecuting those same banks and fining them billions of dollars for violating existing US sanctions. It is not difficult to imagine that European banks will increasingly become fed up with having to act as the US government's unpaid policemen, while having to pay billions of dollars in fines every time they engage in business that Washington doesn't like.
 
European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS's quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself.
 
Another effect of sanctions is that Russia will grow closer to its BRICS (Brazil/Russia/India/China/South Africa) allies. These countries count over 40 percent of the world's population, have a combined economic output almost equal to the US and EU, and have significant natural resources at their disposal. Russia is one of the world's largest oil producers and supplies Europe with a large percent of its natural gas. Brazil has the second-largest industrial sector in the Americas and is the world's largest exporter of ethanol. China is rich in mineral resources and is the world's largest food producer. Already Russia and China are signing agreements to conduct their bilateral trade with their own national currencies rather than with the dollar, a trend which, if it spreads, will continue to erode the dollar's position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40 percent of the world's gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar.
 
US policymakers fail to realize that the United States is not the global hegemon it was after World War II. They fail to understand that their overbearing actions toward other countries, even those considered friends, have severely eroded any good will that might previously have existed. And they fail to appreciate that more than 70 years of devaluing the dollar has put the rest of the world on edge. There is a reason the euro was created, a reason that China is moving to internationalize its currency, and a reason that other countries around the world seek to negotiate monetary and trade compacts. The rest of the world is tired of subsidizing the United States government's enormous debts, and tired of producing and exporting trillions of dollars of goods to the US, only to receive increasingly worthless dollars in return.
 
The US government has always relied on the cooperation of other countries to maintain the dollar's preeminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot. If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar's slide into irrelevance.
Copyright © 2014 by RonPaul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.
Please donate to the Ron Paul Institute
What are you supporting?
When you join the
Ron Paul Institute
for Peace and Prosperity
You are supporting

News and analysis
like you'll get nowhere else

Brave insight on
foreign policy and civil liberties

A young writer's program
and much more!