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

Janet Yellen's Christmas Gift to Wall Street
Last week we learned that the key to a strong economy is not increased production, lower unemployment, or a sound monetary unit. Rather, economic prosperity depends on the type of language used by the central bank in its monetary policy statements. All it took was one word in the Federal Reserve Bank's press release -- that the Fed would be “patient” in raising interest rates to normal levels -- and stock markets went wild. The S&P 500 and the Dow Jones Industrial Average had their best gains in years, with the Dow gaining nearly 800 points from Wednesday to Friday and the S&P gaining almost 100 points to close within a few points of its all-time high.

21 December 2014read on...

Cold War Spy Games Show the Moral Bankruptcy of the US National Security State
Rolando Sarraff Trujillo, the Cuban government official who was released from prison as part of a spy trade between the US government and Cuba, is being hailed by US officials as a hero. Of course, that’s not the view of the Cuban government, which considers Sarraff a traitor.

20 December 2014read on...

Regime Change in Cuba
Normalization of relations with Cuba is not the result of a diplomatic breakthrough or a change of heart on the part of Washington. Normalization is a result of US corporations seeking profit opportunities in Cuba, such as developing broadband Internet markets in Cuba.

19 December 2014read on...

US Overlooks Russia Sanctions Backlash on Own Economy
While the US pursues the "nuclear" option of a first strike on the Russian economy -- seeking to depress the price of oil while denying Russia access to international financial markets -- the economic backlash of such a move could well be as dangerous for the US economy. Already the US oil industry is feeling the pain of the price drop that many believe is the result of a US/Saudi deal to put the squeeze on the Russian economy. RPI's Daniel McAdams is on RT today to discuss the implications of the new anti-Russia legislation passed in the dead of night after Members had gone home.

18 December 2014read on...

Bombs Away! Obama Signs Lethal Aid to Ukraine Bill
President Obama made good today on his promise to sign the Ukraine Freedom Support Act of 2014, which had passed Congress last week. Dubbed by former Rep. Dennis Kucinich the bill that "reignited the Cold War while no one was looking," the Act imposes new sanctions on the Russian defense and energy industries, authorizes $350 million in lethal military assistance to the US-backed government in Kiev, urges that government to resume its deadly military operations against the Russian-speaking areas of east Ukraine seeking to break away from Kiev's rule, and authorizes millions of dollars to fund increased US government propaganda broadcasts to the countries of the former Soviet Union. Just days before Christmas, this bill is a massive gift to the US defense industry from which Ukraine will be required to purchase its lethal wish list.

18 December 2014read on...

Torture and the Destruction of the Human Being Shaker Aamer by the United States
The Bush and Obama administrations have gone to extraordinary lengths to hide America’s archipelago of secret prisons and systems of torture.

18 December 2014read on...

For Truly Better Relations with Cuba, Open the Door and Get Out of the Way!
President Obama today took a bold and surprising step toward ending the futile 50 year US embargo of Cuba. The president announced he would begin normalizing relations, including upgrading the diplomatic mission in Havana to embassy status. The president also said he was taking steps to increase travel, commerce, and the flow of information between the US and Cuba.

17 December 2014read on...

The Cold War Has Never Ended for the CIA
In the midst of the CIA’s torture scandal, USAID continues its obsessive Cold War activity against Cuba, in a desperate attempt to finally, once and for all, oust the Castro regime from power and install another pro-U.S. dictatorship.

17 December 2014read on...

Three Members of Congress Just Reignited the Cold War While No One Was Looking
Late Thursday night, the House of Representatives unanimously passed a far-reaching Russia sanctions bill, a hydra-headed incubator of poisonous conflict. The second provocative anti-Russian legislation in a week, it further polarizes our relations with Russia, helping to cement a Russia-China alliance against Western hegemony, and undermines long-term America’s financial and physical security by handing the national treasury over to war profiteers.

16 December 2014read on...

BBC US Editor Parrots CIA, Republican Talking Points on Senate Torture Report
The BBC is supposed to be an "impartial", "honest" and "independent" news outlet, but today its US Editor, Jon Sopel, showed very clearly whose side he is on. In a short post, "A whiff of hypocrisy about CIA report?", he regurgitates some staple Republican talking-points and makes arguments eerily similar to those presented by former CIA and Bush officials in their various self-exculpatory media appearances this past week.

16 December 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!

Archives