07-04-2005, 02:02 PM
G8 & LIVE 8 – THE DOLLAR'S BIG CON
4/7/05
by Abu Sulayman
Voice of Ummah - www.voiceofummah.net
Islam vs Kufr – www.islamvkufr.com
صوت الأمة – www.sawtalummah.com
الإدراك - www.idraak.com
As exposed by the Voice of Ummah in the article 'Oil Prices – U.S.-Euro Conflict but the Ummah Pay for It' the high crude oil price is serving several of America's machinations within the Middle East. Consequently the high oil price has resulted in the dollar being severely weakened but this too is being utilized to benefit the United States' plans to further their tyrannical stranglehold over the rest of mankind. While the weak dollar will inevitably be strengthened in the future due to its negative impact on the US economy in the long term, the U.S. however, is content to sustain its current dollar level due to the benefits being received in the short term. These benefits are as follows:
1) Reducing America's import deficits
The weak Dollar has naturally lifted America's export income and in turn created competitiveness for many of its imports. In addition the majority of this trade is occurring with the developing nations such as China, India, and Asia's Newly Industrialized Countries (NIC’s) Singapore, Taiwan, and South Korea. While China fixes its currency to the dollar's level, other Asian countries on the other hand actively manage their own exchange rates, thus the dollar is only down 11% against a wider range of currencies. This consequently provides little if any increase on America's import prices. So in actuality trade with the aforementioned economies and the devalued dollar has conveniently provided a reduction in America's import deficits.
2) Increase in U.S. exports to developing nations
Additionally while the U.S. has witnessed its exports to Canada, Mexico, the E.U. and Japan gradually increase; it is in fact the developing economies' demand for American goods which is soaring. American exports to China, the four Asian NICs and Eastern Europe have seen a dramatic rise. Therefore via the weaker dollar America is aiming to stabilize and eventually reduce its trade deficit.
Debt Elimination will solve the 'Dollar Dilemma'
To avoid any long term detrimental effects it is obvious that the US will eventually have to work to strengthen the dollar and subsequently bring back down the oil prices. A decrease in oil prices will produce a rise in interest rates for the oil producing countries, which when combined with a loss of export revenues amounts to an even larger debt crisis than the one that currently exists. Depending on the pace at which oil prices are reduced, many nations may have to default which will create an insecure and unfavorable environment for investment and export. Therefore possible threats to default on debts would force the U.S. to have to devalue the dollar; something that it could not afford or desire to do.
With this in context the debt elimination headed by the UK, is the most appropriate solution to America's 'dollar dilemma'. It is most probable that the U.S. will eliminate this debt in order to remove any uncertainty while having minimal effect on current and future domestic economics. It is for this that the U.S. has planned the very public and deceptive G8 summit in Edinburgh.
Revaluation of the IMF reserves will be set against the Debt owed
As proposed by Gordon Brown, reserves of the International Monetary Fund, the world's third biggest holder of gold bullion with more than 100 million ounces, would be revalued to levels achieved in the recent boom market in gold and other precious metals. With current spot gold prices at about $415 an ounce, the value of some 90 million ounces of the IMF reserve, pegged at just above $40 an ounce under a 1971 agreement, would soar tenfold. As part of the larger debt relief plan, that huge increase in value would be set against the debt owed.
Furthermore any proposal to revalue or sell IMF gold would require an 85 percent majority of total voting power. This would easily provide the U.S. the upper hand with its holding of more than 17 percent of the voting power. Thus the U.S. will oppose any plans for auctioning off the gold due to its implications on the US economy. Instead revaluation will be the proposed method enabling the IMF to create extra revenue without disrupting the gold market or the developing countries' gold sales revenues. Hence revaluation would have little impact on the market and consequently little impact on the U.S. and the other developed world economies.
The Fallacy of Live 8 and People Power in Capitalism
In conclusion, the U.S.'s debt elimination will take place as preplanned long before the Live 8 event and its accompanying marches. The debt elimination as explained above is aimed at serving the U.S. and other developed Capitalist nations' interests. While egotistical and self righteous Pop Stars pranced about on a stage, millions of like minded individuals clicked their fingers blindly believing they were initiating 'change within the world'. Simultaneously Western politicians played along masking their amusement at the ignorance of the masses as they claimed 'that the debt might be removed now'. Moreover the politicians of the West comically used the event to showcase how 'democracy and people power takes effect'.
Dear Muslims from the 'Best Nation Sent unto Mankind', events such as these should be a clear warning and opportunity for us to witness the degradation mankind suffers within the Capitalist system and the fallacious nature of Democracy. Indeed there is little if any humanitarian value within Democracy as the developed nations work to maintain their hegemony and subjugation over others. There is little if any ethical value within Democracy as politicians will lie and deceive their own brethren in order to attain their own personal agendas. For mankind to raise itself up from the level of an animal, it must use what differentiates it from the animal i.e. the mind. By using the mind in the correct manner and contemplating in an enlightened way upon his existence, mankind will inevitably come to the TRUTH of the Islamic Aqeedah and the necessity to live by what Allah SWT has revealed. It is a duty upon us – the Islamic Ummah to push mankind to think and raise itself from the futile actions of clicking their fingers, shaking their head, clapping and screaming while falsely believing they are making a change…