Mofra
Moderator
- Dec 6, 2005
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- #26
Is the US projection of power primarily military? Some have argued they are still holding one Ace.
World commodities are still priced predominately in USD terms which afford the US enormous power - it's no secret that Saddam's threat to price oil in EU terms accelerated the US decision to attack under the weak excuse of WMDs.
A huge portion of the world's population spend upwards of 80% of their daily income on food - the same commodities priced in USD terms, and the largest driver of USD fluctuations is still US fiscal policy. A manufactured spike in USD would have huge implications for 100s of millions - a manufactured 10% increase in food prices could be borne by Western citizens spending 10-12% of their income on food, but what about the huge numbers of rural poor in regimes hostile to the US?
I don't want to flag wave for America, but the assumption they will meekly surrender their status as the world's superpower is a gross misrepresentation.
World commodities are still priced predominately in USD terms which afford the US enormous power - it's no secret that Saddam's threat to price oil in EU terms accelerated the US decision to attack under the weak excuse of WMDs.
A huge portion of the world's population spend upwards of 80% of their daily income on food - the same commodities priced in USD terms, and the largest driver of USD fluctuations is still US fiscal policy. A manufactured spike in USD would have huge implications for 100s of millions - a manufactured 10% increase in food prices could be borne by Western citizens spending 10-12% of their income on food, but what about the huge numbers of rural poor in regimes hostile to the US?
I don't want to flag wave for America, but the assumption they will meekly surrender their status as the world's superpower is a gross misrepresentation.