Do Neocons Believe That the Dollar is Backed by War?

June 26, 2012

I almost hate to write on this subject because it may convince some callous person that war should continue so that U.S. consumers can buy more gadgets.  Let me start by saying this.  Rush Limbaugh and other neoconservatives in the media are smart people (bear with me).  How often they accurately analyze and dissect a plan by Congress or the Administration to regulate business.  They do research and come up with numerous supporting examples to justify the truth of their position.  They argue for strict interpretation of the Constitution unless it involves something like Congress’ obligation to declare war.   Certain topics make them raise their voices, call names, demagogue, and attempt to shut down the debate.    Leftists do the same thing when a discussion touches on one of their sacred cows like the minimum wage.   It is the nature of political partisans to blow up or run and hide when they are put on the rocks in an indefensible position.   They would rather not be forced into lying their way out of a corner, so they blow up and demand an end to the discussion.  This angry reaction and avoidance of certain subjects shows that the person knows better but, is protecting some perceived self interest – almost always financial.

It is easy to resort to name-calling and to say that neoconservatives in the media are merely boobs that can’t intellectually see that fighting in Iraq, Afghanistan, Libya, or Iran doesn’t protect American freedoms.  That is the easy way.  It is also easy to make a blanket claim that they are direct monetary beneficiaries of the military industrial complex but, that would be a hard case to make for most neoconservatives.   But, what if some neoconservatives in the media are really the thinking persons they seem to be?   What if they think they see a dark self-serving secret that they will never admit publically but, they support through any necessary twist of logic in order to obtain the unmentionable benefit?

That secret theory is that the U.S. should put fear into the hearts of the rest of the world so that the world doesn’t dare to treat the dollar as irrelevant and worthless.  How would this dark theory work as envisioned in the evil soul of a neoconservative warmonger?  It could be described in the dark private smoke-filled chambers of the warmonger intelligentsia as follows.

Nixon disconnected the last vestiges of gold backing for the dollar in 1971.  At the same time, Nixon made an agreement with the Saudis that they price their oil in dollars so that the world’s dollars would be convertible to oil from the Middle East (instead of gold from the US).  The world could then convert its excess dollars (created and spewed out into the world by the Fed) to Middle East oil (instead of gold).   For this to be a true quid pro quo scenario, the Saudis had to obtain something for themselves from this agreement.  What they obtained is an arrangement whereby they could continually exchange oil dollars for war machinery from the U.S.  That explains part of the “dollars backed by war” theory.  The U.S. military industrial complex would then indirectly back the dollar by providing fighter planes, etc. to the Saudis in exchange for the Saudis backing U.S. dollars with Mideast oil.

This dark theory explains partly why some sinister insiders would want the U.S. to continue to supply the fuel for war to the Middle East to back the insiders’ financial interests but, why the perpetual wars with direct U.S. involvement?   And, what is the monetary interest to the average warmongering neoconservative who does not always benefit directly from the military industrial complex?  Is it simple enough to say that neoconservative “Christians” incorrectly see some requirement in Christianity for them to bring war to the Middle East?  That hardly explains all the far-flung military adventures in places ranging from Vietnam and Korea to Colombia, Grenada, and Uganda.   It is a phony ideological excuse whose validity falls apart when Christian theology is analyzed but, it is possibly pushed on the masses because it provides cover for this deeper darker theory.

The dark theory thus needs to contemplate that any war, destruction, and rebuilding causes a fire hose of otherwise-worthless dollars to shoot out into the world and a requirement that those dollars be accepted in the face of the alternative – abject poverty and despair in the invaded part of the world.  Large expenditures for infrastructure, fuel, maintenance, and food come along with the invading army.  Large construction contracts and payments for regime maintenance come in the aftermath of the invasion and destruction.   This forced influx of dollars into many regions of the world may be seen as a tool to require forced acceptance of the money before there is any time or ability by the invaded parties to make a serious analysis of the real value of the funny money.   It could be seen as a de facto legal tender law enforced with guns and bombs.  “We are taking you over and you have to use our money or die of poverty or something swifter.”  It is a way of imposing a fascist forced economic model (with an imbedded currency) on the conquered people who have few other options.

Under this theory, the Keynesian money dropped out of the sky would be in the form of real bombs that make their relevance known better than non-lethal impotent paper money dropped from a helicopter.  The paper money then follows to support the new government that has no choice but, to accept the dollars and decrees of the new foreign puppet-masters from a far-away empire.  The decimated economy has little choice but to accept the conquerors’ otherwise worthless currency.   Under this theory, the new puppet government would then, hopefully, uphold the currency that they are being bribed with.  The imported currency is also the basis for reconstruction contracts handed out by the pliant puppet government to their friends.  Never mind that it is the currency that was used to destroy the landscape and humanity of their ancestral lands.    The theory may even look for validity by reaching back to historical adventures involving places like Southeast Asia, Japan, and Korea with the conclusion that those places willingly accept U.S. dollars which they were required to accept of necessity after the invading army used the same funny money to wreak destruction and to pay off subsidized puppet governments.

Do neocon warmongers really believe this theory?  Well, let’s answer some other questions first.  Are all major policies by governments and government proponents ultimately driven by financial interests?  Probably so.  Is there a direct financial connection between most neocons and the military industrial complex that would allow them to profit directly from war?  Probably not.  Do neocons fervently believe that “love your enemies” means to kill them?   Probably not.  Would someone who doesn’t hesitate to send your son off to his death in some third world country 10,000 miles away (that is no threat to the U.S.) hesitate to enrich himself off your son’s death?  Probably not.   So, if an evil statist believes that he is shielding his wealth from devaluation by exporting war, would he hesitate to export war?  I would want to say “yes” but, the answer is probably “no.”

So, some high-level neoconservative proponents of war may think themselves ever so wise by pulling the wool over our eyes as they push an undercover agenda to have more wars, any wars, to make their dollar wealth remain relevant.  It appears likely that this theory exists to some extent or another.  One only has to witness the anger and lack of rational speech, on the part of Rush Limbaugh or Sean Hannity when it comes to Ron Paul to know that there is another ideology for supporting the warfare state that cannot be put into words since it would lay bare the intellectual perversion of the neocons.  Why can’t it be articulated?  Because the theory is so horrific and cold-blooded that the world would not stand for it.  It is hard for a neocon to market a theory that advocates the killing of distant impoverished foreigners and destruction of their homes to keep the the neocon’s dollar-valued portfolio healthy.

Although the theory may exist in some dark private circles, is it actually true?  Well, if you kill a man’s family and destroy his business in a foreign land and then offer him a way to stay alive, he may take it but, that doesn’t prove the viability of this theory.   Dollars flooding into the world economy still add up to what they add up to.  Many persons are tabulating the amount of computer digit and paper dollars that have been pumped into the world.  The Federal Reserve flood of dollars is no longer a big secret.   The excess quantity of dollars in circulation and the ease with which new ones are created results in a lower rate of exchange for things of tangible value.  It doesn’t really matter if the dollars are produced for “butter” (social welfare programs) or “guns” (the warfare state).  There is a continual accounting done by entities around the world to determine the value of the inflated currency.  Whether these entities are private currency speculators or foreign governments like China, the result is a move away from money that has been highly inflated towards monies or commodities that have a more stable value.  So, it doesn’t really matter if the funny money was created out of thin air and then spent domestically on social welfare programs or sent offshore to be spent on foreign wars.  The excess dollars eventually spill onto the world market and find their true reduced value as the excess dollars chase scarce commodities.

The true conclusion is that war costs money.  When a 4 trillion dollar bill for foreign adventurism is dumped on the U.S. economy, the piper has to pay.  And, reduced currency value will be one of the inevitable ways that the U.S. will pay.

The neocons aren’t that smart after all.

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