Why Trump Cancelled the Iran Deal, by Eric Zuesse

Trump is aligning with Saudi Arabia, the Gulf States, and Israel to maintain US economic and financial preeminence, which means opposing Iran at every juncture. From Eric Zuesse at strategic-culture.org:

The following is entirely from open online sources that I have been finding to be trustworthy on these matters in the past. These sources will be linked-to here; none of this information is secret, even though some details in my resulting analysis of it will be entirely new.

It explains how and why the bottom-line difference between Donald Trump and Barack Obama, regarding US national security policies, turns out to be their different respective estimations of the biggest danger threatening the maintenance of the US dollar as the world’s leading or reserve currency. This has been the overriding foreign-policy concern for both Presidents.

Obama placed as being the top threat to the dollar, a breakaway of the EU (America’s largest market both for exports and for imports) from alliance with the United States. He was internationally a Europhile. Trump, however, places as being the top threat to the dollar, a breakaway of Saudi Arabia and of the other Gulf Arab oil monarchies from the U.S. Trump is internationally a Sunni-phile: specifically a protector of fundamentalist Sunni monarchs — but especially of the Sauds themselves — and they hate Shia and especially the main Shia nation, Iran.

Here’s how that change, to Saudi Arabia as being America’s main ally, has happened — actually it’s a culmination of decades. Trump is merely the latest part of that process of change. Here is from the US State Department’s official historian, regarding this history:

By the 1960s, a surplus of US dollars caused by foreign aid, military spending, and foreign investment threatened this system [the FDR-established 1944 Bretton Woods gold-based US dollar as the world’s reserve currency], as the United States did not have enough gold to cover the volume of dollars in worldwide circulation at the rate of $35 per ounce; as a result, the dollar was overvalued. Presidents John F. Kennedy and Lyndon B. Johnson adopted a series of measures to support the dollar and sustain Bretton Woods: foreign investment disincentives; restrictions on foreign lending; efforts to stem the official outflow of dollars; international monetary reform; and cooperation with other countries. Nothing worked. Meanwhile, traders in foreign exchange markets, believing that the dollar’s overvaluation would one day compel the US government to devalue it, proved increasingly inclined to sell dollars. This resulted in periodic runs on the dollar.

To continue reading: Why Trump Cancelled the Iran Deal

 

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2 responses to “Why Trump Cancelled the Iran Deal, by Eric Zuesse

  1. Pingback: Quote Of The Month | Western Rifle Shooters Association

  2. Mr. Gore,
    I believe this assessment is reasonable and also called for given the hand Trump has been dealt. I still believe Trump will break the debt chains on our children by the greatest (biggest) bankruptcy in human history before he leaves office in 2024.

    Like

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