Saturday, 25 October 2008

Will the 'economic 9/11' bring the 'war on terror' to an end??

. I have never much liked the ideological concept of the 'War on Terror'; to me it has always been a by-word for the massively unnecessary extension of state power and reckless wars of intervention. This item on First Post thus caught my eye, written by Neil Lyndon it argues that the crisis could bring an end to America's involvement in both Afghanistan and Iraq:

"The US occupation of Iraq is costing $1bn every three days. The total spent so far is $800bn. This year's Senate appropriation for Iraq is $188bn.

The Congressional Budget Office estimated in 2007 that the combined cost of the wars in Iraq and Afghanistan could total $2.4 trillion over the next decade."

Now with the additional financial strain taken on by the US Treasury, Lyndon suggests that now might be the time when the commitments imposed by the 'war on terror' can no longer be met. Lyndon feels that if the strain leads to the collapse of the dollar as a reserve currency it could leave the US under the "irreversible" hegemony of China. China already exercises creeping financial hegemony over the US; it owns some $518 billion worth of US Treasury securities. One of the potential political consequences (depending on just how slow the 'Tiger' economies become) could well be an increasing Western dependence on capital from China; the ramifications of which will be felt for decades.

2 comments:

Left Lib said...

It is worse than that. Nobel prize winner for economics Joseph Stiglitz has written extensively on this;
http://www.josephstiglitz.com/

I do not think that the occupation of Iraq and Afghanistan is sustainable and we will have to leave, albeit at a high price.
We also have to consider that the wold will not stand still whilst our troops are occupied elsewhere. Indeed they will take advantage as we have seen with Russia in Georgia. Potentially there are far more serious possibilities in the future that we might have to respond to.

Darrell G said...

Left,

Thanks for the link :). I wonder who will be the first Western leader to stand up and admit that the era of Western hegemony is at an end??

Putin took advantage of what everybody with observational powers can see...that we do live in a multi-polar world...