Syria Could Crash The U.S. Dollar (UUP)

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July 9, 2012 10:06am NYSE:UDN NYSE:UUP

Dominique de Kevelioc de Bailleul: While incessant and escalating incidences of blatant assaults upon the Bill of Rights of the American people riddle the pages of the full spectrum of media, it is now not a matter of, will a state of emergence message by the president

be made, it is a matter of when the event happens and what triggered the historical act.  No doubt, a collapsed U.S. dollar or a nuclear blast on American soil rank high on the list of probably catalysts for an emergency call to martial law by a sitting president.  Get my next ALERT 100% FREE

One or both of these doomsday catalysts for a U.S. lock down took a giant leap forward in France, Friday. Cold War-like comments made at the “Friends of Syria” conference in Paris by U.S. Secretary of State Hillary Clinton toward Russia and China strongly suggest that a showdown between the former Cold War rivals, now to include China, is on.  The prize: oil—and by implications the future of the U.S. petrodollar standard and the American way of life.

“I don’t think Russia and China believe they are paying any price at all – nothing at all – for standing up on behalf of the Assad regime,” Clinton told an audience comprised of delegations from more than 60 nations.  “The only way that will change is if every nation represented here directly and urgently makes it clear that Russia and China will pay a price . . .”

Auspiciously, delegations from Moscow and Beijing did not attend the meeting.

The U.S. Secretary of State went on to accuse Russia, China and Iran of supporting Syria’s Assad regime economically and militarily, and called upon other nations to comply with UN sanctions levied upon Syria—sanctions which would also include refusing oil shipments from Syria’s vital economic support and trusted ally, Iran.  But for continued sanctions against Syria to be effective, “much will remain dependent on persuading the two reluctant powers [Russia and China] to pressure Assad into action [of peaceful regime change in Syria],” according to Canada’s CBCNews.

Though, Russia and China have already agreed to a peaceful resolution to the Syrian civil war, signing off on the Security Council plan drafted by former-UN Secretary-General Kofi Annan, it’s more likely that Moscow and Beijing are playing politics of cooperation to buy more time for the Assad regime. Russia and China do not want regime change in yet another Middle Eastern country for a host of economic and political reasons, of which, the primary one is to stop the U.S. from controlling the region’s oil supplies to Russia’s ally and co-founding member of the Shanghai Cooperation Organization (SCO), China.

Authors John Barry and Dan Ephron of a Sept. 2004 Newsweek article, titled, War-Gaming the Mullahs: The U.S. weighs the price of a pre-emptive strikeexplain that Syria and Iran have been targets of interest of the U.S. for quite some time, as Washington under the George W. Bush Administration had known that a day would come when the U.S. and China would bang heads for precious crude supplies in the Middle East.  Whether it’s the Obama Administration or another neocon U.S. president in control of the executive branch, the petrodollar standard must be defended in the Middle East.  The Iranian/Syrian alliance has stood in the way of total U.S. dominance in the region, but now the matter has become urgent following Iran’s announcement in Feb. 2012, that it has broken ranks in the petrodollar scheme.  It now will not accept the dollar as payment for Persian oil.

“Deep in the Pentagon, admirals and generals are updating plans for possible U.S. military action in Syria and Iran. The Defense Department unit responsible for military planning for the two troublesome countries is ‘busier than ever’, an administration official says,” according to the Newsweek authors.  “Some Bush advisers characterize the work as merely an effort to revise routine plans the Pentagon maintains for all contingencies in light of the Iraq war. More skittish bureaucrats say the updates are accompanied by a revived campaign by administration conservatives and neocons for more hard-line U.S. policies toward the countries . . .

”Even hard-liners acknowledge that given the U.S. military commitment in Iraq, a U.S. attack on either country would be an unlikely last resort; covert action of some kind is the favored route for Washington hard-liners who want regime change in Damascus and Tehran.” [emphasis added]

But according to Barry and Ephron, CIA war-games simulating military action against Iran and, by proxy, Syria, would end up very badly for the U.S.  In fact, an unidentified Pentagon source told Newsweek, “The war games were unsuccessful at preventing the conflict from escalating,” whereby the magazineconcluded: “This daredevil scheme horrifies U.S. military leaders, and there’s no evidence that it has won any backers at the cabinet level.”

As U.S. policymakers watch the eurozone crumble, brace for a renewed global economic depression, and wonder where the money will come from to finance monstrous sovereign debts and deficits without a mult-trillion-dollar central bank global re-inflation scheme, desperation to make a decisive and final strategic move in the Middle East against Syria and Iran must be overwhelming—and Russia, China, Iran and Syria know it and have planned for it.

Either the U.S. dollar temporarily withstands an all-out war against the most formidable foes since the Germany-Japan-Italy axis of WWII, or it doesn’t. But in the end, odds heavily favor an abandonment of the dollar as the world’s premier reserve currency; it’s just become too much trouble for too many nations, now.  The conditioning of the U.S. population to expect a heavy-handed government continues unchecked and unchallenged by the Congress, because internally Washington knows the dollar’s days are numbered—and it could be as close as the day of next scheduled military conflict in the Middle East.

Related: Powershares U.S. Dollar Bullish Fund (NYSEARCA:UUP), SPDR Gold Trust (NYSEARCA:GLD).

By Dominique de Kevelioc de Bailleul From Beacon Equity Research is committed to producing the highest-quality insight and analysis of small-cap  stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street.  We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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