The head of the United Arab Emirates central bank, Sultan Nasser Al Suweidi, said the bank was considering converting 10 per cent of its reserves from dollars to euros. “They are contravening their own principles,” said Al Suweidi. "Investors are going to take this into consideration (and) will look at investment opportunities through new binoculars.
This obviously political move will, of course, damage the U.S. economy by reducing the demand for dollars--a demand that is the foundation of our debt financing system.
So let's see. Our two options are:
1) acquiesce to control of port operations by the government-operated company of a country with ties to Al-Qaeda that are way too close for comfort;
2) risk the raising of interest rates and other economic uncertainties if we value our own sovereignty and national security.
And why are we in this position? First, because the oil nations of the Middle East still have us over a barrel with regard to energy, partly because in five years, this administration has failed to encourage--and, in fact, has discouraged--research into alternative sources and conservation methodologies. Second, because we have not extirpated Al-Qaeda like this president had promised he would do. Third, because this administration's fiscal irresponsibility--or, more accurately put, looting of the U.S. treasury--has put us in a position where we are dependent on an unstable and ultimately non-sensical overinflated demand for U.S. dollars as a common medium of exchange-- a demand that is based on nothing other than tradition.
And what happens when you have an administration that forces us to become increasingly dependent on that tradition, while giving everyone every possible reason in the world to abandon it just to punish us?
If you ask me, the answer should be: impeachment proceedings. This administration has sold out the security of our country. It's that simple.