By JC Collins
As the base structure for the emerging multilateral economic system continues to be built it is becoming increasingly likely that the Iraqi dinar will not survive the transition as first anticipated by many. The proxy wars taking place in the Middle East and Eastern Europe have splintered many alliances in the socioeconomic and geopolitical worlds.
American industrial interests are attempting to consolidate their control over natural resources around the world. One front in this resource war can be found in Ukraine where the fate of European alliances will be determined. One way or another the outcome in Ukraine will force Europe into the waiting arms of Russia and Asia or it will stay connected with America.
A second front can be found in the Middle East and this front has two micro fronts which are Iran and Syria. As detailed in the post The Devil’s Tears, the US had attempted to setup a western friendly government in Iraq but the government eventually began moving into the economic and geopolitical sphere of Iran and China. With the risk of losing Europe to the east America had to act quickly to ensure they did not lose the resources of Iraq as well.
The ISIS threat is tailored perfectly to help America in this cause. So the situation we are left to decipher is whether America will determine Europe or Iraq to be the more viable outcome. With the intense and strategic pressure from Russia in Ukraine and the sudden increase of violence and onset of ISIS in Iraq it can be concluded that America is positioning itself for continued occupation and control of Iraq.
It is glaring obvious that Europe is integrating with Russia and the Chinese renminbi, leaving America in a futile position. At some point soon their will be a lasting peace in Ukraine, and then Europe and the BRICS countries will precariously continue on their path of economic integration which was interrupted with the coup in Ukraine during the Winter Olympics.
The rest of the world will begrudgingly allow Iraq and the oil in its sands to remain within the American economic sphere. As such, when the system transitions to the multilateral and the renminbi is finally added to the SDR basket, much of the benefits that Iraq would have been allowed under a BRICS alliance will be wasted on a continued and forced relationship with the United States.
The problem for the dinar will be found in bringing the oil to market under a US dollar regime. Considering the level of integration which the new multilateral system will demand, even between America and China, it is highly probable that the Iraqi dinar will be demonetized and a new regional dinar will be implemented at some point. This will satisfy the international interests of systemic balance while giving American industrial interests the resource allocation which they so clearly demand.
There was a time when the Iraqi dinar may have had a chance at some level of revaluation, but considering it is not presently traded, and doesn’t look to be traded before the economic transition, it is unlikely that the rest of the super-sovereign entity which is emerging will welcome an American dominated dinar for oil scam. America and Iraq will likely be forced into using a regional dinar which is under the guidance and strict controls of the larger economic and geopolitical machinations of the multilateral. – JC