The Impacts of US Supremacy in West Asia and India
Politics / GeoPolitics Jul 11, 2014 - 03:56 PM GMTBy: Submissions
Srinivasan Rangaraj writes: The effect of the geopolitical tensions in the Middle East countries is to such an extent that it erodes the global economy in the larger fashion. Since most of the global land, whether they may be developing or developed nations, import oil barrels from the west Asian countries for the most of their oil requirements, any break out of war, in this region, lead the economies of these countries to a devastating state of affairs.
After the crash of the Soviet Union, no other country in the world has the might to resist the US from establishing its supremacy. It dictates its economic policies directly and indirectly to the most of global countries for the expanding upon of its business for 1 % of its elite population. The conflicting countries have to confront the insurgence internally, triggered by it, by way of financial support and supplying of weaponry and ammunitions to the rebels (the protagonist of the US) in their regions. Its supporters usually display counterfeit grounds like poor governance, bad economic conditions etc., as the basis of their revolt against the governments. Then the US easily pokes its nose in these nations by stating that masses are suffering on the story of misgovernment by the governments of these countries and institutes its supporting governments there.
I would like to cite a past incident in this regard, in support of my above opinion.
In 2003, the invasion of America over Iraq was to have power over Iraq’s oil fields and to retain the US dollar as a medium of exchange in the world. It produced one fourth of the oil requirements of the world during that time. 60% of oil reserves in its region are well known to the global. On the contrary, the US is the greatest net importer of oil in the globe.
There was an accord between the US and Saudi Arabia during the year 1970 that OPEC nations can form a cartel in exchange for employing the US dollars in their business transactions.
When Euro came into existence in the year 1991, Iran suggested the idea of trading of oil in Euro. Iraq’s then President Mr. Saddam Hussein also followed the same suit in 2002 and, however, he strongly put forward this idea. By proposing this idea, both Iran and Iraq invited the wrath of then US president Mr. Bush. If other OPEC countries accepted the above proposals of Iran and Iraq, the value of the US currency would have crashed down greatly, and it would have landed in a great economic trouble. If other global countries also decided to go on this path, the impact would have still been in a very large manner.
To be exact, when its currency lost its value to a great extent against other international currencies, since the US was one of the largest importers, it would have imported goods by paying its huge currency and, its other financial instruments will also get shrinkage in its value. For instance, China buys the US treasury bonds to keep its (Chinese) currency at low level. However, it’s the debt for US i.e. it had to pay back the amount to China at the time of maturity of these bonds. Hence, the US owes the value of the treasury bonds to China. If the value of its treasury bond gets decreased, it has to pay off more value for these bonds than it received at the time of the sale of its bonds in China. Hence, if its currency value declines, its debt burden and consequently, more shortfalls will increase in its already terrible deficit account. Then, there would have been a huge price rise in all commodities, an erosion of wealth in the elite population, deterioration of its Forex reserves. Moreover, it would have lost world’s leadership status.
People’s democracy dated 06.07.2014, a weekly magazine also reports that the current war in Iraq has to be studied further of the Iraq. It says that the US is funding terrorist groups like ISIS in Syria through its faithful allies to institute its supporting government there. It quotes one of the journalists from West Asia as saying that, at present, ISIS can command over wider terrain in western Iraq and Syria.
Hence, it emphasizes that the geopolitical tensions happen in the West Asian region as per the wishes of the United States only. It desires to segregate and weakens Iraq, Syria and Libya of this region to install its dominance on them and their resources mainly the oil. It not only always likes to keep and intensify the geopolitical tensions in the Middle East region but also in the whole world, wherever, they (Geo political tensions) prevail. The oldest examples are the civil wars in Afghanistan and Pakistan. Recent instance is Ukraine crisis.
Since India’s 80 % of crude oil dependency is on gulf countries, when there is any geo political tension in West Asia, the economy of India significantly gets affected. Its Forex reserve depresses, its rupee value declines, the rising of the prices in all commodities etc.
By Srinivasan Rangaraj
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