University of Texas Professor: The Dollar is Dying, Burnt in Iraq's Flames

Moreover: the world has lost confidence in America's elites.

The head of the Federal Reserve, a monetary policy buff, got confused. He is seeing all as dependent on the interest rates. Factors like deficits, the housing market crash and imperial retreat are not taken into account while a recession can hit in the coming year. That could be very soon if the world will not be willing to finance US deficits anymore. An end to the dollar system would be chaotic. Because security and finance are linked, a world system favorable to America was on the line. The "Pax Americana" was burnt and buried in Iraq (producing a nervous breakdown among the pro-war, neo-imperialist, elites) therefore the war undermined confidence in the power, good faith and common sense of the United States. That could lead toward disastrous changes on the financial front. The Iraq risk may finally be catching up to the dollar.