Dollar – Transformation from Petro-Dollar to Narco-Dollar

 

Washington is determined to preserve the US dollar dominance by hook or by crook, F. William Engdahl notes, shedding light on how US financial elites have shifted their focus from the golden dollar to the petro-dollar and then… to the narco-dollar.

The Panama Papers leak has left an unpleasant aftertaste for those who closely monitored the case: instead of nailing real wrongdoers for their illicit operations and tax evasion, the exposure has played directly into the hands of a brand new tax haven, namely the United States of America.

“While the world’s eyes were on the identities of alleged offshore money holders, they failed to consider the longer-term consequence of the huge revelations. The one country so far to benefit from the Panama Papers revelations is the country that is rapidly becoming the new ‘Panama’ or better, the new Switzerland, namely the United States of America, the initiator of attacks on other hot money havens offshore over the past two decades,” American researcher and author F. William Engdahl writes in one of his recent articles for New Eastern Outlook.

Over the past decade or more petro-dollar has been eroding as Russia, China, Iran and even the EU challenge the role of the dollar as reserve currency. Russia and China, in a defensive move have agreed to energy trade for oil and gas paid not in dollars but in own currencies. Iran recently announced it will accept only Euros for its oil. More and more the days of the dollar demise are being proclaimed.

For the past decade or more the US Government and revenue agency have pressured discreet offshore banking centers from Switzerland to the Cayman Islands to British Virgin Islands and beyond allegedly to clamp down on US tax-evading citizens hiding money abroad from the IRS or terrorists moving money to finance Al Qaeda and the likes. But the US government itself has rigidly refused to abide by the new international money reporting rules it caused to be created.

Now, according to a January report in the Bloomberg financial magazine, the result is that the United States itself, in places like Reno, Nevada or South Dakota or Wyoming, are fast becoming the “new Switzerland” hot or secret money havens.

Bloomberg quotes a Zurich attorney, Peter A. Cotorceanu, a lawyer at Anaford AG, “The USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour…That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”

Drug cartels of the world are already clearly informed and a good share of the estimated $1.6 trillion of criminal funds annually are searching new safe havens in Reno and other US hot money havens. From a golden dollar to a petro dollar to now a narco dollar. It’s pretty pathetic for the country that was once the world’s leading industrial technology leader.

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