Update: Manufacturing Crisis and Leviathan

Hooray! An American newspaper has finally decided to cover the plan that Bush and friends had cooked up in early 2003 to make it look like Iraq had started the war by deliberately getting a U-2 spy-plane painted in UN colors shot down, as revealed in the book “Lawless World,” by British author Philippe Sands, UK Channel 4, the BBC, the London Times and, of course, Antiwar.com (9 days ago).

Says the LA Times,

“Bush told Blair that ‘the U.S. was thinking of flying U2 reconnaissance aircraft with fighter cover over Iraq, painted in U.N. colors. If Saddam fires on them, he would be in breach’ of U.N. resolutions.

Bush also was quoted as saying an Iraqi defector might make a public presentation about weapons of mass destruction in Iraq and that there was a small possibility the Iraqi leader would be assassinated.”

I wonder if this is a reference to Douglas Feith’s hit teams that Larisa Alexandranova wrote about for Rawstory.“In any case, [Bush] said, the war was ‘penciled in’ for March 10 and the United States would go ahead with or without a second U.N. resolution.

Blair replied that he was ‘solidly with’ the president.”

Wow, the shame that supporters of this stupid war feel must be soul-crushingly horrible.

Good luck with that.

Paul Craig Roberts on the Iranian Oil Bourse

Paul Craig Roberts sends this post on the Iranian Oil Bourse:

Readers keep asking if Bush is attacking Iran because it plans to open an oil bourse that would permit oil to trade in Euros. A number of readers mistakenly believe that this would wreck the dollar’s value.

The answer is no.

The neocons’ plans for the Middle East predate any notion of an Iranian oil bourse.

Will an Iranian oil bourse hurt the dollar? Not really.

The dollar’s value depends on the world’s willingness to hold dollar denominated assets, not on the currency used to pay oil bills. If payments were not made in dollars, there could be a slight negative impact on the dollar from countries reducing their dollar cash balances and from the psychological shock of pricing oil in Euros (or some other currency). However, what really counts is what do the oil producers, for example, do with the currency that they are paid. If they are paid in dollars, but exchange the dollars for Euros or Yen and purchase equities or bonds or real estate in Europe and Japan, it doesn’t help that oil is billed in dollars. Or if they are paid in Euros but exchange the Euros for dollars and purchase US assets, it doesn’t hurt that the oil is billed in Euros.

The negative impact on the dollar will be far greater from the additional red ink necessary to finance an attack on Iran than from an oil bourse. Today, US war-making capability is dependent on the rest of the world to finance it.

Oil is billed in dollars because the dollar is the world reserve currency. The dollar is not the reserve currency because oil is billed in dollars. The US is abusing the dollar’s role as reserve currency. When a trusted alternative appears, the dollar is likely to lose its reserve currency role. Iran, however, cannot cause that transition.

“I’m a murderer.”

Thursday night I met a guy who, it turns out, was a soldier in town (Austin) from Ft. Hood. He was a nice chap. We chatted for a while, then when he complained about the overwhelming show of force by the local cops on their taxpayer horses, I took the opportunity – of course – to say something to the effect of, “All government does is tax, torture and murder people.”

Then he asked me, “See this haircut?”

I nodded.

He said, “That means I’m a murderer.”

To which I responded, not sarcastically, just surprised, “Oh. … Really?”

“Yup.”

I asked, “Who do you murder?”

He answered in one word: “Hajis.”

I wondered aloud if that meant everybody east of Jerusalem or what?

He said “Iraqis. Hajis.” His girl grabbed his arm and off they went.