Monday, November 19, 2007
Don't spend it all in one place
This week Iran and Venezuela called upon OPEC to change its reserve funds from the dollar to another hard currency. This is very bad.
Joseph Nye, co-founder of neoliberalism (which sounds surprisingly like neoconservativism but hasn't caught on as much) said that "soft power" will win the next generation of wars. Much like the idea that the "market" will free people from the bonds of slavery and other such economic oppression, this theory takes into account the fact that there will never be a time when a government won't have a hand in its country's economic and/or fiscal policy. So when a stronger government gives another government the means by which to strengthen its home economy, odds are the recipient won't try to destroy the other country. However, when a country wants to step up without shooting a gun, it can do so with an affront to the other's economic interest...call it market warfare.
Now the governments of Iran and Venezuela have used economic power against the US to start a fight. Even though OPEC didn't change its reserves from the Dollar, it was discussed. Ahmadinejad and Chavez may be nuts, but they have control of A LOT of oil, and therefore both actual and political power.
Nye's view is correct and makes a lot more sense than his counterparts who are currently in charge of the world. Here is the statement that I will make now and most likely until January of 2009: we need to figure out how make sure our economy doesn't collapse to the point where the Euro is the currency of choice for the substance our country uses more of, per capita, than any other country in the world.
Supporting our economic future is true national security policy - not blowing up Iraq, Iran, or anywhere else.