Israel Lobby Routs Obama As Dollar Dies


November 11, 2009

Israel Lobby Routs Obama As Dollar Dies

By Paul Craig Roberts 

It did not take the Israel Lobby long to make mincemeat out of the Obama administration’s no new settlements position.  Israeli Prime Minister Netanyahu is bragging about Israel’s latest victory over the US government as Israel continues to build illegal settlements on occupied Palestinian land.

In May President Obama read the Israelis the riot act, telling the Israeli government that he was serious about ending the Israeli conflict with the Palestinians and that a lasting peace agreement required the Israeli government to abandon all construction of new settlements in the occupied West Bank.

On November 10 Obama’s White House chief of staff, Rahm Israel Emanuel, surrendered for his boss at the annual conference of the United Jewish Communities.

The ongoing Israeli settlements, he said, should not be a “distraction” to a peace agreement.

Allegedly, the US is a superpower and Israel is a client state whose very existence depends entirely on US military and economic aid and diplomatic protection.  Yet, in the real world it works the other way.  Israel is the superpower and the US is its client state.

This true fact is proved to us at least once every week and sometimes two or three times in one week.    A few days, ago the US House of Representatives voted 344 to 36 in favor of disavowing the UN report by the distinguished Jewish judge Richard Goldstone that found that Israel had committed war crimes in its attack on the civilian population in the Gaza Ghetto.  The Israel Lobby demanded that the House repudiate the fact-filled report, and the servile House did as its master ordered.

US Rep. Dennis Kucinich spoke to his colleagues for 2 minutes in an effort to make them see that their vote against the Goldstone report would be a great embarrassment to the US government and demean the House in the eyes of the world. 

But none of that matters when Israel gives its servants an order.  The US House of Representatives preferred to demean itself and to embarrass the US Government rather than to cross the Israel Lobby.

Retribution quickly fell upon Kucinich for his 2 minute speech.  On November 9, Kucinich was forced to withdraw as the keynote speaker for the Palm Beach County (Florida) Democratic Party’s annual fundraising dinner. The Israel Lobby gave the order—dump Kucinich or there’s no money and no one is coming to the dinner.  County Commissioner Burt Aaronson called Kucinich “an absolute horror.”

Kucinich is the rare Democrat who stands up for his party’s principles, the working class, and tried to get health care for those Americans the corporations have thrown out on the street. But helping Americans doesn’t count.  Israel über alles.

Meanwhile, the US dollar continues to decline relative to other traded currencies.  Since spring, anyone could have made a double-digit rate of return betting on most any currency against the US dollar.

The International Monetary Fund (IMF) recently expressed concern that despite the dollar’s continuing slide, it might still be over-valued.  The Federal Reserve’s low interest rate policy encourages speculators to use the dollar for the “carry trade.”  Speculators, whether individuals or financial institutions borrow dollars at rock bottom interest rates and use the almost free capital to purchase higher yielding instruments in other countries.  The demand for dollars to finance the “carry trade” keeps the dollar higher than it would otherwise be.

Last year it was the Japanese Yen that was used for the “carry trade” due to the practically zero Japanese interest rates. The next scare that unwinds the “carry trade” will cause another big drop in financial asset values.  This means that the stock market is very volatile.  It is based on speculation, not on fundamentals.

When the “carry trade” next unwinds, the demand for US dollars to pay off the loans will temporarily boost the dollar.  But don’t be fooled.  The large US trade and budget deficits are the dollar’s death warrant.

When the dollar finally goes, so will the government’s ability to conduct wars of aggression, underwrite Israel, finance its red ink and pay for imports.  That’s when the printing press will really get going.

Paul Craig Roberts [email him] was Assistant Secretary of the Treasury during President Reagan’s first term.  He was Associate Editor of the Wall Street Journal.  He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand. He is the author of Supply-Side Revolution : An Insider’s Account of Policymaking in Washington;  Alienation and the Soviet Economy and Meltdown: Inside the Soviet Economy, and is the co-author with Lawrence M. Stratton of The Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice. Click here for Peter Brimelow’s Forbes Magazine interview with Roberts about the recent epidemic of prosecutorial misconduct.


The Lobby at Work: Kucinich Withdraws as Palm Beach County Dem. Keynote speaker

5 Responses to “Israel Lobby Routs Obama As Dollar Dies”

  • smacko says:

    Rahm Emanuel Remarks

    White House Chief of Staff Rahm Emanuel addressed the annual conference of
    the Jewish Federation. He said the issue of settlements in Israel should not
    distract from the goals of the Middle East peace process. Mr. Emanuel spoke
    in place of President Obama, who canceled his appearance to attend the Fort
    Hood shooting victims’ memorial service.

  • DBG14 says:

    “White House Chief of Staff Rahm Emanuel addressed the annual conference of
    the Jewish Federation. He said the issue of settlements in Israel should not
    distract from the goals of the Middle East peace process.”

    Kind of like saying “the issue of Ted Bundy being a serial rapist and killer should not distract from the idea of him making a good husband and father.”

    As Mr. Roberts said, it didn’t take long did it….
    Paul Craig Roberts is an American hero of the highest order.
    It’s a wonder the Zionists haven’t smeared and rendered him homeless for daring to state the ugly facts.

  • gustafus21 says:

    Enough already — Americans are so afraid of being called an anti semite – that they don’t address the problem. We are a nation under occupation by JEWS!

    Wall St, the FED, multi nationals… pretty much all Jews.

    Jew hatred in this environment is the Moral High Ground. Period. It is absolutely necessary to our survival. I’ve spoken to many older Germans who said pretty much the same thing. They are STILL under occupation and can be jailed for saying what I type.

    If we don’t save ourselves from Jews – we are finished.

    I use public places, like bank lines to say things like “I bet they hired some greasy little Jew to figure out how best to make us overdrawn more often!”

    Everybody laughs nervously – but it makes it more common to hear.

    The point is made anonymously… I was in a book store in Los Angeles where a typical amazonian Jewess broke the line and put her books down in front of me and everybody else… I turned and said — “uh, no! Not this time. And you wonder why the world is rooting for Iran??? It’s because you people have no class, and you’re bullies!” — everybody looked up from over their glasses and from behind their books.

    Stunned silence… and then I told the clerk. THIS is why everyone hates Jews… you’re looking at it! – as I handed the books back to the offending Jewess and sent her to the back of the line.

    It was simple, instructive and felt WONDERFUL!

  • smacko says:

    Andrew Sullivan (The Atlantic), Joe Klein (Time), Thomas Freidman (NYT) and Glenn Greenwald (Salon): If Israel isn’t going to stop expanding settlements as the US has requested, it is time to cut off US aid to Israel.

Leave a Reply