Considering that much of global trade takes place in dollars, the American exchequer benefits hugely from this indirect tax windfall. Therefore, the demise of the dollar as the international currency will well and truly end the era of America prosperity. Already around 45 million are known to be living in utter poverty, with starvation an everyday reality for many.
The official US jobless rate is 10 percent but according to experts this figure does not include people who have stopped looking for work and others who are unable to seek work. If these factors are included, the US unemployment figure is closer to 17 percent, or 51 million Americans out of work. How the rest of the country will cope in the post-dollar era is anybody's guess. Perhaps a one-third reduction in American incomes would be the most likely scenario. This is not a projection, it is as inevitable as tomorrow.
The US Government is aware of this. The current interventions in Iraq, Afghanistan and Libya and the threat of action against Iran are desperate attempts to shore up the empire through military means.
It is notable that France, which openly distanced itself from the US-led NATO throughout the Cold War, has now thrown in its lot with the empire. This is partly owing to President Nicolas Sarkozy's internal weaknesses and also because France is faced with a similar economic implosion.
COALITION COLLAPSE
What about the other major powers? Many like Germany and Japan are sitting on the fence. If the euro collapses, Germany might peel away from Europe and return to the deutsche mark, and ally itself with the BRICS. Most of Europe, barring the Baltic nations and Poland with their suicidal hatred for Russia, will follow their leader because Germany has proved it takes good care of its trading partners. German pragmatism and its famous Ostopolitik (look east policy) will likely prevail over right wingers peddling European racial solidarity.
Turkey, once keen on European Union membership, has been snubbed so long that over 70 percent of the country now wants nothing to do with the lily-white club. The Turks could also go with the BRICS.
Under such circumstances, the Anglo-American empire despite its rock solid camaraderie (which has held true through two world wars, the Korean War and the Vietnam War and is fighting shoulder to shoulder in Afghanistan and Iraq) may itself split.
Minor members like Australia and New Zealand may be forced to make difficult choices: stick with China or go down with the USA.
But make no mistake, the empire won't be fading into the sunset soon. Despite the emergence of China as a major military adversary, India's massive military build-up and a resurgent Russia, the 400 million Anglo-Americans will remain a key player in world affairs for several more decades. What will change is their military adventurism will be clipped by the BRICS, to the relief of the rest of the world.
There is a reason for that.
CIVILIZATIONAL VALUES
The Anglo-American empire has been responsible for the annihilation of native populations in North America, Australia and Canada. The English were single-handily responsible for the drain of wealth from India, and the destruction of the country's trade, guilds, agriculture, industry, and its ancient educational system.
In contrast, the Indian Hindu and Russian Slavic empires greatly benefitted the conquered peoples. These empires were not essentially exploitative. The scientifically advanced Hindu empires, for instance, spread their civilization and vibrant religion across Asia, extending in an arc from the tip of Taiwan to Arabia, leading to a remarkable renaissance in these formerly intellectually barren regions.
The Russians modernised the Turkic nations of Central Asia. In fact, a Mongolian was able to travel to space because of Mongolia's cooperation with Russia. This might appear to be minor quibbling but can you think of any Pakistani who travelled to space on an American rocket despite 65 years of military ties between the two partners in arms?
There lies the difference. Russian ties with Mongolia were not exploitative, but America's relationship with Pakistan is based on the usefulness of the South Asian country as a geopolitical military base.
Bottom line: if the past is any indication, it is likely that a world ruled by the BRICS will be a more egalitarian place.
THE NATURE OF WESTERN EMPIRES
From the 16th to the 20th centuries the West crept ahead of the East primarily through colonialism and slavery. England, Spain, France, Germany, Belgium, Portugal and the Netherlands colonised virtually every nation on the planet.
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