The last time I posted a chart of the Dollar Index it was around 114. It has
continued to crumble and now stands around 95. Why is the dollar so weak? Most observers predictably blame the weak economy, low interest rates, the growing trade deficit, and
the growing federal budget deficit.
But maybe it has more to do with the consequences of pursuing the dubious goal of building a
New American Century. Everyone knows that the
costs of defending and administering far-flung territories (like Mesopotamia and Assyria -- present-day Iraq) contributed to the decline and fall of the Roman Empire. Is the Dollar
Index reflecting this knowledge of ancient history?
Consider this comment made by Christopher Kelly, a Lecturer in Classics at Cambridge, before the war on Iraq was launched:
"What America will need to consider in the next 10 or 15 years is what is the optimum size for a nonterritorial empire,
how interventionist will it be outside its borders, what degree of control will it wish to exercise, how directly,
how much through local elites? These were all questions which pressed upon the Roman empire."
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