When Irwin Stelzer, writes an article arguing that the, “The Saudis have now extended their influence over oil prices to American monetary policy”,1 we can leave the mechanics of how this might be aside and concentrate on two things, namely; who is Irwin Stelzer and what is American monetary policy?
Irwin Stelzer is a long-standing member of the neoconservative political faction and a supporter of a political philosophy that views foreign policy as the government’s main responsibility and as a vehicle to ensure America’s role as the world’s sole superpower, which is deemed necessary, if global order is to be maintained.2 “Global order” and “America’s role as the world’s sole superpower” are conveniently, synonymus; and American monetary policy?
There has been a growing body of evidence that shows how changes in U.S. monetary policy can influence developing economies in one way or the another. For instance, under the auspices of the IMF and the World Bank, capital flows are determined and interest rates and financial markets in the developing economies are profoundly influenced. A global interest in who the President of the United States will be is warranted because whoever it is, could be important to all of us. In the same way, American monetary policy is not a purely American concern. Moreover, the evidence is already suggesting that the dollar system and the United States as a sole world power are both unsustainable. Nevertheless, while we can only speculate on the nature of the compromise that Barack Obama will reach with the neoconservatives, with John McCain no compromise will be necessary, the evidence, unfortunately, also suggests that the neoconservatives are looking to Iran for their final fling.