Those who called Hamas’s attack on Israel “Israel’s 9/11” were more accurate than they realized. Just as the US reacted to 9/11 by fulfilling Osama bin Laden’s wish that the US would get bogged down in no-win wars, Israel’s reaction to the Hamas attack fulfills Hamas’s likely goal of radicalizing more Palestinians. The result of Hamas’s attack will be to strengthen the most extreme elements on both sides of the conflict.
Given the strong support for Israel among both major political parties it is not surprising that, following the attacks, many politicians rushed to microphones to proclaim their support for US assistance for Israel. President Biden announced the US would send military aid to Israel, while Congress is drafting legislation providing about two billion dollars in “emergency” military assistance to Israel. Even most of the growing number of representatives who oppose military aid to Ukraine will support spending “whatever it takes” to defend Israel. This is why the Biden administration and some in Congress want to combine aid for Israel and Ukraine into one legislative package.
Spending billions more to support military action in the Middle East and Ukraine will benefit the military-industrial complex. However, it will harm most Americans by accelerating the growth of the government’s over 33 trillion dollars debt. As the debt increases, the Federal Reserve will push interest rates lower and monetize the debt. This will lead to increased price inflation, combined with economic stagnation and high unemployment — in other words, stagflation.
Concerns over the government’s debt and the Federal Reserve’s enabling of that debt with easy money and low interest rates will lead to more challenges to the dollar’s world reserve currency status. Increased resentment over US hyper-interventionist foreign policy will also lead to changes to the dollar’s reserve currency status. Saudi Arabia could even stop using dollars for its international oil trade. The end of the petrodollar would be the final nail in the coffin of the dollar’s world reserve currency status.
The end of the dollar’s world reserve currency status would mean the US government could no longer run an empire abroad and an authoritarian welfare state at home. The question is not will the American empire end but when and how. It should end deliberately, with Congress starting the process of restoring limited constitutional government by ending all foreign aid and bringing our troops home.
When Israel was criticized for bombing an Iraqi nuclear plant it feared would be used to produce weapons, I defended Israel’s right as a sovereign state to act in what it saw as its national security interest. I still hold that view. I believe Israel would benefit if the US ends all foreign aid, since much of it goes to Israel’s enemies. Foreign aid also gives the US an excuse to engage in other forms of meddling. Ending US interventionist foreign policy would allow the Israelis and Palestinians to find a way to a just and lasting peace.
Ron Paul is a former U.S. congressman from Texas. This article originally appeared at the Ron Paul Institute for Peace and Prosperity and is reprinted here with permission.
