Daily Archives: 13 May 2008

The Iraq-U.S. Status of Forces Agreement (SOFA)

“Washington drew out a draft proposal for a security deal in January 2008, a preliminary part of which was signed by officials of the two countries on March 17.

. . . .

One look at Article 10 of the treaty makes it apparent that the US administration hopes to quietly impose the binding contract and legitimize its indefinite military presence in the country.

‘As long as Iraqi security/military forces are not well-trained, security hasn’t been ensured, the neighboring states pose a threat, and terrorist attacks continue, the treaty will be officially binding and both parties are obliged to implement it.’

The first article of the treaty allows the US Army to carry out military operations in Iraq at any time and any place.

Under Article 2, American and British troops can arrest suspects at any time without the consent of the Iraqi government.

Article 3 reinforces Article 10 by asserting that there are no time limits for the presence of American forces, thus annulling the 1790 UN Security Council anti-occupation Resolution.

The contents of the treaty will dissipate all hopes of a sovereign Iraq, turning the country into a medieval US colony.

According to Article 4, American servicemen and non-servicemen are not obliged to attend any court hearings in Iraq, literally granting them capitulation privileges.

Article 7 puts the Iraqi ministries of defense, interior and intelligence under the direct supervision of US officials, ensuring Iraq will be officially governed by the United States.

Article 6 allows the US to set up 41 military bases in Iraq; Article 8 provides American forces with the authority to supervise arms sales as well as train Iraqi military and law enforcement personnel.

Article 9 argues that as a member of the international community Iraq must recognize Israel and unconditionally support Washington’s Middle East policies.”

Read more from presstv.ir

Ron Paul on Competing Currencies

Ron Paul’s recent statement on the House floor.

excerpt: “The first step consists of eliminating legal tender laws. Article I Section 10 of the Constitution forbids the States from making anything but gold and silver a legal tender in payment of debts. States are not required to enact legal tender laws, but should they choose to, the only acceptable legal tender is gold and silver, the two precious metals that individuals throughout history and across cultures have used as currency. However, there is nothing in the Constitution that grants the Congress the power to enact legal tender laws. We, the Congress, have the power to coin money, regulate the value thereof, and of foreign coin, but not to declare a legal tender. Yet, there is a section of US Code, 31 USC 5103, that purports to establish US coins and currency, including Federal Reserve notes, as legal tender.

Historically, legal tender laws have been used by governments to force their citizens to accept debased and devalued currency. Gresham’s Law describes this phenomenon, which can be summed up in one phrase: bad money drives out good money. An emperor, a king, or a dictator might mint coins with half an ounce of gold and force merchants, under pain of death, to accept them as though they contained one ounce of gold. Each ounce of the king’s gold could now be minted into two coins instead of one, so the king now had twice as much “money” to spend on building castles and raising armies. As these legally overvalued coins circulated, the coins containing the full ounce of gold would be pulled out of circulation and hoarded. We saw this same phenomenon happen in the mid-1960s when the US government began to mint subsidiary coinage out of copper and nickel rather than silver. The copper and nickel coins were legally overvalued, the silver coins undervalued in relation, and silver coins vanished from circulation.

These actions also give rise to the most pernicious effects of inflation. Most of the merchants and peasants who received this devalued currency felt the full effects of inflation, the rise in prices and the lowered standard of living, before they received any of the new currency. By the time they received the new currency, prices had long since doubled, and the new currency they received would give them no benefit.

In the absence of legal tender laws, Gresham’s Law no longer holds. If people are free to reject debased currency, and instead demand sound money, sound money will gradually return to use in society. Merchants would have been free to reject the king’s coin and accept only coins containing full metal weight.”

Read more from ronpaul2008.com