The answer is infinitely simple and infinitely complex. Get out of Iraq.

We can analyze and agonize through endless statistics and currency movements.

We can contemplate the machinations of multiple heads of state clamoring to denigrate the image of America and deface its currency. Russia which has shifted away from its momentary pretence at democracy, is now taking aim at the dollar through the Euro. Could we suspect that the Rubble is the reserve currency in such fanciful long term dreams?

There is ample reason to be concerned over the abundant presence of dollars in the treasuries of such countries as China or Saudi Arabia which provides them very real influence over the future of the dollar.

There is also ample reason for Europe to be concerned with the rapid rise of the Euro and the resulting impact on its exports.

If currency angst is not enough to upset American digestion, there are plenty of geopolitical hot spots that pundits suggest the US should be more attentive to such as Iran, North Korea, the Sudan and endless authoritarian and abusive points of call in between.

It is unclear that all American taxpayers fully comprehend the totality of the cost they are incurring as they struggle to pay mortgages and support their loved ones. If they did, congressional pressure would have both Republicans and Democrats in chorus demanding an end to the war's cost in blood and capital.

The answer to all of these pressures on America lies in the withdrawal of its forces from Iraq. End the financial hemorrhaging. Retrench, recoup, take a year or two off from foreign battles requiring more than 10,000 troops. Reestablish international confidence in the US as the world leader with some vision tempered with occasional wisdom.

Since WWII the US has been the safest and most stable place to store capital. The world acceded for 3 generations. The US hasn't just been a military power, it has been respected and admired for its form of government and its technological prowess. Some of that respect has only been temporarily tarnished by a misguided administration, driven with a dogmatic determination that debt was its right (if reports from the early days of the current presidency are accurate).

Is it remotely conceivable that international investors might in future look to countries like Russia or China as safe havens for the bulk of their trillions? Hardly. Does Europe present an alternative? It doesn't have either the cohesive power or the physical segregation.

It cannot be ignored that some of the attraction the US has had, is that invading it isn't quite as simple as walking around the end of the Maginot Line and taking control.

The US treasury needs some respite. Its dollar will regain strength and remain the currency of reserve and trade.

Learn more about this author, J J Debar.
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