The dollar was once the prominent and darling currency of the world. However, the birth of Euro came as a threat to the dollar's reign. The US has made several moves to facilitate the dollar regain its past glory. The article discusses concerned issues.

What prompted US to attack Iraq, a country under sanctions since 1991 and struggling to obtain food, clean water, basic medicines and other essential commodities. The reason attributed to the attack was Iraq possessed weapons of mass destruction. In September 2002, Saddam Hussein stamped his fate when he announced that Iraq was no longer going to accept dollars for oil, being sold under the UN's Oil for food program, and decided to switch over to Euro as Iraq's oil export currency. In 2002, before Iraq was invaded, the dollar started facing uncertainties as it was over valued, and highly debted against the robust euro.

A very fact which finds little coverage in US and the global media is America's desire to preserve "Dollar's Supremacy" as currency of world oil trade. As the dollar's hegemony began to be challenged by euro, the Clinton administration and the Fed began to realize the consequences, but Bush did what others could never thought of. The petrodollar depended upon Iraq's (and still on OPEC) oil reserves to defend itself against euro and other currencies. Thus, the aspect is discussed very little and the war against Iraq turned into a media blitz and a humanitarian issue without a background information on the US policy

As per the historical evidences, one can understand how things went wrong in the global economic system. All this started after Second World War that coincided with the Bretton Wood System regime. The US had emerged from the Second World War as the strongest economy in the world, experiencing rapid industrial growth and capital accumulation. Data reveal that in 1945, US industrial production was more than double than that of annual production between prewar periods of 1935 and 1939. On the other hand, Europe and East Asia were economically and militarily shattered. They lost billions of dollars worth assets and millions of lives. In 1945, the US produced 50% of the world's coal, 65% of oil, and more than 50% of the vehicles, machine tools, chemicals, and so on. It holds $26 bn in gold reserves (out of the total reserves of $40 bn) which is 80% of world's gold reserves.

Treasury Management Magazine, Euro War, Global Economic System, Industrial Production, Economic Security System, Economic Discrimination, Global Markets, International Economic System, Bretton Wood System, International Monetary System, International Transactions, International Monetary Fund, IMF, International Market, Organization of the Petroleum Exporting Countries, OPEC, European Monetary Union.