PetroDollar Scam!

[Geriatrix]

It is lies. All lies. There you go But America was never and will never be the greatest thing since sliced bread.

Well maybe not all of it. Lets see if we can find links from less tinfoily sites.

Few years later, French demanded redemption of its paper-dollar holdings in gold. But the USA rejected as it actually didn't had enough gold for the dollars it had already printed and spent all over the world, thus committing an act of bankruptcy.

The global use of the Dollar as standard currency was the result of the Bretton Woods Accord(United Nations Monetary and Financial Conference).

http://www.forexrealm.com/forex-for-beginners/forex-history-02-1.html

The Bretton Woods system came under increasing pressure as national economies moved in different directions during the sixties. A number of realignments kept the system alive for a long time, but eventually Bretton Woods collapsed in the early seventies following president Nixon's suspension of the gold convertibility in August 1971. The dollar was no longer suitable as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.

And from the this site
http://www.state.gov/r/pa/ho/frus/nixon/iii/8698.htm

The New Economic Policy that President Nixon announced on August 15, 1971, had both domestic and international elements. On the international side the NEP closed the gold window, the suspension of convertibility essentially floating the dollar. It imposed a 10 percent surcharge on all dutiable imports, a measure described as a border tax adjustment during preparatory meetings, and reduced foreign assistance expenditures by 10 percent. (168) The sudden floating of the dollar had special impact on U.S. foreign relations. Under Secretary Volcker traveled to Europe for consultations on August 16 and 17 to explain the new U.S. program to European and Japanese officials. (170, 171) During the week following the NEP's announcement, most foreign exchange markets remained closed as governments absorbed the new policies and explored next steps. (172)

The G-10 Deputies met in Paris on September 3, followed by a G-10 Ministerial in London September 15-16 to consider next steps. (173-175) Among the topics discussed was the U.S. objective to obtain a $13 billion turnaround in the balance on goods and services. (76, 78) There was no resolution and bilateral consultations and G-10 Deputies and Ministerial meetings during the fall sought agreement on a policy approach. The United States continued to develop its negotiating strategy and policy objectives. (176-197, 199-209) On November 2 President Nixon informed his advisers the presumption should be that there would be no change in the price of gold nor a return to some form of convertibility. (189)

On November 23-24, 1971, President Nixon had several meetings with his economic advisers, preparatory to meetings of the G-10 Deputies and Ministers in Rome November 29-December 1. (203) During those meetings they discussed the French gold "phobia" and the probable need for a change in the official price of gold, the magnitude of possible exchange rate changes, and the possibility of trading the import surcharge for sufficient exchange rate realignments. Press reports following the November 23-24 meetings noted that the President expected "definite progress" at the forthcoming G-10 meetings. Gold price issues are documented in this volume. (145, 153)

So the gold converatbility thing is not necesarily false.

So the USA went to the Saudis and cut a deal – OPEC denominate all sales of oil in US dollars.

Here's a link from theUS House
http://www.house.gov/paul/congrec/congrec2006/cr021506.htm

Realizing the world was embarking on something new and mind boggling, elite money managers, with especially strong support from U.S. authorities, struck an agreement with OPEC to price oil in U.S. dollars exclusively for all worldwide transactions. This gave the dollar a special place among world currencies and in essence “backed” the dollar with oil. In return, the U.S. promised to protect the various oil-rich kingdoms in the Persian Gulf against threat of invasion or domestic coup. This arrangement helped ignite the radical Islamic movement among those who resented our influence in the region. The arrangement gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as dollar influence flourished

From that point, every nation that needed to buy oil had to firstly hold US dollars, which meant that they exchanged their goods and services for dollars, which the Americans just printed.

The Federal Reserve can create money out of thin air by using fractional banking. This is a rather complex process, but feel free to google it.

You'll be surprised by how mind boggelingly stupid it is. It is basically the process where money is being created out of thin air by issuing loans and reinvesting the new loan "money"(which doesn't exist) and then reloaning out that new "investment" while getting paid interest for it, allowing new loans to be issued. Rince and repeat.
http://www.federalreserveeducation.org/fed101_html/policy/money_print.htm
Here's a link where you can download a pdf too see it for yourself from, the Fed Res themselves. There's even a little comic book where they have it explained in a story ala superman style. See the link below.
http://www.ny.frb.org/publications/result.cfm?comics=1

The Americans brought their oil literally for free by printing those dollars. The ultimate free lunch for the Americans at the expense of the rest of the world.

The Fed can create dollars and get the money printed, the rest of the world cannot print dollars and thus have to pay and trade for it.

However, the scam began to unravel when Saddam Hussein started selling Iraq's oil directly for Euro, abrogating the cozy arrangement the Americans had with OPEC. Thus Saddam had to be stopped. How?

USA concocted up a pretext to wage war (drama of twin tower blast) and invade Iraq and the first thing the Americans did was to revert sales of oil back to dollars. The currency crisis was averted for the moment.

This rest is speculation and I can't find credible support for theory. But there was that recent incedent where Opec accentally discussed switching to other currencies before the world media. And now they're doing it openly.

 

[JK8]

Nice research Geri!

 

[Kloofvreter]

Glad to see it's finally coming out, any free thinker can see this.
10 to 1 I bet someone is gonna say it's lies and America is still the greatest thing since sliced bread.

Do you actually believe this crap?

 

[Frankie]

Do you actually believe this crap?

It's what you'd expect considering the indoctrination.

 

[Kloofvreter]

It's what you'd expect considering the indoctrination.

And next he's also going to believe that the British royal family killed Diana?

 

[krycor]

The problem i see is this, as it stands a lot of reserve banks all hold dollars and if the dollar should suddenly crash and become as worthless as the zim dollar(which it can), it will also drag every other reserve with large reserves of dollars. So in a way, unless secretly reserves reduce their stockpile of dollars which would be hard to go unnoticed, its not in the interest of everyone for the dollar to collapse.

 

[Claymore]

This theory is based on outdated and discredited Keynesian notions of trade and current account deficits mixed with adolescent zero-sum notions of wealth and "America is the Great Satan" prejudice. As many an economist has observed (not least the latest Nobel laureate in Economics), Keynesianism is dead from the neck up. Ditto for this theory.

Wow, I find myself agreeing with you, Arthur. Well said.

If I remembered correctly it was the "in" thing to do in the 60's and 70's print more money... The US just found a way to sustain it and keep it undercover.

The problem with printing money is that it leads to inflation. Ask Mad Bob.

Something worth noting is that while it has benefitted the US in some ways for the dollar to be the de facto reserve currency, it also places the US in a position where it's difficult to influence exchange rates and other indicators.

 

[Solidus]

It's what you'd expect considering the indoctrination.

Wow I'm amazed at your prejudice only now do I see that you have neen attacking my religion throuh me as well. The west is agianst Islam and that is the truth, you made this to be a religious thing. I'm sure you hold all the answers to the wars going on as well. Not everything gets reported in the media oh and the media is controlled by the west so we'll forever be the bad guys. I'm indoctrinated? hahahaha Thats so laughable, I guess I'm a mindless drone and a terrorist then.

 

[Frankie]

Wow I'm amazed at your prejudice only now do I see that you have neen attacking my religion throuh me as well. The west is agianst Islam and that is the truth, you made this to be a religious thing. I'm sure you hold all the answers to the wars going on as well. Not everything gets reported in the media oh and the media is controlled by the west so we'll forever be the bad guys. I'm indoctrinated? hahahaha Thats so laughable, I guess I'm a mindless drone and a terrorist then.

Is this an example of the "West against islam" ?

Glasgow airport bombers on trial

A Glasgow airport worker described in court how an alleged terrorist threw a petrol bomb at him from a Jeep.

Prosecutors say he was a passenger in the Jeep which was packed with explosives and rammed into the airport.

Dr Abdulla, 29, from Paisley, and Dr Mohammed Asha, 27, from Newcastle-under-Lyme, deny conspiracies to murder and to cause explosions.

Oh hell, I forgot that all western media is prejudiced.