WWIII over the Petrodollar

This video has the most concise descriptions of what is actually going on that I have seen since I have started investigating.  Please watch it.

Yes, Saddam Hussein was selling oil in Euros.  America didn’t care what he did until then.

There were weapons of mass destruction in Iraq, in the form of EURO currency. The petrodollar depends upon Iraq’s oil reserves to defend the United States dollar against the EURO and other currencies. In 2001, well before Iraq’s invasion, the dollar faced uncertainty as an overpriced, debt heavy currency against a new and robust EURO. In early 2004, the dollar is losing ground.

. . . .sensational snipets. General accounting practices, and world economic balance sheets are far too boring for the 6 o’clock news. Less than five percent of journalists in broadcast and print claim to understand economics, fewer understand how the US dollar / petrodollar fits into the global economy. Hence, it isn’t discussed, and the “war” against Iraq and Afghanistan turned into a media blitz or humanitarian issue without background information on White House policy.

The United States will flex muscle against any commodity threats against the petrodollar. A government or business standing in the way of “oil progress” would lose. In April 2001, the Australian dollar plummeted when Australia’s government and Foreign Investment Review Board rejected a merger between Royal/Dutch Shell and Woodside Petroleum. Australia’s dollar fell to US50.42, and Woodside Petroleum lost $1 billion market value on decision day. The fight for oil is second to religion as the reason and cause for war throught history, and yet oil itself is a relatively new commodity to consumers.

The United States dollar abandoned gold markets under the Nixon administration in 1973. The US media didn’t pay attention to such a bold move, because sensational headlines of the day were related to long gasoline lines, electrical shortages, and Watergate. Even 30 years later, consumers won’t read in newsprint why our dollar is dependent upon oil. Keeping oil priced exclusively in dollars was enough cause for waging war in Iraq after Iraq’s bold switch to EURO oil payments in 2002. The White House public relations campaign chose to pick emotional reason for invasion. OPEC, North Korea, Iran, and Russia now plan to trade in EUROs as the dollar continues to slide in value.

Economist commentator Sonja Ebron wrote, “An OPEC switch from the dollar to the euro would bring a quick and devastating dollar and Wall Street crash that would make 1929 look like a $50 casino bet.” This prediction was understood by the Clinton administration, but the Bush administration took action to boost the petrodollar.

With Afghanistan came the opium poppy as well.  The Taliban had declared poppy growing to be “anti-Islamic” in late 1999.  There was no crop grown in 2001.  America invaded.  Now there are ever increasing crops of poppies.

Afghanistan opium poppy cultivation, 1994-2010 (hectares). Information from unodc.org: Afghanistan Opium Survey 2010. Date 3 February 2008 Source Own work Author Brian74 [Brian74 grants anyone the right to use this work for any purpose, without any conditions, unless such conditions are required by law.]

But surely Qaddafi was really killing his own people like the press said? Hardly. The American CIA had to pay them to revolt. This is the report on the bright future Qaddafi had planned for Africa.

Saving the world economy from Gaddafi – Gold Dinar  [Video at link.]

The gold dinar was not a new idea. 

From the very beginning, Muslims used a gold coin called a Gold Dinar as their form of money. The Gold Dinar remained the official Islamic currency until the collapse of the Ottoman Empire in 1924… when it disappeared for 77 years.

But on Nov. 7, 2001 — less than two months after the terrorist attacks of Sept. 11 — the Islamic Dinar was officially re-launched by the Islamic Mint in West Malaysia and is now available to the public.

Although a beautiful coin, the Gold Dinar could pose a serious threat to the U.S. economy! In fact, its supporters believe the Gold Dinar will become the official currency of more than 1.5 BILLION Muslims worldwide. Now radical Islam is urging Muslims worldwide to drop the U.S. Dollar and adopt the Gold Dinar as their primary currency!

. . . . Back in 1997, there was a huge and devastating currency raid by the famous trader, George Soros, who leveled Asian monetary units and caused the major Asian economies to falter. It is true that some of those economies have not fully recovered. However, it is also true that history may point to this currency raid and raider as the germination of the seed for the uniting factor of Islamic economic power that changed the economic and monetary world.

On Jan 18 Forbes reported that Sell oil for gold, Mahathir tells Saudi Arabia … “Former Malaysian Prime Minister Mahathir Mohamad said on Sunday that Saudi Arabia should sell oil for gold, not dollars, to avoid being “short-changed” by a decline in the U.S. currency … He suggested countries tally their total annual imports and exports and settle the difference at the end of the year in “gold dinars.”

Recent news supports the idea that the Gold Dinar, with support from 53 other Islamic nations, is a planned offensive against the use of the dollar as a settlement currency for oil. It is perceived, and correctly so, that the Islamic world is controlled via the use of the US dollar as the main settlement currency.

. . . . Last year SwissAmerica.com posted a ground-breaking story by Jim Sinclair, “The Gold Dinar: A Nuclear Wild Card,” which quoted the Islamic “AL-FATH AL-‘ALI AL-MALIKI” (PP. 164-165)

“This Fatwa considers paper-money to be fulus, because it only represents money and does not have value as merchandise. It follows that since Zakat cannot be paid in fulus, which has no value as merchandise, it cannot be paid in paper-money, which value as weight of paper is null. On this basis, it becomes clear the urgent need to restore the use of the Dinar and the Dirham as payment of Zakat. If the millions of Muslims who now make their payment of Zakat in paper money would do it in newly minted Dinars and Dirham’s, they will put in circulation millions of gold and silver coins into the mainstream of daily commercial activities of our communities. That single act will became the most important political act of the century, opening the path towards the establishment our own halal free currency breaking away from the usurious financial system. The return to the payment of zakat in gold and silver is an essential part of the reestablishment of Islam.”

Those are serious words and should not be taken lightly. You see, the establishment of a gold-based currency is rebellion against the IMF as it is distinctly forbidden under IMF rules.

Here is where the Gold Dinar story gets interesting — and even somewhat ironic to those who understand the Judeo-Christian principle of both tithing and the biblical requirement of just weights and measures in an honest money system.

Why does it matter if oil is purchased in dollars or Euros or gold dinars?  Currency rates are fair, aren’t they?  Hardly.

The dollar is the de facto world reserve currency: the US currency accounts for approximately two thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all world exports are denominated in dollars. In addition, all IMF loans are denominated in dollars.

But the more dollars there are circulating outside the US, or invested by foreign owners in American assets, the more the rest of the world has had to provide the US with goods and services in exchange for these dollars. The dollars cost the US next to nothing to produce, so the fact that the world uses the currency in this way means that the US is importing vast quantities of goods and services virtually for free.

Now THAT makes a big difference to the people who can print all that money with just a few clicks of a mouse.  Continuing:

This however would be a disaster for the US. Not only would they lose a large part of their annual subsidy of effectively free goods and services, but countries switching to euro reserves from dollar reserves would bring down the value of the US currency. Imports would start to cost Americans a lot more and as increasing numbers of those holding dollars began to spend them, the US would have to start paying its debts by supplying in goods and services to foreign countries, thus reducing American living standards. As countries and businesses converted their dollar assets into euro assets, the US property and stock market bubbles would, without doubt, burst. The Federal Reserve would no longer be able to print more money to reflate the bubble, as it is currently openly considering doing, because, without lots of eager foreigners prepared to mop them up, a serious inflation would result which, in turn, would make foreigners even more reluctant to hold the US currency and thus heighten the crisis.

So, we in the USA would have to pay fair price for imported goods, and actually have to pay our debts, and would not be able to maintain our standard of living.  I think the majority of us are already to that point.  But the wealthy would probably stand to lose a lot more than they have.

So far only one OPEC country has dared switch to the euro: Iraq, in November 20002, 3. There is little doubt that this was a deliberate attempt by Saddam to strike back at the US, but in economic terms it has also turned out to have been a huge success: at the time of Iraq’s conversion the euro was worth around 83 US cents but it is now worth over $1.05. There may however be other consequences to this decision.

One other OPEC country has been talking publicly about possible conversion to the euro since 1999: Iran2,4, a country which has since been included in the George W. Bush’s ‘axis of evil’.

A third OPEC country which has recently fallen out with the US government is Venezuela and it too has been showing disloyalty to the dollar. Under Hugo Chavez’s rule, Venezuela has established barter deals for trading its oil with 12 Latin American countries as well as Cuba. This means that the US is missing out on its usual subsidy and might help explain the American wish to see the back of Chavez. At the OPEC summit in September 2000, Chavez delivered to the OPEC heads of state the report of the ‘International Seminar on the Future of Energy’, a conference called by Chavez earlier that year to examine the future supplies of both fossil and renewable energies. One of the two key recommendations of the report was that ‘OPEC take advantage of high-tech electronic barter and bi-lateral exchanges of its oil with its developing country customers’5, i.e. OPEC should avoid using both the dollar and the euro for many transactions.

And last April, a senior OPEC representative gave a public speech in Spain during Spain’s presidency of the EU during which he made clear that though OPEC had as yet no plans to make oil available for euros, it was an option that was being considered and which could well be of economic benefit to many OPEC countries, particularly those of the Middle East6.

Was Madeleine Albrecht correct about it being worth the deaths of half a million children in Iraq?  The millions who have been killed by American carpet bombing in Afghanistan, Bahrain, Iraq, Libya, Pakistan and Yemen?  The people in Algeria and Mali who are under attack now?  The people in Syria whose government is being destroyed by CIA backed “resistance”?  The people of Iran?  Or the people of India, downwind of any possible nuclear attacks on Iran?

I don’t think so.  I think it is time for the Pax Americana to be over.  For the American people to get their boots off the neck of the rest of the world.  For the American people to earn their own living, and pay their way in civilized discourse with the rest of the world.

But to do this, we are going to have to stop WWIII.  Are we up to the task?

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5 thoughts on “WWIII over the Petrodollar

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