US -- Near East History Articles * Wikipedia

 In 1973, President Nixon asked King Faisal of Saudi Arabia to accept only US dollars as payment for oil. He could invest any excess profits in US treasury bonds, notes and bills. In return, Nixon offered military protection of Saudi oilfields. The same offer was extended to each of the world's key oil-producing countries. And by 1975 every member of OPEC had agreed to sell their oil only in USA dollars.

The act of moving the dollar off of gold and tying it to foreign oil, instantly forced every oil importing country in the entire world to start maintaining a constant supply of federal reserve paper, and in order to get that paper, they would have to send real, physical goods to America. And this was the birth of the petrodollar.

The paper went out, everything that America needed came in, and the United States got very, very rich as a result. [Transcript of UN world government video]

 

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Causes of USA Hegemony Explained. Causes of wars. [Transcript of UN world government video, at 25 min.]
In 1945 the Bretton Woods Agreement established the dollar as the world reserve currency, which meant that international commodities were priced in dollars. The agreement, which gave the US a distinct financial advantage, was made with the condition that those dollars would remain redeemable for gold at a consistent rate of $35 per ounce. The US promised not to print very much money, but this was on the honor system, because the Federal Reserve refused to allow any audits or supervision of its printing presses. In the years leading up to 1970, expenditures in the Vietnam War made it clear to many countries that the US was printing far more money than it had in gold. And in response, they began to ask for their gold back. This of course set off a rapid decline in the value of the dollar. The situation climaxed in 1971, when France attempted to withdraw its gold, and Nixon refused. On August 15, he made the following announcement: “I have directed the secretary of the treasury to take the action necessary to defend the dollar against the speculators. I direct Secretary Connolly to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interests of monetary stability, and in the best interests of the United States.”

This is obviously not a temporary suspension as he claimed, but rather, a permanent default. And for the rest of the world, who entrusted the United States with their gold, it was outright theft.

In 1973, President Nixon asked King Faisal of Saudi Arabia to accept only US dollars as payment for oil. He could invest any excess profits in US treasury bonds, notes and bills. In return, Nixon offered military protection of Saudi oilfields. The same offer was extended to each of the world's key oil-producing countries. And by 1975 every member of OPEC had agreed to sell their oil only in USA dollars.

The act of moving the dollar off of gold and tying it to foreign oil, instantly forced every oil importing country in the entire world to start maintaining a constant supply of federal reserve paper, and in order to get that paper, they would have to send real, physical goods to America. And this was the birth of the petrodollar.

The paper went out, everything that America needed came in, and the United States got very, very rich as a result. It was the largest financial con in recorded history.

The arms race of the cold war was a game of poker. Military expenditures were the chips, and the US had an endless supply of chips. With the petrodollar under its belt, it was able to raise the stakes higher and higher, outspending every other country on the planet, until eventually US military expenditures surpassed that of all the nations in the world combined. The Soviet Union never had a chance. The collapse of the Communist block in 1991 removed the last counterbalance to American military might. The United States was now an undisputed super-power, with no rival.

Many hoped that this would mark the beginning of a new era of peace and stability. Unfortunately, there were those in high places who had other ideas. Within that same year, the US invaded Iraq, in the first gulf war. And after crushing the Iraqi military, and destroying their infrastructure, including water purification plants, and hospitals, crippling sanctions were imposed, that prevented that infrastructure from being rebuilt. These sanctions, that were initiated by Bush senior, and sustained throughout the entire Clinton administration, lasted for over a decade, and were estimated to have killed over five hundred thousand children. The Clinton administration was fully aware of these figures.

In November of 2000, Iraq began selling its oil exclusively in Euros. This was a direct attack on the dollar, and on US financial dominance, and it was not going to be tolerated.

In response, the US government, with the assistance of the mainstream media, began to build up a massive propaganda campaign, claiming that Iraq had weapons of mass destruction, and was planning to use them. In 2003 the US invaded and once again controlled the country. Oil sales were immediately switched back to dollars. This is particularly notable, due to the fact that switching back to dollars meant a 15 to 20% loss of revenue, due to the Euro's higher value. -- [Transcript of UN world government video]

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