War: Oil and the Petrodollar

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The primary causal effect in illegal wars, occupations, and overthrows of foreign governments are more about the petrodollar, than oil itself. Iraq was beginning to sell oil for Euros, and Qaddafi was proposing to all OPEC nations that they all switch from the dollar to the global currency for oil to the African Dinar, which is a gold-based currency. If either Iraq or Libya were to implement or maintain such a strategy, it would weaken the dollar’s position as the standard oil currency.

The US simply could not allow that to happen, because the petrodollar status is what is propping the dollar up from being virtually worthless at this point. Syria and Iran have both been selling oil in currencies other than the US dollar, threatening the thin facade of our currency having any worth whatsoever, and we’re fabricating similar falsehoods to those that propelled us into War with Iraq and Libya to continue having any value whatsoever to the dollar.[1]

During most of the 1800’s, the United States was had a bimetallic system of money(silver and gold), however, it was essentially on a gold standard as very little silver was traded. A true gold standard came to fruition in 1900 with the passage of the Gold Standard Act. The gold standard effectively came to an end in 1933 when President Franklin D. Roosevelt outlawed private gold ownership (except for the purposes of jewelery). The Bretton Woods System, enacted in 1946 created a system of fixed exchange rates that allowed governments to sell their gold to the United States treasury at the price of $35/ounce. “The Bretton Woods system ended on August 15, 1971, when President Richard Nixon ended trading of gold at the fixed price of $35/ounce. At that point for the first time in history, formal links between the major world currencies and real commodities were severed”.[2]

A small but significant number of observers consider the issues around which the newspaper discussions of the Iraq war revolve to be nothing but a screen that hides other causes fueling the present conflict — causes that require some knowledge of economics to grasp. According to this view, a leading motive of the U.S. in the Iraq war — perhaps the fundamental underlying motive, even more than the control of the oil itself — is an attempt to preserve the U.S. dollar as the leading oil trading currency, on the view that the institution of petrodollars, as these have developed since the early 1970s, is fundamental to well-being of the U.S. economy.[3]

We’re not proposing military intervention in Syria, nor enforcing crippling and genocidal sanctions on and saber-rattling against Iran because of any humanitarian spirit or wanting to spread democracy.

What we’re spreading is unquestioned subservience to the petrodollar, so that the exaggerated inflation that the Federal Reserve has caused will not threaten the perceived value of the dollar, which is now utterly worthless, other than being intrinsically intertwined with the oil trade.

[1]http://thecommonsenseshow.com/2013/08/26/syrias-reichstag-moment/
[2]http://economics.about.com/cs/money/a/gold_standard_2.htm
[3]http://www.tacomapjh.org/petrodollartheories.htm