The Wars We Fight – God Save the Petrodollar! (the coming collapse of the dollar)

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antikakistocrat
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The Wars We Fight – God Save the Petrodollar! (the coming collapse of the dollar)

What are Petrodollars?

The Petrodollar system is a scheme that was setup by the US, whereby all oil transactions in the world (with some exceptions) must be denominated in dollars. The enormous benefit to the US from this system cannot be over-emphasized. However, it is not so good for the rest of the world.

For the US, it essentially provides a free way to finance the purchase of oil imports. In other words, the US can simply print money whenever it needs to and exchange it directly for oil.

The rest of the world must exchange their currency for dollars to purchase oil. In order to protect themselves against world currency exchange fluctuations, these countries usually keep a significant reserve of dollars on hand, often in the form of US Treasury debt securities. This creates a stable and constant demand for the US dollar and a way to issue large amounts of debt at very low cost to the US (low yields paid to domestic/foreign investors in the form of interest payments).

This is how the US has been able to operate at very high deficit levels and still remain solvent and “prosperous”. No other country could achieve the type of long-term prosperity and economic stability that we have enjoyed here in the US (with it’s associated debt load) without the a constant and undeniable global demand for it’s currency.

The Downside

What has history taught us about every financial scheme that has ever been conceived and perpetuated? They always eventually come crashing down. And it usually ends quite quickly, sometimes spectacularly, once the scheme starts to really unravel.

The Petrodollar Titanic – Plugging the Holes in the Sinking Ship (Petrodollar Warfare)

Why are Iraq, Iran, Libya, Syria, North Korea, Venezuela, Cuba, etc considered evil “regimes” by the U.S.? These countries are either operating outside of the Petrodollar system and/or have central banks that operate outside of the influence of the U.S. led banking cartels.

In 2000, Saddam Hussein had converted his country’s oil transactions to the Euro (under the Oil for Food Program) and was encouraging the rest of OPEC to follow suit. This represented a grave threat to the power of U.S. oligarchy at the time. The result of this threat was the invasion of Iraq under the false pretense of WMD’s/terrorism.

After the fall of Saddam Hussein, the US immediately moved Iraq back to the Petrodollar system.

What has happened since then? We have seen a continuing drive to invade countries (that are easy prey) which either threaten the Petrodollar system and/or dollar hegemony…mostly under the umbrella of the “War on Terror”. When that has failed to illicit the desired support of the American people, human rights violations, dangerous “regimes”, WMD threats, threats to democracy, etc have been cited.

The Euro-Threat – Financial Terrorism

Is the financial turmoil in Europe a coincidence, or a strategic initiative? The Euro was quickly becoming a significant threat to both the Petrodollar system and the hegemony of the dollar (as the world reserve currency). The solution? Destabilize the Euro in order to prevent a move away from the dollar.

The Collapse of the Dollar

The pending collapse of the Dollar is being seen/felt globally…in world economies, financial markets and in ever-expanding military actions. The Petrodollar Titanic is sinking. There are simply too many holes to be plugged at this point in order to keep the system afloat.

There are enormous amounts of excess dollars floating around globally right now because of the Petrodollar system. As more countries (plan to) move away from this system, the excess dollars will begin to find their way back to the US economy. In other words, as the dollar becomes less significant, so will the need to hold dollars and reserves in the form of U.S. Treasury Securities. U.S. government debt will become increasingly more difficult to finance and inflation will show up as the unneeded dollars begin to flood the U.S. economy.

What will happened when (not if) the dollar collapses? If we don’t get into an all out international war before that happens, this is what we can expect at home here in the USA:

•   The dollar will lose it value
•   The weight of the US deficit will come crashing down
•   Borrowing will become prohibitively expensive. The free financing made possible by the Petrodollar system will be eliminated
•   Low cost oil imports made possible by the Petrodollar system will no longer be possible
•   Hyperinflation will occur very quickly
•   People will not be able to afford to buy food to eat, gas for their cars, energy to heat/cool their homes, water, clothes to wear or any of the basic necessities
•   Payments from social services such as social security, disability, food stamps and pensions may be reduced, or perhaps even eliminated
•   Production and transportation will be severely impacted. Farm (food) production will decrease, energy production will decrease, transportation (planes, cars, buses, trains, trucking, etc) will be prohibitively expensive
•   Widespread riots and civil unrest will occur
•   Marshall law will be enacted

This time is approaching rapidly. The preparations for the impending collapse can clearly be seen with the restrictive legislation being passed (quite swiftly at this point) that will be needed in order to enforce order as the chaos begins to unfold.

What can we do as individuals to avert this disaster? Sadly, at this point it will be difficult to avoid. It would be kind of like Enron deciding in their final hour to start operating in an ethical and economically feasible manner. Once the snowball is that large, it’s hard to stop. We can however, try and be prepared as best as possible.

For more information, please see the videos/articles below:

Video:

The Petrodollar System
http://www.youtube.com/watch?v=Enm0CBx52g4

Enron The Smartest Guys In The Room
http://www.youtube.com/watch?v=_xIO731MAO4

Articles:

Petrodollar Warfare and the Collapse of the US Dollar – Imperialism in the 21st Century
http://www.projectshiningcity.org/editorial5.php

The Real Reasons Why Iran is the Next Target:
The Emerging Euro-denominated International Oil Marker
http://www.globalresearch.ca/articles/CLA410A.html

Iran, China, And The Petrodollar
http://politicalrefugeez.com/?p=46

Tehran (Iran) Dumps Dollar for Euro
http://www.arabianbusiness.com/tehran-dumps-dollar-for-euro-12598.html

Syria Switches To Euro Amid Confrontation With US http://www.informationclearinghouse.info/article11894.htm

Libya Gold News report (Libya attempts to switch off USD) http://www.youtube.com/watch?v=GuqZfaj34nc&feature=player_embedded

U.N. to Let Iraq Sell Oil for Euros, not Dollars (2000) http://archives.cnn.com/2000/WORLD/meast/10/30/iraq.un.euro.reut/

North Korea Embraces the Euro
http://news.bbc.co.uk/2/hi/asia-pacific/2531833.stm

Iran, Venezuela Declare War on Petrodollar
http://www.wnd.com/2006/02/34742/

New enemies – The Petrodollar and The Petroeuro
http://haroonhaider.com/2010/01/03/new-enemies-%E2%80%93-the-petrodollar-and-the-petroeuro/

Beginning Of The End For The Petrodollar? Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery
http://usactionnews.com/2012/03/beginning-of-the-end-for-the-petrodollar-saudi-arabia-and-china-team-up-to-build-a-gigantic-new-oil-refinery/

The Demise of the Dollar
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

History of the Petrodollar: Iran and Iraq
http://imakhasin.blog.unsoed.ac.id/2010/03/03/history-of-the-petrodollar-petrodollar-and-iran-and-iraq/

Comments

antikakistocrat
antikakistocrat's picture
Ron Paul: The PetroDollar -

Ron Paul: The PetroDollar -

http://www.youtube.com/watch?v=SxVZ945JR5g&feature=related

http://www.youtube.com/watch?v=jGWNzlWrzTY&feature=relmfu

http://www.youtube.com/watch?v=Ekdln_NZ-P4&feature=relmfu

http://www.youtube.com/watch?v=LgEfvi2sHQM&feature=relmfu

DRC
DRC's picture
Reminds me of Dylan's

Reminds me of Dylan's weatherman and the direction the wind is blowing.  Fortunately, if we can contain it to the collapse of money instead of the collapse of society, it will be a superficial rather than a substantial disaster.  Money is always related to a great crime at its source, to paraphrase David Graeber.

Karolina
Karolina's picture
DRC, thank you for showing a

DRC, thank you for showing a way that we still are able to be optimistic. I was afraid I was going to run out, and have to join the Denial Camp.

antikakistocrat
antikakistocrat's picture
It is interesting to see that

It is interesting to see that the Libyan and Iraq invasions were based on the same reason.   They wanted to DITCH the dollar and the American Money MAFIA AKA the FED and the Bilderberg bosses wasn't going to allow it.

Hence all the un-Constitutional Wars under Bush & Obama.

Karolina
Karolina's picture
antikakistocrat wrote:For the

antikakistocrat wrote:
For the US, it essentially provides a free way to finance the purchase of oil imports. In other words, the US can simply print money whenever it needs to and exchange it directly for oil. 

The rest of the world must exchange their currency for dollars to purchase oil. In order to protect themselves against world currency exchange fluctuations, these countries usually keep a significant reserve of dollars on hand, often in the form of US Treasury debt securities. This creates a stable and constant demand for the US dollar and a way to issue large amounts of debt at very low cost to the US (low yields paid to domestic/foreign investors in the form of interest payments).

 Britain always seems to be in these wars with the USA. I hardly think that they are helping us out because they like us so much, so if the petro-dollar is the reason for the non-stop wars, what is England getting out of it?

Choco
Choco's picture
Karolina,   Carrol Quigly

Karolina,

 

Carrol Quigly said the world is run by the Milner Group. Milner was the right hand man of Cecil Rhodes, who set up the Rhodes Scholarships and the Round Tables including the CFR and Trilaterals. The thinking is that England has controlled the US ever since the Rothschilds got their Central Bank in the US, that is the Federal Reserve. Look up the Pilgrim Society or Pilgrims. It's the Milner Group. Alexander Hamilton, some consider, was a Rothschild asset in the United States.

Good stuff antikak. I think this arrangement between OPEC to use US dollars came with the 1972 oil embargo. I will need to research that some more so don't quote me. The US agreed to sell Egypt and Saudi Arabia military equipment and buy oil so long as the Arab countries agreed to sell on the US dollar. The Bretton Woods agreement in 1945 established the World Bank (of corruption) and IMF . . .

Wikipedia: The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the U.S. dollar and the ability of the IMF to bridge temporary imbalances of payments.

Karolina
Karolina's picture
Alexander Hamilton was not a

Alexander Hamilton was not a British Loyalist by any means. His American credit system of banking was a huge annoyance to the Brits, who started to try to dismember it as soon as Ben Franklin on a trip to Britain explained the system in answering a question about why the States were doing well financially.

I don't think the Brits ever stopped feeling entitled to the 13 Colonies or the Nation that they evolved into—finally managing to bamboozle President Wilson into signing the US money into their control, through the stealthy Congress-passed and deceptively named "Federal" Reserve Bank

I read in the media that Tony Blair was in Washington earlier this week. I can't help wondering what new plans are being discussed about how and where to quickly develop a trigger point for WW3. Syria and Iran are starting to drag out.

Thanks for the info about the Milner Group et al. I started to read about Carrol Quigley earlier in Wikipedia, after I was dissappoined that Milner Group was not listed there. Now I know why — they have various names. Those British elites—they're even sneakier than US conservative "discussion" groups like ALEC.

Choco
Choco's picture
antikakistocrat wrote: Ron

Great videos, hope people watch.

polycarp2
Karolina

Karolina wrote:

antikakistocrat wrote:
For the US, it essentially provides a free way to finance the purchase of oil imports. In other words, the US can simply print money whenever it needs to and exchange it directly for oil. 

The rest of the world must exchange their currency for dollars to purchase oil. In order to protect themselves against world currency exchange fluctuations, these countries usually keep a significant reserve of dollars on hand, often in the form of US Treasury debt securities. This creates a stable and constant demand for the US dollar and a way to issue large amounts of debt at very low cost to the US (low yields paid to domestic/foreign investors in the form of interest payments).

 Britain always seems to be in these wars with the USA. I hardly think that they are helping us out because they like us so much, so if the petro-dollar is the reason for the non-stop wars, what is England getting out of it?

poly replies: Ask British Petroleum and the British Financial Markets stuffed with dollars. It's in Britain's interests to maintain the dollar as the prime international currency.The Pound Sterling is no longer capable of the role.

Retired Monk - "Ideology is a disease"

Karolina
Karolina's picture
Poly wrote: Ask British

Poly wrote:
 Ask British Petroleum and the British Financial Markets stuffed with dollars. It's in Britain's interests to maintain the dollar as the prime international currency.The Pound Sterling is no longer capable of the role.

That makes sense.

The amount that the British are in my face all the time in the US culture, I can't help feeling like they are trying to passive-agressively take over here, the same way they passive-aggressively started taking over our economy in 1913.

Choco
Choco's picture
Karolina wrote: Poly

Karolina wrote:

Poly wrote:
 Ask British Petroleum and the British Financial Markets stuffed with dollars. It's in Britain's interests to maintain the dollar as the prime international currency.The Pound Sterling is no longer capable of the role.

That makes sense.

The amount that the British are in my face all the time in the US culture, I can't help feeling like they are trying to passive-agressively take over here, the same way they passive-aggressively started taking over our economy in 1913.

Do you notice there are more and more British newscasters and commentators here as well.

Karolina
Karolina's picture
YES. Also in every stupid

YES.

Also in every stupid entertainment comedy or even drama program, there is the token gay, the token African-American, the token Latino....and now the token person speaking with a British accent.

I used to enjoy the British culture as much as all others, which I always saw as fun adventures that allowed me to see and understand human beings better. Now when I hear a British accent, I get pissed off. Its like a nightmare about The Invasion of the Body-Snatchers or one of those vampire shows that kids are watching now.

Fletcher Christian
Fletcher Christian's picture
I heard Rush Limbaugh screw

I heard Rush Limbaugh screw up and tell the truth once.

He said that when Americans hear a British accent, it automatically lends credibility to the argument.  He would lament over British accents and liberals.

Then sure enough, he got himself one to fill in for him while he's off on vacation to get more penis drugs!

I am guilty.  I often fell for the English accent = intelligence.  I don't know why.

I love the obvious low brow humor of Johnny Rotten and Steve Jones of The Sex Pistols.  I don't know if they would be as funny to me without the accent.  I love em'!

Malcolm McLaren is also one of my favorites.  I can do a very good impersonation of him.  "I thought it would be a great idea... if the album NEVER came out, at all!"  (It's better when you can actually HEAR me do it... I promise!  Hee, hee!)