Prince.Skeletor
Don’t Be Like He-Man
Once upon a time, the U.S. dollar was backed by the gold standard. The dollar was fixed to gold at a price of $35 an ounce, though the dollar could earn interest, marking one notable difference from gold.
The system ended up being short-lived, as President Richard Nixon announced that the U.S. would be abandoning the gold standard in 1971.
The Nixon Administration reached a deal with Saudi Arabia.
The essence of the deal was that the U.S. would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in U.S. dollars.
This system became known as the Petrodollar Recycling system because countries like Saudi Arabia would have to invest excess profits back into the U.S. It didn’t take long for every single member of OPEC to start trading oil in U.S. dollars.
A little-known economic theory, rejected by the mainstream, stipulates that Washington’s stranglehold over financial markets can be at least partially explained by the fact that all oil exports are conducted in transactions involving the U.S. dollar. This relationship between oil and currency arguably gives the dollar its value, as this paradigm requires all exporting and importing countries to maintain a certain stock of U.S. dollars, adding to the dollar’s value.
This is what we call the petrodollar.
Petrodollar Under Attack
Now check this
So....
Thoughts?
Thoughts on the petrodollar & the relationship of countries not wanting to use the U.S dollar to trade oil & countries being invaded?
Does the petro dollar play a part in regime change wars?
The system ended up being short-lived, as President Richard Nixon announced that the U.S. would be abandoning the gold standard in 1971.
The Nixon Administration reached a deal with Saudi Arabia.
The essence of the deal was that the U.S. would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in U.S. dollars.
This system became known as the Petrodollar Recycling system because countries like Saudi Arabia would have to invest excess profits back into the U.S. It didn’t take long for every single member of OPEC to start trading oil in U.S. dollars.
A little-known economic theory, rejected by the mainstream, stipulates that Washington’s stranglehold over financial markets can be at least partially explained by the fact that all oil exports are conducted in transactions involving the U.S. dollar. This relationship between oil and currency arguably gives the dollar its value, as this paradigm requires all exporting and importing countries to maintain a certain stock of U.S. dollars, adding to the dollar’s value.
This is what we call the petrodollar.
Petrodollar Under Attack
Now check this
So....
Thoughts?
Thoughts on the petrodollar & the relationship of countries not wanting to use the U.S dollar to trade oil & countries being invaded?
Does the petro dollar play a part in regime change wars?
