Something about the Petrodollar

Based on a paper by the Morpheus Project.

What do Iraq, Iran, Libya, and Russia have in common? All those countries are the victim of US aggression, either through military attack or economic sanctions. The US justifies the attacks and sanctions with a rhetoric in the Western media along the lines of 'spreading democracy and human rights'. At the same time, the US supports brutal dictatorships in, amongst other places, Saudi Arabia and the United Arab Emirates. The real explanation is that it's precisely Iraq, Iran, Libya, and Russia that have suffered by the petrodollar.



The background to this petrodollar system is that the US federal government went bankrupt in 1971 because of the high costs of their war in Vietnam. This led to the country no longer being able to pay creditors in gold at the price of $35 per ounce. President Nixon decided to free the dollar from the gold reserve and float the US currency. Two years later, in 1973, came the oil crisis which quadrupled the price of oil. To better structure the price of oil and the US currency in 1974, Henry Kissinger reached an agreement with Saudi Arabia so that the country's entire oil production would be paid in dollars, and that Saudi Arabia in return would purchase US weaponry and assets in the form of stocks, real estate, government bonds, and technology. In 1975, the system was extended to include all oil-producing OPEC countries.



Such is the petrodollar system.



Nixon's decision to free the dollar, together with Kissinger's deals for the petrodollar, led to the US Federal Reserve printing enormous sums of money each year. Approximately $600 billion is exported abroad each year, and the US, in return, purchases products for corresponding amounts. At the same time, the national debt of the US increases with approximately $600 billion to $1 trillion per year. This national debt is, in addition, expected to increase in the coming years, as more and more people reach retirement age. All together, the total national debt of the US is close to an unbelievable $20 trillion ($20,000,000,000,000.00).







US federal debt in constant dollars, source: Wikimedia Commons

Further Reading

Morpheus: Petrodollarn

Wikipedia: Petrodollar recycling

Global Research: The Real Reason Russia is Demonized and Sanctioned: the American Petrodollar

Ian56: The Petrodollar System and the Petrodollar Wars Explained

YouTube: Breaking: Leaked audio of John Kerry confirming Obama wanted ISIS to grow

SPIEGEL ONLINE: Momentous Syria Interview Under Fire

Wikipedia: Sanctions against Iran

ZeroHedge: Petrodollar Under Threat As Russia And Iran Sign Historic 500,000 Barrel A Day Oil Deal

Morpheus: Ukrainas ultranationalister

ZEIT ONLINE: Haben die Amis den Maidan gekauft?

Awara Accounting: The Russian Economy 2014 - 2016, the Years of Sanctions Warfare

ANONHQ: Russia Leaving Global Banking System: Dumping US Dollar for Gold

The Vineyard of the Saker: A Russian warning

The Balance: Petrodollar: System, History, How It Recycles, Will It Collapse?

Silver Doctors: The King Dollar is mortally wounded

Первый канал: Рокфеллеры и Ротшильды