History on the petro dollar.

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02/08/2013

Jurie
said: History
on the petro dollar.

This information was provided by Brad Hoppmann from Weissman Research.

Very enlightening bit of history of why the USD has been top dog.

 The Biggest Financial Con in History

  The year was 1944 … and all the 44 Allied nations gathered in Bretton
Woods, New Hampshire.

  Their mission was to create a set of agreements to manage international
trade after the war.

    Their brainchild, The Bretton Woods agreement, established
the dollar as the world’s reserve currency.
…
This international game-changer gave the United States a distinct economic
advantage, but with one caveat … every dollar the  Fed printed would be
redeemable for gold at a standard rate of $35/oz.

   This was put in place to ensure the Fed didn’t print dollars with
reckless abandon.

   But of course, the Fed printed more \dollars than it had in gold
to exchange, and with massive expenditures on the Vietnam War, the rest of the
world became suspicious of America’s ability to pay.

    So nations began to demand the gold they were promised.

    Then in 1971, President Nixon recognized he would not be
able to meet the obligations and closed the gold window.  It was the first
American default and it set off a rapid decline in the value of the dollar.

  Oil prices soared.  Inflation soared to 15% and higher.  
At the same time, GDP fell 3.2% and unemployment hit 9%.   P/E ratios
crashed down from 16 to 8 and stocks had the worst 15 year period in history
… even worse than the Great  Depression.

The government imposed wage and price controls which caused gas shortages
around the country.

  But in 1973, then-Secretary of State Henry Kissinger hatched a brilliant
plan.

    America had great military might and Saudi Arabia needed
protection for its vast oil empire.

   So, in a stroke of genius, Kissinger exchanged America’s military
might for Saudi Arabia’s promise to sell oil exclusively in U.S. dollars.

  Meaning, any country that wanted to purchase oil from OPEC was forced to
use U.S. dollars.

    So anytime another country wanted to buy oil from the Middle
East, they had to first convert their currency into U.S. dollars.

    And since oil is required in modern economies — and the
Saudis are a main player in the oil trade — this put the U.S. in a unique
situation.

    Countries around the world would have to export goods and
services to get the dollars they’d need to buy oil.  America on the other
hand could simply “print” the dollars it needed to buy oil.

    Which means the U.S. could run massive trade deficits
because we exported the most valuable commodity in the world … the U.S.
dollar.

Up until the early 1970s America was the world’s largest creditor.

But by the early 1980s we had begun to run our first trade deficits.

And since the 1990s our trade deficits have grown to trillions of dollars.

In order to get the dollars they needed to buy oil, countries flooded the U.S.
market with cheap cars, cheap T.V.s, cheap clothes … and we simply flooded
the world with cheap currency in return.

But here’s the cherry on top …  

The OPEC countries were required to invest their profits in US treasuries,
feeding the demand for government debt … allowing the government to borrow
with reckless abandon … and creating the greatest bond bull market the world
has ever seen.    But it wasn’t just the government that
borrowed. 

Consumers borrowed $14 trillion, add in $11 trillion in corporate debt, $17
trillion in financial debt and up to $90 trillion in unfunded liabilities like
Social Security and Medicare — it all adds up to $140 trillion in total debt
… that’s around 10 times greater than our whole domestic production. It’s
truly staggering.

And the whole house of cards is maintained by this simple agreement made in
1973.

Do you see why it’s so important the U.S. maintains the petrodollar?

Do you see why we’re willing to go to war with anyone who challenges the
petrodollar?

And do you see why this is the biggest opportunity that China has to end the
golden age of America and usher in an age of Chinese dominance?

 2008 gave us a prime example of what happens when the national credit
card is shredded.

  From the late 1990s until early 2007, housing prices grew three times
faster than income as the Fed pushed down rates to 1% and banks gave mortgages
to anyone with a pulse. But the fact is, this rapid rise in house prices was
unsustainable. And eventually the market ran out of credit-worthy buyers.

   And at this point the housing bubble simply popped.

And here’s the even scarier part — even though growth only decreased 2% over
the next few months, the entire economy almost collapsed. 

The Government spent trillions on bailouts and stimulus to get the economy
moving again because they understood an important truth…   

The same dynamic is happening right now, but on a much, much larger scale, in
the bond markets.  

Simply put, China is plotting to take away our biggest source for our seemingly
inexhaustible demand for Treasuries … And right now China has us right where
they want us.

Because while Americans are stuck in the past … burdened by the promises and
entitlements made years ago … China is preparing for the future

  And their goal is an all out assault on American supremacy and the
petrodollar.

mach cobra said: I believe much of this is true but I don’t
believe in a year or two this will go to ** in a hand basket.  Actually
the opposite.  IMO once again the Iraqi Dinar is the saving grace of the
world and one has to understand the world and what has transpired for many many
decades! 

The World is broke the USA is really broke, the debt load is beyond
imagination, the bank bailouts equal the national debt and that is just what
the people see.

 In a nut shell there is no way the debt can “ever” be repaid,
won’t happen, can’t happen!  Where did all the money go you say?  Go
ask the Rothchilds, the illuminati, JPM, Chase, etc etc etc.  The read is
out there one just has to read it.  There are a very few people in the world
that control the real wealth, very few! 

The only way that we the world can make the change neccessary is to take back
what was stolen from the people.  I feel this has been in the works for
upwards of 50 years, go back to the Kennedy times, and why again did both
brothers get shot?  To take back the money, you do a reset, yes it may be
tough for a bit and then again maybe not.  All Country debts get wiped
out, we all start over. 

The people get a certain amount of help with their debts.  Now you have a
debt free Nation, people with money in their pockets and people lucky enough to
invest in something like the dinar now have money and are doing their part to
help others.  Bottom line is the economy will boom, here and away!

 The crimes against the people have gone on far to long, the greed could
never be satisfied, the more they got the more they wanted.  That bit them
where the sun don’t shine and hard!

If what I feel is happening, the world will be a much better place for us
all!  All that is except for a select few thieves that will be
hiding!  The people are waking up more and more each day and wow amazing
some even are finally realinzing the Feds are not a Gov agency, imagine tha!

 Come on Dinar and whoever continues to hold back the RV, get out of the
way of the Freight Train that is moving toward you fast and let her rip!

Milan said:  mach cobra I agree 100% with
you. Yes, we have to wake-up and educate ourselves. People need to know that it
is going to be much better, so good that many of us can not even imagine.

Abundance of prosperity is coming to every good person on this planet, very
soon. RV is just part of that. With God’s help many brave individuals are
working extremely hard to make it possible for all of us. So much is already
accomplished but not announced yet. Those who seek a proof will find it.

Everything is changing globally – financial system, governments, our
environment, our planet, we………..There is a lot of information on internet. An
excellent site is www.freedomclubusa.com
It has financial and spiritual components    

On this page http://www.freedomclubusa.com/money

On the left side you can select topic in red which interests you. There are
also Monday and Wednesday open calls. I used to check Financial and Earth News.
Plenty of articles/news are posted every day. Be excited about our future. Love
to all

Man45 said:  My wife called me over to the
computer to read the article and watch the video.  There is not any earth
shattering news here, and seems to be played down.  Central banks are
involved and some currencies are devalueing.

 One of the opinions spoken was a gold price range of $7k an ounce, rather
a range of $3-10k.  One mans opinion.

 The thing that keeps coming to mind is Revalations 6:6 that talks about a
days wages just to buy wheat to make bread.  Our increase may well be
spent quickly if we are not wise.  I”m wondering if they collapse the
entire currency system to create the new society, is right around the corner.

Be wise with our new, possibly short lived, wealth my PD friends.  May God
speak to each of us who will hear, and His wisdom and will be heard. 

  LINK:    http://www.powerline…has-started.php

Jurie said: man45; I posted something about this a
couple of weeks ago. This currency war is leading to what I believe will be a
major meltdown of the fiat money system. China is getting ready to become top
dog with a gold backed currency. Lots of support information becoming available
outside of mainstream media. The bottom line is that the petro dollar is on its
way to the dust bin of history.

Of course all the other fiat currency based economies will also collapse. An
economic tsunami is heading our way. Anyone holding fiat currencies and any
assets based on the fiat money system will be swept away.

Sailorgirl said:  I recently read “Bankruptcy
of our Nation” by Jerry Robinson.  It provided info on fiat
currencies, the petrodollar system, the fed reserve, how banks really work, etc
in very easy to understand terms and without being too repetitive. 

It was not a boring or dry read and it provided plenty of facts, statistics,
and references to backup what was being presented.  The part at the end on
what to invest in was a little light and the author sends you to a bunch of his
free online reports that provide info on stuff he’s selling and ways you can
make money but overall it was very well done.

Although the overall scenario for the US is not pretty at all, the author
presented it in such a way that it still gives you some hope if you take the
right actions.

 The part that was eye opening to me was understanding how the petrodollar
system works. It is one of the most brilliant political and economic strategies
in history.  It is the key to so many things and it has far reaching
impact.  

Maintaining the petrodollar is the key to life as we know it, that’s how
important it is.

Excellent writeup Jurie.   Everyone needs to understand the
petrodollar system and I sure didn’t until recently.

It’s also interesting to note that just 5 hours after the 9/11 attacks, Sec of
Defense Rumsfeld ordered his staff to develop plans for a strike on Iraq even
though we now know Saddam Hussein had no link to Osama Bin Laden or the 9/11
tragedy.  William Clark of Petrodollar Warfare claims it was inspired
mostly by Iraq’s public defiance of the petrodollar system.

Supposedly, in late 2000, Hussein emerged from a govt meeting and proclaimed
that Iraq would soon transition it’s oil export transactions in the euro. 
Soon after Saddam began preparing to make the switch from pricing his country’s
oil exports in greenbacks to euros. By 2002 Saddam had fully converted to a
petroeuro.    And the rest is history. Very interesting timing
to say the least.

http://www.dinarrecaps.com/1/post/2013/02/history-of-petro-dollar-comments-post-from-peoples-dinar.html

2013-02-09 11:15:19

Source: http://nesaranews.blogspot.com/2013/02/history-on-petro-dollar.html