And Was He Killed in ? Did Swissair Flight land at an Airbase? While much has been written about how the Federal Reserve benefits certain private parties and how it generates money out of thin air, this paper delves deeper into the operation of the Federal Reserve as an instrument of war, and its historical role as a primary enabler of armed international conflict.
This is critically important, because once the dollar loses this coveted status…the destruction of the dollar is going to wipe out the wealth of a lot people, and that will cause political and social consequences that will likely be worse than the financial consequences.
You absolutely must be internationalized before the U. Internationalization is your ultimate insurance policy. The sustainability of the petrodollar system is linked to Middle East geopolitics….
Countries accumulated dollars in their reserves to engage in international trade or to exchange them with the U.
By the late s, exuberant spending from welfare and warfare, combined with the Federal Reserve monetizing the deficits, drastically increased the number of dollars in circulation in relation to the gold backing it and, naturally, this caused countries to accelerate their exchange of dollars for gold at the official price.
The result was a serious drain in the U. The central justification that the gold—backed dollar had provided as to why countries held the dollar in their reserves and used it as a medium of international trade was now gone.
With the dollar no longer convertible into gold, demand for dollars by foreign nations was sure to fall and with it, its purchasing power. The Advent of the Petrodollar OPEC passed numerous resolutions after the end of Bretton Woods, stating the need to retain the real value of its earnings including discussions about accepting gold for oilwhich resulted in the cartel significantly increasing the nominal dollar price of oil in the wake of August 15, Between the years of to the U.
Saudi Arabia was chosen because of its vast petroleum reserves, its dominant influence in OPEC, and the correct perception that the Saudi royal family was corruptible. In essence, the petrodollar system was an agreement that, in exchange for the U. Invest a large amount of its dollars from oil revenue in US Treasury securities and use the interest payments from those securities to pay U.
Guarantee the price of oil within limits acceptable to the U.
This demand is artificial, since the U. It ultimately translates into: The benefits of the petrodollar system to the U. The Weakening of the Petrodollar System The geopolitical sands of the Middle East have been rapidly shifting as evidenced by: The faltering strategic regional position of Saudi Arabia, the rise of Iran which is notably not part of the petrodollar system, failed U.
The relationship between the U.
The Saudis are furious at what they perceive to be the U. They believe that, as part of the U. This would suggest that they may feel that they are no longer obliged to uphold their part of the deal, namely selling their oil only in U.
To date, though, they have yet to match actions to their words, which suggests it may just be a temper tantrum or a bluff. In any case, it is truly unprecedented language and merits further watching. A turning point may really be reached when you start hearing U.
Conclusion It was evident long before Nixon closed the gold window and ended the Bretton Woods system on August 15,that a paradigm shift in the global monetary system was inevitable.
Likewise today, a paradigm shift in the global monetary system also seems inevitable.For Laurel Woods, Westlake, OH new home communities, home plans and new home builders in Laurel Woods, Westlake, OH, turn to initiativeblog.com®. IMF and World Bank initiativeblog.comizationorg 1 International Monetary Fund and World Bank Table of Contents International Financial Institutions: The IMF and.
Here is Wikipedia article explaining the Bretton Woods system and how the US became the world's reserve currency.
(emphasis mine) Bretton Woods system Preparing to rebuild the international economic system as World War II was still raging, delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United .
Are we able to read copies of those books? Is there any harm in allowing the entire World learn of it’s contents? I am sure the Cabal knows exactly what it says. While much has been written about how the Federal Reserve benefits certain private parties and how it generates money out of thin air, this paper delves deeper into the operation of the Federal Reserve as an instrument of war, and its historical role as a primary enabler of armed international conflict.
A comparison is done with an analogous monetary institution, the Bank of Canada, to show. Barry Eichengreen is Professor of Political Science and Economics at the University of California, Berkeley.
His previous books include The European Economy Since , Global Imbalances and the Lessons of Bretton Woods, Capital Flows and Crises, and Financial Crises and What to Do About initiativeblog.com has written for the Financial Times, Wall Street Journal, Foreign Affairs, and other publications.