Oil, Iraq and the US Dollar

Oil is by far the most largely traded commodity in the world with coffee dragging at a distant second.

Timeline:

1944-1945
-World War 2 ends – Europe is weak, US is strong.
-US holds 80% of world’s gold, 40% of total world production.
-US founds the World Bank
-US founds International Monetary Fund IMF.
-U.S. predominance is absolute.
-A fixed rate exchange is established. The Gold Standard, US dollar is pegged to gold ($35/once.)
-US holds about $30 billion in gold.

1967-1972
-Vietnam costs $500 billion.
-Gold reserve down to $10 billion.
-Nixon scraps the Gold Standard
-U.S. oil production peaks.
-Libya nationalizes the holdings of British Petroleum. (1971)

2002-2003
-The US imports 60% of its oil from OPEC
-US makes a deal with Saudi Arabia, the largest Oil producer to price their Oil only in US Dollar. (In return US protects the Saudi regime)
-OPEC only sells Oil in US Dollar. (Some non-oil producing countries such as Japan and many third world countries are forced to pay for their oil in US Dollar. If they don’t they have any, they have to borrow US dollars from the WB or the IMF.)
-The strength of the US dollar allows the US to “manipulate the world economy, set rules, and prevail in the international market.”*
-The US dollar is now essentially oil-backed. (The Oil Standard )

2000 - Iraq begins selling its oil in Euros.
2001 - 911
2003 - Invasion of Iraq

What has the War in Iraq accomplished?

1. Sends a clear signal to other OPEC country that switching to the Euro will not be tolerated.
2. Iraq switches back to US dollar.
3. Places a major Oil producer, Iraq directly under US control.
4. Today US currency accounts for about 2/3 of all official exchange reserve.

Supporting articles.

www.thirdworldtraveler.com...
* Most of the timeline is from here.

en.wikipedia.org...
good stats at the bottom.

en.wikipedia.org...
Other commodities. (many US dollar dominated)

en.wikipedia.org...
New York Mercantile Exchange

www.gravmag.com...
some cool oil stats

en.wikipedia.org...
Invasion of Iraq

pd.cpim.org...
The article that got me thinking about all this. Here are some good quotes from this one.

USA CONTROLS three major financial institutions, The World Bank (WB), International Monetary Fund (IMF) and the World Trade Organisations (WTO) by various means to control the world economy.

Possible repercussions of losing the US dollar domination…

If countries and businesses convert their dollar assets into Euro assets, the US property and stock market bubbles would burst without doubt. The Federal Reserve would no longer be able to print more money to rejuvenate the economy

Chavez will definitely become more of a US target in the coming years, all that bartering can’t be good.

PS. I didn’t know if I should put this in “War On Terrorism”or “Peak Oil”. I figured it would fit right in here.


[edit on 18/3/06 by ConspiracyNut23]

-US makes a deal with Saudi Arabia, the largest Oil producer to price their Oil only in US Dollar. (In return US protects the Saudi regime)

Reduced to quoting myself …

I’m really interested in this part, although the article I linked to mention this, I’d love to have a confirmation of this. (Outside of left wing media)

I’m aware that I have used the term US throughout the article, however has we have learned from the brilliant article here. The line between nations and corporations is getting more and more blurred.

Does anyone know how much crude oil is traded yearly? (in billions, trillions?)

An interesting side note I neglected to point out earlier is that China holds around $800 billion in US Dollar reserve. The implication of this is phenomenal. No?

I believe that understanding currencies is key to understanding the middle East situation, (the world, NWO) however it is seldom discussed in the mainstream.

Chavez is seriously toying with this US currency dominance , does anyone have any opinion on this perspective?

US currency dominance is an integral part of the NWO's goals. (Although I suspect the Euro (the other international “reserve currency” is also largely NWO-controlled, just different fractions.)

EDIT:
My post deals mostly with the history of the Oil Standard. I’ve just noticed that a lot of the points I wished to address are already discussed here.

So maybe we can keep this thread to discuss the history of the US Dollar Dominance and see if such a system is indeed in place. (while maintaining the NWO angle) The repercussions of the Oil Standard are already discussed at the link above.

I welcome any discussion regarding and would like a more detailed timeline to come out of it. For instance the creation of the Euro should be mentioned.



[edit on 19/3/06 by ConspiracyNut23]

I'm sorry, I don't have much time to send a lengthy reply, but I think this is a very good thread.

I am interested in how you say the US Dollar is now basically backed by oil and not gold or anything else.

I wonder what will happen in 10 years, 20 years, 30 years when we S-L-O-W-L-Y transition away from oil to other fuels? Will the dollar devalue and our economy collapse? Will we go back to gold? Will we get a stranglehold on whatever new fuels emerge? What countries will we invade this time?!?! Oh, the suspense is gonna kill me! (That is, if "terrorists" from whatever country we (US) invade next don't get me first)

Originally posted by please_takemyrights
I wonder what will happen in 10 years, 20 years, 30 years when we S-L-O-W-L-Y transition away from oil to other fuels?

That’s exactly the kind of questions US policy makers, and those with a vested interest in the Federal Reserve are asking themselves. Hence, the wars in the Middle East.

Regarding the return to gold, I highly doubt that. Some of the rich elite families, like the Rothschild have been getting out of gold. Something else is coming…

Wizard of Oz anecdote
BTW did anyone know that The Wizard of Oz was written by an journalist with interest in economics? The scarecrow represents the American farmers, TinMan represents the American Industrial workers and the lion represents the courage of the American people. The yellow brick road represents the gold standard that leads to Washington. (Supporters of the gold standard) In the original book Dorothy’s slippers were made of silver, clicking them together 3 times represents going back to the silver standard, which the author supported.

This anecdote was in my 2nd year under-grad macro-economics textbook.


[edit on 20/3/06 by ConspiracyNut23]

There is a tread somewhere on ATS about Iran moving the oil bourse to euro instead of dollars. This is closely linked to your post, so logically Iran will be next to be invaded. Second largest opec producer, so the US will probably invade and control oil resources in $. I think this is confirmed, certainly reading today that Iran has 30 days to come clean concerning their nuclear options. Think about Iraq, same tools were used to invade, first UN security counsel for WMD, then inspectors then invasion.

Will we same the same, I bet we will. But Iran is much more dangerous then Sadam was, and Russia and China are not backing the other UN Countries, knowing they import a lot of oil/gas from Iran.

Kick the $, boycot the US, and let them IMPLODE, except military, technology and fast food, they have no resources to propose to the world.
If opec stopped exporting OIL to the US, there economy would break into pieces.
Never forget the richest countries are the midle east ones, then the african in terms of resources, time to clame back their wealth.

The rebellion is growing.... let the US implode , so we get rid of the evil doers.

Thw NWO is here folks, they put King George on his throne in 2000 and again in 2004 to ensure that they could have they're war for oil and profit!

Doubts? Just check who the players are in the profiteering lottery that George & Dick have been running since the coup in 2000:

Most direct profiteers can be linked right back to Dicks Haliburton and its multiple sub-contractor spin-offs, where all of our tax dollars still end up in the Haliburton till box and eventually in the Cheney bank holdings.

and

Daddy Bush's consortium called The Carlyle Group, who includes none other than members of the BinLaden Family as well as many other ultra rich one percenters who've been getting rich on our tax dollars since the Reagan-Bush era, when all of this NWO nonsense started.

Are you beginning to see who the NWO are, New World Order is GHW Bush and his rich cronie, bleeding our country dry, ensuring that America will be the newest member of the Third World once they're done bleeding every last penny from the US and detroying those uppity middle class scoundrels!!

How dare anyone try to enter the ranks of the old money Wealthy... if you didn't inherit the money via steel, timber, oil and war, your just an upstart punk trying to play with the big boys!!

TAKE BACK OUR COUNTRY FROM THE NEO-CON's
SURELY YOU REAL REPUBLICAN CAN SEE THROUGH THIS CON JOB, CAN'T YOU? TAKE BACK YOUR PARTY... SO WE CAN ALL TAKE BACK OUR AMERICA!!


[edit on 1-4-2006 by Ra]

I would have to wholehearedly disagree that the or a new world order is at hand.

A "new world order" insinuates or implies that all governments are working cooperatively together, and that, thay are not.






seekerof

[edit on 2-4-2006 by Seekerof]

I was under the impression that NWO described the group of Elite (plutocrats) that currently collectively rule the world? Is that not the case?

And if that’s the case hasn’t corporate power eroded the line between nations and corporations?

IMHO that is the NWO, and it’s very much here.


[edit on 2/4/06 by ConspiracyNut23]

If Iraq got oil, and we losing it, ....... u all know we do what is needed to (improve) our America

Originally posted by ConspiracyNut23
I was under the impression that NWO described the group of Elite (plutocrats) that currently collectively rule the world? Is that not the case?

And if that’s the case hasn’t corporate power eroded the line between nations and corporations?

IMHO that is the NWO, and it’s very much here.

What you mention is only one version.
There are a number of versions as to what the "New World Order" implies.

From an international relations studies perspective, the reality of the "New World Order" is erroneous, not being remotely supported by the current/prevailing international system, which is incidentally, unipolar and hegemonic, but not anything closely resembling a "new world order."





seekerof

Yes Seekerof, I’ve seen your thread (and posted in it) I think a list of the definitions of the NWO will be very useful. I would hate for someone to read by post and conclude I’m an anti-Semite. (and the chronology is indeed an excellent read.)

Another semantic disambiguation that should be done is Illuminati, another term that has come to have many definitions.

And you’re right TimTbones9 the US standard of living would be dramatically altered if they loose US dollar dominance.

[edit on 2/4/06 by ConspiracyNut23]

Seeker, I replied to the NWO thing here:
www.abovetopsecret.com...

[edit on 2/4/06 by ConspiracyNut23]