13 votes

The "beauty" of petrodollars

To continue the analogy from a recent post, our pipe is leaking, but it's mostly leaking into our neighbors' apartments. http://www.dailypaul.com/299512/what-time-would-you-leave

This is not a joke. What follows is a horrifying view of the world and the US federal government's place in it. No American with any sense of right and wrong can celebrate it but I challenge you to contradict it.

First a little history. After WW2 the global financial system was in chaos. Heads of 44 allied nations met at Bretton Woods, New Hampshire to design a new one. They agreed that the US dollar would be backed by existing gold reserves at $35 USD per ounce of gold, and all the other nations' currencies would be backed, or tied to the US dollar at fixed exchange rates. Other nations were bound by the fixed exchange rates but the US Federal Reserve printed lots of new dollars, inflating the dollar supply. This inflation was borne mostly by everyone else and only slightly by Americans.

Ever since Bretton Woods in 1944, our federal government has been growing itself at the expense of all the other nations who have been using dollars. (Individual Americans benefitted too, but not as much as the federal government).

Sometime in the 1960's the other nations realized they were being used and the Bretton Woods agreement slowly collapsed over a period of about 8-10 years. Nixon defaulted on Bretton Woods in 1971.

Kissinger helped Nixon devise the petrodollar scheme to replace Bretton Woods. The OPEC oil crisis of 1973 provided the pretext everyone needed to accept a new global financial system.

Our federal government has taken advantage of the petrodollar system even more than they did the Bretton Woods system. Don't you ever wonder how our government has been able to grow so dramatically and though everyone says we're out of money, the growth only accelerates? No other government or military on earth is able to do what the US has done. If they tried they would quickly collapse in hyperinflation. But not the US, because our inflation is exported to the entire world.

The petrodollar system is collapsing but the US federal government is not sitting idly by. All our recent wars, except maybe Kosovo, have been launched to defend the petrodollar system. Syria? Iran? Yes, absolutely.

But don't worry, fellow Americans. When the nations of the world finally rid themselves of the petrodollar parasite, they will suffer, not us. They will be holding worthless paper, but we will have our stuff ... and their gold!

We are protected by the Atlantic and Pacific oceans and the most powerful military the world has ever known. We have the largest petroleum reserves in the world, the most productive agricultural regions. The truth is, America doesn't really need anyone else. We've gone abroad to conquer just because we could.

If the world turns against America, the federal government will draw a few more lines on the map and that will be it. Nothing and nobody goes in or out while we wait for the rest of the world to self destruct.

A full default would harm Americans too, but, once again, the stuff and the resources to start again are all here. Full employment again, no more trillion dollar bailouts of loser foreign countries, or trillion dollar foreign wars. It could work ...


Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Hailing from India and seeing

Hailing from India and seeing first-hand the damage that over-reliance on oil has caused back home, I had come to hate the American public in general and the government in particular.

But after discovering Ron Paul and End the Fed, I have come to love this group of libertarians and how they are trying real hard to rescue themselves and the rest of the world.

Hey Thanks you so much

For disgusting between the UGS and the people, If we had a way of holding our government accountable we would do it…..don’t think electing different people will help…. the matrix of the state is in control.

Being in India right now I am sure is no treat with the currency crashing from the “hot money exit”. Stay strong….you and your friends are going through hard times right now.

The #1 most important topic


I wish there was a lot more discussion about the petrodollar here- great post though!

"I am Troll fighter, number one"



The petrodollar looking glass

Digging into the available information on the petrodollar system and the events leading up to (and there is quite a bit of reliable info) is very much like going through the looking glass, where it's desirable to NOT develop domestic oil reserves, where the US benefits by having less, or even NO gold reserves, where currencies are more valuable when they are worth less, where crisis are intentionally fomented.

If true, the world we live in has been shaped by some crazy f____g bastards!

You can't explain this to anyone who hasn't already done the work.

Your post on the petrodollar brought to mind this excellent

Video by Robert Newman, the history of oil. IMHO the best historically accurate stand up comedy I have ever seen on the petrodollar. Its been on DP before, but well worth viewing for anyone who has not seen it.

WW I started by false flag to nab Arabian oil.

While in Europe distraction reigned:

In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

Thanks for posting that link truxtonc.

Free includes debt-free!

The Robert Newman video is great

The Robert Newman video is great. Part way through he says "… there's a rigid adherence to a dogmatic, entirely fictitious version of world events, and if you step outside it you're just off the spectrum. It's like they can't even hear you …"

I know what he means after listening to the crickets here on the DP !

I'll roll with your

version, it's more concise than the official one.
Let's get the party started

Here is an explanation of a point you made about gold...

From the Patron Saint of Whistleblowers, Major George Racey Jordan, in 1959:

There is another curious problem. The United States is a gold-producing country. But we are mining almost no gold. Why don't we replenish our depleted stockpile by mining our own gold? Our Government will not let us do so....

During the war, the War Production Board issued an order, No. L-208, closing all gold mines because, it said, the machinery was needed for mining copper for the war effort. That strange order was drafted by Harry Dexter White, Assistant Secretary of the Treasury, who advised our government on so many policies which strengthened the Soviet Union and weakened the United States.

None of the gold mining machinery was of any use to any military operation. Some - if not all - of this specialized equipment was shipped from Seattle to Vladivostok in the Soviet Union to be operated by unskilled, political prisoners. I knew of this because the orders passed through the Lend-Lease Depot at the Great Falls, Montana, Air Base, when I was in charge. I saw proof of vast shipments of gold mining machinery.

When gold mines are closed, they usually fill up with water. Machinery grows rusty, Skilled gold miners move to other jobs. No new men are taught gold mining techniques. It costs a great deal to pump out and reopen a gold mine that has been closed for years.

We need to add to our gold reserves every ounce of the yellow metal we can take out of our mines. Here again we are blocked. Almost all mined gold (except placer gold) must be sold exclusively to our Government at the fixed price of $35.00 per ounce, a price which has not changed although the value of the dollar has fallen more than 50 per cent since the price was set. The fact is, we cannot replace even a small part of these dangerous drains on our metallic base with raw gold from the mines in our own country, unless we rehabilitate this entire segment of our economy.

Why are we so crippled? Because back in 1942 a little group of Government officials headed by a clever, farsighted Soviet agent, instituted an ingenious series of moves which put an end to gold mining, as a necessary prerequisite to a managed money system. Domestic gold production was ended, yet our dollars were allowed to flow abroad like water.

The mines are still closed. The mining machinery the Government seized is now producing uranium in the Jachymov, Dobris and Marianske Lazne mines of Czechoslovakia and gold in the wastes of Siberia. Our American mine owners are unable to mine gold except in a few special cases or when the metal is a by-product of other metal production.


Pandacentricism will be our downfall.

Tragedy or part of the plan?

Some would say the Russian gold swindle was a case of a naive US federal government being weakened from within and taken advantage of by its enemies. The problem with this view is that from 1944 to 1970 the US was exploiting the unique position of the US dollar in the Bretton Woods system and increases in US gold reserves would have reduced US federal government's ability to steal the wealth of its trading partners.



Free includes debt-free!