for disinformation purposes only
The Oil Racket: Oil, Iran and the US Dollar
Middle-eastern woes are often attributed to Oil. (or lack of freedom, depending who you ask) In order to understand why Oil is so important we must look at its relationship with the US dollar.
Our story begins in 1945…
World War 2 ends in a bang.
European powers are crippled. The US relatively unaffected by the war, is strong.
At the 1944 Bretton Woods Conference the US solidifies its role as the only world major superpower. It creates the World Bank (WB) and the International Monetary Fund.
It also set’s up the [b]Gold Standard.[/b] The US dollar is pegged against the value of Gold. ($35/oz)
US holds $30 billion in gold in reserve.[b]The US rule is Supreme![/b]
Other theories include lack of freedom, depending who you ask. Currently the US in looking for uranium enrichment in Iran, which they say could be used to build nuclear weapons.
All is well on the western front,
The Oil Racket: Oil, Iran and the US Dollar part 2
In 1965 the US enters the Vietnam War.
The Vietnam War costs $500 billion.
The British and the French start converting their dollar reserves to gold.
US gold reserve is down to $10 billion.
In 1970, US hits Peak Oil.
In 1971, Nixon, fearing a run on the US dollar, closes the Gold Window.
No gold 4u!
From now on, the US dollar is Fiat currency. It’s now based solely on faith in the US. It is backed by nothing!
The Oil Racket: Oil, Iran and the US Dollar par 3
How could the US sustain a demand for US dollars?
Simple. By forcing the world to pay for essential goods in US dollar. In order to buy essential commodities on International Exchange Markets such as NYMEX, buyers must first buy US dollars, the markets’ unit of currency. Including the most essential commodity of them all… Oil.
Not only is oil essential as an energy source for heating and engines. It is also used in everything from plastics to fertilizers.
The desktop computer you are reading this comic on used 10 X its weight in fossil fuel during production.
According to geologist Dale Pfeiffer, every calorie of food that reaches the dinner table requires 10 calories in fossil fuels. The average food item will travels between 2500 to 4000 kilometers.
Oil is by far the largest traded commodity on the planet, with coffee at a distant second.
Oil is priced and sold on Market Exchange using 3 oil markers.
All 3 markers are priced in US dollar.
Non-oil producing countries such as Japan and many third world countries are forced to pay for their oil in US Dollar. Many countries are forced to borrow US dollars from the aforementioned WB or the IMF.
The Oil Racket: Oil, Iran and the US Dollar part 4
The Middle East…
The vast desert lands hold 2/3rd of the world’s remaining oil reserves and have the lowest production cost anywhere on Earth.
control of the area’s oil production is vital to US interests. In exchange for mucho $ and military protection, the world’s biggest oil producer, Saudi Arabia agrees to sell Its oil exclusively in US dollars. However some OPEC members have not been as compliant…
In 2001, Iraq begins selling oil in Euros.
The US responds by quickly restoring democracy to the Iraqi people. And Iraq’s oil is once again sold in US dollar. Iranian Oil Bourse 2006 – the world’s 3rd largest exporter of crude oil, Iraq proposes to open a new oil exchange…
The Iranian oil bourse (OIB) would trade in non-dollar currencies, primarily the Euro.
The opening of the exchange has already been postponed several times since it was first proposed in 2005. Meanwhile back in the war room…
WMDs? Enriched uranium … Terrorist state? Nuclear program?
The Iran War coming soon on CNN