The Petro Dollar
Start writing a post
Politics and Activism

The Petro Dollar

John Bruno

The Petro Dollar

When people think of the 1940’s, more specifically 1944, they think of the Second World War—the largest conflict in history. It is without a doubt one of the most significant events in human history. Though there was another event that would set in motion a chain reaction that has shaped our world for the better half of the past century. In July of 1944, a month following the D-Day landings at Normandy, a UN financial summit was held called the Bretton Woods Monetary Conference. The conference lasted two weeks and established numerous international financial institutions such as the International Monetary Fund and the International Bank for Reconstruction and Development. And most importantly, it established an international dollar-based, gold-backed monetary standard. The system worked fairly efficiently up until the financial and geo-political turmoil of the late '60s brought too much weight down on the system. In 1971, President Nixon took the dollar off the gold standard.

Two years later, in 1973, the United States and the government of Saudi Arabia agreed on a deal that every barrel of oil Saudi Arabia sold had to be based in dollars, in exchange for full-fledged military support from the United States to protect Saudi Arabia against her volatile neighbors, including Israel. In 1975, all the OPEC nations of the Middle East had agreed to these terms with the Saudis and the United States; this meant that any nation attempting to purchase oil from the OPEC nations had to first trade in their currency for US dollars—making the dollar the currency that in effect held up the world economy. As the demand for oil kept increasing due to human development around the world, the demand for dollars went up as well. As the Federal reserve of the United States kept printing dollars to keep up with the demand, inflation began to take hold and the dollar began to go down in value while going up in quantity. The US government has been printing money ever since they had an excuse to. Printing money is a great way for a nation to advance without really having to sacrifice anything—like benefit spending.

Now you may be asking, who would allow this to happen? Who could fail to foresee the consequences of this massive bubble? The best way to find out is to follow the trail of profit. The Federal Reserve Bank is a quasi-private banking cartel that loans dollars to the Federal Government, and, of course, with any loan, comes interest (which any college student knows). Only the Federal Reserve sets the interest rates and the massive profit margin they rake in from American tax dollars line the pockets of the FEDs executives. Along with being used to lobby congressional support for the FED, which they use to avoid audits of their records.

The first nations to detach themselves from this international banking scheme are better known as the Axis of Evil which includes nations such as: North Korea, Iran, Syria, Venezuela and, more recently, Russia. This is why these nations remain our geo-political adversaries. This phenomenon, known as the "petro dollar," is more than likely the real motive behind the first Gulf War in 1991 and the US invasion of Iraq in 2003. Propaganda and good ole’ American patriotism still contend it was a battle for freedom when, quite literally, it was a war for oil.

"Preparing for the Collapse of the Petrodollar System." FTMDailycom Geopolitical Analysis Economic Insights and Investing Ideas. N.p., n.d. Web. 14 Aug. 2015.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
the beatles
Wikipedia Commons

For as long as I can remember, I have been listening to The Beatles. Every year, my mom would appropriately blast “Birthday” on anyone’s birthday. I knew all of the words to “Back In The U.S.S.R” by the time I was 5 (Even though I had no idea what or where the U.S.S.R was). I grew up with John, Paul, George, and Ringo instead Justin, JC, Joey, Chris and Lance (I had to google N*SYNC to remember their names). The highlight of my short life was Paul McCartney in concert twice. I’m not someone to “fangirl” but those days I fangirled hard. The music of The Beatles has gotten me through everything. Their songs have brought me more joy, peace, and comfort. I can listen to them in any situation and find what I need. Here are the best lyrics from The Beatles for every and any occasion.

Keep Reading...Show less
Being Invisible The Best Super Power

The best superpower ever? Being invisible of course. Imagine just being able to go from seen to unseen on a dime. Who wouldn't want to have the opportunity to be invisible? Superman and Batman have nothing on being invisible with their superhero abilities. Here are some things that you could do while being invisible, because being invisible can benefit your social life too.

Keep Reading...Show less

19 Lessons I'll Never Forget from Growing Up In a Small Town

There have been many lessons learned.

houses under green sky
Photo by Alev Takil on Unsplash

Small towns certainly have their pros and cons. Many people who grow up in small towns find themselves counting the days until they get to escape their roots and plant new ones in bigger, "better" places. And that's fine. I'd be lying if I said I hadn't thought those same thoughts before too. We all have, but they say it's important to remember where you came from. When I think about where I come from, I can't help having an overwhelming feeling of gratitude for my roots. Being from a small town has taught me so many important lessons that I will carry with me for the rest of my life.

Keep Reading...Show less
​a woman sitting at a table having a coffee

I can't say "thank you" enough to express how grateful I am for you coming into my life. You have made such a huge impact on my life. I would not be the person I am today without you and I know that you will keep inspiring me to become an even better version of myself.

Keep Reading...Show less
Student Life

Waitlisted for a College Class? Here's What to Do!

Dealing with the inevitable realities of college life.

college students waiting in a long line in the hallway

Course registration at college can be a big hassle and is almost never talked about. Classes you want to take fill up before you get a chance to register. You might change your mind about a class you want to take and must struggle to find another class to fit in the same time period. You also have to make sure no classes clash by time. Like I said, it's a big hassle.

This semester, I was waitlisted for two classes. Most people in this situation, especially first years, freak out because they don't know what to do. Here is what you should do when this happens.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments