There is a massive oil war between Saudi Arabia & Russia.
The media is completely focused on coronavirus so the oil war hasn't gotten much attention.
But, the oil war directs impacts the United States!
Time for a thread on Petrodollars 👇
The media is completely focused on coronavirus so the oil war hasn't gotten much attention.
But, the oil war directs impacts the United States!
Time for a thread on Petrodollars 👇
In 1944, the Bretton Woods Agreement established the dollar as the global reserve currency.
This meant that international commodities were priced in dollars.
This was made under the condition that those dollars would remain redeemable for gold at $35/ounce.
This meant that international commodities were priced in dollars.
This was made under the condition that those dollars would remain redeemable for gold at $35/ounce.
The U.S. promised not to print very much money.
This was on the honor system.
During this honor system, the Federal Reserve refused to allow any audits or supervision of its printing press.
They didn't honor their promise.
This was on the honor system.
During this honor system, the Federal Reserve refused to allow any audits or supervision of its printing press.
They didn't honor their promise.
In the years leading up to 1970, the U.S.'s Vietnam War expenditures made it clear to other countries that the U.S. was printing far more money than it had in gold.
In response, the countries asked for their gold back.
This set off a rapid devaluation of the dollar.
In response, the countries asked for their gold back.
This set off a rapid devaluation of the dollar.
In 1971, France attempted to withdraw its gold.
Nixon refuses.
Nixon then *temporarily* suspends the convertibility of the dollar into gold.
Hint...this was NOT a temporary suspension.
Rather, it was a permanent default.
Nixon refuses.
Nixon then *temporarily* suspends the convertibility of the dollar into gold.
Hint...this was NOT a temporary suspension.
Rather, it was a permanent default.
For the rest of the world who had entrusted the US with their Gold, it was outright theft.
In 1973, President Nixon asked Saudi Arabia's President to accept only U.S. dollars as payment for oil AND to invest any excess profits in U.S. treasury bonds, notes, and bills.
In 1973, President Nixon asked Saudi Arabia's President to accept only U.S. dollars as payment for oil AND to invest any excess profits in U.S. treasury bonds, notes, and bills.
In return, Nixon offered military protection of Saudi oilfields.
The same offer was extended to each of the key oil producing countries.
By 1975, every member of OPEC had agreed to sell their oil only in U.S. dollars.
The same offer was extended to each of the key oil producing countries.
By 1975, every member of OPEC had agreed to sell their oil only in U.S. dollars.
Moving the dollar off of gold and tying it to foreign oil instantly forced every oil importing countries in the world to maintain a constant supply of U.S. dollars.
In order to get those U.S. dollars, they had to send real oil to America.
This was the birth of the Petrodollar.
In order to get those U.S. dollars, they had to send real oil to America.
This was the birth of the Petrodollar.
Dollars went out.
Everything America needed came in.
And thus, the United states got very, very rich.
Everything America needed came in.
And thus, the United states got very, very rich.
