Alternate title:
How Nixon and Kissinger Sold Our National Soul to the Saudis To Enable Continued Expansion of Big Government and Deficit Spending


Here’s How We Got Here: A Short Primer On The History Of The Petrodollar
Jeremiah Johnson

The information in this article will be a short synopsis of how the Petrodollar was created, in order to allow the readers to tie in an understanding to the bigger picture we face today. We have all seen the volatility in the oil markets and the steady, daily decline in the BDI (Baltic Dry Index), both of which indicate the disease affecting the global economy. That disease is almost terminal; the policies surrounding the Petrodollar and its influence are major contributing factors to the rapidly-deteriorating world economies that are on the brink of crashing.

Oil is the most important commodity from an economic perspective, and from the drilling of the first oil well in 1846 in Azerbaijan, formerly known as Baku, the world has embraced the search for and use of it. Today oil is to be found in every facet of life, from the plastic spoon to the gasoline pump. John D. Rockefeller built an oil refinery in Cleveland, Ohio in 1863 and subsequently formed Standard Oil of Ohio in 1870. At its peak, the company controlled the market domestically, owning 90% of the U.S. oil industry until the company was broken up in 1911. The Supreme Court had deemed it a monopoly, and it separated into smaller firms.

Shortly after World War II, the oil-rich governments around the world began to despise American control over their resources; therefore, the largest producers nationalized the oil fields and their own levels of domestic production. Saudi Aramco formed in Saudi Arabia became the recognized leader of crude oil production in the world. Then in 1949, U.S. domestic production of crude oil could no longer keep up with the country’s industrial demands. For the first time, the U.S. became an importer of crude oil.

In July of 1944, the Bretton Woods Conference (officially the United Nations Monetary and Financial Conference) took place in New Hampshire. The conference lasted for almost a month, and 730 representatives from the 44 allied nations participated in it. After the conference was concluded, the postwar global financial structure had been decided: gold had been fixed for delivery by the United States at $35 per ounce, and each signing member of the participants agreed on a fixed rate of exchange for currencies.

Meanwhile for the next several decades, the deficit in trade rose in the U.S., along with price inflation that began to erode the confidence in the American structure. As a result, France withdrew its gold stored with the Federal Reserve in 1967. Then in 1971, Nixon closed the door by removing the ability of any member nation to convert into gold. The dollar (used as the world’s reserve currency) was still the reserve; however, it was completely fiat at this point. At this time, President Nixon dispatched Kissinger to Saudi Arabia with a scheme that made extortionists pale in comparison.

The ruling House of Saud in Saudi Arabia was offered a deal by Kissinger with four parts.

Quote: Cincinnatus wrote in post #2

---

Excellent stuff, Algernonpj, to which I will add but one revealing and frightening footnote.

Harry Dexter White

Zitat

---

was the senior American official at the 1944 Bretton Woods conference, that established the postwar economic order. He dominated the conference and imposed his vision of post-war financial institutions over the objections of John Maynard Keynes, the British representative. At Bretton Woods, White was a major architect of the International Monetary Fund and World Bank.

---

White was more than just an economist. He was also a Marxist and engaged in espionage for Stalin's Soviet Union. He is a major character in Whittaker Chamber's excellent autobiography Witness. Anyone who thinks White did anything at Bretton Woods or anywhere else that was in the best interests of the United States has rocks for brains.

In addition,

Zitat

---

At Bretton Woods, White was a major architect of the International Monetary Fund and World Bank.

---

, all designed for the long tem destruction of the American dollar.

---

Thanks for the additional information.