{"id":25943,"date":"2017-09-21T16:22:00","date_gmt":"2017-09-21T21:22:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25943"},"modified":"2017-09-21T16:22:00","modified_gmt":"2017-09-21T21:22:00","slug":"petrodollar-under-attack","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25943","title":{"rendered":"Petrodollar Under Attack"},"content":{"rendered":"
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Petrodollar Under Attack<\/a><\/h3>\n<\/header>\n
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(<\/b>ANTIMEDIA\u00a0<\/b><\/a>Op-ed)<\/b>\u00a0\u2014<\/i>\u00a0Once upon a time, the U.S. dollar was backed by the gold standard in a framework that established what was\u00a0known<\/a>\u00a0as the Bretton-Woods agreement, made in 1944. The dollar was fixed to gold at a price of $35 an ounce, though the dollar could earn interest, marking one notable difference from gold.<\/p>\n

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We’re revolutionizing the news industry, but we need your help! Click here to get started.<\/a><\/strong><\/p><\/blockquote>\n<\/div>\n

The system ended up being short-lived, as President Richard Nixon\u00a0announced<\/a>\u00a0that the U.S. would be abandoning the gold standard in 1971. Instead, the U.S. had other plans for the future of global markets.<\/p>\n

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As the\u00a0Huffington Post\u00a0<\/i>has explained, the Nixon Administration\u00a0reached<\/a>\u00a0a deal with Saudi Arabia:<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\u201cThe essence of the deal was that the U.S. would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in U.S. dollars.\u201d<\/i><\/strong><\/p><\/blockquote>\n

This system became known as the\u00a0Petrodollar Recycling system<\/a>\u00a0because countries like Saudi Arabia would have to invest excess profits back into the U.S. It didn\u2019t take long for every single member of\u00a0OPEC<\/a>\u00a0to start trading oil in U.S. dollars.<\/p>\n

A little-known\u00a0economic theory<\/a>, rejected\u00a0by the mainstream<\/a>, stipulates that Washington\u2019s stranglehold over financial markets can be at least partially explained by the fact that all oil exports are conducted in transactions involving the U.S. dollar. This relationship between oil and currency arguably gives the dollar its value, as this paradigm requires all exporting and importing countries to maintain a certain stock of U.S. dollars, adding to the dollar\u2019s value. As\u00a0Foreign Policy<\/i>\u00a0\u2013 a magazine that\u00a0rejects the theory<\/a>\u00a0\u2013 explains:<\/p>\n

\u201cIt does matter slightly that the trade typically takes place in dollars. This means that those wishing to buy oil must acquire dollars to buy the oil, which increases the demand for dollars in world financial markets<\/i>.\u201d<\/i><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Petrodollar Under Attack (ANTIMEDIA\u00a0Op-ed)\u00a0\u2014\u00a0Once upon a time, the U.S. dollar was backed by the gold standard in a framework that established what was\u00a0known\u00a0as the Bretton-Woods agreement, made in 1944. The dollar was fixed to gold at a price of $35 an ounce, though the dollar could earn interest, marking one notable difference from gold. We’re […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5,6],"tags":[8350,14444,1183,442,600,626,701,827,839,851],"class_list":["post-25943","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","category-liberty","tag-anti-media","tag-darius-shahtahmasebi","tag-gold-standard","tag-iraq","tag-opec","tag-petrodollar","tag-saudi-arabia","tag-united-states","tag-us-dollar","tag-venezuela"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25943"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25943\/revisions"}],"predecessor-version":[{"id":25944,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25943\/revisions\/25944"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}