MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘petro dollar’

EconomicPolicyJournal.com: Trump’s Signals He May Start Going After Bitcoin

Posted by M. C. on July 12, 2019

The “Crypto” in cryptocurrency once meant privacy from government snooping in our spending habits.

That ship is long gone. Anyone who thinks the government would let that happen better get their prescription changed.

Today’s alternative currencies are much closer to commodities as they are not based on a standard like gold.

Today’s alternative currencies, such as Zuck’s ‘Libra’ are meant to be anything but private. Zuck’s and the government’s goal is to know more about your finances than you do.

The government is becoming ultra protective of the dollar now that Russia, China, Iran, Venezuela and others are looking to purchase oil in something besides the US petro-dollar. Note the similarity to the countries named and the countries with which the US wants to go to war.

https://www.economicpolicyjournal.com/2019/07/trumps-signals-he-may-start-going-after.html

The below seemingly came out of the blue, but really not surprising.

Trump’s controls do not want paper currency competition.

The regulations are coming.

RW

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War and the Paper Standard – LewRockwell

Posted by M. C. on May 11, 2019

Is it all about the (petro) dollar?

https://www.lewrockwell.com/2019/05/l-reichard-white/war-and-the-paper-standard/

By

Maybe you’ve noticed the frenzied U.S. Government attempt to replace Venezuela’s duly elected hood-ornament — PresideNT Nicolas Maduro — with Juan Guaido, a nearly unknown U.S. prepped Venezuelan politician?

Why are they trying to do that?…

So, what about this persistent two-decade attack on Venezuela? Whim, whimsey, hobby, madness, or is there more to the story?

Consider this headline from September 2017, only a few months before Venezuela’s current problems started – – –

Venezuela Plans to Drop US Dollar in Gas, Oil Trade

And this before the U.S. supported and/or instigated temporary coup against super-popular and certified by Jimmy Carter Mr. Chavez – – –

…it must be noted that Iraq is attempting to switch to the euro as its currency for settling oil exports, and that Venezuela is reportedly planning to follow suit. –The Japan Times: November 20, 2000

So,” you may be thinking, “What’s the big deal with that?”

Well, because of a 1974 agreement cobbled together by the Nixon administration between the U.S. and Saudis, nearly all oil trade in the world ended up requiring U.S. dollars.

Not coincidentally, this was just three years after Nixon, attempting to finish replacing the gold standard with the U.S. paper-dollar standard, closed the gold window and thus threatened to throw the world economy into chaos. This explains a lot more than most folks realize.

Remember the “petro dollar?” Well, thanks to the Saudi/U.S. established oil-for-dollars tradition, the Brits, Germans, Japanese — in fact just about everyone — had to keep dollars on hand to pay for their oil imports.

And the oil sellers also ended up with a lot of dollars. And so did the countries they bought stuff from. And the dollar tradition spread to trade in other commodities as well. That meant that a large aggregate of U.S. dollars stayed overseas and didn’t return to the U.S.

In fact, The Federal Reserve estimates that the majority of the cash in circulation today is outside the United States.

Experts estimate that “majority of cash … outside the United States” is as much as 80% of the U.S. dollars in circulation. All that money overseas has a lot to do with the fact that everyone has to pay for oil, etc., with dollars.

As Case Sprenkle of the University of Illinois puts it, “Insofar as the money remains abroad and is not used to purchase goods or services from the country that printed it, it serves as an interest-free loan from poor countries to the rich.”

That’s mostly how Uncle Sam is able to run-up such huge budget deficits without causing inflation. So far.

But what happens if people overseas stop using the dollar — and discover the only place they can spend it now is back here in the good ole’ U.S. of A.?

What would happen if the Saudi Arabians said they didn’t want to be paid [for oil] in dollars anymore, but wanted instead, to be paid, say in yen. There would be inflation that would make the 15 to 20 percent inflation in the early 80’s look good. Sen. Pete Domenici, R-NEW MEXICO, C-SPAN II, 18 May 1995 ~12:33:55 PM

Unfortunately, selling oil for something other than U.S. dollars isn’t the only thing threatening the paper-standard. It’s also become the norm for governments and central banks to stockpile U.S. Treasuries to support their own currencies.

So, if a country reduces its stock-pile of U.S. Treasuries, either by selling them off or no longer rolling them over when they reach maturity — and replaces them with something else, as in the past, gold perhaps — this also threatens the U.S. dollar paper-standard.

The problem is, the paper-standard is mostly psychological. It’s literally a con — that is, confidence — game and when the confidence evaporates, game over.

And it’s very difficult to enforce confidence, no matter how many aircraft carriers, etc. you deploy. Or to predict when the confidence will implode.

As former FED Chair Alan Greenspan confessed,

We can readily describe this process, but, to date, economists have been unable to anticipate sharp reversals in confidence. Collapsing confidence is generally described as a bursting bubble, an event incontrovertibly evident only in retrospect. –Alan Greenspan, “New challenges for monetary policy

And these days, instead of cash paper money, most of those Treasury bonds and dollars are now nothing more than electronic zeros and ones, just accounting entries in computer memories that circle the globe at about the speed of light — and can pretty much land anywhere instantly. Ah-oh!

So now we know the likely basis of this frenzied attempt to replace Venzuela’s current hood-ornament. Before he replaces the dollar. AND why Uncle was almost as desperate to replace the previous hood decoration, Mr. Chavez.

Perhaps you also noticed from that Nov. 2000 Japan Times article above that at the turn of the century, “Iraq [was] attempting to switch to the euro as its currency for settling oil exports” too?

Attempting” because as a result of the settlement ending the first U.S./Iraq so-called “War,” waged by Bush Sr., and otherwise known as “Desert Storm,” Iraq had to get U.N. permission. Yes, in case you don’t remember, there were two so-called Iraq “Wars.”

And, a little more substantial, Saddam Turns His Back on Greenbacks

In due course, the U.N. bureaucrats ruled that Iraq could indeed sell it’s oil for any currency it chose. In due course, Iraqi Food for Oil was paid for in euros rather than in dollars. Ah-oh!

Subsequently, seizing on the 911 attacks as the illegitimate and completely bogus excuse, George Bush Jr. and his cronies told at least 935 documented and recorded falsehoods to get “us” to attack the men, women and children of Iraq for the second time.

Here’s the timeline:

March 2000, Iraq announces it’s intention to change Oil for Food to euros and, according to the Oct. 12, 2000 Oil & Gas News, as of Sunday, Oct. 8, the Iraq central bank announced it had begun to buy European currencies.

Twelve months later in the aftermath of the Sept. 11, 2001 “911” attacks — and using them as an illegitimate excuse — Bush Jr., Dick Cheney & Company start their bogus anti-Iraq propaganda campaign.

March 19, 2003, 18 months after 911, based on his 935+ lies, U.S. strongman Bush Jr., following in his fathers footsteps, again attacks the men, women and children of Iraq.

And, emphatically punctuating that paper-standard connection, one of the first executive orders Herr Bush Jr. signed after declaring victory on May 2, 2003 “switched trading on Iraq’s oil back to the dollar.”

So perhaps not all U.S. meddlings, assassinations, coups, invasions, regime changes, “wars,” and sanctions are done purely on whim or whimsey, although given the sheer volume of them — and with Operation Just Cause as an example — we can’t rule-out hobby and/or madness.

And there’s a missing piece. Ever since The Church Committee hearings uncovered it, we know the U.S. MSM (Main Stream Media) has been in cahoots with C.I.A./U.S. plots, lies, and scams. Bush Jr.’s Iraq war-crime with his minimum of 935 falsehoods is a good example. And unfortunately, little has changed.

In fact, it’s gotten worse. The one-sided coverage of Mr. Maduro proves nearly complete control in the U.S. Further, C.I.A. media meddling and control have expanded world-wide. Britain is particularly well controlled. German journalist Udo Ulfkotte explains the big picture this way — “We All Lie for the CIA.”

Because of this wide-spread CIA influence, there’s a marker for a standard U.S. Government tactic we can look for as a harbinger of interventions: Demonization – – –

“Well Jim, it is very important in a democracy that you have the support of the people. One of the reasons why [U.S. President] George [Herbert Walker] Bush had to demonize [Iraq’s President] Saddam Hussein was to get the support of the people, and [U.S. President] Bill Clinton has done the same thing, Vice President Gore has done the same thing with respect to [Serbian President] Milosevic.” Raymond Tanter, Fmr. Natl. Security Council Staffer, WATCH IT!, MSNBC, 2 Apr 1999, ~11:56:45 AM EST

However, demonization has a long pedigree.

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