Understanding The Petrodollar

By reading G. Edward Griffin's "The Creature from Jekyll Island," you gain an excellent understanding of how our nation's monetary supply is controlled by a cartel of banks, which was not the intent of our Founders.  However, the book does not cover the current status of our currency as the Petrodollar.

When the Federal Reserve System was initially created, the dollar was backed by gold.  In 1944 at Bretton Woods, 44 nations of the world agreed to make the US Dollar the world's reserve currency.  During the 1960s, the United States spent more money than it had (Vietnam, the Great Society), and nations around the world began to trade in their US dollars for gold.  President Nixon stopped this in 1971 by abandoning the gold standard, transforming the US Dollar into pure fiat (and a floating) currency.  The United States then struck a deal with Saudi Arabia to defend their nation from attack in return for the Saudis agreeing to only sell their oil in US dollars.  Other oil producing nations signed onto the US Dollar soon afterwards, and the Petrodollar was born.

The United States' continued protection of the dominance of the "Petrodollar" system may best explain why the United States:

(1) Conducts operations in Mideast nations that have significance within the Petrodollar system.  Many times it is because they are not participating in that system.
(2) Maintains a military presence in the Middle East to enforce the Petrodollar system.
(3) Gives the Islamist ideology a pass.  Oil-rich Islamic nations can blackmail us to accept the extremes of their religion in our own country.  If we do not, they will reject the US Dollar as the only accepted currency for the oil trade.
(4) Defers to the United Nations on many issues, and is slowly enforcing UN agendas, such as Agenda 21, in America.  This may be because the rest of the world perceives that we are abusing our responsibility as the stewards of the world's reserve currency to our own advantage at the expense of others.  They therefore pressure on us to reduce our quality of life through veiled socialist schemes like Agenda 21, and our government is slowly complying--most likely to appease other governments.

I highly encourage you to read the following Follow the Money Daily article in four parts that explains the Petrodollar system:
Part 1 Preparing for the Collapse of the Petrodollar System
Part 2 The Rise of the Petrodollar System: "Dollars for Oil"
Part 3 The Petrodollar Wars: The Iraq Petrodollar Connection
Part 4 The War in Afghanistan and The New Great Game

--Against All Enemies

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Disclaimer: These opinions are solely my own, and do not reflect the opinions or official positions of any United States Government agency, organization or department.