Washington wants to destroy Iran because of the petrodollar

Iran recently called on BRICS to form a common currency to replace the dollar. This questioning of the dollar by Iran, but also increasingly by Saudi Arabia, explains why the Americans want to put an end to the Iranian regime. The end of the petrodollar would no longer allow the United States to finance its monstrous deficits through other countries.

The Devil Wears Mullah

This hero of regime change and the building of the American nation, George W. Bushdeclared that Iran was one of the lungs of the Ma AxisL.

Iran deserved the United States to help Saddam Hussein in the 1980s, provide him with chemical weapons and these chemical weapons are then released against him.

Trump: the enemy of Iran

One of the few times Trump got support from the deep state and the media was when he tore up the Iran nuclear deal and when he assassinated Iranian General Qasem Soleimani. Trump is good when he kills brown people in distant lands.

Why then has Iran attracted the wrath of the American military-industrial complex? The American regime’s hatred of Iran is largely linked to the petrodollar system.

1971: the genesis of chaos

When Richard Nixon detached the dollar from its anchor to gold by 1971chaos ensued. It’s not only Yom Kippur War (1973) And the OPEC embargo which caused U.S. oil prices to skyrocket.

The dollar, as the new floating, purely fiat global reserve currency**, had lost its appeal relative to other sovereign currencies and precious metals.**

The American-Saudi scam

For’avoid galloping hyperinflationNixon instructed then-Treasury Secretary William Simon to go and do a proposal to the Saudi monarchy.

Simon landed at Jeddah, Saudi Arabia, for whichKing Faisal agrees to “finance America’s growing deficit with his new oil wealth.”

In other words, the Americans promised to buy oil from Saudi Arabia and, in return, the Saudis promised to denominate global purchases only in dollars.

Washington also went so far as to provide military aid and equipment to the Kingdom, which made the Raytheons happy, McDonnell Douglas and other Rand Corporation (US defense companies).

In return, the Saudis guaranteed that they would reinvest billions of their petrodollar revenues in Treasury bonds And would finance disproportionate war expenses and redistribution of all the American regimes which have succeeded one another since then.

Petrodollars: a win-win system?

From a public finance perspective, this seems like a win-win solution.

The Saudis would gain protection from their geopolitical enemies, and the United States would benefit from a new place to offload large sums of public debt.

Additionally, the Saudis could place their dollars in relatively safe and reliable investments in the United States. That’s what we call the “recycling of petrodollars”.

By spending on oil, the United States was creating new demand for American debt and American dollars.

Over time, thanks to Saudi Arabia’s dominance in the Organization of the Petroleum Exporting Countries (OPEC), the domination of the dollar has extended to the whole of OPEC, which means that The dollar has become the preferred currency for oil purchases around the world.

This petrodollar deal proved particularly important in the 1970s and 1980s, when Saudi Arabia and OPEC countries controlled a greater share of the oil trade than today.

It also closely linked US interests to Saudi interests, ensuring US enmity towards the kingdom’s traditional rivals, such as Iran.

Black desert gold for greenbacks

The situation is getting worse unbelievably. King Faisal accepted the deal (which would certainly make its desert oil kleptocracy a major regional power and global player) at one condition : the rest of the world was not to know the extent of the agreement.

In other words, Faisal knew that in the rest of the Islamic world, financing the imperial expenses of America’s drunken sailors would not pass muster in Cairo, Damascus and Kuala Lumpur.

Therefore, Simon allowed the Saudis to “bypass the normal bidding process for purchasing Treasury bonds by creating “add-ons”. These sales, which were excluded from the official auction totals, concealed any trace of Saudi Arabia’s presence in the US public debt market.

Saudi Arabia full of dollars

Four years after the signing of the agreement, Saudi Arabia held about a fifth of all Treasury bonds held abroad.

It is also claimed that this figure represents the bare minimum of the Saudi share of US debt. The Saudi regime launders and recycles its petrodollars through hedge funds and secret deals with hundreds of quasi-private institutionsall with the approval and supervision of the American regime.

Republicans or Democrats. Different parties.

But the only thing they have in common: they all bow to the Saudis.

The petrodollar: 1st Amendment to the American Constitution

The truth is that US foreign policy and, to a very large extent, US domestic policy are both tied to the petrodollar deal.

The American regime has aspired to maintaining economic and imperial hegemony over the rest of the world while simultaneously engaging in domestic spending to infinity and beyond.

Thus, thehe petrodollar system is the grandest of all monetary and money laundering systems.

The Fed and the US Treasury create fiat money out of thin air, then the Saudis hide their ill-gotten gains by buying Treasury bonds et by cleaning their dollars.

A money laundering business

As economist William Clark pointed out, the countries that seem to disagree with this sinister arrangement are those that attract the most wrath from the State Department, the Pentagon, NATO, presidential administrations and all other aligned interests.

In September 2000, Saddam Hussein announced that his Ba’athist government would no longer participate in the “Oil for Food” program and that, moreover, oil transactions would be denominated in euros.

Iraq: petrodollars or war

Just a few months after the invasion of Iraq by American forces in June 2003, Iraqi oil sales were converted back into petrodollars.

Due to the strength of the euro against the dollar at the time, cost the Iraqis a net amount of 13% on their oil revenues and invalidated previously approved contracts with other nations.

Iran wants to break away from the dollar

Iran is offending Washington far more than anything Saddam Hussein ever accomplished.

Iranian oil is bought and sold there in euros and yuan. The Iranians have their own “marker” or way of certifying the purity and quality of oil.

It turns out that while the Biden administration and greater Europe have expressed collective outrage by cutting ties with the Russians through sanctionsbusiness is booming in Kish and Tehran. Volumes increased in export and import.

Iranian consumers resist despite these onerous sanctions. In the meantime, China has increased its purchases of Iranian oil. At present, 13% of Chinese oil comes from Iran.

Money: the subject that no one talks about

All this to say that, just like the Federal Reserve System, the petrodollar cabal must rule at or near the top of the institutions that the vast majority of Americans have “somehow heard of” eYet they have no idea of ​​the extent to which these things suppress the prosperity and future prospects of the United States.

Most have no idea why or how the Saudis can finance everything from genocidal proxy wars against Iran to nascent professional golf tournaments.

It must be oil money. This is a fact, but it is not entirely true.

Saudi Arabia, ready to abandon the petrodollar?

On January 17, 2023, Saudi Finance Minister Mohammed Al-Jadaan announced that the Saudi state was willing to sell oil in currencies other than the dollar.

“There is no problem in discussing how we will settle our trade agreements, whether in US dollars, euros, or Saudi riyals.”

If the Saudi regime did indeed accept substantial trade in currencies other than the dollar as part of its oil export activities, This would mark a move away from the dollar as the dominant currency in global oil payments. Or measured in another way, this would mean the end of the so-called petrodollar.

Iran: from rejecting the dollar to creating a BRICS currency

The Iranian Deputy Foreign Minister declared on January 3 that Tehran wanted to form a unified currency with the member states of the BRICS group of emerging economies.

“We are interested in creating a unified currency in the BRICS group, and this could be very effective.”

It is therefore important to follow this matter closely…

Geopolitics of the petrodollar

The most obvious short-term effects of abandoning the petrodollar will be geopolitical rather than monetary.

This change in strategic interests for Saudi Arabia and Iran potentially constitutes an immediate threat to the strategic interests of the United States, to the extent that the US regime has become accustomed to dominating the entire Persian Gulf region through US ties with Saudi Arabia.

“With the goodness of God, we will defeat the sanctions. And the failure of sanctions is America’s failure. And America must receive another slap in the face from the Iranian people with the failure of sanctions. », Ali Khamenei.

The abandonment of the petrodollar by Saudi Arabia and Iran will amplify the relative decline of the dollar. This will be enough to further threaten American living standards, but not alone to end the dollar. After all, the British pound did not cease to exist after its own fall from its vaunted position as the world’s preferred reserve currency. But he has become much less powerful. The dollar is going in the same direction : less and less hegemonic.

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