Oil is by far the most largely traded commodity in the world with coffee dragging at a distant second.
-World War 2 ends – Europe is weak, US is strong.
-US holds 80% of world’s gold, 40% of total world production.
-US founds the World Bank
-US founds International Monetary Fund IMF.
-U.S. predominance is absolute.
-A fixed rate exchange is established. The Gold Standard
, US dollar is pegged to gold ($35/once.)
-US holds about $30 billion in gold.
-Vietnam costs $500 billion.
-Gold reserve down to $10 billion.
-Nixon scraps the Gold Standard
-U.S. oil production peaks.
-Libya nationalizes the holdings of British Petroleum. (1971)
-The US imports 60% of its oil from OPEC
-US makes a deal with Saudi Arabia, the largest Oil producer to price their Oil only in US Dollar. (In return US protects the Saudi regime)
-OPEC only sells Oil in US Dollar. (Some non-oil producing countries such as Japan and many third world countries are forced to pay for their oil in
US Dollar. If they don’t they have any, they have to borrow US dollars from the WB or the IMF.)
-The strength of the US dollar allows the US to “manipulate the world economy, set rules, and prevail in the international market.”*
-The US dollar is now essentially oil-backed. (The Oil Standard
- Iraq begins selling its oil in Euros.
- Invasion of Iraq
What has the War in Iraq accomplished?
1. Sends a clear signal to other OPEC country that switching to the Euro will not be tolerated.
2. Iraq switches back to US dollar.
3. Places a major Oil producer, Iraq directly under US control.
4. Today US currency accounts for about 2/3 of all official exchange reserve.
* Most of the timeline is from here.
good stats at the bottom.
Other commodities. (many US dollar dominated)
New York Mercantile Exchange
some cool oil stats
Invasion of Iraq
The article that got me thinking about all this. Here are some good quotes from this one.
USA CONTROLS three major financial institutions, The World Bank (WB), International Monetary Fund (IMF) and the World Trade Organisations (WTO) by
various means to control the world economy.
Possible repercussions of losing the US dollar domination…
If countries and businesses convert their dollar assets into Euro assets, the US property and stock market bubbles would burst without doubt. The
Federal Reserve would no longer be able to print more money to rejuvenate the economy
Chavez will definitely become more of a US target in the coming years, all that bartering can’t be good.
PS. I didn’t know if I should put this in “War On Terrorism”or “Peak Oil”. I figured it would fit right in here.
[edit on 18/3/06 by ConspiracyNut23]