User:Fgarfalo

The Petro-Dollar and the War on Iraq

For one minute do you think the United States cares about the Iraqi people’s harsh lives under Sadam? Did Sadam or Iraq have any impact on your life before the war? Do you really believe that Iraq had ties to terrorism? The reality is the War was inevitable and could not be stopped.

On the 3rd day of the occupation our troops secured the Iraqi oil fields. Why? If we really went to Iraq to remove a hash dictator and restore democracy why did we care to secure to oil fields? Its simple, we went to Iraq with the intention to steal their oil. Restoring democracy is how our government was able to sell the war to the world (or most the world).We need their oil in order for the US to remain the sole global superpower. See, the world’s oil was always traded in USD, which is called the Petro Dollar. This Petro Dollar Cycle funneled massive amounts of economic capital into the United States, providing us with the ability to fund the world’s largest military and the world’s largest economy.

This is how it works. Say, Japan makes a Honda Civic. Now they need a barrel of oil to fuel it. They go to OPEC to buy a barrel of crude. But since the US negotiated to have oil traded in USD only, Japan now needs USD to buy crude. But Japan doesn’t have USD, they have Yen. So they come to the US and sell us goods and services that we pay for in USD, now they have USD, and we have the Honda Civic. They can now go back to OPEC and buy a barrel of crude with their new USD, and they are happy. Now OPEC uses the USD from their sales of crude to buy Boeing Jets and new Halliburton oil equipment. But what about the US Dollars that are left over after they buy all their new American made toys? Well, guess where the OPEC bank accounts are located? At the federal reserve in New York. The money that we printed funnels back to the United States. We now have the products of Japan (the Honda they sold us for USD), immense foreign economic investment, and the US Dollars back in the United States, Petro Dollar Recycling. This creates the ability for us to fund the world’s largest and most powerful economy. And alls we had to do was print it.

But in Fall of 2000 Saddam said (in simple terms), “I hate the United States, I’m going to start trading my oil that is produced in my country in Euros.” Now the Petro Dollar Cycle is threatened, thus treating the all mighty US Dollar. Sadam created an economic “WMD.” Could we sit back and watch the mighty dollar and our great US global superpower slowly be brought to its knees buy little old Iraq? Well we actually did for a few years because we did not have a way to invade without getting smashed by international opposition. For those few years the United States was forced to buy 2/3 of Iraq’s oil production in Euros. Reversing the Petro Dollar cycle on us and funneling economic capital out of the US (reason so many jobs went over seas? Reason the price of crude has dramatically risen? Maybe..?) 9/11 happened, giving us a way to build international support to go after our predetermined agenda. The Bush administration had to invade Iraq to save his country. So he did, and the troops secured the oil fields and we converted the Iraqi oil from the Euro system back to the Petro Dollar, necessary to secure our way of life.

The United States thought it would send a message to the world to scare them from going off the dollar standard. But Iraq is not the end. In 2006 Iran created a Euro based oil trading exchange in Iran and has invited all country’s to join in the exchange. The process is starting again. Is IRAN next? Saudi Arabia, which has the world’s largest oil reserves, has also shown interest in switching to the Euro. If this happens, all other OPEC countries will follow. Will the all mighty Dollar be crushed by the Euro and the Middle East’s anti American policy? How far is the United States willing to go to remain number one and secure our global dominance?