" When it was increasingly clear that the U.S. government fails to redeem their U.S. dollars are not paying for gold, he has an iron in the years 1972 to 1973 agreement with Saudi Arabia: The U.S. will support the authority of the royal family of Saud, in return, the country will sell oil only for dollars.
trace of Saudi Arabia was to follow the rest of OPEC. Because the world had to buy oil from Arab oil countries, hold dollars in order to have something to pay for it. The world needed more oil, and its price went up steadily, so the demand for dollars could only increase.
Even though dollars could no longer be exchanged for gold, but they were now exchangeable for oil. The economic essence of that agreement came down to the fact that the dollar was now backed by oil. As long as they did, the world had to accumulate increasing amounts of dollars, because they needed to be able to buy oil.
As long as the dollar was the only acceptable payment for oil, it had guaranteed dominance in the world, and the American Empire could continue to collect taxes from all over the world. If Dollar, for whatever reason, has lost its oil backing, the American Empire would cease to exist.
required duration of the empire, then, that oil be sold only for dollars. It also dictated that oil reserves were spread around various sovereign states that were not strong enough, politically or militarily, to demand payment for oil in some other form.
If someone demanded a different payment, he had to convince him to change his mind - through political pressure or military means. The man who actually asked for oil in euros was paid in 2000, Saddam Hussein.
At first, his request was met with ridicule, later with neglect, but when it became increasingly clear that his intentions are serious, they began to exert political pressure to change his mind. When other countries, like Iran, wanted payment in other currencies, primarily the euro and the yen, the dollar was in real danger. Such a situation
punitive action. Bush's Shock and Awe in Iraq was not about Saddam's nuclear capabilities, about defending human rights, about spreading democracy, or even about seizing oil fields; it was about defending the dollar, and thus - the American empire.
idea was to show the world that anyone who demanded payment in currencies other than U.S. Dollars would be likewise punished.
"The real reason for an attack on Iran - Krassimir Petrov PetrovKrassimir, Ph.D. 'Gold Fields' The Proposed Iranian Oil Bourse25.06.2008r.
