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View Full Version : The dollar is NOT backed by "nothing". Attacking Syria & others gives our USD value.




muh_roads
08-27-2013, 12:08 PM
As this video points out, the Gold Standard was replaced with the Petrodollar.


https://www.youtube.com/watch?v=0tsUZinrCo8

The US Dollar is not backed by nothing. It is backed by US military might and making sure overseas oil trade is denominated in US Dollars. This has allowed the United States to attain a gigantic national debt with minimized consequence. When foreign good exports are denominated in USD, this allows our Government to hide the inflation and export it to overseas countries. The Princes in Saudi Arabia and the other elites in OPEC nations see the wealth first while the rest of their respective countries suffer and eat dog shit.

If you want to know why we do things that appear crazy, like wanting to attack Syria to get into Iran, then the Petrodollar needs to be discussed a lot more.

People seem to know these wars have to do with oil, but people don't seem to connect the dots properly. We need to be talking about the Petrodollar a lot more on the internet. It should be the number one conversation piece IMO if people truly care about wanting to end all of this crazy madness.

"Petrodollar" should trend as high, if not higher than how much the "Federal Reserve" trends as a search term.

FSP-Rebel
08-27-2013, 12:25 PM
https://twitter.com/8Atlas2/status/372424554745847808

FSP-Rebel
08-27-2013, 12:27 PM
https://twitter.com/8Atlas2/status/372425086453563392

phill4paul
08-27-2013, 12:31 PM
Many think it is because of the oil contracts that "American" companies receive after conquering a country. THAT aspect is the least of it. It is all about the petro dollar.

ZENemy
08-27-2013, 12:41 PM
The us dollar is backed by oil and the force to keep oil, not sure why that's hard to understand.

FSP-Rebel
08-27-2013, 01:11 PM
The us dollar is backed by oil and the force to keep oil, not sure why that's hard to understand.
It's not hard if one is exposed to the simple points that OP points out. Ever heard that in any MSM sources? To my knowledge, I haven't.

heavenlyboy34
08-27-2013, 01:24 PM
This is technically true.

shane77m
08-27-2013, 01:26 PM
Sounds like someone needs to stop the inmates from running the asylum to keep them from going to war with Syria.

muh_roads
08-30-2013, 02:01 PM
https://twitter.com/8Atlas2/status/372425086453563392

This is what Twitter should be used for.

jllundqu
08-30-2013, 02:13 PM
This is all just because Bretton Woods is collapsing. The global economy will restructure itself and only a few hundred million/billion people will die in the aftermath...

What's the big deal?

/sarc

ladyjade3
08-30-2013, 02:13 PM
I clicked through to watch on Youtube and had to watch an ad for Shell first. lol

jllundqu
08-30-2013, 02:14 PM
I just realized I am now more than "just really nice"... I am now a "Glorious beacon of light!" lol.... Thanks RPF

Acala
08-30-2013, 02:27 PM
It depends on what you mean by "backed".

Once upon a time, paper dollars were backed by gold in the sense that you could carry a paper dollar into a bank and walk out with gold at a fixed exchange rate. The paper dollar was exchangeable for, and so backed by, gold at a fixed rate. The fact that every paper dollar could, in theory be redeemed for gold created a limit on the supply of paper dollars that could be circulated.

Now, the dollar is not "backed" by anything in the sense that you cannot exchange paper dollars for any commodity at a fixed rate.

The exchange value of the dollar - which floats against all commodities and most currencies - is certainly held up by the international oil market, as well as other international trade. But it is not "backed" in the sense it was once backed by gold.

.

Grubb556
08-30-2013, 03:04 PM
If you want to buy barrels of oil don't you have to pay in USDs ?

Acala
08-30-2013, 03:44 PM
If you want to buy barrels of oil don't you have to pay in USDs ?

Do you know somewhere that the exchange rate of dollars for oil is permanently fixed by law?

muh_roads
08-31-2013, 12:07 PM
Do you know somewhere that the exchange rate of dollars for oil is permanently fixed by law?

OPEC nations and their trade partners probably get all sorts of breaks.

DamianTV
08-31-2013, 03:37 PM
What kind of Oil Reserves does Syria have? Or is it for a Pipeline? (Plan of attack 7 Countries in 5 Years, if anyone recalls that)

heavenlyboy34
08-31-2013, 04:09 PM
What kind of Oil Reserves does Syria have? Or is it for a Pipeline? (Plan of attack 7 Countries in 5 Years, if anyone recalls that)
Darned Syrians won't stop their war long enough to pump oil for US, etc monied interests! Bomb them! .... :(
http://en.wikipedia.org/wiki/Economy_of_Syria#Oil
Foreign investment (http://en.wikipedia.org/wiki/Foreign_investment) is vital for improving production levels, and following the outbreak of the Syrian civil war Western companies are legally prohibited from working in the country. The main foreign producing consortium is the Al-Furat Petroleum Company, a joint venture established in 1985, which currently includes the SPC at 50 percent ownership, Anglo-Dutch Shell (http://en.wikipedia.org/wiki/Royal_Dutch_Shell) at 32 percent, and the remainder held by Himalaya Energy Syria, a consortium of China National Petroleum Company (http://en.wikipedia.org/wiki/China_National_Petroleum_Company) and India (http://en.wikipedia.org/wiki/India)'s Oil and Natural Gas Corporation (http://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporation).[32] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-EIA-32) Another important consortium is Deir Ez Zor Petroleum Company, owned by SPC and France (http://en.wikipedia.org/wiki/France)'s Total (http://en.wikipedia.org/wiki/Total_S.A.). Shell has one of the oldest relationships with Syria dating back to 1949.[33] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-OBG95-33) It produced with its joint venture partners an average 100,000 bbl/d (16,000 m3/d). As of December 2011 Shell has suspended operations in Syria due to EU sanctions.[37] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-37)
Total formed its Syrian operation in 1988 and in 2008 renewed its partnership sharing agreement with Syria during French President (http://en.wikipedia.org/wiki/President_of_France) Nicholas Sarkozy's (http://en.wikipedia.org/wiki/Nicholas_Sarkozy) visit to Syria confirming France's continued interest in the company's activities in the country. Prior to the Syrian civil war, Total produced an average 27,000 bbl/d (4,300 m3/d) from its fields around Deir ez Zour.[38] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-OBG2010p103-38) Since the start of the civil war and the international sanctions applied to Syria, Total has suspended operations in the country since December 2011.[39] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-39)
A more recent entrant into the Syrian oil (http://en.wikipedia.org/wiki/Oil) sector was the United Kingdom (http://en.wikipedia.org/wiki/United_Kingdom)'s Gulfsands Petroleum. At the beginning of 2011, its oil fields produced 20,700 bbl/d (3,290 m3/d).[40] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-Gulfsands-40) As of February 2012, Gulfsands has suspended its Syria operations and entered into a force majeure (http://en.wikipedia.org/wiki/Force_majeure) due to EU sanctions on the Syrian government prohibiting the trade of oil.[41] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-41) Gulfsands dealings in Syria were also hit by EU sanctions due to Syrian tycoon Rami Makhlouf (http://en.wikipedia.org/wiki/Rami_Makhlouf), a cousin of the Syrian president (http://en.wikipedia.org/wiki/President_of_Syria) formally owning a 5.7 percent stake in the company,[29] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-Reuters-29) with this stake being suspended in August 2011 due to specific sanctions relating to Makhlouf.[42] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-42) Other international players include or included: Canada's Suncor (http://en.wikipedia.org/wiki/Suncor), Poland's Kulczyk (http://en.wikipedia.org/wiki/Kulczyk_Investments), US-Eygptian firm IPR, Croatia's INA (http://en.wikipedia.org/wiki/INA_(company)), Russia's Stroytransgas (http://en.wikipedia.org/wiki/Stroytransgas), and Triton Singapore.[33] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-OBG95-33)
Another option to handle the increase in domestic oil consumption besides increasing oil production is to switch power stations (http://en.wikipedia.org/wiki/Power_station) from oil-fired to natural gas (http://en.wikipedia.org/wiki/Natural_gas)-fired. Proven natural gas reserves, approximately three-quarters of which are owned by the Syrian Petroleum Company, were estimated at 9.1 trillion cubic feet in 2010.[34] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-PBReview22-34) The primary challenge for the natural gas industry is logistics: reserves are located mainly in northeastern Syria, whereas the population is concentrated in the west and south.[43] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-43)
Although Syria produces relatively modest quantities of oil and gas, its location is strategic in terms of regional security and prospective energy transit routes. Regional integration in the energy sector is expected to increase as a result of the 2008 opening of the Syrian link of the Arab Gas Pipeline (http://en.wikipedia.org/wiki/Arab_Gas_Pipeline)[32] (http://en.wikipedia.org/wiki/Economy_of_Syria#cite_note-EIA-32)

Bern
08-31-2013, 04:19 PM
From last year, but well worth reading if the petrodollar issue interests you:
...
The petrodollar paradigm is saving the dollar from crashing by accomplishing two things. First, it creates a mandatory international demand for the Federal Reserve paper, preventing dollar inflation from going into hyperinflation. Second, the oil profits from OPEC pay for a portion of our ever expanding national debt, helping perpetuate a giant Ponzi scheme in the U.S. treasury market. Those who control the United States understand that even if only a few countries begin to sell their oil in another currency it will set off a chain reaction and the dollar will collapse. They understand that there’s absolutely nothing else holding up the value of the dollar at this point, and so does the rest of the world.

But rather than accepting the fact that the dollar is nearing the end of its lifespan, the powers that be have made a calculated gambit. They have decided to use the brute force of the U.S. military to crush each and every resistant state in the Middle East and Africa.

That, in and of itself, would be bad enough. But what you need to understand is that this is not going to end with Iran. China and Russia have stated publicly and in no uncertain terms that they will not tolerate an attack on Iran or Syria. Iran is one of their key allies, one of the last in independent oil producers in the region. And they understand that if Iran falls, then they will have no way to escape the dollar without going to war. And yet, the United States is pushing forward despite the warnings.

What we’re witnessing here is a trajectory that leads straight to the unthinkable. It’s a trajectory that was mapped out years ago, in full awareness of the human consequences.
...

More: http://www.crisishq.com/why-prepare/world-war-3-preserving-petrodollar/

Acala
08-31-2013, 04:35 PM
OPEC nations and their trade partners probably get all sorts of breaks.
That's not relevant to the point. When the dollar was backed by gold, ANYONE could trade paper dollars for cold coins at a fixed rate. You and I cannot now trade paper dollars for ANY commodity at a fixed rate. Therefore the dollar is NOT backed by oil or any other commodity in the same sense it was when it was backed by gold.

kcchiefs6465
08-31-2013, 04:42 PM
The dollar is propped up by oil.

AFPVet
08-31-2013, 05:01 PM
The Oil Dollar... yep!

Acala
08-31-2013, 05:50 PM
The dollar is propped up by oil.

It absolutely is propped up by the demand for dollars created by the international oil market

kcchiefs6465
08-31-2013, 06:40 PM
Yes, I could have worded that better.

The dollar is propped up because oil is priced by OPEC in dollars. We export our dollars, import actual goods, as they get our dollars, they export our dollars, and receive oil or other commodities.

Us propping up the Saudi regime and guaranteeing them military superiority helped this to be done. (oil being priced in dollars)

Countries have to keep reserves of our dollars to get oil. This is the reason why our dollar continues to maintain a place in the world, especially as the reserve currency of the world, and why anyone who attempts to price their oil in euros or gold is overthrown.

It will eventually come to an end when our military is stretched so far and their morale is so low that they won't fight for it anymore. Until then countries suggesting they don't want dollars had better do so under their breath. Coups or covert CIA backed uprisings will plague their country until the regime is changed. That regime is given a hefty bribe with a guarantee of military surplus. The bribe [foreign aid] comes back here and is a form of welfare for the companies who make these weapons. Many people are guaranteed jobs. The oppression overseas, by dictators and tyrants we fund and keep in power, is part of the reason we are hated. This is all connected to the wars we eventually are dragged into, the embassies that are attacked, the people who are killed, the propaganda of television, and the profits continuing to come in. This affects our civil liberties, the "See Something, Say Something" campaign, for example, or the TSA, or DHS. Everything is connected whether primarily or secondarily, there is correlations with how this system destroys true wealth, the incentive to work, civil liberties, and peace around the world.

The chickens will come home to roost one day.


Anyways.

This is a great Ron Paul speech on the subject for anyone who has not seen it.


http://www.youtube.com/watch?v=44wo8IhuHfQ


http://www.youtube.com/watch?v=JUacN9pRWII


http://www.youtube.com/watch?v=gl1EE2-z5C8

Plus rep for all those who take the time to watch it. This speech opened my eyes wider than they had been in a while. I listened to it right around the time I first started reading into Ron Paul and attempting to understand why our country was the way that it is.

Definitely my favorite.