Since , I have written dozens of articles on the petrodollar system. I have appeared on many major news media outlets talking about the petrodollar system. I even wrote a best-selling book entitled Bankruptcy of our Nation that spent an entire chapter exposing the petrodollar system. I have spoken about this topic all over the world. Suffice it to say, I believe that understanding the petrodollar system is very important to your financial well being. I encourage you to print this article out and read it carefully. When you are finished with it, I encourage you to share it with your friends and neighbors.
Share it on Facebook and Twitter. Help us get the word out so that the American public can stir from its slumber and begin preparing for what lies ahead. The relatively young and economically nimble U. In addition to introducing a number of global financial agencies, the historic meeting also created an international gold-backed monetary standard which relied heavily upon the U.
Initially, this dollar system worked well. On August 15, , President Richard M. Nixon shocked the global economy when he officially ended the international convertibility from U. Two years later, in an effort to maintain global demand for U. In , a deal was struck between Saudi Arabia and the United States in which every barrel of oil purchased from the Saudis would be denominated in U. Under this new arrangement, any country that sought to purchase oil from Saudi Arabia would be required to first exchange their own national currency for U.
And of course, as global oil demand increased, so did the demand for U. As the U. Today, several countries have attempted to move away, or already have moved away, from the petrodollar system. Additionally, other nations are choosing to use their own currencies for oil like China, Russia, and India, among others. As more countries continue to move away from the petrodollar system which uses the U. In this article, we will explain how this could be possible. When historians write about the year , it is often dominated with references to the tragedies and triumphs of World War II.
The historic gathering included delegates from 44 Allied nations. The aim of the meeting was to regulate the war-torn international economic system. More importantly, for our purposes here, another development that emerged from the conference was a new fixed exchange rate regime with the U. Dollar playing a central role. In essence, all global currencies were pegged to the U. The U. Dollar would be pegged at a fixed rate to gold. This made the U. After all, the Bretton Woods arrangement provided an escape hatch: if a particular nation no longer felt comfortable with the dollar, they could easily convert their dollars holdings into gold.
This arrangement helped restore a much-needed stability in the financial system. But it also accomplished one other very important thing. The Bretton Woods agreement instantly created a strong global demand for U. And along with this growing demand for U. Dollars came the need for… a larger supply of dollars. Now, before we continue this discussion, stop for a moment and ask yourself this question: Are there any obvious benefits from creating more dollars? And if so, who benefits?
First, the creation of more dollars allows for the inflation of asset prices. In other words, more dollars in existence allows for a rise in overall prices. For example, imagine for a moment if the U. While you may like my home, and may even want to buy it, it would be physically impossible for you to do so.
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The United States government benefits from a global demand for U. Is it a coincidence that printing dollars is the U. Raising taxes and making meaningful spending cuts can be political suicide. Borrowing money is a politically convenient option, but you can only borrow so much. That leaves the final option of printing money. This account is primarily a tribute to her and to her memory, but it is also very much a tribute to the many ordinary decent folk that helped me survive, most particularly the plain ordinary Geordie seamen from North Shields on Tyneside, who shared their meagre rations and fed me when ill and starving at the end of the war, and without whose help I would not have been able to write these notes.
Their simple, kind, rough generosity and their glowing compassion in the midst of such adversity has ever since coloured my attitude to money and wealth. I have included accounts of others at the same time as a living testimony of what people had to go through to give a broader flavour to the mood of the period. I myself kept a diary for a part of the time and some years ago set down on paper my fresh vivid childhood memories so that my story has been easier to write and bring up to date. Nowadays we live in an age of Supermarket shelves burgeoned with produce, instant communications to any spot on the world, with the all pervading television, computer, websites and the Internet Revolution, embedded in our homes dulling our senses with an excess of information.
There is now mass jet — plane travel.
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It therefore may come as a surprise to learn of a different form of travel. During the forties we journeyed across thousands upon thousands of miles across the vastness of the Indian and Pacific Oceans, with transport and accommodation mostly free of charge, courtesy of two travel firms controlled ultimately by two gentlemen, Herr Adolf Hitler and Emperor Hirohito. Three days before the end of the war, we learnt of the Atom Bomb and wrapped ourselves in our US army great coats and sheltered in a cellar in the sweltering humid heat of a Japanese summer, in a pathetic effort to save ourselves from the flash of this strange new device which brought the whole terrible saga of World War 2 to an abrupt end and ushered in the Nuclear Age.
We survived because of the Bomb, but at the same time we owed our lives to the hundreds of thousands of poor souls who were incinerated or who died a slow lingering radiation induced death by its effects, that drew the War to an abrupt and sudden close.
I cannot speak for the rights or wrongs or justify anything but can only state the facts of the situation. But once the War was over we could then enjoy the strange experience and value of peacetime freedom again without the all pervading hunger, harassment and constant fear of authority. We could travel, without the danger of being torpedoed at night, with the splendid generosity of the Royal Navy and later air travel with RAF Transport Command come back to England. So from another era here is a tale written by a living fossil, which I hope you all will enjoy with all the laughs and tears all mingled together during those war years Above all it was the laughs and cheerfulness that kept one going, trying as much as possible to have fun at brief moments whenever one could.
I do hope that this account will not be found sentimental in any way, as I am by nature not in the least bit a sentimental person, which I equate as a false weak self pitying philosophy for people who cant cope with the rough and tumble of a hectic life. Instead because of my experiences at such a young age and seeing how people coped under stress, I am extremely compassionate, for people who are weaker, who have had a raw deal or who have had all their values threatened and are left both spiritually, mentally and physically naked. I dedicate this book to these folk, mostly ordinary simple humble souls without any of the trappings, baubles and gizmos of wealth and to them I offer my tender sorrows and consolation.
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I also dedicate it most specially to all Mothers who have been mistreated by their spouses and families, who have been flung aside, ignored and marginalized and forgotten and cast into their own personal prisons. The words in this book are meant to be a tribute to them to enjoy and uplift themselves and their spirits, and hopefully give them strength for the future.
In writing this I would like to thank the following people for help in compiling this story. First I would like to thank my Mother Madeline for meticulously saving records, documents etc from this time. I have drawn on these extensively. From him I have gained extensive notes of the period on the German Ships until we were finally parted in Yokohama.
Not only was he a very deeply committed Christian but he was also like an elder brother to me in the camp, showing me an example of the moral path in life. For the last two years of the war we were together, and he also kept notes which he has made available to me. She in her own right had done extensive archive searches and had developed a network of knowledge from the survivors that she has passed to me.
Malcolm Scott was a tremendously uplifting character who could always be relied on to see the funny side of life and sketch it and write amusing ditties! It was on December 8th on a bright summers morning when as a 10 year old I walked with my Mother to have Breakfast in the restaurant of Coronado, a very posh Condominium situated on the St Kilda Road in Melbourne in lovely large gardens.
The warm morning air was scented with the strong aromatic scent of eucalyptus trees that grew all around amongst the ornamental Canary palms. By July 23, a revolutionary committee of young military officers had forced the king from power. By , they had ended the monarchy and begun negotiating directly with the British over the issue of the canal. On October 19, a deal was signed in which the UK promised to leave by By skillfully combining the dominant ideologies of the s, Nasser became the most prominent political figure in the post-Ottoman world.
The Turkish government was poorly positioned to meet the challenge embodied by Nasser.
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After local elites in the Syrian mandate successfully negotiated an independence treaty with the French government, Turkey exploited the moment and the French desire for Turkish good will on the eve of World War II to regain Hatay. Syrian politicians were incensed at the Turkish maneuver—and even today official Syrian maps show Hatay as part of Syria. Tone-deafness toward the dignity of leaders in post-Ottoman states did not end with Hatay. The act was all the more galling since Turkey had supported the creation of the Israel in and was not, therefore, viewed as an advocate of Arab interests.
Moreover, the friendly relations between the Turkish government and the British-backed monarchial regimes in Egypt, Iraq, Saudi Arabia, and Jordan further associated Turkey with imperialism in the eyes of young Arab nationalists. In Turkish media, Arabs young and old were often depicted as children deserving of concern but also prone to irrational outbursts and easily manipulated.
On July 27, , Egypt and the UK reached a deal by which the British would evacuate the Suez Canal Zone within twenty months while retaining the right to reoccupy it should an attack be carried out against either Turkey or members of the Arab League. In comments following the announcement, Nasser criticized Turkey for its support of Israel, insinuating that Turkey was not acting as a Muslim country should. His words came at a time of heightened tension between Egypt and Israel as the former was allowing Palestinian refugees to organize cross-border attacks from its territory and the latter was carrying out a clandestine bombing campaign with the intention of scuttling an Egyptian-British deal on the canal.
During the month of July, Israeli operatives in Egypt had been captured after placing bombs in mail boxes, cinemas, and American government buildings. Fenik graciously acknowledged the letter but cautioned Nasser against his tendency to criticize the western powers and their allies. In emphasizing the dangers of the Soviet Union and the impracticability of remaining neutral, the Democrat Party mouthpiece was echoing words of the Turkish government—and, for that matter, the American government.
This position was stated most publicly in April , when Turkey was invited to the Africa-Asia Conference in Bandung, Indonesia alongside other newly independent countries. The conference had been organized by the Indian leader Jahawarlal Nehru in the hope of forcibly advocating Cold War neutrality, but few of the states involved or even Nehru for that matter were so pure in their intentions. The Chinese government believed the conference would grant it international legitimacy in the face of the American refusal to recognize its communist regime. Nehru hoped to isolate Pakistan, which had recently signed a treaty with the US.
Freedom, independence, and peace are not blessings obtained without effort; they are ideals whose achievement and defense are borne heavily by each of us. It was a powerful speech—and one coordinated with the British and American governments who, while not invited participants, worked to ensure that the conference neither elevated anti-western leaders in stature nor allowed them to peel off allies from the anti-Soviet coalition. In the latter ambition, Turkey and its allies were successful; when it came to diminishing the standing of neutralist leaders, less so.
The issue of Cyprus was a prime example. After agreeing to evacuate the Suez Canal Zone, the UK was left with only the island as a location for its military forces and listening posts. The British hope was to create such confusion and argument that they could present themselves as neutral arbiters and thereby defend their continued presence. Whether the issue was Cyprus, Suez, or Palestine, the end of British colonial-rule in the eastern Mediterranean became linked to Cold War struggles.
When Nasser nationalized the Suez Canal on July 26, and, in late October, the French, British, and Israeli governments responded with a coordinated invasion, the various regimes who had opposed him were made to seem like puppets of the Israelis and former colonial powers. In , fears of communism became focused on Syria. In contrast to Iran and many post-Ottoman states, Turkey did not have a popular communist movement.
During the interwar years, while most post-Ottoman countries were controlled by European powers or a coalition of merchants and landowners, Turkey was governed by former military officers and intellectuals with a vision of state-driven development not so different from that of the Soviet elite. In other words, there was little basis for fearing that communism might spread in Turkey during the s.
On the other hand, by the Democrat Party government had good reason to fear being voted out of office. Not only was the economic outlook grim, but the party had also fractured; its more liberal members had formed a new party and were working in concert with the former ruling party. Though neither of these parties were communist, this fact did not stop the Democrats from speculating.
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In one particularly imaginative pro-government paper, a columnist reminded readers that when parties of the left had united in France during the s, the result had not only led to electoral gains by the Communist Party, but also cut funding for French border defenses and enabled the German military to achieve an easy victory. In Syria, the situation was rather different. There, national liberation had been achieved by a coalition of businessman and landowners whose abject failure of leadership in the Palestine War had encouraged military officers to give leading the country a shot.
The question, however, was which faction in the military would lead: between March 30 and December 19, , Syria had three coups. When Shishakli was finally forced from power in February , the civilian politicians of the pre years returned to power albeit with military factions often tipping the political scales. Though the Syrian military coups of had preceded the Egyptian coup of , none of the military leaders had captured the public imagination in the same way as Nasser did. That they lacked the pan-Arab vision of Nasser may also have something to do with age: the three coup leaders of were born in , , and The first two had been soldiers in the Ottoman army and even the third, Shishakli, was nine years older than Nasser.
After the Palestine War and the Egyptian coup, it was impossible for politics in Syria to simply return to its pre patterns. During the first decade of independence, new leaders and movements had emerged. In addition to the military factions, there were now politicians who made their appeals to farmers, students, professionals, and the growing numbers of urban workers.
To the consternation of Turkish and American observers, one seat went to the leader of the Syrian Communist Party. The poor harvest of and the decrease in global demand for agricultural products as the Korean War ended left the government and importers with rising debts. One way out of this impasse was to secure loans from America; another way was to have the American government pressure European trading partners to renegotiate Turkish debts; and yet another was to create new revenue streams.
To non-member countries, however, the Pact seemed like another means of perpetuating foreign influence in the region—especially after the UK joined in April In the same month, anti-western sentiment intensified in Syria when a leading military officer with ties to the anti-imperialist Baath Party was assassinated by members of the Syrian Social Nationalist Party, the most anti-communist and, thus, pro-western party. The assassination led to a crack-down on the party whose members fled to Lebanon and began reporting to western authorities that Syria was being taken over by communists.
In the case of China—still not recognized by the US—Syria even signed a cultural exchange treaty and sent delegations to visit Beijing. In June , the Soviet foreign minister visited and promised economic aid including a rail line linking the port of Latakia with the agricultural region of Jazira. During , Syria also expanded its influence and connections with its neighbors. In October , Syria, and Saudi Arabia agreed to place their armies under Egyptian command in the event of a war.
Under pressure from nationalists, the king of Jordan expelled his British advisors and appointed pro-Baath and pro-Nasser ones. During the Suez Crisis in October-November , Jordan invited Syria and Saudi Arabia to send military brigades—he also invited anti-Nasser Iraqi military units to enter the kingdom as a means of maintaining balance. Some day, what has been done and the dead end path it is taking will come back to bite it.
The Turkish government looked on all these developments with concern. Then again, Turkey—or at least its allies—were hatching plots against Syria. Over the subsequent seven months, US and British officials worked with Syrian factions both in the country and outside its borders to bring down the democratically elected government.
Though the plans were set for October 25, , they were first delayed a few days and then following the Israeli invasion of the Suez Canal Zone postponed indefinitely. Rather than removing advocates of socialism and neutrality in the government, the coup enabled those same factions to remove their anti-communist, anti-Nasser opponents.
Turkey and its allies were running out of covert ways to deal with the situation.