The nature of the dollar - Oil taste (Petrodollar). Who does the US really owe? - FX24.net

So what is the nature of truth? Why America owes so much, who is the US creditor and what the US will do to repay it.

The value of money is at its bail. The dollar is a strong currency because it is tied to bail value.

It can be said that the value of the US dollar is part of making America the No. 1 economic power in the world. From 1944 to 1971, the US dollar was measured in gold (Gold standard), and from 1971 until now it has been valued by oil (Petrodollar), roughly used to be in dollars. The US can exchange gold, and today most dollars are used to buy oil - that's why other countries want to buy oil, they need dollars.

While millions of dollars are printed every day, the cost of printing one is only a few cents, but its circulation value is thousands of times larger. Normally, when the supply exceeds the demand for any kind of goods, the price will decrease, but have you ever wondered why continuous printing of dollars does not cause the US dollar to depreciate much? To put it this simple, financial financiers dominate the exchange rate and because the decline in the value of the US dollar is limited by the global demand for the dollar. That is, other countries in the world constantly need to use USD to buy oil.

In 1944, the notorious Bretton Woods conference established the dollar as the world reserve currency, the only currency associated with gold, while all other currencies were tied to the dollar, sort of like a standard measure. As a result, the US dollar became the currency used for international trade, or the USD.

The Gold Standard system lasted until 1971. At that time, rising US inflation and trade deficits weakened the value of the dollar. The Americans pressured their two vassals, Germany and Japan, to increase the value of the Marxist and Japanese Yen currencies. But this is only a temporary measure, these countries are reluctant to accept this step, because increasing the value of their currencies will increase the price of their goods and damage exports.

Under Johnson's rule, the Vietnam War caused US national debt of US $ 354 billion, and by the time Nixon had not finished the war, the US government was in debt of another 121 billion, bringing the total debt to US $ 475 billion, a huge number of records, which led to inflation. Many countries fear and they bring USD reserves in exchange for gold from the US, US gold reserves at an all-time low and at risk of exhaustion.

On August 15, 1971, US President Nixon announced that the yellow window was closed. Accordingly, the US dollar officially abandoned the gold standard. The Bretton Woods agreement was broken. It is a bad move but a right and wise move for America.

The development of mankind has gone through many periods of stone, bronze ... and now is the oil age. Unlike gold, oil used to produce, consume, operate without it, the industry and manufacturing, the type of engine can not work. Therefore, oil and its components are almost present in the entire life and activities of modern humans. So whoever can control the oil supply is the global economy.

American elites have seen through this. They have targeted Saudi Arabia, the country with the largest reserves and the amount of oil in the world, so the US-Saudi Arabia deal was born.

Accordingly: The United States will protect Saudi Arabia. The United States also agreed to provide weapons to Saudi, and perhaps most importantly, to ensure the protection of the Saudi royal throne from being invaded and overthrown by Israel (at that time Israel was considered a "killer" state). , mighty in the Middle East war).

In return, Saudi Arabia must meet 2 terms. The Saudi state must refuse all other currencies to pay for oil purchases except the US dollar. Saudi Arabia will be open to investing the excess proceeds from its oil sales into US debt securities.

After Saudi Arabia, respectively, all Arab countries in the Middle East. In 1975, all OPECs also implemented these two terms in exchange for US commitment.

Oil, the largest market for raw materials, is paid entirely in US dollars. If you want to buy a barrel of oil, you must exchange your currency for US dollars (also known as oil dollars) and use it to pay the oil supplier. In such a transaction, you weaken your currency (by selling it) and you strengthen the value of the dollar by increasing the demand for it.

The whole world needs oil, buys oil, so how can we buy dollars? So they have to export cheap to the US, American consumers benefit greatly from countries around the world. For example, Japan has very few natural resources, so it imports a large amount of goods, including oil. In order to have more US dollars to buy oil, all goods must be prioritized to be exported to the US in exchange for dollars.

Or like China, when it wants to sell its products to another country, it is all paid in US dollars. Because China exports a lot, it has billions of dollars in reserves. By being forced to buy the US dollar, China has helped curb the dollar's decline. In this way, China and the world, through the purchase of the dollar, have helped finance the wealth of financial oligarchs, who make a ton of new dollars daily from printing money.

So who is the American creditors?

Ban-chat-dong-dola-my-usd

Of course, the US could use US dollars, "essentially a piece of paper" that only the United States could print, to buy oil. Try to ask whether there are other countries in the world, besides the United States, that can print money to buy oil and then oil producing countries will keep that printing money?

The US government, in its name, benefits from this. Unfortunately, the US government is "notorious but has no piece" when the right to print money is in the hands of the private central bank and the Federal Reserve (FED).

In addition to those who do not know, the Federal Reserve System (Federal Reserve System) is the central bank of the United States, is the only authority to print dollars. However, this is a private organization and is not managed by the US government.

Spending freely on the war, the US national debt has so far reached a whopping $ 23 trillion, putting the government three times at risk of closure but requiring only a few "manipulations" of The Fed is the US government operating again as seen.

China and Japan export a lot to the US, and currently US foreign creditors are led by China and Japan, holding US $ 6,210 billion of US public debt. However, the US government is essentially the Fed debtor. To be able to run out of debt, the fastest solution is to win the right to print money back to the US government. Unfortunately, all who rebuilt this organization have been assassinated, not only that but they still get dirty water on them. Even so many presidents of America, whenever they intervened in the Fed's right to print money, then they were assassinated.

In 1861 and earlier, the US government was a debtor of the Rotschild family, then full control of printing and issuing of Dollar money. Due to the high interest rate imposition, Abraham Lincoln then allowed the US government to print money by itself. After only a few years, in 1865, Abraham Lincoln was assassinated.

The fate of John F. Kennedy later when he intended to deprive the Fed of power and regain the right to self-print, issue the Dollar - is similarly tragic. On June 4, 1963, he signed the decision "Executive Order Number 11110" to abolish the effect of "Executive Order Number 10289", ie the printing and issuance of money in the hands of the US government, deprivation of power of big banks. In such a short time, the total amount printed is estimated at 4 billion USD. The difference between the US dollar under Kennedy and printed by the Fed is located at the top of the words "THE UNITED STATES OF AMERICA". (These are USD 2 and USD 5 bills with the words "A banknote of the United States" instead of "A banknote of the Federal reserve" printed)

Kennedy did this legally and within his authority, returning the right to print money to the US government. However, the Fed leaders did not like this, let alone they were the power to support Kennedy to the presidency. They fear the future Kennedy will push the Fed out of money printing rights.

So the $ 4 billion of those $ 2 and $ 5 bills were not in time for circulation, when John F. Kennedy was assassinated on November 22, 1963. The money was destroyed by the Fed and replaced with FED money. print.

Following F. Kennedy, the 36th President of the United States (1963-1969), Lindon Johnson came to power, the "White Silver Certificate" was gradually removed from circulation. Since then, no US president has ever dared to try to print money on his own, even if the presidential decree No.11110 is still in effect (anyone who succeeds Kennedy's removal will be illegal).

In the end, the Fed still firmly held the right to print money and therefore, the main beneficiary of the increased global demand for the Federal Reserve's USD.

When the Vietnam War shattered the status of his successor President Lyndon Johnson, the younger brother of JF.Kennedy - Bobby Kennedy was the brightest candidate for the next US President. B. Kennedy has stated that he will succeed his brother's unfulfilled wishes and will also 'smash the CIA into thousands of pieces.'

It was too sad when Bobby Kennedy continued to be assassinated in the evening when he won the official election to become the presidential candidate for the Democratic Party in California.

When the two excellent sons of the Kennedy family were permanently lying down, many people thought that the hope for America to become a true country of freedom and democracy in the world was dead. And ever since J.F.Kennedy died, the most severe period of the Vietnam War has been taking place. Subsequent US presidents have never interfered with the Fed's money-printing story, nor have ever restricted NRA's arms trade. Over time, dozens of other wars with dozens of deserted countries and tens of millions of people died along with bombs and green US dollar bills.

Someone who holds the right to print money, will control the economy, but control the economy can almost control everything. People often say "Money can buy even demons" is the reason / meaning like that.

What does the Fed and the US government do to keep the dollar's unique position?

Petro-dollar-board-startup-chat-usd

It can be said that, in order to maintain its power in the international arena, the US has constantly waged wars to rob resources as well as a way to "assert its elder brother" position with juniors like Saudi Arabia, Israel ... and collecting guarantee money from dependent countries such as Japan and Korea ...

And of course, the US target in the order of priority is: First, there are oil countries but do not accept being minions. And then there are countries that are trying to break the American Petrodollar system, which basically means accepting oil trading in foreign currencies other than USD.

The Petrodollar system is a tool for the United States to dominate the world, it will do everything so that no one can touch this Petrodolallrs system, ready to use military power to take action.

Iraq has so much oil, but when it dared to fight the US, Iraq was nearly exhausted after the failure of the First Gulf War (beaten to 34 "by the US-led countries) and sanctions. United Nations sanctions were pulled by the United States later. In addition, under the pressure of the United States and its allies, Iraq gradually destroyed its rocket arsenal in an effort to avoid the risk of war - something Iraq did not want in the context of the country was exhausted. and embargo.

Unfortunately, in 2000, Iraqi President Saddam Hussein announced that he would sell crude oil in euros rather than just dollars. And when the missile stores were destroyed by Iraqis themselves to avoid war. Ironically, war immediately broke out. The United States fabricated the story of Hussein secretly producing weapons of mass destruction that threatened American security to overthrow the Hussein government, invading Iraq. The real excuse is that the US wants to prevent OPEC members from imitating Iraq to sell oil for euros.

After the Iraq lesson, no country dared to do the same thing. Until 2011, Gaddafi, President of Libya, proposed the gold Dinar, the common currency of Africa. Gaddafi called on African and Muslim countries to join hands to create a new currency to compete with the dollar. Under the scheme, the African Union - a similar organization to the European Union - will only sell crude oil and other resources to those who pay in gold dinars.

If this idea becomes true, the world trade balance will change, seriously affecting the world financial system, then Africa will become a formidable financial power. At that time, Anthony Wile, Editor-in-chief of the Daily Bell, in an interview with Russia Today in 2011 predicted that Mr. Gaddafi would soon be overthrown because he dared to touch the interests of the "elite forces" for himself. control of the world's central banks. And a few months later, British, French, and American forces - and later NATO military organizations - attacked Libya, overthrowing the so-called bloodthirsty dictatorship Gaddafi.

The story of Iraq and Libya is perhaps the most painful demonstration and experience of the cost of wanting to abolish the "petrodollar" system, which uses dollars to evaluate oil prices.

Venezuela has the largest crude oil reserves in the world. They wanted to take the country to develop without relying on the United States, so it was against it, the United States had long been itchy eyes and thus the economic embargo. Due to the tense relationship with the US, Venezuela faces a lot of problems when holding cash is US dollars (USD), or assets are denominated in USD. Because, they are under the supervision of the US financial system. If the US wants to impose sanctions on Venezuela by "freezing" Caracas' assets, then the South American nation will have a hard time protecting its assets.

And the drop of water was when Venezuela wanted to abolish the "petrodollar" system through the listing of Chinese yuan (NDT) crude oil prices on September 15, 2018. And so the next name, the United States pulled the strings and prepared for a coup in this South American country.

The story of Iraq (Gulf War), Libya, Syria ... (Arab Spring) is perhaps the most painful testament and experience of the price to pay when it wants to abolish the petrodollar system, or use dollars to price evaluation. And soon, maybe the next victim is Venezuela.

What forces dare to oppose the American Petrodollar system?

Putin-chong-lai-che-do-anywhere-usd-dola-my

It's Russia, guys. Russia (formerly known as Soviet) was a country that pioneered the overthrow of Petrodollar's dominance without being suppressed.

Exactly to say, Russia under President V. Putin!

Petrodollar worked smoothly until Putin's Russia appeared. Russia is willing to sell oil and gas in exchange for a currency other than the US dollar and thereby thereby breaking the monopoly position of the oil dollar. Other countries like Iran have followed the example and removed US dollars from their oil transactions.

In 2016, Russian President Vladimir Putin ordered that the first strike (First Strike) named "Golden Tsar" be immediately launched against the US "Petrodollas system". As declared by Sergey Glazyev, the Kremlin's top adviser warned Western leaders: “The more aggressive Americans are, the sooner they will see the final collapse of the dollar. Escaping the dollars is the only way for victims to escape the US invasion ... and as soon as Russia and China adopt it will probably be the end of the US military. "

Not only that, Russia and China and now Europe is also stepping out of the dollar, and actively building a financial system independent of the US financial system. Through it, they give the world an option to escape the US dollar. Suddenly, the United States could no longer print out endless funds to squander wars and maintain its world hegemony. Embargo and making it difficult for Russia and the US have long been done. China? Then there is a trade war.

When Petrodollar collapses, American domination will be no more, hopefully at this time the world will be more peaceful!

Note: America is the only country that can print money freely without fear of inflation and depreciation whenever any country has a big surplus, he puts his gun on his head like the Plaza agreement signed on September 22 / 1985 by 5 United States, France, England, Germany, Japan, participating countries agreed to intervene in the exchange rate on the foreign exchange market to reduce the value of the US dollar against the Japanese Yen and Marxist Germany by selling out the total. plus 10 billion USD in the foreign exchange market and buy back in the currencies: Yen, Marx. The dollar fell 51% in value against the Japanese Yen only 2 years after the agreement was signed and continued to decline in the following years. And now the United States is also forcing China like Japan in the 1980s

The agreement aims to help the US economy - the world's largest economy recover after the 1980 economic crisis as well as protect the international trade position of US exports..


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Source: Internet

Nguyen Diep

My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently

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