News
Iraqi Dinar Buzz Updates
The Role That Oil Plays
2010-12-27 22:52:20
by Marcus Curtis on December 27, 2010
I use to believe that when this dinar finally revalues that nations will begin to trade dinar for oil. As people trade in their dinar it will make it’s way to the US Treasury and the US will get oil from this deal. As I began to dig and research I discovered that I could not be more wrong. Oil will play a part in raising the dinar’s value, but not in this way. Let me share what I discovered
To understand oil we must first understand the Bretton Woods System. After World War II Bretton Woods was set up. The allies worked out three post-war plan arrangements. They are (1) International Trade Organization or ITO (still-born), replaced by General Agreement on Tariffs and Trade or GATT and World trade Organization or WTO (2) International Bank for Reconstruction and Development or IBRD (which was replaced by the world bank) and (3) International Monetary Fund or IMF. These organizations today are extensions of the United Nations or UN. Before World War II the United Nations was called the League of Nations.
America had 80 percent of the gold After world war II. At this time our dollar became backed by gold. The Bretton Woods System was based on adjustable and stable exchange rates. Exchange rates were not permanently fixed, but occasional devaluations of individual currencies were allowed to correct fundamental disequilibrium in the balance of payments.
By signing this agreement Nations were submitting their exchange rates to international disciplines and laws. This amounted to a significant surrender of national sovereignty to the international communities and organizations. Under Bretton Woods nations held the US dollar in their currency basket to back its currency, and our dollar was backed by gold.
In the 1960’s entitlement spending increased. Under Johnson the Vietnam war accelerated. The cost of this war began to add up. The US printed way too many dollars for the gold it had. Nations who saw the US debt mounting wanted to trade in the dollar for gold. This led to the collapse of the financial part of Bretton Woods. So it was in August of 1971 Nixon removed us from the gold standard. The Bretton Woods System was reluctantly replaced with a regime of floating exchange rates.
When this was done it made our currency a fiat currency. (faith-based) All the nations that had currency backed by the dollar also became a fiat currency. Now the Feds could print as much money as they wanted without regard to gold. Something needed to be done to give value to the American fiat currency. As everyone knows fiat currency has no real value. It is worthless paper. People perceive it has value because they were able to make purchases in the past using the currency. It is all about perception and faith that gives the current fiat US dollar any real value.
In the same year Nixon removed us from the gold standard Henry Kissinger and Nixon began to set up the Petro-dollar system. America basically said to nations like Saudi Arabia and other Arab oil-producing nations that they would protect them with American military should they ever be invaded. They would not need to raise armies for their protection. America will be their protection. The only thing the United States ask for in return was for them to only use the US dollar when they sold their oil. So today oil is bought and sold from nations like Saudi Arabia, Iraq, and Kuwait only using the US dollar.
This is why the US went to Kuwait in 1991. (the first gulf war) Saddam switch from selling oil in US dollars in 2000. He started using the Euro. Shortly after that we invaded Iraq. The first order of business for the US was to return to a system that used the US dollar to sell oil. This was done shortly after we invaded.
It is the Petro-dollar system that gives the US fiat dollar value. This is because the Petro-dollar creates a demand for the US currency. If Japan wants to buy oil it has two choices. It can take yen and convert it into US dollars and then buy oil, or it can sell America a Honda and take it’s profits in dollars to buy oil. The Petro-dollar has created a global market system. Nations begin to import their products into the United States, and the profits from their exports are used to buy oil and other commodities.
The whole thing is really nothing more than a house of cards because there is no intrinsic value represented in the Federal Reserve notes. Most of Americas money is electronic and it has been reported by various sources that two-thirds of Americas money is over seas. If America wants more oil all it has to do is print more money to get more oil. Many oil-producing nations have agreed to take some of the profits made from selling oil and put those profits back into the US by purchasing US bonds. If the Petro-dollar is ever replaced and oil is sold by some other means, then there will be no more demand for the US dollar. When this happens all of the US dollars will make their way back to America. This will cause hyper-inflation which will lead to the collapse of the United States Dollar.
Jerry Robinson is an economist and a published author. He hosts a weekly radio show called follow the money. You can listen to his weekly show on his website. You can go into the archives and listen to older shows as well. Jerry is also a personal friend of mine. I have had the privilege to meet him and we have discussed a wide range of topics. He is very knowledgeable about a wide range of economic issues. Anyone who wants to know more about the information he shares should go to his website. Follow The Money
Read his book Bankruptcy Of Our Nation. This book has incredible insight on the economic past present and future. I really enjoyed this book and I highly recommend it!!
You see if we begin to trade dinars for oil it will undermine the entire petro-dollar system. This will result in the collapse of the US economy as all of the now worthless US dollars make their way back to the United States. If that is the case the Revalue will not do anyone any good. It could RV for 5 dollars but that 5 dollars will not be worth anything once hyper inflation kicks in.
There are two ways that oil will play a role in the raising the value of the dinar. First oil contributes to the GDP, and second oil is nationalized. The industry was taken over by Saddam and today it remains nationalized. Oil is one of 3 main commodities that the government of Iraq owns and operates. This will also contribute to increasing the value of Iraq’s currency.
I have read in certain places about an in country RV. Recently the rumor has just surfaced again. So now I will address it. Basically and in country RV is the belief that the Revalue will only take place in the country of Iraq and everyone outside of Iraq that currently holds dinar will be left with worthless paper. Some people have advocated this belief and insist that one way to avoid this is to open up a Warka account and place your dinar in that account until the Revalue. After the revalue withdraw the money in american dollars. People who support this argue that Iraq will not hesitate to rip people off outside the country and as a result they would not need to pay investors outside of Iraq. Really??? If you take the time to think about this logically, you realize that this makes no sense! Let me explain why
First, Iraq has to honor all of it’s currency according to international laws as outlined in the top of this post!
Second, This so-called in country event would kill investment from outside of Iraq as it becomes apparent that Iraq has a hard time keeping it’s word!
Third. In my last blog post I talked about the fact the Central Bank of Iraq. Is a privately owned bank. It is a bank owned by the Rothschild Family. The Rothschild family also owns Goldman Sachs and are connected to the stock market here in America. These companies owned by the Rothschilds are heavily invested in Iraqi bonds and Iraqi dinar. If they do an in country RV only, then the global elite who set out to establish Iraq will be cut off from a lot of wealth. The Rothschild’s dinar that they own outside of Iraq will become worthless. I can tell you that this will not happen. Check out the Uniform Commercial Code. Or UCC
I use to believe that when this dinar finally revalues that nations will begin to trade dinar for oil. As people trade in their dinar it will make it’s way to the US Treasury and the US will get oil from this deal. As I began to dig and research I discovered that I could not be more wrong. Oil will play a part in raising the dinar’s value, but not in this way. Let me share what I discovered
To understand oil we must first understand the Bretton Woods System. After World War II Bretton Woods was set up. The allies worked out three post-war plan arrangements. They are (1) International Trade Organization or ITO (still-born), replaced by General Agreement on Tariffs and Trade or GATT and World trade Organization or WTO (2) International Bank for Reconstruction and Development or IBRD (which was replaced by the world bank) and (3) International Monetary Fund or IMF. These organizations today are extensions of the United Nations or UN. Before World War II the United Nations was called the League of Nations.
America had 80 percent of the gold After world war II. At this time our dollar became backed by gold. The Bretton Woods System was based on adjustable and stable exchange rates. Exchange rates were not permanently fixed, but occasional devaluations of individual currencies were allowed to correct fundamental disequilibrium in the balance of payments.
By signing this agreement Nations were submitting their exchange rates to international disciplines and laws. This amounted to a significant surrender of national sovereignty to the international communities and organizations. Under Bretton Woods nations held the US dollar in their currency basket to back its currency, and our dollar was backed by gold.
In the 1960’s entitlement spending increased. Under Johnson the Vietnam war accelerated. The cost of this war began to add up. The US printed way too many dollars for the gold it had. Nations who saw the US debt mounting wanted to trade in the dollar for gold. This led to the collapse of the financial part of Bretton Woods. So it was in August of 1971 Nixon removed us from the gold standard. The Bretton Woods System was reluctantly replaced with a regime of floating exchange rates.
When this was done it made our currency a fiat currency. (faith-based) All the nations that had currency backed by the dollar also became a fiat currency. Now the Feds could print as much money as they wanted without regard to gold. Something needed to be done to give value to the American fiat currency. As everyone knows fiat currency has no real value. It is worthless paper. People perceive it has value because they were able to make purchases in the past using the currency. It is all about perception and faith that gives the current fiat US dollar any real value.
In the same year Nixon removed us from the gold standard Henry Kissinger and Nixon began to set up the Petro-dollar system. America basically said to nations like Saudi Arabia and other Arab oil-producing nations that they would protect them with American military should they ever be invaded. They would not need to raise armies for their protection. America will be their protection. The only thing the United States ask for in return was for them to only use the US dollar when they sold their oil. So today oil is bought and sold from nations like Saudi Arabia, Iraq, and Kuwait only using the US dollar.
This is why the US went to Kuwait in 1991. (the first gulf war) Saddam switch from selling oil in US dollars in 2000. He started using the Euro. Shortly after that we invaded Iraq. The first order of business for the US was to return to a system that used the US dollar to sell oil. This was done shortly after we invaded.
It is the Petro-dollar system that gives the US fiat dollar value. This is because the Petro-dollar creates a demand for the US currency. If Japan wants to buy oil it has two choices. It can take yen and convert it into US dollars and then buy oil, or it can sell America a Honda and take it’s profits in dollars to buy oil. The Petro-dollar has created a global market system. Nations begin to import their products into the United States, and the profits from their exports are used to buy oil and other commodities.
The whole thing is really nothing more than a house of cards because there is no intrinsic value represented in the Federal Reserve notes. Most of Americas money is electronic and it has been reported by various sources that two-thirds of Americas money is over seas. If America wants more oil all it has to do is print more money to get more oil. Many oil-producing nations have agreed to take some of the profits made from selling oil and put those profits back into the US by purchasing US bonds. If the Petro-dollar is ever replaced and oil is sold by some other means, then there will be no more demand for the US dollar. When this happens all of the US dollars will make their way back to America. This will cause hyper-inflation which will lead to the collapse of the United States Dollar.
Jerry Robinson is an economist and a published author. He hosts a weekly radio show called follow the money. You can listen to his weekly show on his website. You can go into the archives and listen to older shows as well. Jerry is also a personal friend of mine. I have had the privilege to meet him and we have discussed a wide range of topics. He is very knowledgeable about a wide range of economic issues. Anyone who wants to know more about the information he shares should go to his website. Follow The Money
Read his book Bankruptcy Of Our Nation. This book has incredible insight on the economic past present and future. I really enjoyed this book and I highly recommend it!!
You see if we begin to trade dinars for oil it will undermine the entire petro-dollar system. This will result in the collapse of the US economy as all of the now worthless US dollars make their way back to the United States. If that is the case the Revalue will not do anyone any good. It could RV for 5 dollars but that 5 dollars will not be worth anything once hyper inflation kicks in.
There are two ways that oil will play a role in the raising the value of the dinar. First oil contributes to the GDP, and second oil is nationalized. The industry was taken over by Saddam and today it remains nationalized. Oil is one of 3 main commodities that the government of Iraq owns and operates. This will also contribute to increasing the value of Iraq’s currency.
If you read through the entire link above then you know that Iraq also has nationalized sulfur crops and natural gas. This will also contribute to raising the value of the dinar.
I have read in certain places about an in country RV. Recently the rumor has just surfaced again. So now I will address it. Basically and in country RV is the belief that the Revalue will only take place in the country of Iraq and everyone outside of Iraq that currently holds dinar will be left with worthless paper. Some people have advocated this belief and insist that one way to avoid this is to open up a Warka account and place your dinar in that account until the Revalue. After the revalue withdraw the money in american dollars. People who support this argue that Iraq will not hesitate to rip people off outside the country and as a result they would not need to pay investors outside of Iraq. Really??? If you take the time to think about this logically, you realize that this makes no sense! Let me explain why
First, Iraq has to honor all of it’s currency according to international laws as outlined in the top of this post!
Second, This so-called in country event would kill investment from outside of Iraq as it becomes apparent that Iraq has a hard time keeping it’s word!
Third. In my last blog post I talked about the fact the Central Bank of Iraq. Is a privately owned bank. It is a bank owned by the Rothschild Family. The Rothschild family also owns Goldman Sachs and are connected to the stock market here in America. These companies owned by the Rothschilds are heavily invested in Iraqi bonds and Iraqi dinar. If they do an in country RV only, then the global elite who set out to establish Iraq will be cut off from a lot of wealth. The Rothschild’s dinar that they own outside of Iraq will become worthless. I can tell you that this will not happen. Check out the Uniform Commercial Code. Or UCC