Monday, August 8, 2016

Can the U.S. Dollar Keep It's Position As A Reserve Currency?


"The Decline of American Empire"--Black Pigeon Speaks. A This video is about a topic I've mentioned before--that although the U.S. dollar is not backed by gold, it is (per an agreement with Saudi Arabia) backed by oil. That is, Saudi oil sales are denominated in U.S. dollars--meaning if you want to buy oil from Saudi Arabia, you have to use U.S. dollars. In exchange, the United States has pledged to defend Saudi Arabia. Most other oil producing states have followed suit. The Black Pigeon goes on to suggest, however, that when oil producing nations have attempted to stray from this--including Saddam Hussein's decision to start denominating sales in Euros--bad things (i.e., regime change and chaos) have followed. It is an interesting theory, and explains why the U.S. overlooked the obvious connection between Saudi Arabia and the 9/11 hijackers. But this also makes the Iranian nuke deal make more sense; if the Saudis had been considering accepting other currencies, that desire is probably muted now that they must depend more than ever on U.S. protection from the Mullahs in Iran.

The additional point from this theory is that U.S. presidents have been willing to start wars simply to protect the status of the U.S. dollar, even manufacturing excuses to begin a war. This raises the stakes of war breaking out when other countries threatening the U.S. currency also engage in other aggressive activities against the U.S. Given this, Iran may well be the next country to face the wrath of the American-globalist elite. 

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