How Saudi Arabia has become the Lifeline of the American Dream
In one of the better articles on this website, I had investigated in detail, how the Federal Reserve took the American dollar off the gold standard and became a paper mill, diverting value towards private Wall Street bankers in the form of usury, while robbing the American middle class of the value of their earnings through inflation. Yet, I failed to completely explain what kept the American dollar going. My impression was that the American dollar was retroactively deriving from the residual value it once had when it has linked to the gold standard. And that this residual value was decreasing in direct proportion to the amount of notes the Federal Reserve was printing. I was partly right. But thanks to the analysis of Canadian Energy Investment Strategist Marin Katusa, we now have a surprising new revelation.
After the Federal Reserve completely removed the American dollar from the gold standard in 1970, America entered into a secret defence treaty with the Saudis in 1975. The main purpose of this treaty was to end the OPEC oil embargo, which was started by King Faisal in response to American support for Israeli aggression. While the deal guaranteed American military support for the House of Saud, it also required OPEC countries to sell their oil in US dollars (Petrodollars). This created a quasi-oil standard for the American dollar, which has since then saved the American dollar from imminent collapse.
Here are some points gleaned from the insight offered by Marin Katusa.
- With OPEC countries controlling most of the oil export to the rest of the world, demand for OPEC oil also increased the demand for the US dollar in these importing nations.
- More than 70% of all 100 US dollar bills are outside the United States. There is a bigger demand for them outside the United States than within the United States, thanks to the Petrodollar. In other words, its the rest of the world that’s keeping the US dollar afloat (Tell that to your xenophobic, Confederate-flag waving American neighbour).
- The Federal Reserve thus gets to print US dollars as fast as its’ paper mills operate. In doing so, they have inflated the US dollar enormously, and under normal economic circumstances, they would have devalued the US dollar as in the case of the currencies of banana republics. But thanks to the Petrodollar, a non-official, quasi-oil standard continues to be applied to the US dollar. Reciprocally, the US gets to export its inflation to the rest of the world.
- Countries such as Saudi Arabia, Kuwait and Qatar have acquired large surpluses of Petrodollars as such, and they recycle them by investing them in the economies of Western countries. The growth of the Euro has been attributed to the investment of Petrodollars. On the downside, poorer countries face a shortage of US dollars, which they need when they buy oil from OPEC countries. And they end up becoming fair game for the predatory IMF. Research by David Spiro shows that a large part of recycled Petrodollars ended up in US government securities, further strengthening the notion that the Petrodollar was intended to strengthen the American economy.
- Leaders/Dictators of OPEC countries who publicly challenged the Petrodollar status quo have not fared well.
How would everyday Americans react if they
learnt if they happen to learn that the The Heart Beat of America is no longer Chevrolet/General Motors but the orthodox Muslim nation of Saudi Arabia? Aren’t they supposed to be the bad guys? The inherent Islamophobia, xenophobia, racism and general ignorance of Americans would indeed create some comical situations. But according to Marin Katusa, the situation is far from funny. To quote,
If oil starts trading in non-Petrodollars such as gold, or a basket of currencies, or if China and Russia start trading in Yuan and Ruble rather than US dollars, that demand [for US dollars] isn’t there. And the way of life for the average American will be done. It will be worse than the Great Depression.
And let me make it very clear. If the Petrodollar dies, so does America as a Superpower.
Americans should be very worried about what Putin can do. There is a new Cold War going on right now. It is the Colder War. That is exactly what is going on. And who is in the centre of this push? Vladmir Putin. And the Petrodollar is so crucial to the Colder War, the only thing holding America right now at the top is the Petrodollar. And let me make it very clear. If the Petrodollar dies, so does America as a Superpower.
And what does Saudi Arabia get in return for saving the American Dream?
- The assassination of King Faisal, the most capable of Saudi rulers so far. He made OPEC a force to reckon with by inducing the oil embargo. The son of one of his murdered enemies was brought to America and groomed on a steady diet of CIA mind control, drugs and girlfriends. He was then sent back to Saudi Arabia with an easily concealable shotgun. Rumour has it that the mastermind of the whole operation, including the grooming of this assassin was linked to Henry Kissinger, the same man who brought an end to Faisal’s oil embargo and the brain behind the Petrodollar.
- The secret American propping up of Iran as the future overlord of the entire Middle East. Iran is now set to stick its fingers into Eastern Arabia, Bahrain and Yemen while America does some pretend sabre rattling.
- The destruction of Iraq and Afghanistan so that Iran would be spared the labour in the future. While Iraq got invaded over suspicion of WMDs, Iran is getting a nuclear deal.
- Association of Saudi Arabia with 9/11.
- The NATO backed Arab Spring.
- The secret detention of a Saudi prince in Canada.
- Support for Charlie Hebdo.
- Passive-Aggressive behaviour towards those who support OPEC. Michael Hamilton, the director of the OPEC linked Arab Petroleum Investments Corporation (APICORP) was murdered in Saudi Arabia in 2004 by pretend “terrorists” in a very gruesome manner. The dead body of David Bird, who covered OPEC at Dow Jones, has just been found in a New Jersey river (Note to Marin Katusa: Watch your back).
It is also clear that prolonging the life of the American dollar via the Petrodollar will no longer contribute to further industrialization of America, or in the increase in the standard of living of Americans as it once did. Rather, the Federal Reserve has gone silly printing dollars as fast as their paper presses allow them. And the majority of these dollars go towards new wars aimed at destroying the existing order in the Middle East (and ultimately Saudi Arabia). The Powers That Be realise that the fun can’t last forever, and they will continue inflating the dollar to the point where even the quasi-oil standard of the Petrodollar will fail to catch up. At that point, OPEC countries will be left with worthless dollars. If only they had sought payments in gold, or even Bitcoin, things would have been different.
These insights are courtesy of one of the many promotional videos Marin Katusa made for his new book, The Colder War. While I do agree with his premise that a Colder War is afoot, I believe that it will be rigged, just like the last one. This could be the only explanation for Saudi Arabia’s suicidal stance. I have yet to read the book. But based on what I have seen so far, I assume it will be compelling read.