- Aug 31, 2012
pete said:The Road To World War 3
In 1945, the Bretton Woods Agreement established the dollar as the world reserve currency, which meant that interantional commodities were priced in dollars. The agreement, which gave the United States a distinct financial advantage, was made under the condition that those dollars will remain reedemable for gold at a consistent rate of $35 per ounce. The United States promised not to print very much money, but this was on the honor system, because the Federal Reserve refused to allow any audits or supervision of its printing presses.
In the years leading up to 1970, expenditures in the Vietnam War made it clear to many countries that the U.S. was printing far more money than it had in gold, and in response they began to ask for their gold back. This of course set off a rapid decline in the value of the dollar. The situation climaxed in 1971, when France attempted to withdraw its gold and Nixon refused. On August 15th he made the following announcement:
Nixon: "[Accordingly, ]I have directed the Secretary of the Treasury to take the action necessary to defend the dollar against the speculators."
Nixon: "I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interest of monetary stability and in the best interests of the United States."
This was obviously not a temporary suspension as he claimed, but rather a permanent default. And for the rest of the world who entrusted the United States with their gold, it was outright theft.
In 1973, presiden Nixon asked king Faisal of Saudi Arabia to accept only U.S. dollars as payment for oil, to invest any excess profits in U.S. Treasury bonds, notes, and bills. In return, Nixon offered military protection to Saudi oil fields. The same offer was extended to each of the world's key oil producing countries. And by 1975, every member of OPEC had agreed to only sell their oil in U.S. dollars. The act of moving the dollar off of gold and tying it to foreign oil, instantly forced every oil-importing country in the world to start maintaining a constant supply of Federal Reserve paper. And in order to get that paper, they would have to send real physical goods to America.
This was the birth of the PetroDollar.
pete said:Russian S-400s Relocated Near Turkey
DEBKAfile's military sources say that, beside the issue of the NATO missile defense system to which Russia is firmly opposed, Moscow is relaying a double warning to Ankara on two additional scores:
One, that any more interceptions of Syria-bound aircraft coming from Russia after the incident of Oct. 10 would bring forth a Russian military response; and two, that Moscow will not tolerate aerial intrusion in the Syrian conflict by Turkey or any other NATO member. This warning was directed specifically against the imposition of a no-fly zone over Syria which Turkey is in the process of enforcing.