Yom Kippur War Redux Petrol D0llars Last Hurrah

26.06.19 06:29


If you listen closely you can still hear former Secretary of the Treasury John Connally, yes the former Texas Governor who was riding in the Limo on the day when John Kennedy was killed, officially closing the Gold Window August 15, 1971. 

President Nixon would later address an after market close National TV audience and explain; “Now, what is this action—which is very technical—what does it mean for you? Let me lay to rest the bugaboo of what is called devaluation. If you want to buy a foreign car or take a trip abroad, market conditions may cause your dollar to buy slightly less. But if you are among the overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today.” 

The following day the market would applaud with the DOW up 33 points when 33 points was a big day. The d0llar would follow-up with a 33% plunge during the rest of the 1970’s. I mention this because the closing of the Gold Window in 1971 that prevented foreign nations from converting their d0llar holdings to gold at a fixed rate of $35/oz will lead to the Petrol D0llar’s creation and where we find ourselves today, understanding history may help guide our future actions. The $35/oz was the same value created January 30, 1934 when FDR confiscated all private gold holdings with Executive Order 6102. 

FDR redeemed your gold for $20.67/oz and immediately gave that same gold a new value of $35/oz. I think Nixon’s use of the term Bugaboo to describe this devaluation would be too kind. FDR’s 59% devaluation bugaboo in 1933 was followed-up by Nixon’s 33% devaluation just 38-years later. The 1944 Bretton Woods agreement had lasted only 27-years. I mention these facts because at any moment there could be a new Executive Order or the countries of the world could get together and hammer out a new Bretton Woods agreement, but that doesn’t seem to be the path we’re following. Nixon was in a tuff spot, how do you differentiate US floating D0llars from other floating currencies and how do you maintain the Premier Reserve Currency Status the US had following World War II. 

Nixon and Kissinger, or I should say Nixon and Kissinger’s contacts in London devised the Petrol D0llar scheme. I say Kissinger’s contacts in London because many of the documents used by Kissinger still used the British spellings of our English words. Britains Israeli and Middle Eastern contacts would prove essential.  Does help to explain why it’s Wall Street AND London in charge of the Petrol D0llar scheme. Crude oil at this time was selling for $3.60 a barrel. 

I’m not much of a historian regarding the ins and outs of the Yom Kippur War of 1973 but I can only assume as with today, it didn’t take much to egg on Egypt, Syria and Israel to get the conflict started. Operation Nickel Grass that the US provided to Israel would create the OPEC Oil Embargo against those countries helping Israel during the conflict and drive the cost of crude up to nearly $12 a barrel thus creating the Petrol D0llar, where crude is purchased on the Wall Street or London markets and priced exclusively in d0llars. This devaluation made even FDR’s devaluation look tame and certainly no bugaboo.  

The Shah of Iran became so upset with the rising price of crude that he offered to lower it, the Saudi Oil Minister at the time had to pay a personal visit to the Shah explaining that the US and Kissinger actually wanted the price this high. Let’s hope today’s Iranian’s have a better understanding of the system we’re living in. I’d like to add a little quote from Thomas Jefferson here; "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." 

I would think it’s safe to change “The American People” to the people of the world, because the Petrol D0llar scheme has been an easy one to inflate and deflate the world’s money supply. The collapse of oil prices from a high in May 1980 of $122 to a low of $24.50 in March of 1986 would bring about the demise of the Soviet Union.  

I believe most of us know that the Iraq, Libyan and Syrian Wars have all been fought to preserve the Petrol D0llar scheme. I would add Afghanistan here, but that invasion had more to do with the Narco D0llar and the Taliban’s eradication of poppy that is so plentiful today. Iraq switching their oil payments to Euro’s led to the Iraqi invasion. Colonel Gaddafi’s desire to have a Gold backed African currency for the purchase of crude led to his demise. Syria’s unique position of a gateway to the Mediterranean Sea and their ability to by-pass the Strait of Hormuz is why US troops still have a presence in Syria. The 21 mile wide chokepoint that provides about 21% of the world’s crude is strategic for the US and the Petrol D0llar scheme not Iran. So why does the US have its Fifth Fleet parked so close to Iran and what is going on?  

President Putin pointed out a while ago from his recent discussion regarding crude oil prices with the Saudis that Russia and the Saudi’s have a pricing disagreement.  Russia has their National Budget determined by a $40 barrel of crude and is quite content with a $56 barrel of crude. The Saudi’s on the other hand have their National Budget geared at a $90 barrel of crude and that creates a lot of motivation to interrupt shipments through the Strait, create a conflict with Iran and more importantly close the Strait of Hormuz considering the bulk of Saudi oil shipments transit from the Red Sea. It’s just an added plus that the Saudi’s currently have disputes involving most of their neighbors and disrupting Qatar’s and the United Arab Emirates shipments are an added bonus. The Saudi’s were instrumental in creating the need to invade Afghanistan, Iraq and Libya and were quite content with $160 crude in 2008 and would certainly like to return to those levels. Hope I’m not letting the cat out of the bag here, but the Saudi’s were and are a big deal for 9-11. As well as the Israeli’s and the Deep State, you know, all the same players with what’s going on today.  

The US Petrol D0llar is really struggling right now, Foreign Central Banks US Treasury holdings have been declining for the past several years. Making matters worse is D0llar Velocity, the amount of times each d0llar gets spent is at an all-time low. So not only are countries not collecting d0llars but nobody is spending the d0llars they have. Donald Trump would like nothing more than the bugaboo of d0llar devaluation and his Tweeter rants directed at our Federal Reserve President Jerome Powell to lower rates tells the story here. Any Mafia Don would be delighted with Trumps call today for other countries to pay the US for transit through the Strait was quite telling. Create the problem and then have other countries pay you to fix it, perfect Mafia logic. These are countries already having to pay for their crude in d0llars to begin with, you’d think that would come with some protection.  

So where is this all headed? My apologies to everyone, but my thoughts about Trumps supposedly reply about how many Iranian casualties there were going to be went more like this. Trump. “You bastards didn’t tell me the Iranians had missiles.” The two Neocon dumbshits. “We thought you knew.” Sorry, once again where is this going? For about the last ten years I’ve had a very large distrust for just which side of the equation Iran is actually on. Where are the promised twenty nuclear reactors Iran was going to purchase from Russia? What has the tens of billions of d0llars China committed to investing into Iran accounted for?

Recently, maybe even in the last ten minutes I’ve decided to think that Iran truly has their own unique objectives in all of this. If this is the case, more power to them, we are going to need all sorts of ideas and strategies to fix this world moving forward. Iran is being punished a lot and with that said they have not suffered a fraction of what their Shia and Sunni Brothers have suffered in Iraq. Personally I would only take a bullet for immediate family members, there is no valor in suicide. With this said I have many friends I would consider to be Brothers that no matter how badly they were outmanned, no matter how badly the chances of a positive outcome looked like, I would within a second hop into the fray and do the best that I could for my Brother.

Obviously Iran can close the Strait in a heartbeat. If Iran does this to their Shia and even Sunni Brothers living in the Gulf, many of which have already suffered enough, Iran will have no honor to anyone. Iran needs to announce that they will ensure safe passage through the Strait, at no charge, ;) to any of their Islamic Brothers, regardless of Islamic affiliation. I would like to believe that Iran has stock piled enough oil through the Petrol/Yuan system that they can continue through the rest of the year until Nordstream II and the Siberian Pipeline are completed.

I would certainly like to believe there will be no war. I’ll bet there are a whole lot of neocons screaming I told you we should have taken on Iran 17-years ago. Seems that every day that goes by the fat ass Pompeo has himself flying somewhere. There have obviously been some very high level discussions, Russia, Israel and the U.S. we’ve got the G20 coming up, I believe there is a high level financial meeting taking place at the same time, U.S. and India, China and North Korea, seems like there is a lot of dialogue going on. Bizarre to think the Saudi’s, the U.S. and Israel don’t see the game for all practical purposes is over.

It’s like watching someone take that final trip around the Monopoly Board with hardly any money and all their property in mortgage. It’s embarrassing, what is the US, Israel and the Saudi’s possibly hoping for? Landing on Park Place and getting a small pile of cash to make another pointless trip around the board? Rolling doubles three times just to spend some time in jail? Come on, IT’S OVER ALREADY.

What I would think will happen is the world is going to let the Saudi’s, the US and Israel land on Park Place. They’ll need to roll a seven to hit Park Place and actually roll a six and cheat and miscount and state emphatically that they landed on Park Place and the World won’t care. Not sure how they are going to create the mayhem they need to cut off the Strait for a short time, or maybe they’ll find an event someplace else in the world, but they won’t blame Iran.

Crude jacks up to $100 or $130 for a short time and Wall Street and London rejoice for a last rally into Christmas. This will give the world a little breathing space, some time to sort things out, digest some of the many meetings that have been taking place and figure out how the next game goes, Monopoly and zero sum games are boring to begin with.

I just hope the word bugaboo isn’t used when the time comes to explain to the American People what’s going on in the world and what really happened to the Petrol D0llar based scheme, with all of us hopefully remembering that Private Banks controlling the World’s Money Supply is not a good thing.  

Source: by Tet

Posted by: Tet


26.06.19 20:46

I think its time for those of us who have been following along since iraqwar.ru days to start to change the context of what has really occurred these last 17-years, wow, 17-years. We can no longer refer to the Iraq War as a war, this belittles the overall effect of the true nature of the conflict. This has been World War III since the begining and its time to start treating it like that. In order to drive the point home its time to say the Battle of Afghanistan, the Battle of Iraq, the Battle of Libya, the continuing Battle for Syria and the lastest and last Battle of Iran. Tragic yes every one of them, but I dont believe Americans will ever really understand what has occured unless the discussion gets framed in this kind of context. Make no mistake, the US is about to lose and it needs to be clear the US lost World War III.

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