You're Kidding

Dollar Debased Like Never Before

WHY DOLLAR IS OILY RESERVE CURRENCY

Oil industry giants such as Exxon continue to insist that we have plenty of oil for decades, but then add that more investments are needed for offshore exploration. What they are really saying is that higher oil prices are due to Peak Oil – the decline in conventional oil reservoirs, which is forcing companies to focus on non-conventional oil. They use word games to hide the truth because they realize any possibility of Peak Oil will cause a push for alternative energy, which would threaten their monopoly. OPEC plays the same game. Washington goes along with these fantasies as well for a much bigger reason – to preserve the dollar-oil link.

You see folks, as long as the world is dependent on oil, the dollar remains backed by crude since you can only buy it with the dollar (with one rare exception to be mentioned shortly). This dollar-oil link helps keep the dollar as the universal currency. And because the entire world must use the dollar, you can imagine how that dilutes the inflationary effects of the Fed's printing presses. This is the secret that virtually no one realizes. It is not a conspiracy. It is a fact. And the few in Washington who realize it are never going to admit it.

But consider why it is that America has such good relations with the Saudis. After all, it was President Nixon who negotiated with the Saudi Royal family to demand dollar payments for oil shortly after severing the final link to the gold standard. Soon after, all of OPEC followed suit. In exchange for the dollar-oil link, the Saudi Royal family receives the protection of the U.S. military. This is why the Saudis are rarely criticized by Washington. They have earned a blanket exception for virtually anything they do, including involvement in terrorism and yes, even including holding down oil output.

The Saudis know well that they have a good deal of control over the fate of the U.S. economy. Given the fact that Iran has now created an oil exchange that accepts only the Euro, you should understand why they want nuclear weapons – for protection against a U.S. attack. Severing the dollar-oil link is the easiest way to destroy the U.S. And any committed push to transition the U.S. into alternative energy threatens to destroy the global enslavement by the dollar-oil link. Saddam Hussein tried to sell oil accepting only the Euro in 2000 and we know what happened to him.

Alternative energy will come. But it will come slowly and Washington will make sure of this.

From "America's Financial Apocalypse: How to Profit from the Next Great Depression" (Condensed Edition) by Stathis (Paperback - Jan 21, 2008)