The "American" empire via it's petrodollar tax.

When the industrialized age first began the U.S. was the top producer and exporter of petroleum. The U.S. would only accept payment for it's oil in the form of dollars. This would force other nations to open up their markets to us. We would use our dollars, which were backed by gold at the time, and use it to pay for goods and services from other countries. After this trade the other nations would then use their dollars as payment for our oil. This would create a huge demand for dollar reserves. Nations would now have to stock up on dollar reserves in order to pay for its oil, otherwise each nation would have to open its markets to the U.S., trade its goods for dollars, and then buy its oil. It only made sense to stock up on dollars in order to purchase oil whenever needed.

This was the tax on other nations which led to the U.S. becoming an empire. The rest of the world was now paying the U.S. "two apples for one orange" and the huge transfer of wealth began flowing into the U.S. This payment for oil denominated in dollars became known as petrodollars.

Today, countries keep a stockpile of dollars so whenever they need oil they go straight to OPEC. Because bankers are always increasing the money supply which causes inflation, the countries that have these stockpiles of dollars are being taxed a second time.

As other countries began discovering and exporting their oil it was only in the corporatacracys best interest to keep the petrodollar system alive. This foreign policy become known as dollar diplomacy which later evolved into dollar hegemony.

Around 1970, when U.S. peak oil production occurred, the U.S. government asked the Saudis to pressure the OPEC producing nations to keep the petrodollar alive, in exchange for safety from the U.S. The U.S. would prevent the House of Saud (Saudi Arabia's rulers) from being toppled from any external forces as long as they sold their oil in dollars only. Dollar hegemony, also known as the hidden tax on the rest of the world, has been intact and fully alive since the '70's, even though the U.S. is no longer the top exporter of oil!

Dollar hegemony first came under threat when Saddam Hussein decided he was no longer going to sell his oil in dollars. Instead, he decided to use the euro as acceptable payment for Iraqi oil. Some people say this was the real reason for going to war with Iraq. The Iraqi oil ministry was one of the first strongholds to be captured when the war started, and days after oil sales were immediately changed back to the denomination of dollars only. Since the dollar was about 17% weaker in value compared to the euro at the time of the switch, Iraq's net worth of oil was instantly decreased by 17%. Since the switch, the dollar has dropped even further on the USDX, thereby further decreasing Iraq's net worth correlated to it's oil reserves.

Today, Iran is not only selling all it's oil in euros, but they have also launched their oil bourse. This Iranian oil bourse will compete with the New York Mercantile Exchange and the London Petroleum Exchange by selling it's own oil, in euros, within it's own stock exchange, the Iranian oil bourse. This will reverse the flow of wealth out of the U.S. and into the Middle East, making Iran and it's euro trading partners a new superpower. If this were to happen it would disrupt the "natural order" of things, to say the least.

Related Pages:

Petrodollars | Peak oil myth

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