Pricing oil in something other than the dollar would attack the basis of US power in the world. The dollar is the reserve currency based on a deal made with the Saudis back in 1971 in which the Saudis as the world’s largest oil producer agreed to accept only dollars for oil. The dollar became fiat currency in 1971 when Kissinger, as agent of the central Bankers/Rothchild/FED convinced Nixon to drop the US Dollar Gold Standard, and the Bretton Woods Treaty, that also created the IMF.
The US National Debt sky rocketed from 398 Billion in 1971 to 16 Trillion by 2012. Hmmm , ask yourself , Why ?
There are many who believe Iraq’s Saddam Hussein’s overthrow by the US was sealed when he announced Iraqi oil would be traded in euros, or gold, not dollars. Sanctions and then a US invasion followed. Coincidence?
Plans for attacking Muammar Gaddafi go back some 20 years, and even US President Ronald Reagan tried to kill him, deeming him a threat to America power. The latest attacks are in keeping with the larger wave of aggression initiated by the Anglo-American power elite that is on to the next stage of its implementation of the globalist bankers “new world order.” This power elite, based mostly in the one-square mile City of London, Washington DC, and Vatican City, is said to seek financial, and military global domination.
Gaddafi was planning to introduce a gold dinar – “a single African currency made from gold, a true sharing of the wealth.”
The idea, according to Gaddafi, was that African and Muslim nations would join together to create this new currency and would use it to purchase oil and other resources in exclusion of the dollar and other currencies.
Wheelus Air Base was a United States Air Force base located in the Kingdom of Libya. Wheelus Air Base was originally built by the Italian Air Force in 1923 and known as Mellaha Air Base.
As the Cold War overtook post-World War II international politics, on 16 November 1950 USAF’s Strategic Air Command (SAC) began deploying B-50s, B-36s, B-47s and support aircraft (KB-29, KB-50, and KC-97 tankers) from US air bases to Wheelus. The base became one of several SAC forward operating locations (FOLs) in North Africa, becoming a vital link in SAC war plans for use as a bomber, tanker refueling and recon-fighter base.
Wheelus hosted SAC bomber deployments in 45-day rotational deployments, using Wheelus as a staging area for planned strikes against the Soviet Union.
Oil was discovered in Libya in 1959, and what had been one of the world’s poorest countries became very wealthy. The United States continued a generally warm relationship with Libya and pursued policies centered on interests in operations at Wheelus Air Base and the considerable U.S. oil companies interests.
In September 1969 King Idris I was overthrown by a group of military officers centred on Muammar al-Gaddafi. Before the revolution, The Libyan People had already demanded U.S. withdrawal from Wheelus; this proceeded according to plan, and the facility was surrendered to the new Libyan authorities on June 11, 1970.
The central banking Ponzi scheme requires an ever-increasing base of demand and the immediate silencing of those who would threaten its existence. Perhaps that is what the hurry was in removing Gaddafi in particular and those who might have been sympathetic to his monetary idea.
India will begin to buy oil from Iran using gold (GLD) — not dollars. This is a big story with a couple major points:
1. It shows the exodus from the dollar is gaining speed. How far off is the tipping point? I post it’s not as far off as many would believe. With the major economies of the world facing $7.6 trillion in bond payments due this year, I think the tipping point for a shift out of dollars and into a new monetary system backed by gold is not as far off as it may seem.
2. It shows the increasingly harsh economic sanctions the US has placed on Iran, and the geopolitical tensions between the US and Iran in general, have an effect beyond the two countries involved. India is the second largest buyer of Iranian oil, after China; India spends $12 billion USD (over 200 tons of gold) per year on Iranian oil. Because India has some energy dependence on Iran, it is conceivable that India has a greater interest in protecting Iran than in supporting US sanctions. This is the kind of political environment that sets the stage for widespread war, greater trade embargos, rationing of resources, and all the political and economic headaches that come from people fighting and not getting along.
3. India’s decision to purchase its oil with gold, along with central banks continuing to accumulate gold, also shows that gold is finding its way back into the international monetary system. The end game for gold bugs that have been holding to their gold for years is when gold finally gets re-monetized, preferably through a new international monetary agreement. There has been much speculation that the IMF would issue and manage Special Drawing Rights as a new world currency; what gold bugs will want to watch for is signs that SDRs will be backed by gold to some extent, or if nation-states reject the IMF’s authority here and gold becomes the world currency on unofficial, implicit terms.
The only way gold does not get re-monetized is if some type of agreement between the US Treasury and major Treasury bondholders can be reached in which the debt is partially cancelled and bondholders agree to take the loss. This would also need to be coupled with significant cuts in US federal government spending, so that the budget was balanced and the issuance of additional Treasury bonds were not needed. The odds of this occurring become slimmer with each passing day, and are extraordinarily slim when we consider that this is an election year and presidential candidates outside of Ron Paul are reluctant to commit to significant reductions in government spending that would bring about greater short-term pain.