Did you know… the Dollar and Oil
September 17, 2011, Submitted by: Ken Tweet
Did you know that the dollar is considered the world’s reserve currency and the US can simply print more of it when needed (lend it to itself)?
Did you know that the ‘Federal Reserve’ prints all of the money for the United States?
Did you know that the ‘Federal Reserve’ is a privately owned institution and in no way is part of the United States government?
Did you know that every physical or digital dollar that is ‘printed’ or ‘digitized’ into existence is loaned to the United States government with interest due?
Do you know who gets all that interest?
Did you know that the United States government could print its own money if it wanted to (and it has in the past) with zero interest to itself?
Did you know that there is a revolving door of members from the banking system to the US government?
Did you know that world oil is priced in US dollars?
Did you know that Gaddafi of Libya was apparently threatening to price their oil in Gold instead of dollars, which nearly immediately led to the recent government overthrow there? (not saying or backing up Gaddafi’s other actions)
Did you know that Saddam Hussein was demanding oil for Euros, and coincidentally the US attacked Iraq shortly afterward? (not saying or backing up Hussein’s other actions)
Did you know that as the dollar weakens, the price of oil and gasoline increases?
Did you know that every dollar increase in the price of a barrel of oil costs about $100 Billion in consumer sales?
Did you know that it’s all about oil?
(just an observation…)
Most of what happens around us and in the global community is directly related to money, oil, among other things…
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Go to http://mykindred.com/cloud/TX/Documents/dollar/ and see how well our country did before the fed took over in 1913 and began the slow demise of our money. This informative time line shows and says it all. Even right after WWII when the US was THE only country and growth engine left standing on the planet, the wicked Federal Reserve continued to siphon off our hard earned dollars straight into their own pockets. EVERYONE involved with this insidious institution should be arrested, charged and imprisoned on charges of treason and financial crimes against this nation.
The ONLY, THE ONLY, item that has any value tied to the dollar is OIL. Iran is looking for other means of selling their oil and is a big fat target. Israel would be a real nice proxy for the U.S. to get rid of Iran with the notion that Israel’s country is threatened by Iran’s nuclear programs. I wonder what excuse would be to stop Saudi Arabia if they decided to sell their oil using precious metals or some other currency. Many other OPEC nations have considered using a basket currency or one currency period, because they are reconsidering the U.S. dollar as a bad risk.
The U.S. dollar use to have precious metals to back it up. Look at some of those old greenbacks (bills) that are silver certificates as examples. The old coins use to have silver in them, until 1964. The half dollars had some silver in them until about 1971 or 72, can’t remember. You are suppose to have ownership of your money for transactions, all of them as long as they are not illegal. Can’t melt down nickels though for their metals, this is illegal. In fact I remember reading somewhere that you are only allowed about 100 or so nickels to take across the border because of this reason that people were melting down nickles for about double what they are worth at 5 cents.
The U.S. dollar like the Roman Empire in the fading years does not have anything to back up their currency. Someone can put a value on tree bark, and if someone if stupid enough to take as currency then it has value. The greenback has not reached that level yet, but eventually it could. I can remember watching some Science Fiction movie in which these incredible dumb sh$%$ froze to death after breaking into a bank full of money after the world had ended, so conditioned to not burn something that would keep you warm.
A Question to Everyone? If the civilization totally collapsed what percentage of people would still NOT burn U.S. dollars, all denominations to stay warm? Ken, what percentage of the U.S. population do you feel would be too conditioned and too ass monkey stupid not to burn greenbacks to stay alive?
Australian 1966 50cent piece. (Sterling Silver 92%)
Face value – 50cents
Silver content value – currently on ebay 14 – 15 dollars each.
Probably the same with the old U.S. Silver dollars.
If the U.S. dollar collapses the oil price is up for grabs. Third world countries without any of their own oil supplies will be able to buy none.
Huge third world countries with massive city populations are dependent on oil and related products to feed those populations. Cooking fires in most third world countries are subsidized kerosine. You can imagine the problem here.
@ Beano. Excellent point about kerosine, these poor countries will result to any and all wood available, charcoal, anything and that will be in short supply. When people think of oil they think of gasoline and filling up their autos, they are not aware of all the other oil by products, especially plastics. I remember hearing someone talk about how the human race did not need petroleum as long as mankind could find an alternative fuel such as hydrogen for vechicles and using solar and wind for power. Mining the moon for H3 type hydrogen for the power needs for centuries.
It is pathetic to hear some of these greenies that do not understand all the needs that petroleum provides, especially lubricants for machine parts. People could go back to glass for much of what is needed from plastics if oil did run critically low, but I do not see an alternative type of lubricant that is as effiecient as petroleum provides. Then there are fertilizers and many other chemicals that the modern industries need from PETROLEUM.
People are LOCKED into oil and this is why major wars are being fought over the control of the oil fields. The U.S. dollar is tied into oil like a hangman’s noose around most of the countries’ necks, tightly.
Did you know that much of the US advantage has been the fact that the US dollar was the so called reserve world currency and oil was priced in US dollars. It is why US citizens have been able to enjoy fuel prices in the past that were significantly lower than everyone else in the world had to live with.
When the US dollar tanks and is no longer the reserve currency, the citizens of the US are going to be faced with yet another kick in the teeth when they get to see what it is like to live in an economy where their local currency is NOT the reserve global currency. This will be another very painful awakening.
So who DOES get that interest paid to the “federal” reserve?
“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” – Henry Ford
There are actually 12 Federal Reserve Banks. Its shareholders are private banks. Federal Reserve shareholder names are a highly safeguarded secret. The fact that this information is not available to the American people should speak volumes.
The Federal Reserve Bank of New York holds the largest percentage of shares (53%) in the Federal Reserve System.
The two largest shareholders of the New York Federal Reserve are JPMorgan Chase and Citigroup. JPMorgan and Citibank are the financial cornerstone of Morgan and Rockefeller empires. So, being the largest shareholders of New York Federal Reserve meant that, they are also the largest shareholders of the Federal Reserve System in the U.S, since NY Federal Reserve holds the largest share in the system.
In 1983, there was a leak which revealed that the New York Fed top 8 shareholders were Citibank, Chase Manhattan, Morgan Guaranty Trust, Chemical Bank, Manufacturers Hanover Trust, Bankers Trust Company, National Bank of North America, and the Bank of New York. It was also revealed that many of these banks are owned by about a dozen European banking organizations, mostly British, and most notably the Rothschild banking dynasty.
The US government is essentially run and controlled by invisible puppet-masters who themselves are seeking to control the world (It is always about the money). The system is in dire straits though, the consequences of which could be quite severe. We’ll see as time unfolds.
I’ve only recently awoke to the way the world truly works and it saddens and shocks me at the same time. And, unfortunately, I think we’ve screwed ourselves beyond fixing… at least without collapsing first.
@All; First before I respond, let me say that monetary policy is not simple. I am one of the “gold bugs” that wants a PM backed monetary unit. The drawback of that point of view is that the difficulty of controlling currency stability is vastly OVERSIMPLIFIED! It is not the complete panacea that the PMers, myself included, advocate. To demonstrate this, follow the story: A guy goes into an inn and asks if the rooms are nice. The inn keeper says “yes, they are very nice”. The man says he doesn’t want to stay if they aren’t nice enough and asked how much they were. The inn keeper responds that they are $100 a day. The guy says okay, here’s a $100, BUT if I don’t like it I want my money back and I’ll go somewhere else. The inn keeper says “fine” and takes his $100. The guy leaves to go look at his room. While he’s gone the butcher comes in and asks the inn keeper to pay his meat bill. The inn keeper pays him $100 and the butcher leaves. At the butcher shop the baker comes in and asks the butcher to pay his bakery bill, so the butcher pays him $100. On the way back to the bakery the local “woman of the evening” asks the baker to pay his bill and he pays her the $100. She in turn goes to the inn keeper, as this is her “home away from home” and pays the inn keeper his bill of $100 and leaves. When she is gone the guy comes down and says he doesn’t want the room, it’s not up to his standards and he wants his money back. The inn keeper obliges and gives the man his $100 back and the man leaves. How much money is there? LOL, not so easy is it? This could be gold/silver or it could be fiat currency, either way commerce has been conducted, to the satisfaction of the consumers involved. Now, obviously this is a contrived example but it still shows the complexity of currency and how hard it is to “understand” how and what money does. As a matter of fact this example would show WHY we use fractional reserve banking. “Well let the market control it” we say. Ever seen a soccer game?(not that it is a real sport) The crowd is the free market and MOST of the time they behave within acceptable, expected boundaries. But, if you have ever watched “Most Shocking” on TV or any riot, it was probably the fans at a soccer match, not behaving in an acceptable or expected manner. As much as I applaud the free market it has some bad moments and there truly is need to correct the problem at that moment. The bad part of course, is that the gubment over does everything in reaction to calls from the public to do something “there oughta be a law….”. In the late 1890s and in 1907 there were two terrible market panics that caused lots of common folk to lose money (lots of reasons why) and the public clamored for something to be done about it…the result was the Fed. eg. The FEMA “concentration camps”, those are refugee centers that “WE” demanded be built because of Katrina and the lack of response to the plight of the people in NO. Now, as far as I’m concerned (everyone should know by now that I’m mean and mean people suck) they should have left them alone. They stayed, they caused their own misery and yet, we have to pay for it in more ways than one!!!! Will get back with more. Hope you enjoyed the story, think about it.
In addition, the U.S. has gone through four decades of trade deficits. Borrowing and spending increased considerably from 1981 onward, with citizens voting for politicians who supported tax cuts and greater deregulation.
Around 70 pct of economic activity is based on consumer spending, and the same percentage of people work in the service industry. More moved from manufacturing and agriculture because there was higher pay in the service industry, especially finance, with more of manufacturing outsourced. There were generally no complaints from citizens because they got higher-paying jobs, cheap goods from abroad, and other perks such as tax cuts and government services much better than what is offered in most parts of the world.
That is a very good short-n-sweet summary. Well put. Now, decades later, here we are as the system cannot support this behavior any longer and debts are coming due…
put government into the monetary policy story above with a 30% tax burden (income tax, property, payroll, & sales tax) The inn keeper would pay the butcher $70, The butcher would pay the baker $49, the baker would pay the “woman of the evening” $34.30 and the “woman of the evening” would pay the inn keeper $24.01 ……. there’s $75.99 missing now, where did it go ?
@Angell; BINGO, you win the prize! The gubment is the problem, not the way money is handled, by and large.