Chapter 709: Cracking Down on the Petrodollar System

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"President Qusay, the United States manipulated Britain to freeze the assets of Saudi Arabia and Kuwait abroad. Pen | fun | pavilion www. biquge。 info≦≧ "Suddenly, Qusay received a report from a secretary who came with him.

Qusay raised his head, his expression instantly became a little serious, and he immediately thought of the sinister intention of the United States to do this, to divide the Arab military alliance!

Now in the military deterrence of Israel, Iraq's position is the first, and Saudi Arabia and Kuwait have also played a great role, but Saudi Arabia and Kuwait are pro-American, so during this period of time, Saudi Arabia and Kuwait have been under a lot of pressure from the United States, but the two countries have always insisted, and in this attack on Israel, the two countries have also invested a lot of money.

The Americans saw the problem very accurately and used the most vicious trick to freeze the investments of the two countries abroad!

Although both countries are big oil exporters and are also very wealthy, their overseas assets are also quite large, especially Kuwait, and the overseas funds are used to continue to benefit the Kuwaitis after the oil is depleted. ≦≧

In the previous wars in the Middle East, the two countries also supported the Arab countries and attacked Israel, and even sent troops to the battlefield in the same way, but the United States did not use the detrimental trick of freezing assets to cut off offspring because at that time, the Arab countries did not achieve absolute superiority.

But now, it's completely different, and Qusay knows that all this has a lot to do with him, and the Arab world, because of him, has undergone great changes and has become a great power that may really threaten the status and interests of the United States, and the United States absolutely does not want the Arab countries to unite around Iraq and form a close alliance. The United States wants to divide the Arab countries and use this way to force Saudi Arabia and Kuwait to back down.

Americans, at a critical time, still support Israel! This shows that both sides are allies. The United States can export its main equipment to Israel, as well as to Saudi Arabia and Kuwait, and it looks as if it is the same, but when it comes to the real trade-off. ≦≧ the United States chose Israel anyway.

What to do? It is absolutely impossible to let Saudi Arabia and Kuwait suffer losses like this, and let the two countries withdraw from this war in exchange for the lifting of the freeze by the United States? That's even more inadequate.

"Prince Fahd and Prince Sultan, please." Qusay said that how to deal with the matter this time should be discussed with the most important people in Amman from both countries.

The two soon came over, and Qusay said: "This time the United States has resorted to despicable means. Trying to undermine our alliance. I just got the news and was shocked. ”

"Yes, the United States has frozen our assets overseas this time, and in our country, there are already a small number of nobles and members of the royal family. They began to waver, believing that we should maintain friendly relations with the United States, and that this time we had taught Israel a hard lesson that it was time to withdraw its troops. Prince Sultan said.

There's always a coward, there's always a wall, that's it. ≦≧ Kusai had already guessed it.

"So, what does His Majesty mean?"

"The king was very determined, this event. It is the United States that is trying to use political and economic means to arbitrarily interfere in our Middle East affairs, even if it is a complete freezing of assets and no thawing from now on, we must persist in the current struggle against Israel! Prince Sultan said.

"We, Kuwait, mean the same thing."

Qusay's heart was moved. In support of this blow to Israel, Saudi Arabia and Kuwait bore the two countries. It's bloodletting, but things haven't come to that far.

"We don't have to go that far," Qusay said, "and now, since the Americans are trying to block our fight against Israel by freezing assets, we can also have a contest with the United States in the economic field!" ”

In the economic sphere, a contest with the United States? Prince Fahd asked: "Are you referring to us raising oil prices and reducing production again?" ”

"This is only one aspect, since the United States has frozen our assets, then, when we export our oil, we can settle it without dollars, we can use Western countries that are friendly to us, for example, francs. ≦≧ for example, in rubles, or directly in gold. Qusay said.

Since the Americans dare to be ruthless, then the Arab countries must also launch a favorable operation.

This operation is not how to strike at Israel, but how to fight back against the United States, fight back against the United States, and there is one biggest means that the Arab countries have not used, that is, to fight the petrodollar system! In 1973, Kissinger, then Assistant to President Nixon's National Security Affairs, signed a petrodollar agreement with the Saudi-led OPEC organization, stipulating that international oil transactions would be settled in U.S. dollars and establishing the U.S. dollar oil system. Oil, as an international trade commodity, as the blood of modern industrialized economies, uses the dollar to settle, then, it means that any country in the world must first reserve dollars before they can use dollars to buy oil, in this way, the dollar as a medium of exchange, has obtained huge benefits, the dollar as a world currency, occupies a monopoly position in the medium of exchange, with the dollar to settle, consolidating the hegemony of the dollar. ≦≧

First, the United States can levy an international seigniorage. International seigniorage is the income earned when a country's currency is used by another country. In this respect, the U.S. dollar denominated in the U.S. dollar in the oil trade and other international trade allow the U.S. to receive international seigniorage revenues, but the U.S. Treasury can buy oil by printing money, a privilege that no other country has, and the U.S. can export the virtual symbol of the U.S. dollar in exchange for an injection of oil, a real resource.

The U.S. dollar accounts for two-thirds of the world's official foreign exchange reserves and relies heavily on the petrodollar pricing mechanism. For all oil-importing countries, if there is a lack of oil, it is necessary to buy oil, and to buy oil on the international market, you have to hold dollars. Because OPEC countries only charge dollars when selling oil.

Second, the U.S. can better influence and control oil prices. The petrodollar pricing mechanism means that the United States can effectively and partially control the world crude oil market, because it is necessary to buy oil, and only the United States can issue dollars in this world. Since oil transactions are denominated in US dollars, the United States can influence or even manipulate international oil prices through domestic monetary policy. Interest rate adjustments and exchange rate policies in the United States will directly affect international oil prices. There are three factors that determine the price of oil: demand, supply, and the exchange rate of the US dollar. Arab countries rely on their own oil resources to raise prices by reducing production, which is determined by the relationship between demand and supply, but the factor of the dollar exchange rate is rarely recognized, but the United States is imperceptibly influencing it.

For example, in November 2000, Iraq switched to euro pricing for oil sales. At the time of the mechanism conversion in Iraq, the exchange rate of the euro was 83 cents per euro, whereas after the conversion, 1 euro could be exchanged for 1.05 US dollars. As a result, many believe that the United States launched the war in Iraq in large part as a result of Iraq's change of settlement currency for oil exports from the United States dollar to the euro.

Originally, Qusay planned to issue the Arab countries' own currency as the only world currency for oil settlements in the future, when the Arab countries finally have sufficient strength, and the military, economic, and political time is ripe, which will have huge interests and influence.

Now, the Americans actually want to play yin, so Cusay has to use this trick in advance.

The use of the franc, because when freezing the overseas assets of Kuwait and Saudi Arabia, the United States and Britain were the most contributing, and France did not take any means to mix in the troubled waters, France has been thinking about how to push its high-priced arms to the Middle East countries, if they choose the franc as the settlement currency, France will unexpectedly earn it this time, satisfying the mentality of the Gauls as a European power and even a world power. Doesn't the United States want to sow discord among Arab countries and divide its own alliance? Then it would be better to sow discord within the old capitalist countries.

As for the ruble, it could not have been considered, because, in later generations, the Soviet Union was going to disintegrate, and at that time, the ruble would be devalued and people had the urge to commit suicide, and later governments adopted "shock therapy", and the reforms threw most Russians to the poverty line, even abject poverty. For example, in 1992, the annual inflation rate in Russia was as high as 1 US dollar equivalent to 0.9 rubles per year, which means that a million (old ruble) billionaires are millionaires, but at the end of 1994, the official exchange rate of the ruble was 1 US dollar to 3235 rubles, which means that a million old rubles have been depreciated to only 300 US dollars, and in 2000, a new ruble was issued to replace the old ruble at 1:1000, that is, 1 dollar is equal to 28000 old rubles, At this time, the millionaire of the old ruble had turned into a pauper with only 35 dollars.

If the Middle East uses rubles for settlement, then there will be a huge amount of rubles stored, and at that time, all countries may have the urge to strangle themselves to death. However, the use of the ruble now has more practical significance, for example, the economic situation of the Soviet Union will be eased immediately, perhaps, the Soviet Union can even delay or not disintegrate, Qusay is not a savior, the more realistic meaning of using the ruble for settlement, that is, the United States wants to intervene by force, then you have to ask the Soviet Union whether it agrees.

As for gold..., it goes without saying that if the hard currency of gold is really used for settlement, then the black gold in the underground of the Middle East will become real yellow gold! When the time comes, I am afraid that the gold in the coffers of those oil-importing countries will have to be emptied.