This YouTube video by Jake Tran explains how the current world monetary system is based on the US Dollar, how the dollar is tied to oil, and why America is always fighting wars to enforce that system.
The video opens with stories from Iraq, Venezuela, and Libya. These are countries the United States and its allies have invaded or launched coups against. What they have in common, besides tyrannical dictators, was plans to sell their oil in currencies other than the dollar.
After Jake pitches for his video’s sponsor, he then moves into a history lesson of the Bretton Woods pact. At the end of World War II, Europe was in shambles, and the nations of the world were looking for an international currency to do business with. America’s infrastructure was intact, and it had the most gold under its protection. Therefore, it was able to negotiate for the dollar to be that world reserve currency.
As long as the dollar was backed by the gold in Fort Knox, the United States and its central bank were limited in how many dollars could be printed. That arrangement was upended by Lyndon Johnson’s social programs and the Vietnam War. These activities raised America’s debt, and other countries wanted back the gold America had been safekeeping.
In 1971, President Richard Nixon changed the rules and ended Bretton Woods, by taking the dollar off the gold standard. The dollar became “fiat” money, backed by nothing except the word of the United States government. 2 years later, America supported Israel in the Yom Kippur War, and Israel’s Arab enemies retaliated using the price of oil.
OPEC sat on the biggest known oil reserves at the time. Its member nations realized how dependent modern societies were on oil, and used that leverage. In 1974, Nixon’s Treasury Secretary made a deal with Saudi Arabia, that Saudi oil would be sold in dollars. In exchange, America would aid Saudi Arabia militarily, and the “petrodollar” was born. The Saudis became backers of US debt, and the US became a seller of weapons to the Saudis. And the Dollar remained the world’s reserve currency. Any country that goes against this system is punished, as seen in the beginning.
The video concludes with the warning that the petrodollar system can’t last forever. Powerful rival nations are challenging the dollar, and everyone is searching for reliable energy sources besides oil. Cryptocurrency is also a contender to unseat the dollar.
What the video doesn’t discuss is the role of central banks, and their scheme of enslaving the world through debt. Practically every country has a central bank, which prints money and loans it to that country with interest. There is never enough currency to cover the initial debt, so more must be borrowed to pay it, and the cycle continues. As long the nations of the world are indebted to their central banks, they can never stop churning money, and never start growing wealth without hurting someone else.