The Global Currency War

Why is the U.S. losing this war to Russia, China, Iran, and Syria?

Why did the U.S. really invade Iraq in 2003? WMDs? None were found. Oil? Production has declined, not accelerated. A global currency war? Bingo.

Ever heard of the petrodollar? Don’t feel bad, only 5% of Americans know what it is. Most countries used to back virtually all global trades with gold, and with 80% of the reserves, the U.S. was in the driver’s seat. That was good for frugality, but bad for a country that can’t control its spending. The U.S. wanted to print more dollars and ring up more debt, but didn’t have enough gold to back that move. So in 1971, President Richard Nixon took the U.S. off the gold standard and cut a deal with Saudi Arabia. If the Saudis agreed to accept only U.S. dollars for oil, and invest their profits in U.S. securities, the U.S. military would protect them from Israel and other enemies.

Full of smiles, the Saudis agreed and the petrodollar was formed in 1973. By 1975, all the OPEC countries followed suit, including Syria and Libya. Keep that fact in your back pocket as it will become important later. All went well until 2000 when Saddam Hussein switched Iraq off the petrodollar and accepted oil trades in Euros. The U.S. tried to persuade him to switch back, but he refused. To force Iraq back into the fold, and teach the other OPEC nations a lesson, the U.S. rolled tanks across the desert and took control of Iraq’s oil fields. By 2004, Iraq was back on the petrodollar. The only WMDs Saddam harbored were weapons of mass desertion.

In February 2009, former Libyan leader Muammar Gaddafi became chairman of the African Union. At the time, he controlled the world’s ninth largest oil reserves. He proposed moving away from the petrodollar and adopting a single unified African currency backed by gold. In 2011, again to protect the almighty petrodollar, the CIA backed militant groups to topple Gaddafi. Never revealed by the mainstream media was the fact that the CIA had armed large numbers of al-Qaeda fighters to orchestrate the coups.

ISIS did not begin in Iraq or Syria, as we’ve been told. It began as the Libyan Islamic Fighting Group in Libya. LIFG has close ties to al-Qaeda and the National Transition Council, which took control of Libya after the CIA-backed extraction of Gaddafi. In March 2011, Christopher Stevens became the U.S. Special Representative to the National Transition Council and began working closely with Abdelhakim Belhadj, who had commanded the group that ousted Gaddafi. In November 2011, Belhadj, under the direction of Stevens, met with the Free Syrian Army—the group trying to oust Syrian president Bashar al-Assad.

The petrodollar has been the standard used for over forty years for all energy trades, including natural gas. Russia, aka Putin, controls 33% of the gas flowing in to Europe. Gazprom, aka Putin, has constructed a network of gas pipes and many of them flow through Syria and Iran. Putin cut a $400 billion gas deal with China, and this trade will not be in U.S. dollars. Gas flowing through Syria and Iran will be traded in rubles, not dollars. In essence, Putin has declared a currency war on the U.S.

Fearing the demise of the petrodollar, which will trigger an economic collapse unseen since the Great Depression, the U.S. tried to topple Bashar al-Assad and take control of Syria and Putin’s pipes. To do so, they appointed Christopher Stevens as the Ambassador to Libya. Belhadj was directed by Stevens to meet with the Free Syrian Army to lead this charge. The CIA fueled the fight with weapons and money, fully aware that a large percentage of those fighters were al-Qaeda. Secretary of State John Kerry publically admitted that “Maybe 15 percent to 25 percent might be in one group or another who are what we would deem to be bad guys.”

The plan failed and al-Assad remained in power and in control of Syria. He also remained closely tied to Putin and bolstered by the Russian military. As more details about the CIA’s involvement with known terrorist groups started to leak, U.S. politicians squirmed in their seats. Most of those details were locked inside Ambassador Stevens’s head. On September 11, 2012, the U.S. embassy, where Stevens operated, came under attack by Islamic militants. Stevens and two former U.S. Navy SEALs were killed in the attack. The facts now intimate that although the embassy called for help, U.S. forces were told to “stand down.” Who issued that order?

Only two months remained before U.S. citizens would cast their votes for either Obama or Mitt Romney. Hillary Clinton was the Secretary of State, in charge of all foreign decisions. After the attack, Susan Rice told the American public that the violence had been solely due to a reaction to the Innocence of Muslims video. We now know this was a lie, and that al-Qaeda was behind the attack. Or were they?

In January 2014, the Islamic State militant group hit the headlines when they invaded large portions of Syria and Iraq. At the time, Obama compared them to a “junior varsity team.” How were they formed, and how did they spread so rapidly? Recall Kerry’s comment that “maybe 15 to 25%” were “bad guys?” He also said “There are about 70,000 to 100,000 oppositionists.” That’s 25,000 bad guys who came from the Libyan Islamic Fighting Group and were funded and armed by the U.S. CIA under the direction of Ambassador Stevens at the behest of then Secretary of State Hillary Rodham Clinton.

Bottom line? The U.S. created ISIS. Stevens knew it. Clinton knew it. Obama likely also knew it. The evidence of this tragic truth could have been found in only two places: Ambassador Stevens’s head and Clinton’s email server. Unfortunately, Chris Stevens’s head is now in a pine box and so is Hillary Clinton’s email server. Who really killed both of these sources of evidence?

Obama tried an end-run around al-Assad in September 2013 by using the chemical attack angle, but that also failed when Putin sailed in warships to protect the area and threatened a military response. More recently, Iran started negotiating with India and other export customers to accept oil trades in gold, not U.S. dollars. Again, an attack on the U.S. petrodollar. Because Americans have no appetite for another invasion like Iraq, Obama has no choice but to deal with the devils and offer them almost anything they want to remain on the petrodollar—up to an including nuclear weapons.

Where does all this leave us? On the edge of an economic cliff. The U.S. is $18 trillion in debt and keeps printing dollars to fuel its insatiable desire to pay for votes with free entitlements. The only thing keeping the U.S. from looking like Greece is the petrodollar. It’s like this: you want to buy gas, but all the gas stations only accept Reed Bucks. So, you must buy Reed Bucks from me to buy gas. That lets me print lots of Reed Bucks and go deeply into debt. What happens when gas stations also starts accepting Putin Rubles?

I wind up in a bread line, and so do you.

William Craig Reed is the New York Times bestselling author of COLD WAR III: HOW THE U.S. NAVY CAN DEFEAT PUTIN AND HALT CLIMATE CHANGE.

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