In exchange for the dollar-oil link, the Saudi Royal family receives the protection of the U.S. military

Jul 11, 2008 - 11:01 AM By: Mike_Stathis
You see folks, as long as the world is dependent on oil, the dollar remains backed by crude since you can only buy it with the dollar (with one rare exception to be mentioned shortly). This dollar-oil link helps keep the dollar as the universal currency. And because the entire world must use the dollar, you can imagine how that dilutes the inflationary effects seen in America due to the Fed's printing presses. Thus, the dollar-oil link ensures the Fed's inflation machine is spread throughout the globe. Without the dollar's link to oil, the inflation seen in America would be much more severe.

This is the secret that virtually no one realizes. It is not a conspiracy. It is a fact. And the few in Washington who realize it are never going to admit it. But consider why it is that America has such good relations with the Saudis. After all, it was President Nixon who negotiated with the Saudi Royal family to demand dollar payments for oil shortly after severing the finally link to the gold standard. Soon after all of OPEC followed suit. In exchange for the dollar-oil link, the Saudi Royal family receives the protection of the U.S. military. This is why the Saudis are rarely criticized by Washington . They have earned a blanket exception for virtually anything they do, including involvement in terrorism and yes, even including holding down oil output.

The Saudis know well that they have a good deal of control over the fate of the U.S. economy. Given the fact that Iran has now created an oil exchange (Iranian Oil Bourse, March 2006) that accepts only the Euro, you should understand why they want nuclear weapons – for protection against a U.S. attack. As Iran realizes, severing the dollar-oil link is the easiest way to destroy the U.S. And any nation that tries to do this will be dealt with accordingly. Saddam Hussein tried to sell oil accepting only the Euro in 2000 and we know what happened to him. As well, any committed push to transition the U.S. into alternative energy threatens to destroy the global enslavement by the dollar-oil link. Alternative energy will come. But it will come slowly and Washington will make sure of this. Incidentally, I discuss this as one of many critical topics in my book “ America 's Financial Apocalypse.”