The Real Reason Qadaffi Had To Go

[CuteOldGuy]

Was it because he supported terrorism? No
Was it because he shot down an airliner? No
Was it because he terrorized his own people? No
Was it because the people rose up and demanded him to leave? No

Or was it because he was going to upset the world oil market, making life difficult for the oil companies?

Hmmm . . .

http://smileyandwest.ning.com/forum/...r-oil-the-real

Gawd, you people that think the government actually gives a damn about you are so deluded.

[sofiaofhouston]

We just need to get a good puppet in power there and fast. I like cheap petrol as much as the next person..........

[IIFFOFRDB]

WOW CoG. I need to study this some more. It's still sinking in.

[fishingtwo]

Makes perfect sence and we can only sit back and watch. Hope and change is in the air and when the dust clears they will still be fighting.

[timpage]

I dunno, maybe it's just me....but I am immediately suspicious of a news story where they misspell the name of the President of the United States in the headline. COG, you're a kool-aid drinking moron.

[CuteOldGuy]

No kool aid. So Qaddafi wasn't going to upset the oil industry? Methinks you are the moron.

[Guest102513-1]

Oh come on COG, by in large I luv the wit and humor of most of your posts

But do you really feel that we or the oil companies...who I am NO big fan of...have any real control about who is going to be running that country??? Heck look what has happen in Iraq. No the "crazies" have not taken over...the average Iraqi wants no part of that nonsense. But it certainly is not a US friendly gov't.

(So that comment by whoever about installing some US puppet leader needs to get her head out of 1940's politics and into modern day regime change.)

And let's face it, it's the Saudi, Iraq and Iran who would have the real juice in moving away from the dollar to some gold standard. Notice in that video, most of his influence was over African countries...and that is subject to debate.

Plus we all know, it's not just the big bad Arabs that control the price of oil. It's the oil companies, with their billions of quarterly profit and tax breaks that have as much influence as the arabs.

The Arabs are no fool....they may not be our friends(???) but they're good enough businessmen to make oil affordable to the western world market...otherwise we would have no interest in that region.

Oil is our drug...but finally after years of dependence, the amount of oil we import from that region is signifcantly down from the 1970's. Not because we all the sudden got a backbone. But the price became so high, we got other "drug dealers" who could compete....i.e. Canadians and alternative fuel options

And who knows, with the sad fact of global warning, the amount of untapped undersea oil deposits in those areas could be huge. I'm not saying global warming is a good thing....not at all...but that is a possible side effect that is starting to be noticed more and more, for possible future discoveries.

[anaximander]

It's certainly plausable. Makes more sense
than not occam's razor and all.

Global warming isn't real in the anthropogenic
sense. We've been warming for the last 10,000
years- that's a good thing. Our civilization has
been only partially industrialized the last 200 years.
Accurate temp measurements only go back
150 years at best. Truly accurate global
records are barely 100 years.
We have no information of valid scientific use.
Statistical analysis requires at minimum 1000
years of accurate data to even hazard a minor
short range forecast of global scale.

But since when have demagogues ever
let facts or reality affect their agendas?

[WTF]

What prompted the U.S. attack on Iraq, a country under sanctions for 12 years (1991-2003), struggling to obtain clean water and basic medicines? A little discussed factor responsible for the invasion was the desire to preserve "dollar imperialism" as this hegemony began to be challenged by the euro.

After World War II, most of Europe and Japan lay economically prostrate, their industries in shambles and production, in general, at a minimum level. The U.S. was the only major power to escape the destruction of war, its industries thriving with a high level of productivity. In addition, prior to and during WWII, due to extreme political and economic upheaval, a considerable amount of gold from European countries was transferred to the U.S. Thus, after WWII the U.S. had accumulated 80 percent of the world's gold and 40 percent of the world's production. At the founding of the World Bank (WB) and the International Monetary Fund (IMF) in 1944-45, U.S. predominance was absolute. A fixed exchange currency was established based on gold, the gold-dollar standard, wherein the value of the dollar was pegged to the price of gold-U.S. $35 per ounce of gold. Because gold was combined with U.S. bank notes, the dollar note and gold became equivalent, which then became the international reserve currency.

Initially, the U.S. had $30 billion in gold reserves. But the United States spent more than $500 billion on the Vietnam War alone, from 1967-1972. During these years, the U.S. had over 110 military bases across the globe, each costing hundreds of millions of dollars a year. These expenses were paid in paper dollars and the total number given out far exceeded the gold reserve of the U.S treasury. By then (1971-72), the U.S. Treasury was running out of gold and had only $10 billion in gold left. On August 17, 1971, Nixon suspended the U.S. dollar conversion into gold. Thus, the dollar was "floated" in the international monetary market.

Also in the early 1970s, U.S. oil production peaked and its energy resources began to deplete. Its own oil production could not keep pace with growing home consumption. Since then, U.S. demand for oil continually increased, and by 2002-2003 the U.S. imported approximately 60 percent of its oil-OPEC (primarily Saudi Arabia) being the main exporter. The U.S. sought to protect its dollar strength and hegemony by ensuring that Saudi Arabia price its oil only in dollars. To achieve this, the U.S. made a deal, some say a secret one, that it would protect the Saudi regime in exchange for their selling oil only in dollars.

Throughout the late 1950s and 1960s the Arab world was in ferment over an emerging Nasser brand of Arab nationalism and the Saudi monarchy began to fear for its own stability. In Iraq, the revolutionary officers corps had taken power with a socialist program. In Libya, military officers with an Islamic socialist ideology took power in 1969 and closed the U.S. Wheelus Air base; in 1971, Libya nationalized the holdings of British Petroleum. There were proposals for uniting several Arab states-Syria, Egypt, and Libya. During 1963-1967, a civil war developed in Yemen between Republicans (anti-monarchy) and Royalist forces along almost the entire southern border of Saudi Arabia. Egyptian forces entered Yemen in support of republican forces, while the Saudis supported the royalist forces to shield its own monarchy. Eventually, the Saudi government-a medieval, Islamic fundamentalist, dynastic monarchy with absolute power-survived the nationalistic upheavals.

Saudi Arabia, the largest oil producer with the largest known oil reserves, is the leader of OPEC. It is the only member of the OPEC cartel that does not have an allotted production quota. It is the "swing producer," i.e., it can increase or decrease oil production to bring oil draught or glut in the world market. This enables it more or less to determine prices.

Oil can be bought from OPEC only if you have dollars. Non-oil producing countries, such as most underdeveloped countries and Japan, first have to sell their goods to earn dollars with which they can purchase oil. If they cannot earn enough dollars, then they have to borrow dollars from the WB/IMF, which have to be paid back, with interest, in dollars. This creates a great demand for dollars outside the U.S. In contrast, the U.S. only has to print dollar bills in exchange for goods. Even for its own oil imports, the U.S. can print dollar bills without exporting or selling its goods. For instance, in 2003 the current U.S. account deficit and external debt has been running at more than $500 billion. Put in simple terms, the U.S. will receive $500 billion more in goods and services from other countries than it will provide them. The imported goods are paid by printing dollar bills, i.e., "fiat" dollars.

Fiat money or currency (usually paper money) is a type of currency whose only value is that a government made a "fiat" (decree) that the money is a legal method of exchange. Unlike commodity money, or representative money, it is not based in any other commodity such as gold or silver and is not covered by a special reserve. Fiat money is a promise to pay by the usurer and does not necessarily have any intrinsic value. Its value lies in the issuer's financial means and creditworthiness.

Such fiat dollars are invested or deposited in U.S. banks or the U.S. Treasury by most non-oil producing, underdeveloped countries to protect their currencies and generate oil credit. Today foreigners hold 48 percent of the U.S. Treasury bond market and own 24 percent of the U.S. corporate bond market and 20 percent of all U.S. corporations. In total, foreigners hold $8 trillion of U.S. assets. Nevertheless, the foreign deposited dollars strengthen the U.S. dollar and give the United States enormous power to manipulate the world economy, set rules, and prevail in the international market.

Thus, the U. S. effectively controls the world oil-market as the dollar has become the "fiat" international trading currency. Today U.S. currency accounts for approximately two-thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all the world exports are denominated in dollars and U.S. currency accounts for about two-thirds of all official exchange reserves. The fact that billions of dollars worth of oil is priced in dollars ensures the world domination of the dollar. It allows the U.S. to act as the world's central bank, printing currency acceptable everywhere. The dollar has become an oil-backed, not gold-backed, currency.

If OPEC oil could be sold in other currencies, e.g. the euro, then U.S. economic dominance-dollar imperialism or hegemony-would be seriously challenged. More and more oil importing countries would acquire the euro as their "reserve," its value would increase, and a larger amount of trade would be transacted and denominated in euros. In such circumstances, the value of the dollar would most likely go down, some speculate between 20-40 percent.

In November 2000, Iraq began selling its oil in euros. Iraq's oil for food account at the UN was also in euros and Iraq later converted its $10 billion reserve fund at the UN to euros. Several other oil producing countries have also agreed to sell oil in euros-Iran, Libya, Venezuela, Russia, Indonesia, and Malaysia (soon to join this group). In July 2003, China announced that it would switch part of its dollar reserves into the world's emerging "reserve currency" (the euro).

On January 1, 1999, when 11 European countries formed a monetary union around this currency, Britain and Norway, the major oil producers, were absent. As the U.S. economy began to slow down during mid-2000, Western stock markets began to yield lower dividends. Investors from Gulf Cooperation Council nations lost over $800 million in the stock plunge. As investors sold U.S. assets and reinvested in Europe, which seemed to be better shielded from a recession, the euro began to gain ground against the dollar .

After September 11, 2001, Islamic financiers began to repatriate their dollar investments-amounting to billions of dollars-to Arab banks, as they were worried about the possible seizure of their assets under the USA PATRIOT Act. Also, they feared their accounts might be frozen on the suspicion that such accounts fund Islamic terrorists. Iranian sources stated that their banking colleagues felt particularly hassled as Washington heated up its war of words and threats of military intervention. This encouraged Tehran to abandon the dollar payment for oil sales and switch to the euro. Iran also moved the majority of its reserve fund to the euro. (Iran is the latest target of the U.S., which has interfered by stirring up opposition forces, and making covert threats.)

OPEC member countries and the euro-zone have strong trade links, with more than 45 percent of total merchandize imports of OPEC member countries coming from the countries of the euro-zone, while OPEC members are the main suppliers of oil and crude oil products to Europe. The EU has a bigger share of global trade than the U.S. and, while the U.S. has a huge current account deficit, the EU has a more balanced external accounts position. The EU plans to enlarge in May 2004 with ten new members. It will have a population of 450 million; it will have an oil consuming-purchasing population 33 percent larger than the U.S., and over half of OPEC crude oil will be sold to the EU as of mid-2004. In order to reduce currency risks, Europeans will pressure OPEC to trade oil in euros. Countries such as Algeria, Iran, Iraq, and Russia-which export oil and natural gas to European countries and in turn import goods and services from them-will have an interest in reducing their currency risk and hence, pricing oil and gas in euros. Thus momentum is building toward at least the dual use of euro and dollar pricing.

The unprovoked "shock and awe" attack on Iraq was to serve several economic purposes: (1) Safeguard the U.S. economy by re-denominating Iraqi oil in U.S. dollars, instead of the euro, to try to lock the world back into dollar oil trading so the U.S. would remain the dominant world power-militarily and economically. (2) Send a clear message to other oil producers as to what will happen to them if they abandon the dollar matrix. (3) Place the second largest oil reserve under direct U.S. control. (4) Create a subject state where the U.S. can maintain a huge force to dominate the Middle East and its oil. (5) Create a severe setback to the European Union and its euro, the only trading block and currency strong enough to attack U.S. dominance of the world through trade. (6) Free its forces (ultimately) so that it can begin operations against those countries that are trying to disengage themselves from U.S. dollar imperialism-such as Venezuela, where the U.S. has supported the attempted overthrow of a democratic government by a junta more friendly to U. S. business/oil interests.

The U.S. also wants to create a new oil cartel in the Middle East and Africa to replace OPEC. To this end the U.S. has been pressuring Nigeria to withdraw from OPEC and its strict production quotas by dangling the prospects of generous U.S. aid. Instead the U.S. seeks to promote a "U.S.-Nigeria Alignment," which would place Nigeria as the primary oil exporter to the U.S. Another move by the U.S. is to promote oil production in other African countries-Algeria, Libya, Egypt, and Angola, from where the U.S. imports a significant amount of oil-so that the oil control of OPEC is loosened, if not broken. Furthermore, the U.S. is pressuring non-OPEC producers to flood the oil market and retain denomination in dollars in an effort to weaken OPEC's market control and challenge the leadership of any country switching oil denomination from the dollar to the euro.

http://www.thirdworldtraveler.com/Ir...r_vs_euro.html

There are hundreds of great article's on the petro-dollar. Go here if you want to try and grasp just wtf we are fight for.

http://www.google.com/search?q=Iraq+...archBox&ie=&oe=

[anaximander]

Our resources aren't depleted.
Democrat policies enacted in the
1970's under the rubric of environmental
protection either put the resources
off limits or epa over-regulated
the industries away.

CO2 emission regs are the final nail
in the western economies coffin.
It's a sham science used to justify
the transfer of wealth from the
US to the good for nothing turd world.

[WTF]

Originally Posted by anaximander

Our resources aren't depleted.
Democrat policies enacted in the
1970's under the rubric of environmental
protection either put the resources
off limits or epa over-regulated
the industries away.

.

You do not know WTF you are talking about, new technology is what has opened up vast oil finds. You ever heard of deep water drilling or fracking?

You are one ignorant SOB.

You spout off the dumbest shit, move back to you country of choice, Israel.

[MrGiz]

Originally Posted by WTF

. . . .
Thus, the U. S. effectively controls the world oil-market as the dollar has become the "fiat" international trading currency. Today U.S. currency accounts for approximately two-thirds of all official exchange reserves. More than four-fifths of all foreign exchange transactions and half of all the world exports are denominated in dollars and U.S. currency accounts for about two-thirds of all official exchange reserves. The fact that billions of dollars worth of oil is priced in dollars ensures the world domination of the dollar. It allows the U.S. to act as the world's central bank, printing currency acceptable everywhere. The dollar has become an oil-backed, not gold-backed, currency.
. . . . .

Fine article you have presented there... but the copied portion, I believe, deceives many.

The U.S. doesn't control shit!*Up until now, it has only been "convenient " for the planet's oil to be priced in U.S. Dollars.*After round and round and round of "quantitative easing" by the Federal Reserve... the entire planet has come to realize the scam.... the U.S. Dollar is worth next to NOTHING!!

Once the U.S. Dollar loses it's position as the planet's "reserve currency".... THE SHIT WILL HIT THE FAN!*When that eventually happens.... oil will be only "one" thing which becomes astronomically expensive!

[WTF]

Originally Posted by MrGiz

Fine article you have presented there... but the copied portion, I believe, deceives many.

The U.S. doesn't control shit!*Up until now, it has only been "convenient " for the planet's oil to be priced in U.S. Dollars.*After round and round and round of "quantitative easing" by the Federal Reserve... the entire planet has come to realize the scam.... the U.S. Dollar is worth next to NOTHING!!

Once the U.S. Dollar loses it's position as the planet's "reserve currency".... THE SHIT WILL HIT THE FAN!*When that eventually happens.... oil will be only "one" thing which becomes astronomically expensive!

WTF are you talking about?

Cuteoldguy presented an article saying that the war in Lybia was about keeping the price of oil in dollars.

That is exactly wtf the war in Iraq was about also.

Of course the rest of the world knows the scam. They also are realizing that re-pricing their oil in anything other than dollars comes the cost of regime change.
You will get no argument out of me that we need to get our financial house in order and address the real problem. But we need to know the real problem's first. If folks do not even understand why we have to have the military expense we do , they will never grasp the problem.

If you were to read any of my posts, you would know that I have said a warring nation must take in more than it expends. It remains to be seen if these wars are worth it instead of fixing the underlying structural problems.

Are you just wanting to argue for the hell of it? I agree with you ... why would you not then agree with the article?

[MrGiz]

I am not arguing... I agree with most everything in the article. I am only pointing out the fact that the U.S. Dollar continuing as the world's reserve currency is not as secure as many people think!

[WTF]

Originally Posted by MrGiz

I am not arguing... I agree with most everything in the article. I am only pointing out the fact that the U.S. Dollar continuing as the world's reserve currency is not as secure as many people think!

I never said it was, nor did I think the author implied as much.Here is a newer more revelant article. Read it all and try and not cherry pick...
http://21stcenturywire.com/2011/04/12/2577/

Back in the day, the citizens of Rome cared little about the details of military largess and conquest abroad. There only interest was that the glory of Rome was upheld and for bread and circuses at home. As the Great Resource Wars of the 21st century continue to rage on unabated, one question comes to mind: what will mindful citizens in the aggressor countries do to change this present course of history?
Judging by the ease at which the West managed to pull of their latest heist in Libya, I would say… very little right now.