The Cardinal Sin of International Finance


By Nick Giambruno 

International Man

reprinted from Lew Rockwell.com

As Doug Casey has correctly noted, the prime directive of any organism—whether it’s an amoeba or a person or a corporation or a government—is to survive.

That’s why the US government protects the petrodollar so zealously. It needs the system to survive.
World leaders who have challenged the petrodollar recently have ended up dead…

Why Everyone Uses the US Dollar… for Now

In the 1970s, the US government struck a series of deals with Saudi Arabia, creating the petrodollar system. The US promised to coddle and protect the Saudi kingdom. And, in exchange, Saudi Arabia would use its dominant position in OPEC to ensure that all oil transactions happened in US dollars.

Until recently, virtually anyone who wanted to import oil from any country needed US dollars to pay for it.
The dollar is just a middleman here. But countries and businesses use it in countless transactions amounting to trillions of dollars that have nothing to do with US products or services.

Plus, if foreign countries are already using dollars for oil, it’s just easier to use the dollar for other international trade. That’s why, in addition to oil sales,

Read more at the Confederate Society of America’s Sentry blog
(The opinions in this article are the opinions of the author and do not necessarily represent the views of Southern Nation News or SN.O.)

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