How US dollar came into trade for Oil?
Any country in the world must print its paper currency as per the gold reserve it has in its hands as per the international law. But in 1971, the USA printed and spent far more paper currency than the gold reserve it had in its reserve. Few years later, French demanded redemption of its paper-dollar holdings in gold. But, USA rejected as it actually didn’t have enough gold for the dollars it had already printed and spent all over the world, thus committing an act of bankruptcy. So the US went to Saudis and cut a deal – OPEC (Organization of the Petroleum Exporting Countries) denominate all sales of oil in US dollar.
From that point, every nation that needed to buy oil had to firstly hold US dollars, which meant that they exchanged their goods and service for dollars, which the Americans just printed. The Americans brought their oil literally free by printing the dollars. The ultimate free lunch for the Americans at the expense of the rest of the world.
Saddam Hussein –
Every game will have its own game changer period. Likewise, there would be someone who would be required to bell the cat. Saddam Hussein was the one who belled the cat for this petro dollar trade for the oil across the globe.
In the year 2000, Saddam started selling his oil reserves directly for EURO, thereby putting an end to the agreement of Americans had with OPEC. Remember, if other countries started following Saddam’s path & start selling oil apart from US dollar, then need of US dollar will start reducing across the globe which would impact American’s economy.
Hence, the Americans wanted to stop Saddam but could not declare an open war for his decision. If that would have happened, then Americans might have faced anger from rest of the Gulf countries. This is where US used their brain (cunningness) & implemented a drama of invading to Iraq in 2003 showing the reason of twin tower blast. Post to this drama, US were able to implicate back its policy of selling Oil only for US dollars.
During mid-year 2006, Hugo Chavez (Venezuela president) also followed the footsteps of Saddam, thereby started selling his oil resources for currencies other than US dollars. But, the Americans with the help of CIA (Central Intelligence Agency) were able to make a government change in Venezuela as well. By this time, since the petrodollar scam cat was almost out of the bag, Iran president Ahmedinejad, made an announcement that his oil resources would be sold only for the currencies other than USD. Thus, rest of the countries started thinking if they can buy oil other than US dollars why would they need to hold the paper (USD) which is of no use.
Even more worse is since the Iran president started selling oil only for the currencies except USD, Americans would have to buy EUR / GBP / Rubles instead of just printing their dollar currency to get it. Since this would be a direct hit in the US economy & domination of American Empire over the rest of the countries, there is no other option for the Americans other than to declare war with an indirect reason stating nukes, terrorism, etc.
In October of 2011 top U.S. officials announced that they had apprehended 2 Iranians that were suspected of trying to commit terrorist activities on U.S. soil. U.S. Attorney General Eric Holder announced that the DEA and FBI had disrupted a plot "conceived, sponsored and... directed from Iran" to murder the Saudi Arabian ambassador to the U.S. in or outside a crowded Washington, D.C. restaurant which potentially would have been followed up by bombings of the Saudi Arabian and Israeli embassies. The U.S. said an Iranian-American, 56-year-old Manssor Arbabsiar of Corpus Christi, Texas, was working for elements of the Iranian government -- specifically Iran's elite military unit the Quds force -- when he attempted to hire hitmen from the feared Zetas Mexican drug cartel to carry out the hit, but Arbabsiar was unwittingly speaking to a DEA informant from the start. It is believed by some[who?] that the terrorist activity was absolutely falsified by the U.S. Government in order to facilitate further sanctions on Iran, therefore securing the strength of the Dollar.
