Is the Petrodollar like the German Rentenmark?
instead of agriculture and industry in germany’s case, swap that for oil and control of oil, in the US case.
Hyperinflation proved to many that the old mark was of no use. Germany needed a new currency. In September 1923, Germany had a new chancellor, the very able Gustav Stresemann. He immediately called off passive resistance and ordered the workers in the Ruhr to go back to work. He knew that this was the only common sense approach to a crisis. The mark was replaced with the Rentenmark which was backed with American gold. In 1924, the Dawes Plan was announced.
Rentenmarks were issued in a fixed amount and were backed by hard assets such as agricultural land and industrial assets,
, in an effort to maintain global demand for U.S. dollars, another system was created called the petrodollar system. In 1973, a deal was struck between Saudi Arabia and the United States in which every barrel of oil purchased from the Saudis would be denominated in U.S. dollars. Under this new arrangement, any country that sought to purchase oil from Saudi Arabia would be required to first exchange their own national currency for U.S. dollars. In exchange for Saudi Arabia’s willingness to denominate their oil sales exclusively in U.S. dollars, the United States offered weapons and protection of their oil fields from neighboring nations, including Israel.
In testimony to the Senate Armed Services Committee in 1990, following the Iraqi invasion of Kuwait, defence secretary (now vice-president) Cheney set out the issues involved in the US-led war. “Iraq controlled 10 percent of the world’s reserves prior to the invasion of Kuwait. Once Saddam Hussein took Kuwait, he doubled that to approximately 20 percent of the world’s known oil reserves … Once he acquired Kuwait … he was clearly in a position to dictate the future of worldwide energy policy, and that gave him a stranglehold on our economy and on that of most of the other nations of the world as well.”
’ This is a powerful image, and perfectly describes the administration’s thinking about the Gulf area, except in reverse: by serving as the dominant power in the Gulf, WE maintain a ‘stranglehold’ over the economies of other nations.”
SPX 500, S and P 500
if you time travel backwards and accidentally change history, won’t that change your original time travel launch. … therefore, you don’t launch. see that, nature’s failsafe against morons.
nature’s own failsafe against morons, are out there???
.april earnings is such a gamble, that the
$SPX 200 SMA, that gets tested. question is, before april earnings or during april earnings….
if i’m a hedge fund, i’ll want to unload some stocks before they announce earnings, so likely before april earnings…
Sold virtual trade on TZA. Bought at $14.44 on 3/4/14 and sold at $14.75 on 3/7/14 for a profit of 2.1%, bringing my virtual trading record to 1614 winners and 117 losers.
I do not believe Russia will let the Ukraine jewel go so easily, as the geographical positioning alone of the Ukraine is to great to lose.