Are The Middle East Wars Really About Forcing the World Into Dollars and Private Central Banking?

The Reason for the Wars in the Middle East and North Africa:  Dollars

The Middle Eastern and North African wars – planned 20 years ago – don’t necessarily have much to do with fighting terrorism. See thisthis and this.

They are, in reality, about oil.

And protecting Israel (and read the section entitled “Securing the Realm” here).

But as AFP reports today, there is another major motivation for the expanding wars:

The latest round of American sanctions are aimed at shutting down Iran’s central bank, a senior US official said Thursday, spelling out that intention directly for the first time.

“We do need to close down the Central Bank of Iran (CBI),” the official told reporters on condition of anonymity, while adding that the United States is moving quickly to implement the sanctions, signed into law last month.

***

Foreign central banks that deal with the Iranian central bank on oil transactions could also face similar restrictions under the new law, which has sparked fears of damage to US ties with nations like Russia and China.

“If a correspondent bank of a US bank wants to do business with us and they’re doing business with CBI or other designated Iranian banks… then they’re going to get in trouble with us,” the US official said.

Why is the U.S. targeting Iran’s central bank?

Well, multi-billionaire Hugo Salinas Price told King World News:

What happened to Mr. Gaddafi, many speculate the real reason he was ousted was that he was planning an all-African currency for conducting trade. The same thing happened to him that happened to Saddam because the US doesn’t want any solid competing currency out there vs the dollar. You know Gaddafi was talking about a gold dinar.

And as I noted in August:

Ellen Brown argues in the Asia Times that there were even deeper reasons for the war than gold, oil or middle eastern regime change.

Brown argues that Libya – like Iraq under Hussein – challenged the supremacy of the dollar and the Western banks:

Later, the same general said they planned to take out seven countries in five years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran.

What do these seven countries have in common? In the context of banking, one that sticks out is that none of them is listed among the 56 member banks of the Bank for International Settlements (BIS). That evidently puts them outside the long regulatory arm of the central bankers’ central bank in Switzerland.

The most renegade of the lot could be Libya and Iraq, the two that have actually been attacked. Kenneth Schortgen Jr, writing on Examiner.com, noted that “[s]ix months before the US moved into Iraq to take down Saddam Hussein, the oil nation had made the move to accept euros instead of dollars for oil, and this became a threat to the global dominance of the dollar as the reserve currency, and its dominion as the petrodollar.”

According to a Russian article titled “Bombing of Libya – Punishment for Ghaddafi for His Attempt to Refuse US Dollar”, Gaddafi made a similarly bold move: he initiated a movement to refuse the dollar and the euro, and called on Arab and African nations to use a new currency instead, the gold dinar. Gaddafi suggested establishing a united African continent, with its 200 million people using this single currency.

***

And that brings us back to the puzzle of the Libyan central bank. In an article posted on the Market Oracle, Eric Encina observed:

One seldom mentioned fact by western politicians and media pundits: the Central Bank of Libya is 100% State Owned … Currently, the Libyan government creates its own money, the Libyan Dinar, through the facilities of its own central bank. Few can argue that Libya is a sovereign nation with its own great resources, able to sustain its own economic destiny. One major problem for globalist banking cartels is that in order to do business with Libya, they must go through the Libyan Central Bank and its national currency, a place where they have absolutely zero dominion or power-broking ability. Hence, taking down the Central Bank of Libya (CBL) may not appear in the speeches of Obama, Cameron and Sarkozy but this is certainly at the top of the globalist agenda for absorbing Libya into its hive of compliant nations.

Alex Newman argued in November:

According to more than a few observers, Gadhafi’s plan to quit selling Libyan oil in U.S. dollars — demanding payment instead in gold-backed “dinars” (a single African currency made from gold) — was the real cause [of the Libyan war and killing of Gadhafi]. The regime, sitting on massive amounts of gold, estimated at close to 150 tons, was also pushing other African and Middle Eastern governments to follow suit.

And it literally had the potential to bring down the dollar and the world monetary system by extension, according to analysts. French President Nicolas Sarkozy reportedly went so far as to call Libya a “threat” to the financial security of the world. The “Insiders” were apparently panicking over Gadhafi’s plan.

“Any move such as that would certainly not be welcomed by the power elite today, who are responsible for controlling the world’s central banks,” noted financial analyst Anthony Wile, editor of the free market-oriented Daily Bell, in an interview with RT. “So yes, that would certainly be something that would cause his immediate dismissal and the need for other reasons to be brought forward [for] removing him from power.”

According to Wile, Gadhafi’s plan would have strengthened the whole continent of Africa in the eyes of economists backing sound money — not to mention investors. But it would have been especially devastating for the U.S. economy, the American dollar, and particularly the elite in charge of the system.

“The central banking Ponzi scheme requires an ever-increasing base of demand and the immediate silencing of those who would threaten its existence,” Wile noted in a piece entitled “Gaddafi Planned Gold Dinar, Now Under Attack” earlier this year. “Perhaps that is what the hurry [was] in removing Gaddafi in particular and those who might have been sympathetic to his monetary idea.”

Investor newsletters and commentaries have been buzzing for months with speculation about the link between Gadhafi’s gold dinar and the NATO-backed overthrow of the Libyan regime. Conservative analysts pounced on the potential relationship, too.

“In 2009 — in his capacity as head of the African Union — Libya’s Moammar Gadhafi had proposed that the economically crippled continent adopt the ‘Gold Dinar,’” noted Ilana Mercer in an August opinion piece for WorldNetDaily. “I do not know if Col. Gadhafi continued to agitate for ditching the dollar and adopting the Gold Dinar — or if the Agitator from Chicago got wind of Gadhafi’s (uncharacteristic) sanity about things monetary.”

But if Arab and African nations had begun adopting a gold-backed currency, it would have had major repercussions for debt-laden Western governments that would be far more significant than the purported “democratic” uprisings sweeping the region this year. And it would have spelled big trouble for the elite who benefit from “freshly counterfeited funny-money,” Mercer pointed out.

“Had Gadhafi sparked a gold-driven monetary revolution, he would have done well for his own people, and for the world at large,” she concluded. “A Gadhafi-driven gold revolution would have, however, imperiled the positions of central bankers and their political and media power-brokers.”

Adding credence to the theory about why Gadhafi had to be overthrown, as The New American reported in March, was the rebels’ odd decision to create a central bank to replace Gadhafi’s state-owned monetary authority. The decision was broadcast to the world in the early weeks of the conflict.

In a statement describing a March 19 meeting, the rebel council announced, among other things, the creation of a new oil company. And more importantly: “Designation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.”

The creation of a new central bank, even more so than the new national oil regime, left analysts scratching their heads. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” noted Robert Wenzel in an analysis for the Economic Policy Journal. “This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences,” he added. Wenzel also noted that the uprising looked like a “major oil and money play, with the true disaffected rebels being used as puppets and cover” while the transfer of control over money and oil supplies takes place.

Other analysts, even in the mainstream press, were equally shocked. “Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power?” wondered CNBC senior editor John Carney. “It certainly seems to indicate how extraordinarily powerful central bankers have become in our era.”

Similar scenarios involving the global monetary system — based on the U.S. dollar as a global reserve currency, backed by the fact that oil is traded in American money — have also been associated with other targets of the U.S. government. Some analysts even say a pattern is developing.

Iran, for example, is one of the few nations left in the world with a state-owned central bank. And Iraqi despot Saddam Hussein, once armed by the U.S. government to make war on Iran, was threatening to start selling oil in currencies other than the dollar just prior to the Bush administration’s “regime change” mission. While most of the establishment press in America has been silent on the issue of Gadhafi’s gold dinar scheme, in Russia, China, and the global alternative media, the theory has exploded in popularity.

And a reader comments:

No one is paying attention to the petro-dollars and the current desperation of European and US banks. Even Iran prices oil in $$$s per the treaty after WWII, but no one wants $$$s any more because it has been such a poor investment vehicle. Gold has been much better. Iraq did not want $$$s, was invaded. Libya did not want $$$s, was invaded (I believe they wanted gold). Iran does not want $$$. The dollars are deposited in US and European banks. The dollars standing as the financial reserve currency of the world was / is being threatened, and thus the Federal Reserve Banks ability to print unlimited dollars!

This entry was posted in Politics / World News. Bookmark the permalink.
  • http://www.economic-undertow.com/ steve from virginia

    I saw this story when it first came out in April of last year and it appeared to be a rehash of the usual ill-considered conspiracy theories about conniving central bankers and robotic governments.

    Oil producers accept currencies that are traded on world currency markets, one currency becomes another at a keystroke.

    If Libya or any other country instituted a currency that was convertible to gold on demand it would vanish from circulation as the gold bugs would vacuum it up and hoard it. Libya would have to issue more ‘debt money’. The last ‘gold money’ was South Africa’s. Many countries including the US have gold as part of F/X reserves but this has nothing to do with the currency these countries circulate.

    The Middle Eastern producers have working on a euro-like monetary unit for Persian Gulf economies for years but have been unable to agree about implementation. If you are looking for a currency problem, look to Europe.

    Dollar dominance is by default, the US has circulated so many of them since the end of WWII. What has been considered a vice is actually a ‘virtue’ as dollars can be readily had by anyone in any country, including Iran and Libya. The other side of dollar dominance is dollar hardness, this is due to peak oil. Dollars are freely exchanged every second everywhere in the world for a valuable physical good on demand … which is burned up for nothing. The outcome is deflation which is now unraveling the world’s economies, including those of oil producers and consumers alike.

    If it wasn’t the dollar it would be something else. Oil for … wha?

    Pizza …

    • 0ivae

      There are some important points here. But, the specifics of currency mechanics aside, what is at issue is the sovereignty of nation states. Those who “play ball” with the transnational central bankers (through the BIS) have thereby relinquished control over their national finances, however they should decide to determine their currency “value” – whether it be gold-backed, oil-backed, green-backed, what-not. While those who do not play ball, must be stopped. It a nutshell, it is global “centralism” versus national “sovereigntism”.

  • Peter North

    Israeli submarines deployed in the Arabian Sea will sink an American warship navigating close to the Strait of Hormuz area, to subsequently be blamed on Iran. That action in itself will be a perfect excuse for war against the Islamic Republic since Americans are a bunch of stupid animals easy to manipulate and subdue – President Soetoro needs to rally these brutes in order to justify any military response.

  • xaxado
  • mmckinl

    The most important paragraph ~

    “One seldom mentioned fact by western politicians and media pundits: the Central Bank of Libya is 100% State Owned … Currently, the Libyan government creates its own money, the Libyan Dinar, through the facilities of its own central bank. Few can argue that Libya is a sovereign nation with its own great resources, able to sustain its own economic destiny. One major problem for globalist banking cartels is that in order to do business with Libya, they must go through the Libyan Central Bank and its national currency, a place where they have absolutely zero dominion or power-broking ability. Hence, taking down the Central Bank of Libya (CBL) may not appear in the speeches of Obama, Cameron and Sarkozy but this is certainly at the top of the globalist agenda for absorbing Libya into its hive of compliant nations.”

    It is not a question of gold or regional currencies but of control of a nation’s money creation. Currently most nations “give away” their profit and prerogative to private banksters through private bank fractional reserve banking. The banksters reap the profit of the money creation and the prerogative of who gets the credit and the loans instead of the citizens who back the money with their full faith and credit underwritten by their sovereign.

    The BIS, the IMF and World Bank are the tools by which the banksters demand fealty to private bank fractional reserve banking worldwide. This not only guarantees the primacy of the dollar but of the Euro and the Yen. It is by controlling the terms and conditions of trade through the WTO that these currencies but primarily the dollar are indispensable and thus create the demand for them. Currency value is all about demand. The current world financial structure creates that demand. The military and clandestine action enforce the structure and ensures the demand.

    • Bev

      If we are to save ourselves, this is how:

      See Dennis Kucinich’s heroic NEED Act, HR 2990 to help everyone turn around fast all these problems brought on by Banker’s DEBT Money…we can never get out of debt when our money is debt. And, support all heroic politicians who support Kucinich and his NEED Act.

      http://www.monetary.org/

      http://www.monetary.org/intro-to-monetary-reform/faqs

      15) What about other countries, and international systems such as the IMF (International Monetary Fund) and the BIS (Bank for International Settlements)?

      We’d expect other countries to follow quickly in our footsteps to each obtain the advantages of issuing their own national monies. The United Nations is already putting forward suggestions that member states shift now to nationally created, debt free; interest free moneys. They are way ahead of the US Congress just now. A much reformed IMF, already organized under United Nations Article 57; #3, will see a greatly expanded role for the SDR and more responsibility for international accounts clearing as well as real assistance to member states, rather than acting as a destructive collection agent for the big banks. The role and importance of the BIS should be rapidly reduced, and perhaps eliminated. Just look at the mess created under their guidance and rules. Some job they did!

      snip

      7) Doesn’t your AMA proposal merely continue with a fiat money system?

      Shouldn’t we be using gold and silver instead? Wouldn’t that provide a more stable money?

      Our system is absolutely a fiat money system. But that’s a good thing, not a bad one. In reaction to the many problems caused by our privatized fiat money system over the decades, many Americans have blamed fiat money for our troubles, and they support using valuable commodities for money.

      But Folks! The problem is not fiat money, because all advanced money is a fiat of the Law! The problem is privately issued fiat money. Then that is like a private tax on all of us imposed by those with the privilege to privately issue fiat money. Private fiat money must now stop forever!

      Aristotle gave us the science of money in the 4th century B.C. which he summarized as: “Money exists not by nature but by law!” So Aristotle accurately defines money as a legal fiat.

      As for gold, most systems pretending to be gold systems have been frauds which never had the gold to back up their promises. And remember if you are still in a stage of trading things (such as gold) for other things, you are still operating in some form of barter system, not a real money system, and therefore not having the potential advantages as are available through the American Monetary Act!

      And finally as regards gold and silver: Please do not confuse a good investment with a good money system. From time to time gold and silver are good investments. However you want very different results from an investment than you want from a money. Obviously you want an investment to go up and keep going up. But you want money to remain fairly stable. Rising money would mean that you’d end up paying your debts in much more valuable money. For example the mortgage on your house would keep rising if the value of money kept rising.

      Also, contrary to prevailing prejudice, gold and silver have both been very volatile and not stable at all. Just check out the long term gold chart.

      • mmckinl

        Yep !

  • Batson

    Great article, touches on many important issues of what’s really wrong in current geo-politics. You won’t find this stuff in mainstream media. It is however very unfortunate that the great majority of this planet’s citizens would neither be interested in this article nor would they be able to grasp the concepts mentioned, that is sad. How do you get people involved, how do you get them interested? That is a daunting task.

    I’ve met bright kids in business school who wouldn’t believe there were privately owned central banks. And they weren’t Americans!

    As for “Americans being a bunch of stupid animals easy to manipulate and subdue”, show me a country you can’t say that about.

  • Troy

    In the US last gasp to control the price proxy of the US dollar via oil…the US is now the sole terrorist super-power…

  • http://realcurrencies.wordpress.com Anthony Migchels

    Oh absolutely is propping up the Dollar a key issue in controlling Middle Eastern Oil. As is the blatant attempt to open a direct front with Russia and China for complete hegemony in Eurasia. As is destroying Islam’s anti Usury traditions and make the place safe for the market that is free for Big Banking.

  • Jim G

    Great article. Keep following up as more will come.
    I believe Russia w/ China have been talking a new reserve currency also.
    Interesting that war drums are diminishing on Libya. I have been noting a lot of negative comments even in the NYTimes after an article where they go pro-war. Perhaps the people are actually having an impact, or may be Russia / China refusal. The chess board seems to be changing as Euro diminishes rapidly and Russia / China selling US bonds. Maybe beggers can’t be rulers.
    I wonder if the first commenter is from Langley.

  • http://olypen bumper

    exactly why gold and silver is better than paper money, it is something of value. it is not the gold and silver that has risen in price, it is paper fiat money that has dropped in value. give me a stable currency and I can manage for myself. give me a fiat money and I am at the mercy of the money makers. fiat money has always become worthless. a sound currency can only be a money that cannot be destroyed by inflation. gold and silver will always have a base value, fiat paper money and computer enteries have no base value.

  • Truth Matters

    Bumper, I’m glad you were the last to respond to this stimulating, educational discourse. You are absolutely right. Gold, silver, and copper coins have worth. Paper does not, except in the bathroom and in a good, wood stove. Great article! Fiat money is based on “trust” as much as in law. We all know how much we can “trust” the current, ruling governments of the world!

  • Epi

    At the very end of the article you stated that there was a treaty after WWII that everyone agreed to price oil in dollars. I was not aware of such a treaty. The only agreement I understood to exist was that Henry Kissinger traveled to Saudi Arabia and elsewhere and convinced OPEC to price in dollars, though I didn’t think this was a treaty, but more of an understanding. Also, I thought Kissinger did this in the 50′s or 60′s and not the time period of WWII, even though this is, technically, after WWII. Could you elaborate?

  • hank Cameron

    My understanding is that the petrodollar was created, after Nixon went off the gold standard.
    The Arab nations withheld oil supplies after the 1973 Yom Kippur war, then Kissinger persuaded Saudi Arabia thus OPEC to sell oil only for American dollars.

  • Jeb Amish

    Looks plausible but what we see happening is that Islam floods into the West — this is the reason for all the mideast wars & revolutions since the USSR-Afghan War (79-89). The world powers are changing the western nations by immigration due to wars. The rest is just spoils.

    • heisenborg

      Yup, that makes sense. See, we’ve just stayed put and been peaceful. “Islam” has tried to invade every one of our Western countries. Oh, and don’t forget the damaging effect all of those “ethnics” have on us. Thanks, asshole.

  • Dr_Snooz

    This is the best analysis I’ve read on the current geopolitical environment. History always makes a lot more sense when you learn what the bankers were doing, and shutting down any threat to their hegemony is always at the top of their priority list. Till now, I had been laboring under the assumption that these wars were resource wars, but that assumption failed to explain everything. Your analysis explains it all. Currently, the Russian, Chinese and Iranian interests are aligned and they have formed an alternative power bloc to that of the banker-dominated American Empire. Russian/China/Iran are working tirelessly to free themselves from the petrodollar, as are many other nations. The American and British bankers are responding with constant harassment and military provocation. Thus, we are constantly on the verge of WWIII in some proxy state or other. Meanwhile, China and Russia keep chipping quietly away at the petrodollar, which is the only pillar of US imperial power left. (There is still the US military, which is quite good at starting wars, but incapable of winning wars.) Thus you have situations like that in Ukraine, where Russia makes a strategic decision to back down, buying more time while it continues working on the petro-dollar. Ukraine is a pawn and will now be bled dry by bankers, but the wider war on US empire continues. The reality is that the American power bloc is disintegrating. The banks’ financial positions are so tenuous that they have resorted to open looting in Europe, reckless money printing in America and continual war to keep the national hosts from rejecting the banker parasite. America is in decline while Russia, China and Iran are ascendant. Once the petrodollar is broken, the US will cease to be a world power and Russia’s apparent “loss” in Ukraine will look like the strategic brilliance it is. That assumes, of course, that the US bankers don’t turn the earth into a radioactive dirt clod first.

    Thank you for this post.

 

 

Twitter