||This article appears in the May 16, 2008 issue of Executive Intelligence Review.
THE CRUDE GAME
British Geopolitics and the Dollar
by John Hoefle
[PDF version of this article]
Last week, we discussed how the control of the global oil market by the British Empire is a key weapon in its assault on the nation-state system, and in particular the United States, and this week we will continue on that subject.
To recap briefly, the oil market is controlled not by OPEC, but by the British Empire through its dominance over the giant oil companies which make up the international oil cartel. These companies, which control the transportation, processing, and distribution of petroleum products, control the physical side of the oil business, while the price is set through the financial markets. This arrangement allows the price to move independently of supply and demand, and has been of great benefit to the financiers who control the Anglo-Dutch Liberal system.
Prior to the establishment of this market system, crude oil prices were set primarily by long-term contracts between oil producers and the oil companies, an arrangement which provided stable oil prices over long periods. Such stability is essential to the development of an industrial economy; and thus, destroying that stability was a crucial part of the oligarchy's assault on the nation-state.
Assault on the Nation-State
The precondition for this assault was the destruction of the Bretton Woods system of fixed currency rates established by President Franklin Roosevelt in 1944, at a conference at the Mount Washington Hotel, in Bretton Woods, New Hampshire. The fixed-currency-rate system, a necessary part of FDR's plan to rebuild the world after World War II, and to free the planet from colonialism, was destroyed by President Richard Nixon in August 1971, when he took the dollar off the gold-reserve standard. Shortly thereafter, Britainthe intellectual author of the Nixon moveallowed its pound sterling to float, too. Without the fixed rates, currency rates were allowed to "float," which opened the door for the oligarchy, with its vast financial resources, to target and manipulate currencies.
The second phase of the assault consisted of the oil hoaxes of 1973-74 and 1979, through which the spot market in oil was built. The spot market was a mechanism through which oil could be bought and sold at whatever price the market would bear. It began with the boycott that Arab oil producers placed on nations dealing with Israel during the Yom Kippur War of October 1973; the primary targets were the U.S.A. and the Netherlands, and it was in Rotterdam that the spot market was born. Nominally, the spot market was formed as a way to provide oil to boycotted nations, but the boycott itself was an Anglo-Dutch operation designed to create the conditions under which the spot market could be sold to a credulous world.
The oil hoax of 1973-74, combined with the sharp rise in oil prices it effected, dealt a serious shock to the U.S. economy; that shock was then used to push the idea that the United States was "over-consuming" energy and that we must cut back. The government implemented a host of conservation measures, including price controls, odd-day even-day gasoline purchase restrictions, and the 55-mph national speed limit, all part of a British-authored social engineering plan, targetting the industrial capacity of the U.S. economy, and brainwashing the population.
This process escalated with the oil hoax of 1979, triggered by (guess who!)the British-orchestrated plot in which the Shah of Iran was overthrown and replaced with the fundamentalist Ayatollah Khomeini. President Jimmy Carter appeared in his sweater to urge Americans to conserve, and installed a wood-burning stove in the White House. More importantly, he pushed deregulation, furthering the control over oil by the oil cartel.
Throughout both oil crises, we were repeatedly told that the nation must wean itself from its dependence upon foreign oilbut it was sophistry. The real solution to the "energy crisis" was nuclear power, but that was effectively suppressed by another hoax, the 1979 Three Mile Island non-event.
With the only real solution blocked, the nation became more dependent upon the oil cartel than ever. At the same time, thanks to the combined effects of "conservation" measures, high prices, and orchestrated shortages, the U.S. industrial base was shrinking, and being replaced by the post-industrial Information Age nonsense.
The story so far is a disaster, one of the British Empire, with the knowing complicity of Anglophilic American oligarchic wannabes and other fools, selling out the nation and the world to rapacious oligarchs and their raw materials cartel. But, it gets worse.
The move to jack up oil prices and suppress the standard of living through "conservation" was only Phase One of a much more pernicious operation. The spot market raised lots of money, and that money quickly began to pile up in the banks of Europe, particularly, in the City of London. Some of this money belonged to the oil producers, or, rather, to the royal families in places like Saudi Arabia, but an increasing portion of it belonged to the speculators who played the spot market. Over time, the spot market expanded into the financial exchanges, which provided the trading facilities for even greater speculation and manipulation.
As this pile of "petrodollars" grew, the British used it to fund operations to transform the United States from within, including the takeover of the U.S. banking system and the cartelizationunder the euphemism of mergers and acquisitionsof corporate America. Wall Street was transformed into a giant casino, where betting on financial instruments replaced investing, and the connection to reality was severed. At the same time, the petrodollars helped fund cultural warfare operations against the American people, to keep them blind to the damage being done, or even conning them into believing it was progress.
The effect of this assault is now becoming obvious. The financial bubble has popped, and the great financial engine that was supposed to replace industry as the economic engine of the future has been shown to be as substantial as the emperor's new clothes. We are now left with a bankrupt banking system sitting atop a rusted hulk of an economy, dependent upon the "world company" cartels for many of the necessities of life.
The BAE Factor
There is an even darker side to the British Empire's oil operations, as indicated by the scandal around BAE Systems, the British weapons firm. Under the secret Al-Yamamah oil-for-weapons agreement between the British and Saudi governments, BAE provided weapons to the Saudis which were paid for by oil, and included billions of dollars of bribes and illegal payoffs. Investigations into the BAE scheme indicate that hidden slush funds were used not only to pay kickbacks on arms deals, but that funds were also conduited into "black ops"secret intelligence operationsto run coups and terrorist cells, of the sort typified by the inside job that was 9/11.
The rise of the military-industrial complex inside the United States since World War IIwhich President Dwight Eisenhower presciently warned us about in 1961is another result of this shift away from traditional American values toward the imperial perspective. Empires are militaristic in nature, because they depend upon suppression and looting for their survival, and this mindset has taken hold in Washington, particularly under the neocon fascism of Dick Cheney and George W. Bush, who seem to see terrorist threats anywhere there are large pools of oil. Their British controllers must laugh at how easy it is to manipulate such fools.
Shut It Down
For humanity to survive, the use of oil as a control measure must be stopped. There are several steps that could be taken, all of which involve governments standing up on their hind legs, and taking on the British Empire and the oligarchic slime-mold behind it.
The first step is to shut down the parasitical system by putting the international financial system through bankruptcy, thereby breaking the power of the Anglo-Dutch Liberal system to manipulate and corrupt the world. As an included feature of this, the spot market would be closed, and the world could go back to long-term contracts for oil under a new Bretton Woods arrangement of fixed currency rates, to protect both producers and consumers from fluctuations, and to facilitate global development projects. This would get the financial system under control, a necessary prerequisite for solving the economic problems.
The next step would be a crash program for the development and implementation of nuclear technologies, with the goal of switching the economy to the consumption of hydrogen as a fuel, leaving petroleum to be used mainly for chemical feedstocks. The combination of nuclear fusion and hydrogen power would effectively end the ability of the oligarchy to use energy as a control mechanism, and would open the door to a new era of technological breakthroughs to increase the productive power of human labor and raise the standard of living throughout the globe.
All that is holding us back is our own fear, fear of letting go of a bubble which no longer exists, and fear of letting go of failed beliefs, and embracing a new future. As FDR said, we have nothing to fear but fear itself. Once we get past that, the future is bright.