1. Tabloid news
2. Cooption of revolution
3. The illusion of democracy and the reality of petrodollars
Select monologues:
› the tube is god [mp3]
› the arab ruling class take-over [mp3]
› petrodollars & the nature of the universe [mp3]
What are petrodollars and what significance may they have had in the reason for the United States's invasion of Iraq? Or try this summarized version of the story.
In short, oil is sold in U.S. dollars. This requires that nations dependent on foreign oil must keep reserves of U.S. dollars. The demand for the U.S. dollar as the global reserve currency gives it strength and power even though it is a fiat currency -- not backed by the gold standard but only by the demand for it. Should the petrodollars be abandoned for petroeuros, the U.S. dollar will lose value over time and diminish the United State's global economic hegemony. Saddam Hussein did just this in 2000.
In 1974, the Nixon administration negotiated assurances from Saudi Arabia to price oil in dollars only, and invest their surplus oil proceeds in U.S. Treasury Bills. In return the U.S. would protect the Saudi regime. These agreements created the phenomenon known as "petrodollar recycling." In effect, global oil consumption via OPEC provides a healthy subsidy to the U.S. economy.
And then, what about peak oil?
