The American Empire and the 2020 Pandemlc
In 1973, the world economy was brought almost to a halt by a supposed shortage of oil. The ostensible trigger for this alleged shortage was the so-called Yom Kippur War in which the armed forces of the Anglo-American Empire’s settler-colonial offshore enterprise in Palestine, also known as the State of Israel, repelled the forces of Egypt and Syria, which had moved to reoccupy the territory stolen from them by Israel in the 1967 Six Day War. One response to the Anglo-American Empire’s support of its client state against those states Israel wished to conquer was an oil embargo proclaimed by OPEC, with the largest producer– the autocratic Anglo-American protectorate Saudi Arabia at the lead.
Portrayed in the mainstream Western media as a sign of Arab economic strength– also as anti-Semitism in some quarters– the embargo led to massive economic disruption in all the countries that had to import oil, mainly Europe and its former colonies.
This embargo created the impression of a global oil shortage—which although there was none, could not be overcome without violating the power of the oil cartel. While the OPEC embargo formally restricted the sale of crude oil to Israel’s sponsors, there was no real oil shortage since oil supplies to Europe and the US have always been in the hands of the majors (now super-majors), then known as the “seven sisters”. OPEC’s announcement of an embargo at the well had no impact on the enormous upstream reserves held by the mainly American majors. However it did provide the pretext for massive price increases at the pump– presented as shortage-induced.
Unnoticed except in the aftermath and ignored generally in popular debate or historical literature was the far more insidious deal made secretly while everyone from Bonn to Boston and Lyon to Los Angeles was queuing for petrol or the dole. In 1971 Richard Nixon had announced that the US dollar would no longer be redeemable for gold– at any price. This decision had been largely induced by the enormous debt incurred funding the US war against Vietnam. In the course of this fateful decision, secret negotiations were undertaken with the Kingdom of Saudi Arabia, which led to an agreement that Saudi Arabia and OPEC would not sell oil in any currency except US dollars. The oil crisis pushed the price of oil to such heights that many countries in Europe and especially the newly independent countries, soon exhausted their foreign exchange reserves and were compelled to borrow US dollars to pay for oil imports. The result was a boom for the US regime, e.g. oil and banking– not its ordinary citizens– as the demand for US currency led to an inflow of foreign exchange and an overall improvement in its current accounts. Meanwhile the US Treasury could literally print dollars to buy oil– when the time was right.
Even today this story is told in a way to cast aspersions on the Arab states– although all the major oil-producing Arab states involved were and are entirely dependent upon the Anglo-American Empire and its military force for their very survival. It is a false parable used to exaggerate the innocence or helplessness of the settler-colonial state “surrounded” by “ragheads” instead of “redskins” who have all the oil, while poor Israel only has atomic bombs and the biggest foreign aid subsidy per capita of any country the US funds.
Why do I take the trouble here to recount history, which is or ought to be well known– at least to the historically literate?
It is worth recalling here that the Seven Sisters, as they were then called, are actually fewer now due to mergers. The upstream oil industry is still dominated by the Standard Oil companies (yes, Rockefeller, i.e. ExxonMobil) and their allies as well as the Rothschild-Nobel companies. Together they assure that oil prices and distribution are closely controlled– if not absolutely– and that the commerce in oil is billed in the leading currency of the Empire, the US dollar.
The Anglo-American Empire, amazingly similar in composition to the dream of Cecil Rhodes and his personal banker Lord Rothschild, relies not only on oil and the financial transactions connected with it. There are two other major businesses that support the value of lead currencies, like the USD, GBP or even the EUR. They are war– and hence both legal and illegal arms sales– and drugs, both licit and illicit. All three “markets” are entirely controlled by cartels and state regulation. Moreover they provide windfall profits because they are all addictive and toxic. That means the traders get money and the buyers get garbage.
Stemming from the 19th century Opium Wars, Great Britain became the biggest dope pusher in the world. The opium trade made the British East India Company shareholders and those who traded with and for it wealthy beyond compare. While the US American schoolchild may learn about the Boston Tea Party, in which a few ruffians dumped British East India Tea into the harbour as a protest against taxation like the Townshend Acts, they won’t learn that proud New England families not only funded the Ivy League colleges with slave trading but with the income from opium business.
It is essential to recall that every crime is simply the unauthorised version of an activity otherwise deemed legal.
Article from LewRockwell