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→The petrodollar agreement
===The petrodollar agreement===
===The petrodollar agreement===
{{See also|Petrodollar}}
In August 1971, Nixon ended the convertibility of U.S. dollars into gold, in the face of mounting inflation and debts caused in part by out-of-control government spending and in part by the war. This caused the value of the dollar to enter a state of free fall. In June 1974, Nixon addressed this issue by signing a series of bilateral agreements with Saudi Arabia, in which the latter country would use its political influence to coerce [[OPEC]] into standardizing the sale of oil in dollars, therefore preserving the dollar's status as the global reserve currency in the post-Bretton Woods era.[https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp][https://www.fxcm.com/uk/insights/what-is-the-petrodollar/] This agreement -- which is arguably unconstitutional because it undermines Congress' oversight of the valuation of money as prescribed in Article I, Section VIII[https://www.archives.gov/founding-docs/constitution-transcript] -- helped set the stage for the undue influence Saudi Arabia and its [[Neoconservatism|neocon]] allies had on the U.S. government into the early 21st century.
In August 1971, Nixon ended the convertibility of U.S. dollars into gold, in the face of mounting inflation and debts caused in part by out-of-control government spending and in part by the war. This caused the value of the dollar to enter a state of free fall. In June 1974, Nixon addressed this issue by signing a series of bilateral agreements with Saudi Arabia, in which the latter country would use its political influence to coerce [[OPEC]] into standardizing the sale of oil in dollars, therefore preserving the dollar's status as the global reserve currency in the post-Bretton Woods era.[https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp][https://www.fxcm.com/uk/insights/what-is-the-petrodollar/] This agreement -- which is arguably unconstitutional because it undermines Congress' oversight of the valuation of money as prescribed in Article I, Section VIII[https://www.archives.gov/founding-docs/constitution-transcript] -- helped set the stage for the undue influence Saudi Arabia and its [[Neoconservatism|neocon]] allies had on the U.S. government into the early 21st century.