Block, Siteadmin, SkipCaptcha, Upload, Automoderated users, delete, edit, move, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, protect, rollback, Administrators, template
292,404
edits
Changes
Jump to navigation
Jump to search
Line 276:
Line 276: +
→The petrodollar agreement
===The petrodollar agreement===
===The petrodollar agreement===
{{See also|Petrodollar}}
{{See also|Petrodollar}}
[[File:Nixon-meeting-aspen.jpg|300px|right|thumb|''Left to right:'' [[Arthur Burns]], [[John Connally]], Richard Nixon, [[George Schultz]], and Paul McCracken.]]
In August 1971, Nixon ended the convertibility of U.S. dollars into [[gold]], in the face of mounting [[inflation]] and [[debt]]s 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 [[debt]]s 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.