Chapter 71 1. The Middle East War in 1973: The U.S. Dollar Strikes Back

In fact, the Fourth Middle East War that broke out on October 6, 1973 was not accidental.At the annual meeting of the Bilderberg Club in May of the same year, eighty-four international bankers, giants of multinational companies and selected politicians discussed how to deal with the headaches of the dollar's decline that lost its gold support.David.Rockefeller brought Brzezinski, his confidant, and the result of the discussion was that confidence in the dollar must be revived and the dominance of the out-of-control financial battlefield must be regained. International bankers have come up with an astonishing plan to raise international oil prices by 400%!

This bold plan will achieve several purposes: On the one hand, since the world’s oil transactions are generally settled in US dollars, the four-fold increase in oil prices will lead to a surge in demand for US dollars in various countries around the world, offsetting the losses caused by countries’ selling of the US dollar after the US dollar lost its gold support. side effects.On the other hand, due to the excellent work of the economic assassins in the past few years, many countries in Latin America and Southeast Asia have already fallen into the trap of excessive lending. Once the price of oil soars, the United States takes advantage of the trend to raise interest rates sharply. These countries with backward economies and rich resources Will become a flock of fat lambs waiting to be slaughtered.

The most brilliant part of this plan is to blame others.Instigate Egypt and Syria to attack Israel, and the United States will openly support Israel to anger the Arabs. In the end, the Arab countries will impose an oil embargo on the West in a rage. on the country.While sitting on the mountain watching the tigers fight, the international bankers counted the repatriated petrodollar banknotes. They not only restored the decline of the dollar in one fell swoop, regained the initiative in the financial battlefield, but also took advantage of the woolen wool of countries such as Latin America and Indonesia.This plan can be said to be ingenious.

Looking at the previous actions of international bankers in history, we can find that they have always followed the optimal algorithm. Every major strategic action will achieve more than three main goals at the same time. It is not too much to describe it as killing three birds with one stone.International bankers have always been masters of combos. The two international bankers, Brzezinski and Kissinger, will cooperate fully, and the development of the whole incident is completely as expected.Brzezinski made suggestions, and Kissinger directly participated in the implementation as the intelligence tsar of the Nixon government.William.Engel pointed out sharply in his book "The War of the Century":

Kissinger continued to suppress the flow of intelligence (in the Middle East) to the United States, including confirmations of war preparations by Arab officials intercepted by American intelligence.Both Washington during the war and Kissinger's famous shuttle diplomacy after the war followed precisely the lines of Bilderberg's May meeting.Arab oil producers became the scapegoat for the world's anger, while Anglo-American interests quietly hid in the background. Under the temptation and coercion of Kissinger, Saudi Arabia was the first OPEC country to reach cooperation with the United States, using petrodollars to buy U.S. bonds, thereby realizing the return of petrodollars.Then Kissinger made it through, and by 1975, OPEC ministers agreed to pay for oil only in dollars.

The world currency thus entered the era of the oil standard. The soaring price of oil has led to a surge in the demand for US dollars in oil trade settlements, which has finally regained strong international support for the US dollar. From 1949 to 1970, the world oil price has been stable at 1.Nine dollars a barrel.From 1970 to 1973, the price of oil gradually rose to three dollars a barrel.Shortly after the outbreak of war on October 16, 1973, OPEC raised oil prices by 70% to 5.5%.Eleven dollars a barrel.On January 1, 1974, oil prices doubled again to 11.Sixty-five dollars.From the price of oil before the Bilderberg meeting in 1973 to January 1974, the price of oil rose nearly 400%.

In 1974, the ignorant President Nixon also tried to get the U.S. Treasury Department to put pressure on OPEC to lower oil prices. A government official with knowledge of the situation wrote in a memorandum: The bankers ignored this suggestion and emphasized It is a fatal decision to use the strategy of returning petrodollars to deal with high oil prices. In the era of high oil prices that followed, it caused double-digit inflation in Western countries, and people's savings were greatly robbed.What is even more unfortunate is the unaware developing countries, Engel explained: The 400% surge in oil prices has had a great impact on the economy that relies on oil as its main energy source.Most oil-poor economies are suddenly confronted with an unexpected and unaffordable 400% cost of imported energy, not to mention rising costs of oil-derived fertilizers and the like used in agriculture.

In 1973, India's trade was in surplus and it was in a state of healthy economic development.By 1974, India's foreign exchange reserves were six.2.9 billion US dollars, but it has to pay twice the cost of imported oil, that is, 1.241 billion US dollars.Also by 1974, Sudan, Pakistan, the Philippines, Thailand, Africa, and Latin America, one country after another, faced trade deficits.According to IMF statistics, in 1974 the trade deficit of developing countries reached 35 billion US dollars, which was an astronomical figure at the time.Not surprisingly, this deficit sums up to exactly four times the size of 1973, that is, in proportion to the rise in oil prices.

The strong industrial production and trade of the early 1970s were replaced by a worldwide contraction of industry and trade in 1974-1975, the worst since the end of World War II. In the mid-1970s, many developing countries that were implementing industrialization had fallen into heavy dependence on low-interest loans from the World Bank, and the price of oil soared, causing a large amount of funds in these countries to be swallowed up by high oil prices. Developing countries are faced with either stopping the process of industrialization and thus being unable to repay the excessive World Bank loans, or they have to borrow more money from the World Bank to purchase oil and repay the principal and interest of huge debts.

However, the international bankers who cooperated with the IMF have long been waiting for it. The IMF offered a series of harsh aid conditions, and then forced these developing countries to drink the famous IMF four Good medicine, that is, the privatization of national core assets, the liberalization of capital markets, the marketization of basic living elements, and the internationalization of free trade. Most countries will die or be injured if they drink these drugs, and some countries with strong resistance will also suffer greatly. , the people are poor and the country is weak. Just as the developing countries were struggling to borrow dollars to import expensive oil everywhere, another thunderbolt was waiting for them.