Omar Abouzeid
Lived in The United States of America (2009–2014)
Related
Why does the US want Saudi Arabia to sell oil exclusively using the US dollar?
The US dictates (not wants) all Arab Gulf states to do so in order to preserve the value of the US Dollar as a global reserve currency. The USD used to be backed by gold until 1971. From 1971 until the Petrodollar agreement, it was supported by the momentum and habit of the Bretton Woods agreement. Since the mid 70s, it has been supported by oil.
A global currency provides substantial economic privileges to the country that issues it. The strong and sustained global reserve demand inflates the currency’s value and the national purchasing power, which makes the people of this nation able to live beyond their means. The government of this country can create a lot of currency to finance government expenditure (e.g. military expenditure, corporate bailouts, economic stimulus etc..) without incurring proportional inflation since there’s a strong and sustained global demand for its currency. In short, it is a mass imperial resource expropriation scheme that’s maintained by military coercion.
Omar Abouzeid Lived in The United States of America (2009–2014) Related Why does the US want Saudi Arabia to sell oil exclusively using the US dollar? The US dictates (not wants) all Arab Gulf states to do so in order to preserve the value of the US Dollar as a global reserve currency. The USD used to be backed by gold until 1971. From 1971 until the Petrodollar agreement, it was supported by the momentum and habit of the Bretton Woods agreement. Since the mid 70s, it has been supported by oil. A global currency provides substantial economic privileges to the country that issues it. The strong and sustained global reserve demand inflates the currency’s value and the national purchasing power, which makes the people of this nation able to live beyond their means. The government of this country can create a lot of currency to finance government expenditure (e.g. military expenditure, corporate bailouts, economic stimulus etc..) without incurring proportional inflation since there’s a strong and sustained global demand for its currency. In short, it is a mass imperial resource expropriation scheme that’s maintained by military coercion.