The Petroleum Standard

(Excerpted from Chapter 18: The International Banksters: Big Oil & Their Bankers…)

Nixon’s infamous Saturday Night Massacre, during which he fired Archibald Cox, Elliot Richardson and William Ruckleshaus; occurred just three days before OPEC members met in Kuwait City to launch the 1973 oil embargo.

When OPEC oil ministers met in Tehran later to discuss a new posted price for crude oil, the Rockefeller stooge Shah of Iran pushed for an oil price hike.  While Saudi King Faisal was ordering a 25% reduction in his country’s oil exports to support the embargo, the Shah was signing the Tehran Agreement, which guaranteed the Four Horsemen an unlimited supply of oil.  King Faisal was assassinated a short time later.

Henry Kissinger busied himself creating the International Energy Agency, which the French refused to join, calling it a machine de guerre. [784]  Nixon’s demise, Kissinger’s IAE and the Shah’s sudden desire for a high oil price coincided with the 1973 introduction of an oil spot futures market and a simultaneous bolstering of the London Eurodollar market.  The international bankers could manipulate oil prices via the spot market, while funneling a fresh torrent of embargo petrodollars into offshore tax havens.  But how could the international bankers stop the slide of the US dollar?

Kissinger led an NSC project aimed at retrieving the $20 billion the US was spending on Middle East oil.  This Rockefeller-backed effort resulted in a 1973 IMF meeting in Nairobi, Kenya where Morgan Guaranty Trust officials convinced SAMA head Anwar Ali to launch a London-based Saudi merchant bank which could be a major force in the Eurodollar market.

A second Rockefeller-backed meeting took place in Lagos, Nigeria in 1979. It too coincided with an Arab oil boycott.  Federal Reserve Chairman Paul Volcker, who later chaired the Trilateral Commission, traveled to Lagos, then on to Kuwait City.  He instructed Nigerian and Kuwaiti dictators to bump up prices on their premium grades of crude and to accept payment only in US dollars.  Nigerian Bonny Light, considered the world’s finest crude oil, and Kuwaiti Light Sweet Crude became the world’s benchmark crude oils. Other countries were forced to then dollarize their oil markets. [785]

The US dollar was saved.  Through the New York and London oil spot markets the bankers could now control not only the price of crude, but the value of the US dollar, which was now by default pegged to the price of crude.  Big Oil quit reinvesting oil proceeds into the Middle East. Instead, GCC sheiks were told to buy 20 and 30-year US dollar certificates of deposit at the mega-banks which own the Four Horsemen, whose crude profits were deposited in these same banks as CDs under the names of the sheiks.

The banks adopted a policy of fractional reserve lending, whereby they could loan out $1 for every $.66.6 coined.  The banks were now able to loan $60 million to Latin American countries at a cost of only $70,000/year in interest payments to the Arab CD-holders.

Texas Governor John Connolly, the Hunt Brothers and Saudi billionaire Sheik Khalid bin Mahfouz became aware of this scam.  They joined British banker Jon May in attempting to corner the silver market and use the proceeds to launch the Bank of Texas, independent of the Federal Reserve crooks.  May was born to a wealthy British family and traveled the world setting up over 4,000 trust accounts.  He discovered a “minute cartel” that controlled exchange and interest rates and global banking policies.  He found that, “the provision or non-provision of money was all-controlling”. [786]

Citibank Chairman Walter Wriston once spelled out the loaded game which the cartel operates when he stated bluntly, “If Exxon pays Saudi Arabia $50 million, all that happens is that we debit Exxon and credit Saudi Arabia.  The balance sheet of Citibank remains the same.  And if they say they don’t like American banks, they’ll put it in Credit Suisse. All we do is charge Saudi Arabia and credit Credit Suisse. Our balance sheet remains the same.  So when people run around waiting for the sky to fall there isn’t any way that money can leave the system.  It’s a closed circuit.”[787]

May tried to set up alternative lending facilities. He was harassed by local police everywhere.  In London the heat was ordered by Inspector General Goldsworthy.  May put a tail on him and found that he was involved in drug trafficking.  He moved to the US where he was jailed on bogus charges.  Many Third World governments, aware of the Fed scam, contacted May in search of a new avenue through which to borrow money.  The Shah of Iran had just gotten involved with May when he was ousted.  May says the Shah was healthy until he was flown to a US Air Force Base. [788]

Deutsche Bank President Alfred Herrhausen was involved in the silver market effort and was soon assassinated.  The official version of his death followed the P-2 Gladio formula and blamed Germany’s Beider Meinoff Red Army faction, but retired US Colonel and Edward Lansdale South Pole- assignee Fletcher Prouty thinks Herrhausen was killed by the CIA at the behest of the international bankers.  Herrhausen was an advocate of Third World debt forgiveness. He had laid out a plan for debt relief at an IMF/World Bank gathering in Washington two months before his death.  At the meeting Herrhausen embarrassed Citibank President Walter Reed, taking several sharp public jabs at him. [789]

An Austrian industrialist working with Jonathan May was declared insane.  The CIA trained mercenaries in Belize, most probably on land owned by Bush golfing buddy and Carlos Marcello associate Walter Mischer, to assassinate the Nigerian dictator with whom Volcker cut his deal because they were afraid he would talk.  Jonathan May, who remains in a Minnesota jail, says these same Belizean-trained mercenaries were also deployed for the Herrhausen assassination. [790]

On October 3, 2005 the Wall Street Journal reported that the Saudis and the other nations of the GCC had once again surpassed China and Japan as the biggest buyers of US Treasury bonds due to the dramatic increase in oil prices to nearly $70/barrel.  Were high oil prices now necessary to prop up the wobbly US dollar? In June 2007 the six GCC nations posted $1.6 trillion in foreign assets.  Dubai was becoming an international financial center rivaling London and had purchased stakes in Standard Charter, HSBC and Veuthes Bank. Halliburton moved its headquarters to Dubai in 2007.

Dean Henderson is the author of five books: Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve, Stickin’ it to the Matrix & The Federal Reserve Cartel.  You can subscribe free to his weekly Left Hook column

One response to “The Petroleum Standard

  1. Reblogged this on The 99% Blog and commented:
    here’s some background on why the world is obsessed with the price of oil, and how they will kill to control it….

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