Iran, Petrodollars and You

Ok, so we see what’s going on in Iran. Here’s another angle that people need to consider:

We all know Iran produces oil. It is OPEC’s second largest oil exporter and the 4th largest oil exporter in the world.

What people may not know is oil sold around the world is transacted in PETRODOLLARS.

Petrodollars were created in the 1979 under an agreement with the US and Saudi Arabia. Per the deal: ALL OIL SOLD BY #OPEC TO COUNTRIES AND NATIONS AROUND THE WOULD BE TRANSACTED IN US DOLLARS.

abundance bank banking banknotes
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That means no matter where you are in the world, if you want to buy oil you gotta have American cash.

In 2018, OPEC earned about $711 billion in net oil export revenues.

That’s a lot of money.

That also means the US dollar is VERY reliant on oil, and especially the Middle East.

This MIGHT be a reason Trump tweets about oil prices.

And it’s a possible reason the US is over in that region. Actually, part of the agreement with Saudi Arabia is the US would facilitate the flow to Saudi Arabia of American goods, services, and technology.

This could explain why the US was silent about the Saudi connection to 9-11.

This is where it gets interesting. The following countries have considered MOVING AWAY from using US dollars to sell oil:

Venezuala
Russia
China
Iran
Libya

In 2008, Iran created the The Iranian Oil Bourse, which is the Iran Crude Oil Exchange. This is important because , Iran asked its petroleum customers to PAY IN NON-US DOLLAR CURRENCIES.

In September 2019, the US put restrictions on purchasing Iranian oil. Guess who is still purchasing their oil? Russia and China.

Now if more countries stop using the US dollar to purchase oil, what do you think will happen to the dollar? The value of the dollar would probably decrease, because the DEMAND for the dollar would decrease.

Now if THAT happens, what do you think will happen to the stock market?

People really need to take a step back and look at the big picture.

Keep in mind, the US federal deficit is around 22 TRILLION DOLLARS. Quite a bit of that debt is owed to CHINA and RUSSIA, because they are big buyers of US government bonds.

In order to raise cash, many countries issue government bonds. Along with tax revenues, the monies received from these bonds is used to fund a variety of government programs, including social security and Medicare

I encourage everyone reading this to do your own research. When you see certain events happening, ask yourself WHY it’s happening. In some instances, the media will omit certain bits of information for whatever reason. Either way, it’s your job to dig a little deeper. You just might find something quite interesting.

This may have NOTHING to do with the current situation, but it should definitely be looked at.

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It’s also important we educate our children as well. The most important lessons are NOT taught in school. As a result, we must plant those seeds: