Petrodollar Recycling

Abstract

The moral hazard of high oil prices.

Full text














   !
!"
         #$"
% !%
 "      

 !#$"
"$&


%'

()

*
+)!
*
,)




(-,+'.
/Saudi
Arabia becomes the
world's single largest
repository of petroleum,
having an estimated one
third of the world
reserves. It's key feature
is that the oil is relatively
close to the surface, and
can be inexpensively
extracted.

(-01'2..

%"
.&.#34
01501
.!
.
6


(-71'483

"

(-9('       

!
May, 1971

#"(-9,':/;<"
 =  !" " 
>?"
       !  
"  @       A 



!"483
%"
#"      
2
!
" # =     
      





B2

#&CC"'
:D 
EE.!B2"
F

1973: Saudi Arabia takes a 25% interest in Aramco
By 1980, this becomes a 100% interest in the
renamed, Saudi Aramco.

."(-9,'
2$
8
.


.
FF

=


47"(-9,'G2D
8!

4"(-9,'483$%&
!/(-9H"I,I(+

“Of course [the price of oil] is going to rise. Certainly! And
how…; You [Western nations] increased the price of wheat
you sell us by 300%, and the same for sugar and cement…
G buy our crude oil and sell it back to us, refined as
petrochemicals, at a hundred times the price you've paid to
us… It’s only fair that, from now on, you should pay more for
oil... Let’s say, ten times more.”
"
JG!"(-9,'

October, 1973: Pres. Nixon requests $2 billion in aid to
Israel from Congress. OAPEC announces an embargo
against the US as a “<

4+H"(-9,'
The UN Security Council
calls for a cease fire.

K"(-9H'
.
+
"

3

K"(-9H'

K" (-9H'   @   
B2"
L.K38
3


(-9H'
@
I+0

.


#/


483



'


     ' 
()*+
)
,+-*
./+
   +   0  1  
   2      
*
.
,+
!3$31     0
*

    4 56 
*
.      ,*+* )
    ,*+*
  
*
.       ,+ 
!3$71,+
*

.'
J"+111"@%
8":<


+119"!%
/"+119"
AL
:<

...October, 2011,
Libyan Leader
Muammar Gaddafi is
killed in a NATO
backed rebellion on his
regime. Gaddafi had
led and established a
pan-African plan to sell
oil in gold backed
Dinars, and not US
dollars.