The Libyan War, American Power and the Decline of the Petrodollar System
by Prof. Peter Dale Scott
Centre for Research on Globalization, 29 April 2011
EXTRACT:
As Ellen Brown has pointed out, first Iraq and then Libya decided to challenge the petrodollar system and stop selling all their oil for dollars, shortly before each country was attacked.
Kenneth Schortgen Jr., writing on Examiner.com, noted that “[s]ix months before the US moved into Iraq to take down Saddam Hussein, the oil nation had made the move to accept Euros instead of dollars for oil, and this became a threat to the global dominance of the dollar as the reserve currency, and its dominion as the petrodollar..”
According to a Russian article titled “Bombing of Lybia – Punishment for Qaddafi for His Attempt to Refuse US Dollar,” Qaddafi made a similarly bold move: he initiated a movement to refuse the dollar and the euro, and called on Arab and African nations to use a new currency instead, the gold dinar. Qaddafi suggested establishing a united African continent, with its 200 million people using this single currency. … The initiative was viewed negatively by the USA and the European Union, with French president Nicolas Sarkozy calling Libya a threat to the financial security of mankind; but Qaddafi continued his push for the creation of a united Africa.
And that brings us back to the puzzle of the Libyan central bank. In an article posted on the Market Oracle, Eric Encina observed:
One seldom mentioned fact by western politicians and media pundits: the Central Bank of Libya is 100% State Owned…. Currently, the Libyan government creates its own money, the Libyan Dinar, through the facilities of its own central bank. Few can argue that Libya is a sovereign nation with its own great resources, able to sustain its own economic destiny. One major problem for globalist banking cartels is that in order to do business with Libya, they must go through the Libyan Central Bank and its national currency, a place where they have absolutely zero dominion or power-broking ability. Hence, taking down the Central Bank of Libya (CBL) may not appear in the speeches of Obama, Cameron and Sarkozy but this is certainly at the top of the globalist agenda for absorbing Libya into its hive of compliant nations.17
Libya not only has oil. According to the IMF, its central bank has nearly 144 tons of gold in its vaults. With that sort of asset base, who needs the BIS [Bank of International Settlements], the IMF and their rules.18
Gaddafi’s recent proposal to introduce a gold dinar for Africa revives the notion of an Islamic gold dinar floated in 2003 by Malaysian Prime Minister Mahathir Mohamad, as well as by some Islamist movements.19 The notion, which contravenes IMF rules and is designed to bypass them, has had trouble getting started. But today the countries stocking more and more gold rather than dollars include not just Libya and Iran, but also China, Russia, and India.20
Phi Beta Iota: France is a co-conspirator with the USA here. As much as we do not like dictators, in this instance the balance of faith must go to Libya's existing government, not the rabble being roused by NATO. Libya is also really two nations. A peace and prosperity compromise would seek autonomy for the rebel region (much as we favor full autonomy for the Kurds), and a growing public awareness of the “true cost” as well as the true intentions of the US Government and others who make war in our name but not in our interest.
