Authored 'No1' via Gold and Geopolitics substack,
Three people sent meRichard Medhurst’s petrogas-dollar piece this week. I read it. Twice even.
There’s a lot in there that I feel is correct.
The chronology of the Levantine Basin deals.
Cheney’s 2001 National Energy Policy.
The roughly $35 billion of Chevron contracts signed across Israel, Syria, Greece, and Cyprus in the past six months.
The piece is, on the facts, broadly accurate.
What I think though is that the reading of those facts is faulty.
In 1944 Bretton Woods pegged the dollar to gold and made it the world’s reserve currency. In 1971 Nixon unpegged it. Three years later, Kissinger negotiated the Saudi arrangement that pegged it to something else - oil. The petrodollar was born. Everyone needed oil, oil was priced in dollars, thus everyone needed dollars.
Medhurst’s thesis is that the same trick is being repeated, with gas as the new anchor.
Source: ZeroHedge News
