The sovereignty of any nation lies in it’s ability to set and control it’s own borders, provide protection and security for it’s inhabitants, maintain a legal system for domestic disturbances, and provide a government that can transfer power from one political group to another if need be, and function with other nations relevant to trade, diplomacy, and even war. Sovereign nations also need a monetary system that is recognized internally as well as externally to insure the smooth transfer of goods and services that it produces or wishes to procure.
These governments can have complete control over their monetary system or they can assign the responsibilities to another organisation. Throughout history a major factor in each country’s national identity has been in having it’s own currency and the ability to have that currency recognised outside of it’s borders. Back in the day when money was money, that is the coin was not a symbol of wealth but the wealth itself in it’s weight in gold, recognition and acceptance was not a problem. Today it is. When foreign currencies drifted into the neighbouring King’s coffers they simply melted down the metals, along with any bracelets or rings recently acquired during the plunders of war, and created new coins with the emblems of the King or country on them. Winning wars was profitable in those days, especially for countries with few natural resources.
Look at the edge of a 50 cent Euro coin, do you see the ridges and lines? The €1 and €2 coins have them too, plus stars, but are not as easily seen. Today there is no real need for these markings they are simply habit, or tradition. When money was money though those markings were very important. The first coins had smooth edges, like the Euro copper coins, and it was easy for anyone who held one of these ancient coins to file a little dust off for themselves! These ridges and identifying markers were placed on the gold and silver coins to maintain trust until real money was disbanded altogether. During the early 1940’s, when America had entered the war, copper was in big demand. One penny’s weight in copper became more valuable than the penny. What happened then? The government seized all the copper pennies and issued steel ones. Less than ten years before that, during the Depression, the value of privately held gold, in the shape of jewelry, coins, and bullion far out weighed the value of all the deflated dollars floating about in the country. So, what did they do? They confiscated the gold and made it illegal to own any! At that time gold reserves backed the American currency in such a way that for every dollar in circulation there was supposed to be one dollar of gold in the vaults, the dollar value was fixed, known as the Gold Standard, and gold was $35 an ounce. In one fell swoop they collected all the known wealth in the possession of the individual and paid them off with nearly worthless paper. Through hyperinflation then, just like now, there was an expanded money supply which devalued the circulating currency. Why go to the expense of war when you can plunder your own?
Colonialism, imperialism, and the obvious conquering of sovereign nations for booty or natural resources has gone out of fashion. Wars are too expensive, the chances are too great, publicity too closely scrutinized, and the profits are too small for governments to openly continue this practice. But, the money manipulators, who are not elected nor subjected to media criticisms, have a vested interest in government policy. During all the wars, depressions and recessions of the previous century it became obvious that the traditional methods concerning wealth, currency distribution, and sovereignty were becoming absolete. The money machine decided, outside of and above the realm of politics, to institute a new monetary standard. Thirty years after the gold seizure and penny swap the stage was set for the final coup, the dollar broke it’s ties to gold.
The International Monetary Fund is a consortium of national banks. Some of these banks are regulated directly by the governments they serve, others are not, but they all have one thing in common. Their currency cannot be backed up by gold. To join the club a nation must have another source of wealth more precious than gold. What is more precious than gold? You! You, your family and your friends. This used to be called slavery; but, now it is given a name we can feel comfortable with, fiat currency. Fiat currency is the new wealth of nations, it is described as a demand by the government for the people to pay taxes and that the demand is seen to be enforcible.
In order to protect the value of the US dollar, and to keep it’s existence in demand, a deal was struck with the oil producing countries. The dollar would be used as the currency for buying oil, not just by the United States but by everyone. This is known now as the petrodollar. If Japan buys oil from Kuwait it must do so in US dollars so that it creates a demand for the dollar to be held by Japan. If Japan ever wants or needs a barrel of oil it must give Kuwait $100, and to do that Japan needs to keep some American currency in reserve, in it’s own vaults, this has created a false demand for the dollar. All the oil importing countries have to keep some physical dollar currency at it’s disposal, if all this money came back to the States it’s economy would collapse. What rounded off this deal with the oil producing nations is that after the purchase in dollars was made the revenues from the sale of this oil would be deposited/invested in the US. The circle is complete right? Well, not quite, there are a few loose ends.
Since the demand for oil has risen there are new oil producing countries that were not originally locked into this arrangement, most notably Canada, Mexico, Venezuela, Russia, Iran, Iraq and Norway. Norway invests heavily overseas with it’s petro-profits and is deemed no threat, Russia is spending it’s gains on improving domestic infrastructure, again no threat. Canada and Mexico are the largest suppliers of oil to the US. In order to protect these resources in the face of a diminishing dollar there are plans to conquer Canada and Mexico in the form of a treaty that will create the North American Union with the amero as the common currency. Iran and Venezuela have been making noises about ceasing to use the dollar for it’s petrol sales and instead switch to the Euro. Diplomatic sabre rattling kept them quiet for a time. In 2000 Saddam Hussein made the leap from petrodollar to euro-petro and because of this he reaped a 17% bonus to his profits because of the exchange rates at the time. This was not deemed satisfactory and his country was invaded, two months after the invasion Iraq was back on the petrodollar. That was five years ago. Iran and Venezuela have since put their transition policies on hold, for now…

Ahmadinejad of Iran and Chavez of Venezuela