Editor’s note: This article was provided to CUSJ by Christine Johnston, with the permission of the author, Betty Krawczyk, who was famous some years ago as the Granny willing to go to jail for her support of the environment and especially the fight for Clayoquot Sound, near Torfino, on the Pacfic Rim, about which she wrote a best selling book. She was a member of the First Unitarian Church of Victoria for some time but now lives up island.
The feeding of Russophobia in the US (and Canada) involves giving it a steady diet of one main food…the petrodollar. What exactly is the petrodollar and how does it feed Russophobia? It’s not that complicated, but the Russophobes try to ignore the petrodollar altogether, at least publically. However, a lot of regular people are getting wise to this politically rotten, corrupt practice that is threatening another international war between fully loaded nuclear powers.
The seeds of the extreme Russophobia now evidencing itself in the US along with Canada and the majority of European counties began in 1944 in Britton Woods, New Hampshire. The Second World War was almost over and the majority of the involved countries were in shambles. Except for the US. Most of the other countries were broke… except for the US. The officials meeting in Britton Woods were terribly concerned about how to get a world economy moving again. It was decided that the best way to accomplish this was to make the US dollar the world’s reserve currency as it could be backed by gold (the US also held most of the world’s gold at the time). And this seemed to work. For a while. Other countries trusted the US dollar as it was backed by gold. The US dollar was king. Until the US began to spend more dollars than it was taking in.
Other countries began to distrust the US dollar and began calling in their gold from the US, which in turn devaluated the US dollar itself. This posed a huge problem. The US was all over the place, building and staffing military bases, starting wars and regime changes which took more dollars than the US could back with gold. Something else had to be done. In 1971 US President Richard Nixon did it. He took the US off the gold standard entirely. This way, the US banks and different levels of government could create as many dollars as they liked by giving out loans that created debt into the future. This form of debt was called US bonds. But who would buy them as inflation was rising faster than the interest on the bonds? Something else needed to be done. And it was.
Most of the world was in need of energy in order to rebuild their war ravaged countries. Energy was oil. The US had oil. Saudi Arabia had more oil. Enter the Petrodollar. The US and Saudi Arabia, who wanted military weapons, signed a contract stating that Saudi Arabia would trade oil for arms, but the trading had to be done in American dollars. Furthermore, an important part of the deal was that Saudi Arabia would use the US dollars they received in return for their oil to buy US bonds. The OPEC Nations followed suit. Fancy that. The US was now afloat in dollars, as this new contract was forced on all of the countries who dealt with US energy. The US could now afford as many wars and coups of other countries as it liked. What could stop their gravy train? Only other countries who might say they didn’t like trading in the petro dollar and wanted to begin trading in their own currencies. Like China and Russia. The fear of their gravy trains slowing or even stopping is raising the greatest of fears in the US oligarchy. Hence their overt hatred of Russia and China. They figure they have to take out Russia first.