September 7, 2011 — Dean Henderson
(Part two of a two-part series)
The London-controlled Eurodollar market is a convenient vehicle for recycling the huge slush fund of petrodollars generated by the Four Horsemen. A Eurodollar is simply any convertible currency existing in a country other than its country of origin. A key feature of the Eurodollar market is its lack of regulation and secrecy. The strength of the British pound, unjustified on purely economic grounds, has to do with the multi-trillion dollar Eurodollar petro-slush fund which London attracts; in tandem with the string of British Protectorate off-shore banking centers which facilitate the Eurodollar trade and markets for narcotics, diamonds, gold, platinum, plutonium and arms.
Major offshore banking centers such as the Cayman Islands, the Bahamas, Bermuda, Turks & Caicos, Antigua, the Isle of Jersey, the Isle of Man, Hong Kong, Dubai and Liberia all fell under British Crown control. The House of Windsor warrants every Freemason lodge in the world, employing the secrecy which the craft affords in conducting Black Nobility endeavors. The US incurs billions of dollars in debt deploying its Hessianized military around the globe to protect these monarchs and their old-money ilk.
In SE Asia the CIA protected and advanced HSBC Crown opium routes. After the Vietnam War international investors lost confidence in the US dollar, betting that the US would have trouble repaying its massive war debt to the international bankers. In 1968 French President Charles de Gaulle added to the crisis when he began demanding payment to his country in gold instead of dollars to protest US involvement in Vietnam.
When Nixon took the US off the gold standard huge amounts of capital flowed out of US banks and into the London-based offshore Eurodollar markets. The dollar had been spread around the globe during the Vietnam War creating a huge oversupply of dollars unmatched by an equally robust demand. Some surplus dollars were mopped up through loan-back programs organized by the US mega-banks via Treasury bill sales, which helped prop up the US debt.
But the war debt and dollar surplus caused the US to lose control of its domestic money supply and Nixon was forced to devalue the dollar by 11% in 1971. The bleeding continued. In 1973 Nixon pushed the dollar down another 6%. Since even US multinationals now produced most of their goods from overseas export platforms, import prices surged and severe inflation was close behind. Nixon responded by imposing price controls, but the multinationals diverted scarce commodities like wheat to export markets where they could make more money. The international bankers grew impatient with Nixon.
Soon the existence of the Watergate tapes was leaked to the press by CIA informant Alexander Butterfield, whose official job was White House Liaison to the Secret Service- officially an arm of the privately-held Federal Reserve. Transcripts of the Watergate tapes were handed over to investigative reporters Bob Woodward and Carl Bernstein of the Washington Post by a White House source identified only as Deep Throat. Researchers agree that if there was a Deep Throat it had to be either Secretary of State Henry Kissinger or General Alexander Haig- who stepped in for H. R. Haldeman as Nixon’s Chief of Staff during Nixon’s final days.
Haldeman was fired by Secret Service Chief Robert Taylor, who now commands the private security network blanketing Rockefeller family business interests. Kissinger- who married a Rockefeller aid and stores his valuable papers at Rockefeller’s Pocantico Hills, New York estate- recommended Haig as a successor to Haldeman. Haig later succeeded David Rockefeller as chairman of Chase Manhattan Bank.
Nixon CIA Director Richard Helms was fired as CIA Deputy Director of Plans just before his former boss- President Kennedy- was assassinated.  Watergate plumbers Hunt, Sturgis, Quintero, Barker, Diego and Martinez; who precipitated Nixon’s difficulties, were all involved in CIA Operation 40, from which the JFK assassins emerged. It was Kissinger, not Nixon, who created the Watergate Plumbers as a special White House investigating unit. Nixon Attorney General John Dean said later that it was David Rockefeller who suggested that Kissinger create the Plumbers.
Nixon used his knowledge of Helms’ involvement in the JFK hit to extort CIA support for CREEP (Committee to Re-elect the President) and used Haldeman to get under Helms’ skin. Helms commented that he wanted Nixon to “disappear”, while the CIA huddled around their Butterfield-fed tapes, hoping to hear the “smoking gun” that could be used to get rid of Nixon without another Dallas-style bloodbath. Nixon White House aid Charles Colson wanted the President to fire Helms and launch an investigation into a “CIA conspiracy against the President”.
Colson said later that Nixon was a captive of Rockefeller lieutenants Kissinger and Haig during the last months of his Presidency.  They pressured Nixon to step down. When he refused, the Chairman of the Joint Chiefs of Staff sent a message to commanders of US military forces around the world stating, “Upon receipt of this message you will no longer carry out any orders from the White House. Acknowledge receipt.”
Nixon resigned five days later. 33rd Degree Mason and Warren Commission FBI mole Gerald Ford of the wealthy Michigan Ford family was appointed President. Ford’s Vice-President was Nelson Rockefeller. His CIA director was George Bush Sr. Kissinger remained Secretary of State, while Alexander Haig was named Supreme Allied Commander of NATO Forces in Europe. The Rockefeller palace coup had been accomplished.
The Petroleum Standard
Nixon’s infamous Saturday Night Massacre, during which he fired Archibald Cox, Elliot Richardson and William Ruckleshaus; occurred just three days before OPEC members met in Kuwait City to launch the 1973 oil embargo. When OPEC oil ministers met in Tehran later to discuss a new posted price for crude oil, the Rockefeller stooge Shah of Iran pushed for an oil price hike. While Saudi King Faisal was ordering a 25% reduction in his country’s oil exports to support the embargo, the Shah was signing the Tehran Agreement, which guaranteed the Four Horsemen an unlimited supply of oil. King Faisal was assassinated a short time later.
Henry Kissinger busied himself creating the International Energy Agency, which the French refused to join, calling it a machine de guerre.  Nixon’s demise, Kissinger’s IAE and the Shah’s sudden desire for a high oil price coincided with the 1973 introduction of an oil spot futures market and a simultaneous bolstering of the London Eurodollar market. The international bankers could manipulate oil prices via the spot market, while funneling a fresh torrent of embargo petrodollars into offshore tax havens. But how could the international bankers stop the slide of the US dollar?
Kissinger led an NSC project aimed at retrieving the $20 billion the US was spending on Middle East oil. This Rockefeller-backed effort resulted in a 1973 IMF meeting in Nairobi, Kenya where Morgan Guaranty Trust officials convinced SAMA head Anwar Ali to launch a London-based Saudi merchant bank which could be a major force in the Eurodollar market.
A second Rockefeller-backed meeting took place in Lagos, Nigeria in 1979. It too coincided with an Arab oil boycott. Federal Reserve Chairman Paul Volcker, who later chaired the Trilateral Commission, traveled to Lagos, then on to Kuwait City. He instructed Nigerian and Kuwaiti dictators to bump up prices on their premium grades of crude and to accept payment only in US dollars. Nigerian Bonny Light, considered the world’s finest crude oil, and Kuwaiti Light Sweet Crude became the world’s benchmark crude oils. Other countries were forced to then dollarize their oil markets. 
The US dollar was saved. Through the New York and London oil spot markets the bankers could now control not only the price of crude, but the value of the US dollar, which was now by default pegged to the price of crude. Big Oil quit reinvesting oil proceeds into the Middle East. Instead, GCC sheiks were told to buy 20 and 30-year US dollar certificates of deposit at the mega-banks which own the Four Horsemen, whose crude profits were deposited in these same banks as CDs under the names of the sheiks. The banks adopted a policy of fractional reserve lending, whereby they could loan out $1 for every $.66.6 coined. The banks were now able to loan $60 million to Latin American countries at a cost of only $70,000/year in interest payments to the Arab CD-holders.
Texas Governor John Connolly, the Hunt Brothers and Saudi billionaire Sheik Khalid bin Mahfouz became aware of this scam. They joined British banker Jon May in attempting to corner the silver market and use the proceeds to launch the Bank of Texas, independent of the Federal Reserve crooks. May was born to a wealthy British family and traveled the world setting up over 4,000 trust accounts. He discovered a “minute cartel” that controlled exchange and interest rates and global banking policies. He found that, “the provision or non-provision of money was all-controlling”. 
Citibank Chairman Walter Wriston once spelled out the loaded game which the cartel operates when he stated bluntly, “If Exxon pays Saudi Arabia $50 million, all that happens is that we debit Exxon and credit Saudi Arabia. The balance sheet of Citibank remains the same. And if they say they don’t like American banks, they’ll put it in Credit Suisse. All we do is charge Saudi Arabia and credit Credit Suisse. Our balance sheet remains the same. So when people run around waiting for the sky to fall there isn’t any way that money can leave the system. It’s a closed circuit.”
May tried to set up alternative lending facilities. He was harassed by local police everywhere. In London the heat was ordered by Inspector General Goldsworthy. May put a tail on him and found that he was involved in drug trafficking. He moved to the US where he was jailed on bogus charges. Many Third World governments, aware of the Fed scam, contacted May in search of a new avenue through which to borrow money. The Shah of Iran had just gotten involved with May when he was ousted. May says the Shah was healthy until he was flown to a US Air Force Base. 
Deutsche Bank President Alfred Herrhausen was involved in the silver market effort and was soon assassinated. The official version of his death followed the P-2 Gladio formula and blamed Germany’s Beider Meinoff Red Army faction, but retired US Colonel and Edward Lansdale South Pole- assignee Fletcher Prouty thinks Herrhausen was killed by the CIA at the behest of the international bankers. Herrhausen was an advocate of Third World debt forgiveness. He had laid out a plan for debt relief at an IMF/World Bank gathering in Washington two months before his death. At the meeting Herrhausen embarrassed Citibank President Walter Reed, taking several sharp public jabs at him. 
An Austrian industrialist working with Jonathan May was declared insane. The CIA trained mercenaries in Belize, most probably on land owned by Bush golfing buddy and Carlos Marcello associate Walter Mischer, to assassinate the Nigerian dictator with whom Volcker cut his deal because they were afraid he would talk. Jonathan May, who remains in a Minnesota jail, says these same Belizean-trained mercenaries were also deployed for the Herrhausen assassination. 
On October 3, 2005 the Wall Street Journal reported that the Saudis and the other nations of the GCC had once again surpassed China and Japan as the biggest buyers of US Treasury bonds due to the dramatic increase in oil prices to nearly $70/barrel. Were high oil prices now necessary to prop up the wobbly US dollar? In June 2007 the six GCC nations posted $1.6 trillion in foreign assets. Dubai was becoming an international financial center rivaling London and had purchased stakes in Standard Charter, HSBC and Veuthes Bank. Halliburton moved its headquarters to Dubai in 2007.
Eurodollars and Third World Debt
With all mechanisms in place, a tidal wave of dollar-denominated petro-cash flowed into the London-controlled offshore Eurodollar markets, cementing the US-British “special relationship” which props up the House of Windsor. The Arab oil embargo of 1973 was the coup de grace to the plan. In 1976 the American Jewish Congress singled out J.P. Morgan and Citibank for their “pivotal roles in the implementation of the Arab boycott”. Both Chemical Bank and Morgan executives argued against tough anti-boycott legislation before Congress.  In 1963 the Eurodollar market was worth around $148 million. By 1982 it was worth $2 trillion.
The ability of corporations and the wealthy to hide their billions in the euro markets is a chronic problem for both the US Treasury and its Third World counterparts. In 1950 US corporations footed 26% of the total US tax bill. By 1990 they were covering only 9%, contributing to massive budget deficits and a $2.4 trillion US debt. It’s worse in poor countries, who borrow the sheiks’ money from the international bankers at exorbitant interest rates, then watch helplessly as IMF oligarch cronies make off with the loot through BCCI-type bankster stings, sending the cash right back into the vortex of the offshore Eurodollar market.
The New York Times estimated that from 1978-1987 Latin America alone lost $600-$800 billion to this type of capital flight, an amount nearly equal to the combined debt of the Third World. The great African revolutionary leader and Tanzanian President Julius Nyerere wondered, “Should we let our people starve so that we can repay our debts?
The international bankers’ answer was an unequivocal “yes”. Their Club of Rome arm, over caviar and pate, advocated depopulation of the world’s undesirable poor. By 1982 the total external debt of the Third World was $540 billion, with 70% of that owed to Western mega-banks. The top nine US banks held Third World debt at 233% of primary capital. From 1974-1982 international bank lending jumped five-fold to over $1 trillion. Profits derived from lending petrodollars to the Third World at the seven largest US banks went from 22% to 60% of total earnings. The biggest victims were Argentina, Brazil, Mexico and Yugoslavia. 
US money center banks formed Financial Services Holding Company to present a unified front as a creditor cartel vis-à-vis Third World debtors. Its board has included Federal Reserve Chairman Allen Greenspan of Morgan Guaranty, John LaWare of Chase Manhattan and William Rhodes of Citigroup. Similar cartels include the Institute for International Finance, the Paris Club and the World Bank- whose IMF whipping boy is marched out to enforce the financial oligarchy’s loan conditions.
If countries are unable to repay these usurious loans, their resources are handed over to the bank’s multinational clients as via the 1995 Mexican debt crisis. The banks tack on millions for their arduous efforts in debt rescheduling ala the $50 million Mexican front-end fee. Investment banking giants Lehman Brothers, UBS Warburg, Lazard Freres, Morgan Stanley, Goldman Sachs, Merrill Lynch and CS First Boston take the lead in the profitable arena of default, as advisers to debtor governments.
When the prospects look bleak for recovering bad loans, the bankers have a habit of offloading their bad debt onto US taxpayers as via the Brady Plan, which was formulated by Bush Secretary of Treasury and Dillon Read investment banker Nicholas Brady. The Brady Plan provided small debt write-offs to Third World debtor nations designed to lure them back into the high-interest borrowing fold. Larger amounts of debt were tabulated as special charges on bank balance sheets, allowing them to claim huge capital loss tax advantages, while soon to be worthless Brady bonds were peddled to an unwitting American public.
The world’s gold standard had been replaced by a petroleum standard. According to US Treasury, from 1974-1980 OPEC plunged $117 billion into the Eurodollar market. SAMA began loaning directly to US multinationals. In 1975 AT&T received a $100 million loan from the Saudi Central Bank. The IMF got on the petrodollar gravy train, borrowing $10 billion from SAMA in 1980.  The international bankers moved offshore, often through joint ventures, to take advantage of the petrodollar bonanza they had engineered. Manufacturers Hanover Trust linked up off-shore with N. M. Rothschild & Son. Chase Manhattan joined Deutsche Bank, National Westminster Bank and Mitsubishi Bank to form Eurodollar player Orion Banking Group.
By 1982 the euro market had assets of $2 trillion, while US M-1 money supply stood at $442 billion. The US debt skyrocketed while the fat cat bankers which US forces are deployed to protect got “filthy rich”. One year following the seminal events of 1973, international money center banks saw their assets increase 72%. 
Economist John Maynard Keynes advocated the creation of an “international pool of money”. The offshore Eurodollar market is an Olympic-size pool and the Illuminati bankers are swimming in it.
 Plausible Denial: Was the CIA Involved in the Assassination of JFK? Mark Lane. Thunder’s Mouth Press. New York. 1991
 The Rockefeller File. Gary Allen. 76’ Press. Seal Beac, CA. 1977. p.175
 The Robot’s Rebellion: The Story of the Spiritual Renaissance. David Icke. Gateway Books. Bath, UK. 1994. p.219
 The Prize: The Epic Quest for Oil, Money and Power. Daniel Yergin. Simon & Schuster. New York. 1991. p.608
 Behold a Pale Horse. William Cooper. Light Technology Press. Sedona, AZ. 1991. p.333
 The Money Lenders: The People and Politics of the World Banking Crisis. Anthony Sampson. Penguin Books. New York. 1981
 Cooper. p.333
 “CIA Kills Progressive German Banker”. Executive Intelligence Review. 7-17-92. p.36
 Cooper. p.333
 The House of Morgan. Ron Chernow. Atlantic Monthly Press. New York. 1990. p.609
 The Confidence Game: How Un-Elected Central are Governing the Changed World Economy. Steven Solomon. Simon & Schuster. New York. 1995. p.194
 The World’s Money: International Banking from Bretton Woods to the Brink of Insolvency. Michael Moffitt. Simon & Schuster. New York 1983 p.126
 Hot Money and the Politics of Debt. R.T. Naylor. The Linden Press/Simon & Schuster. New York. 1987. p.50
2 Responses to “The International: The Offshore Petroleum Standard”
KumarRaj Says: September 7, 2011 at 11:15 am
That is an interesting analysis dean Henderson. But today that euro-dollar is replaced with CDS market, in a similar fashion. It is this CDS market that brought the international banking cartel to its keens in 2008 (US home loan is just a cover up). They have been eating each other within the closed club in CDS market. In the end, as usual, the $2 trillion from US Treasury (Tax payers money) saved them.
It will be interesting to know how they are trying to wrrigle out of this mess to a new financial instruments to take them home. This has sounded the end of Oil-dollar parity. What is next. GS seems to bet on Corbon credit!
DSK of IMF is out in cold as he proposed alternative global settlement currency to the dollar. To save euro, they are pushing for Euro Bonds, which Germany (the only surplus nation within the euro zone) is strongly resisting.
Dean Henderson Says: September 9, 2011 at 8:57 am
CDS, along with the yen carry trade and other current banker favorites, are in fact just the latest usage of the eurodollar, Kumar. Take it offshore and make it opaque and beyond regulatory scrutiny.
About the author:
Dean Henderson was born in Faulkton, South Dakota. He earned an M.S. in Environmental Studies from the University of Montana, where he edited The Missoula Paper and was a columnist for the Montana Kaimin. His articles have appeared in Multinational Monitor, In These Times, Paranoia and several other magazines.
A life long political activist and traveler to fifty countries, Henderson co-founded of the University of Montana Green Party and the Ozark Heritage Region Peace and Justice Network. He is former Vice-President of the Central Ozarks Farmer’s Union and former President of the Howell County Democrats.
In 2004 he won the Democratic nomination for Congress in Missouri’s 8th District.
Dean’s Books Available in print and e-book formats:
Big Oil & Their Bankers in the Persian Gulf…
The Grateful Unrich: Revolution in 50 Countries
Dean Henderson is the author of Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network and The Grateful Unrich: Revolution in 50 Countries.
His Left Hook blog is at http://deanhenderson.wordpress.com/category/left-hook-columns/
Dean Henderson is a frequent contributor to Global Research. Global Research Articles by Dean Henderson: http://www.globalresearch.ca/index.php?context=listByAuthor&authorFirst=Dean&authorName=Henderson