tjmccurdy wrote:If I remember correctly, what came out of that "experiment" was that they learned they could get away with "price fixing". Soon after, they got off the Gold Standard and what you see today is the Dollar is backed by petroleum - hence the "petro-dollar" wars that you see going on all over the world. They assassinated Kadafi because he was created a new monetary system for all of Africa which would rid them of having to buy petroleum in dollars (why do you think Peru's gas prices are so high?). But what really sealed the deal for Kadafi/Gaddafi was when he told China and Iran they could buy petro from them in their own currencies. Soon after, some made up crap about terrorism and *bam* no more Kadafi.
That's interesting story, but as a fiat currency the dollar is backed by nothing more than the "full faith and credit of the United States".
You cannot take a dollar to a Federal bank and have it exchanged for a specified quantity of oil that is held in reserve by the United States.
That there are political and currency value implications related to petroleum is obvious to everyone. But to say "the dollar is backed by petroleum" is wildly incorrect.
Obviously the Qaddafi story is just conspiracy minded speculation so I won't comment on that.