Did Libya’s Gadhafi Threaten the Global Power Structure?

From the beginning of the NATO offensive against the Gadhafi regime in Libya, there has been a lot of buzz about the real reasons behind the Western powers’ agenda for regime change. This article from the New American sketches a plausible explanation. It may have had more to do with Gadhafi’s new money plan than it did about Libya’s oil riches.—t.h.g.

Gadhafi’s Gold-money Plan Would Have Devastated Dollar

Written by Alex Newman

Friday, 11 November 2011 10:15

It remains unclear exactly why or how the Gadhafi regime went from “a model” and an “important ally” to the next target for regime change in a period of just a few years. But after claims of “genocide” as the justification for NATO intervention were disputed by experts, several other theories have been floated.

Oil, of course, has been mentioned frequently — Libya is Africa‘s largest oil producer. But one possible reason in particular for Gadhafi’s fall from grace has gained significant traction among analysts and segments of the non-Western media: central banking and the global monetary system.

According to more than a few observers, Gadhafi’s plan to quit selling Libyan oil in U.S. dollars — demanding payment instead in gold-backed “dinars” (a single African currency made from gold) — was the real cause. The regime, sitting on massive amounts of gold, estimated at close to 150 tons, was also pushing other African and Middle Eastern governments to follow suit.

And it literally had the potential to bring down the dollar and the world monetary system by extension, according to analysts. French President Nicolas Sarkozy reportedly went so far as to call Libya a “threat” to the financial security of the world. The “Insiders” were apparently panicking over Gadhafi’s plan.

“Any move such as that would certainly not be welcomed by the power elite today, who are responsible for controlling the world’s central banks,” noted financial analyst Anthony Wile, editor of the free market-oriented Daily Bell, in an interview with RT. “So yes, that would certainly be something that would cause his immediate dismissal and the need for other reasons to be brought forward [for] removing him from power.”

According to Wile, Gadhafi’s plan would have strengthened the whole continent of Africa in the eyes of economists backing sound money — not to mention investors. But it would have been especially devastating for the U.S. economy, the American dollar, and particularly the elite in charge of the system.

“The central banking Ponzi scheme requires an ever-increasing base of demand and the immediate silencing of those who would threaten its existence,” Wile noted in a piece entitled “Gaddafi Planned Gold Dinar, Now Under Attack” earlier this year. “Perhaps that is what the hurry [was] in removing Gaddafi in particular and those who might have been sympathetic to his monetary idea.”

Investor newsletters and commentaries have been buzzing for months with speculation about the link between Gadhafi’s gold dinar and the NATO-backed overthrow of the Libyan regime. Conservative analysts pounced on the potential relationship, too.

“In 2009 — in his capacity as head of the African Union — Libya’s Moammar Gadhafi had proposed that the economically crippled continent adopt the ‘Gold Dinar,’” noted Ilana Mercer in an August opinion piece for WorldNetDaily. “I do not know if Col. Gadhafi continued to agitate for ditching the dollar and adopting the Gold Dinar — or if the Agitator from Chicago got wind of Gadhafi’s (uncharacteristic) sanity about things monetary.”

But if Arab and African nations had begun adopting a gold-backed currency, it would have had major repercussions for debt-laden Western governments that would be far more significant than the purported “democratic” uprisings sweeping the region this year. And it would have spelled big trouble for the elite who benefit from “freshly counterfeited funny-money,” Mercer pointed out.

“Had Gadhafi sparked a gold-driven monetary revolution, he would have done well for his own people, and for the world at large,” she concluded. “A Gadhafi-driven gold revolution would have, however, imperiled the positions of central bankers and their political and media power-brokers.”

Adding credence to the theory about why Gadhafi had to be overthrown, as The New American reported in March, was the rebels’ odd decision to create a central bank to replace Gadhafi’s state-owned monetary authority. The decision was broadcast to the world in the early weeks of the conflict.

In a statement describing a March 19 meeting, the rebel council announced, among other things, the creation of a new oil company. And more importantly: “Designation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.”

The creation of a new central bank, even more so than the new national oil regime, left analysts scratching their heads. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” noted Robert Wenzel in an analysis for the Economic Policy Journal. “This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences,” he added. Wenzel also noted that the uprising looked like a “major oil and money play, with the true disaffected rebels being used as puppets and cover” while the transfer of control over money and oil supplies takes place.

Other analysts, even in the mainstream press, were equally shocked. “Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power?” wondered CNBC senior editor John Carney. “It certainly seems to indicate how extraordinarily powerful central bankers have become in our era.”

Similar scenarios involving the global monetary system — based on the U.S. dollar as a global reserve currency, backed by the fact that oil is traded in American money — have also been associated with other targets of the U.S. government. Some analysts even say a pattern is developing.

Iran, for example, is one of the few nations left in the world with a state-owned central bank. And Iraqi despot Saddam Hussein, once armed by the U.S. government to make war on Iran, was threatening to start selling oil in currencies other than the dollar just prior to the Bush administration’s “regime change” mission.

While most of the establishment press in America has been silent on the issue of Gadhafi’s gold dinar scheme, in Russia, China, and the global alternative media, the theory has exploded in popularity. Whether salvaging central banking and the corrupt global monetary system were truly among the reasons for Gadhafi’s overthrow, however, may never be known for certain — at least not publicly.

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5 responses to “Did Libya’s Gadhafi Threaten the Global Power Structure?

  1. I do believe it too to be the main and only reason why Gaddafi was removed. At the end of the day it is all about US’s stability and the dollar which is worthless. The states will get to ANYTHING to prevent their Federal banks from collapse and behind all this is a Bunch of spineless Billionaires who are are protecting their interests.


  2. Pingback: Is GOP trying to sabotage economy to hurt Obama? Read more: http://www.newstimes.com - Page 3

  3. As you say, it may well never be known what the reasoning was behind Gadafi’s overthrow, but of the theories put forward to date, it does seem that his insistence in pursuing the introduction of the Gold Dinar was the most likely contributing factor.

    With regard to Iran, not only does it have a State owned central bank, but Ahmadinejad has also considerable
    ‘previous’ in suggesting that selling oil in exchange for US dollars does Iran no favours.

    Indeed, he was at it again earlier this week…….


    (From FARS News Agency)

    President Ahmadinejad Urges Establishment of New Global Financial System

    TEHRAN (FNA)- Iranian President Mahmoud Ahmadinejad blasted the US dominance over global financial and oil markets and flow of money in the world, and called on the international community to establish rival markets.

    Addressing a ceremony to introduce the new Iranian oil minister here in Tehran on Tuesday, Ahmadinejad underlined the significance of parallel stock markets to undermine the US dominance over the global financial system.

    “As long as we do not take proper measures in this regard (setting up new financial system), the money of oil will systematically find its way to the Americans’ pockets, just like what is seen with regard to the dominance of the (US) dollar (in the world markets),” Ahmadinejad stated, adding that oil price is not determined based on supply and demand but based on political factors.

    “We should create a rival (oil) bourse and market and break the dominance of the dollar,” the president underscored.

    Earlier in July, President Ahmadinejad pointed to the financial and economic crisis in the West, and warned that hegemonic states are seeking to project their economic problems on the other states.

    “In the economic sector the hegemonic system is in trouble and is trying to export their problems to the other countries,” Ahmadinejad said at the time.

    He blasted the western powers for issuing wildcat dollars and Euros to save their economies.

    “The global economy can no more tolerate counterfeit dollars,” the Iranian president went on saying at the time, and added that the western policy has backfired as the wildcat currencies issued by the western powers have now turned into a major problem for the West itself.


    Personally, I think it only a matter of time before Ahmadinejad is removed or Iran attacked, or both.



  4. Gadhafi and Hussein of iraq were allowed to come to power. their problem was that they actually believed their own myths. I’m not surprised by anything our country does.


  5. Pingback: Did Libya’s Gadhafi Threaten the Global Power Structure? « Bill Totten's Weblog

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