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Chapter 673 The first step to destroy world hegemony (Third update, please subscribe)
But are the opportunities brought by the oil crisis just economical and fuel-saving?

Of course, the oil crisis made Japanese cars popular around the world, and since then, their economy and fuel efficiency have become the most famous business card of Japanese cars.

But...that's it!
No matter how economical and fuel-efficient cars are, no matter how car manufacturers around the world improve the fuel efficiency of internal combustion engines in the next few decades, how they make cars more fuel-efficient and economical. None of them can fundamentally change one problem - dependence on oil.

The economies of developed Western countries are too dependent on oil and Middle East oil, which cannot withstand the storm.

Precisely because they have the oil card in their hands, in the next few decades, the Middle East oil-producing countries, led by Saudi Arabia, will play an increasingly important role on the world stage, even if they support extremism, they will Most of the time, most countries also turn a blind eye.

Of course, this is not important.

What is important is the role the United States played in it. Two years before the first oil crisis, the Bredesen System collapsed and the U.S. dollar was decoupled from gold. The U.S. dollar hegemony established by the Bredesen System after World War II collapsed.

In fact, in the two or three years after the Nixon administration announced the end of the Bredesen System in 71, the hegemony of the US dollar was in the process of disintegration.

After all, the U.S. dollar used to be U.S. dollars, but after the collapse of the Bredesen system, will the U.S. dollar still be U.S. dollars?
The collapse of US dollar hegemony has led to the decline of the US economy, which has triggered a series of consequences, including but not limited to the withdrawal of troops from Vietnam and contraction around the world...

But just when the United States was at a loss, Arab countries used oil as a weapon, and the "first oil crisis" caused by the oil embargo caused heavy damage to the U.S. economy, but at the same time, it gave the United States hope!
What is this hope?
The core of the Bredesen system is that the U.S. dollar is linked to gold, resulting in the "dollar", which is the foundation of U.S. dollar hegemony. After decoupling, U.S. dollars turned into paper.

This is the dollar-oil peg.

"It turns out the key lies here, in the oil!"

"Dollar hegemony, dollar hegemony..."

But the United States does not have enough oil to influence the world market, so they also found a country that both produces a lot of oil and needs help: Saudi Arabia.

What was the situation in the Arab world at that time?
From Libya to Iraq, military coups have occurred in one country after another. The king's rule has been overthrown. Gaddafi, Saddam and other young military officers have stepped onto the stage. Even Saudi Arabia is in a precarious situation. The possibility of being overthrown by radical young officers.

However, the outbreak of the oil crisis allowed the United States to find a new anchor for the US dollar-oil! Through the oil crisis, the United States discovered the strategic value of oil, which is the blood of the world economy, and used the U.S. dollar as the pricing currency for oil! Tie the dollar to oil.

As a result, oil has become another anchor of value for the US dollar after gold!
As a result, oil, as the blood of the world economy, has been imprinted with the U.S. dollar. The collapse of the Buddson system not only did not disintegrate the hegemony of the U.S. dollar, but because of the intervention of oil, it further consolidated the hegemony of the U.S. dollar!
In fact, if there had not been the "first oil crisis", the Western world would not have realized that the economy is highly tied to oil. Without the subsequent bonding of the US dollar and oil, the US dollar hegemony is destined to collapse. I don't know whether the United States would have sent it at that time, but Is the United States still the same America without dollar hegemony?
Standing in front of the window, with the light shining through the window, Li Yian's face looked particularly calm, but his eyes became a little fanatical - there was no way, whoever saw the way to disintegrate the United States, how could it be possible? Not excited!

Li Yian said excitedly as he made a fist with his right hand and punched the palm of his left hand hard.

With the support of the United States, the rule of royal families such as Saudi Arabia and Iran has been protected, and they have become the most important allies of the United States. At the same time, there is a new international rule: oil can only be settled in US dollars.

So the United States went to support many oil-producing countries, including Saudi Arabia and Iran, but this support came with conditions: oil transactions can only be done in U.S. dollars.

Okay, now that we have figured out the oil hegemony, how can we dismantle the oil hegemony next?
Staring out the window, Li Yian fell into deep thought.

"The key is oil!"

Oil is important because it is a key energy source for modern industry and transportation. It is the basic raw material for many chemical products and synthetic materials. Petroleum is widely used in various fields, from aviation and aerospace to agriculture, and is crucial to the country's industrial development and people's lives. At the same time, oil resources are unevenly distributed around the world. About 70% of oil resources are concentrated in Arabia, Soviet Russia and the United States in a few countries. And consuming countries far outnumber producing countries, which in turn causes oil to become a weapon, which in turn affects the country's energy security and geopolitics.

Analyzing various problems with oil in his mind, Li Yian came to a conclusion.

"The huge demand and the concentration of production areas are the basis for controlling oil."

Because the production areas are concentrated, the United States only needs to win over Saudi Arabia and Iran. Even if Iran's Pahlavi fell later, it did not shake the foundation of the petrodollar.

Without Iran and Saudi Arabia, this is the key to the petrodollar. The United States does not need to control all the oil, it only needs to control the bulk of it.

"The key factor is still oil. If you want to shake the hegemony of the US dollar, the core is..."

what do you need?
Li Yian's brows were furrowed. What he was thinking about at this time was not to get one or two large oil fields in his hands.

When the U.S. dollar is tied to oil, it makes no sense to just rely on oil fields. Not to mention that there are not so many large oil fields in the world, so what if there are?

Just like the Soviet Union in another world, its oil production exceeded 500 million tons in the 1970s. In the 1980s, because of the decline in oil, in order to obtain as many dollars as possible, the Soviet Union increased its oil exploration efforts, and its production reached its highest level in the 1980s. Even more than 600 million tons.

However, even if it is 600 million tons of oil, it does not make any sense in the face of oil price cuts. Through the manipulation of the oil market, oil prices are getting lower and lower, but it has helped the United States further consolidate the hegemony of the US dollar—— Because oil is settled in US dollars.

In other words, oil-producing countries can increase production, but it will have no impact at all on the dollars tied to oil. Of course, oil-producing countries can also ask for other goods. The only problem is...pay you India Rupees, do you dare to ask for it?

Therefore, the key to destroying the hegemony of the dollar tied to oil is...

"We must first destroy oil hegemony. Only by destroying oil hegemony can we destroy dollar hegemony, otherwise everything will be in vain!"

After coming to this conclusion, Li Yian frowned even more tightly.

Because everyone knows how important oil is to industry and economy. It is fuel, it is chemical raw material, it is...

“But at the end of the day it’s fuel!”

Suddenly, Li Yian said as if he had figured something out.

"The point of the matter is... oil is the fuel source for cars!"

Like anyone trying to destroy a fortress, Li Nian understands how important oil is to the world economy. When he sat on the chair, the annual global car production reached 1200 million units, and the number of cars in the world exceeded 7000 million, and next year it will exceed 1300 million. Through these figures, we can understand where the market for oil is. As the number of cars in various countries around the world increases, the thirst for this energy will only increase in the future. Under this premise, it sounds ridiculous to want to shake down and destroy oil hegemony!

(End of this chapter)