How did I not know the history of the petrodollar? It reads like a mob-like protection racket. Amazing!
From 1944 to 1971, under Bretton Woods, countries were required to convert their currencies into $US, which was exchangeable for gold at a fixed rate of $35/oz. By 1971, US spending and inflation was soaring from Vietnam war. European countries started requesting gold in exchange, and US was running out of gold.
More history on Bretton Woods: https://en.wikipedia.org/wiki/Bretton_Woods_system
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