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Monsters to DestroyUnderstanding the War on Terror$
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Navin A. Bapat

Print publication date: 2020

Print ISBN-13: 9780190061456

Published to Oxford Scholarship Online: April 2020

DOI: 10.1093/oso/9780190061456.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 08 March 2021

The Economic Origins of the “War on Terror”

The Economic Origins of the “War on Terror”

(p.8) 2 The Economic Origins of the “War on Terror”
Monsters to Destroy

Navin A. Bapat

Oxford University Press

The U.S. was in a position of economic and military hegemony after World War II. However, by the early 1970s, the U.S. dollar depreciated following President Richard Nixon’s abandonment of the gold standard. To fight this problem, Nixon offered indefinite military protection from all of their enemies to all oil-producing states, if those states agreed to denominate their oil sales exclusively in U.S. dollars. This agreement reestablished the U.S. as the world’s sole superpower. At the turn of the millennium, U.S. dominance faced challenges from al Qaeda and Saddam Hussein’s decision to abandon the dollar in favor of the euro in oil sales. The war on terror began as an effort to eliminate each of these threats. Following the Iraq war, the U.S. seemed to establish control and alliances with all of the world’s key suppliers of energy, along with the states serving as transit routes.

Keywords:   hegemony, reserve currency, petrodollar, oil peg, terrorism, euro, commitment problem

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