Source:
The Economic Collapse
Date: 7/17/2012
Is the petrodollar dead? Well, not yet, but the nails are being
hammered into the coffin even as you read this. For decades, most of
the nations of the world have used the U.S. dollar to buy oil and to
trade with each other. In essence, the U.S. dollar has been acting as a
true global currency. Virtually every country on the face of the earth
has needed big piles of U.S. dollars for international trade. This has
ensured a huge demand for U.S. dollars and U.S. government debt. This
demand for dollars has kept prices and interest rates low, and it has
given the U.S. government an incredible amount of power and leverage
around the globe. Right now, U.S. dollars make up
more than 60 percent
of all foreign currency reserves in the world. But times are
changing. Over the past couple of years there has been a whole bunch of
international agreements that have made the U.S. dollar less important
in international trade. The mainstream media in the United States has
been strangely quiet about all of these agreements, but the truth is
that they are setting the stage for a fundamental shift in the way that
trade is conducted around the globe. When the petrodollar dies, it is
going to have an absolutely devastating impact on the U.S. economy.
Sadly, most Americans are totally clueless regarding what is about to
happen to the dollar.
One of the reasons the Federal Reserve has been able to get away with
flooding the financial system with U.S. dollars is because the rest of
the world has been soaking a lot of those dollars up. The rest of the
world has needed giant piles of dollars to trade with, but what is going
to happen when they don't need dollars anymore?
Could we see a tsunami of inflation as demand for the dollar plummets like a rock?
The power of the U.S. dollar has been one of the few things holding
up our economy. Once that leg gets kicked out from under us we are
going to be in a whole lot of trouble.
The following are 11 international agreements that are nails in the coffin of the petrodollar....
...
Read the rest here.
Editor's Note: For a primer on the petrodollar system, see “THE COMING COLLAPSE OF THE PETRODOLLAR SYSTEM” BY JERRY ROBINSON.
