Preparing for the Collapse of the Petrodollar System, Part 4

Source: FTM Daily
by Jerry Robinson
Miss Part One, Two, and Three? START HERE.

Introduction to Part Four: “The War in Afghanistan and the New Great Game”

As we have learned from the previous articles in this series, the petrodollar system that was cleverly crafted in the 1970′s has served America well. What began as a way to drive more demand for the U.S. dollar, in the wake of a move away from the international gold standard in 1971, has provided benefits that few could ever imagine. America’s ‘dollars for oil’ system has greatly enriched our nation at the expense of other nations and their potential prosperity. It has also helped solidify the U.S. dollar as the global currency of choice, following a temporary loss of credibility after President Nixon’s decision to close the gold window. In this fourth installment of our series, I will explain how the petrodollar system has led the U.S. into a perpetual state of war in the Middle East and Central Asia. In particular, this article will focus on the rise of Al Qaeda and the Taliban, along with what I believe may be the real reasons for the War in Afghanistan. I have entitled this piece, The Petrodollar Wars: The War in Afghanistan and the New Great Game

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11 International Agreements That Are Nails In The Coffin Of The Petrodollar

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....
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Editor's Note:  For a primer on the petrodollar system, see “THE COMING COLLAPSE OF THE PETRODOLLAR SYSTEM” BY JERRY ROBINSON.