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....
...
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.

“THE COMING COLLAPSE OF THE PETRODOLLAR SYSTEM” BY JERRY ROBINSON

Source: Follow the Money
by: Jerry Robinson

[Editor's Note: Learn about a key aspect of our economic system that perhaps is not emphasized enough in its importance.  After the collapse of the Bretton Woods agreement and the gold standard, a scheme to prop up the U.S. dollar was devised and sold to the Arab nations by the Nixon administration.  In 1973 Henry Kissinger was sent over to negotiate this deal with the Saudis in which it was agreed that Saudi Arabia would trade her oil only in US dollars.  In return the Saudis received weapons and protection from the United States.  The OPEC nations by 1975 had followed suit...]

FOR THE DETAILS, READ JERRY ROBINSON'S POWERFUL NEW ARTICLE SERIES HERE

ARTICLE 1: Preparing for the Collapse of the Petrodollar System

ARTICLE 2: The Rise of the Petrodollar System

ARTICLE 3: The Petrodollar Wars: The Iraq Petrodollar Connection

ARTICLE 4: The Petrodollar Wars: The Afghanistan War and the "New" Great Game

(Video) U of I College of Law Professor (and Harvard Fellow) Dr. Francis Boyle discusses the implications of a war with Syria and Iran

Source: Infowars Nightly News
Date: 2/10/2012


Dr. Francis Boyle, professor from the University of Illinois College of Law (and Harvard Fellow) joins nationally syndicated radio talk show host Alex Jones to discuss the geopolitical implications of a potential war with Syria and Iran.

Here is Dr. Boyle's impressive bio taken straight from his U of I faculty page: http://www.law.illinois.edu/faculty/profile/FrancisBoyle

Shenzou-8 from Launch to Landing

I joined together footage from CCTV (CNTV) starting 11/1/2011 and ending 11/19/2011 for the Shenzou-8 unmanned space mission, docking with Tiangong-1 orbital space station and landing/recovery.


Source Articles:

Part 1: 11-01-2011 06:40 BJT China successfully launches Shenzhou-8 http://english.cntv.cn/program/newsupdate/20111101/101531.shtml

Part 2: 11-02-2011 14:52 BJT Shenzhou-8 completes first change of orbit http://english.cntv.cn/program/newsupdate/20111102/111280.shtml

Part 3: 11-08-2011 14:13 BJT China's 2nd space docking to occur in harsh conditions http://english.cntv.cn/program/newshour/20111108/111210.shtml

Part 4: 11-09-2011 13:47 BJT China trains crew for manned space docking http://english.cntv.cn/program/newshour/20111109/107678.shtml

Part 5: 11-17-2011 18:14 BJT How will Shenzhou-8 return home? http://english.cntv.cn/program/newsupdate/20111117/116967.shtml

Part 6: 11-17-2011 18:23 BJT Air search and rescue procedures help return http://english.cntv.cn/program/newsupdate/20111117/117110.shtml

Part 7: 11-17-2011 18:17 BJT Weather: Key to Shenzhou-8's safe landing http://english.cntv.cn/program/newsupdate/20111117/117034.shtml

Part 8: 11-18-2011 08:29 BJT Shenzhou-8 returns to earth http://english.cntv.cn/program/newsupdate/20111118/103419.shtml

Part 9: 11-18-2011 08:42 BJT Brazilian congratulations on Shenzhou-8 successful mission http://english.cntv.cn/program/newsupdate/20111118/103773.shtml

Part 10: 11-18-2011 10:01 BJT Studio interview: Shenzhou-8 returning to earth http://english.cntv.cn/program/china24/20111118/105703.shtml

Part 11: 11-18-2011 14:26 BJT Space docking mission success a significance for the country http://english.cntv.cn/program/newshour/20111118/110900.shtml

Part 12: 11-18-2011 14:46 BJT Tele interview: Chin's future space exploration http://english.cntv.cn/program/newshour/20111118/111409.shtml

Part 13: 11-18-2011 20:29 BJT Shenzhou-8: Gateway to the future http://english.cntv.cn/program/china24/20111118/117197.shtml

Part 14: 11-19-2011 14:14 BJT Shenzhou-8 arrives in Beijing after successful landing http://english.cntv.cn/program/newshour/20111119/105345.shtml

Flatulent Bears (Text Transcript) for Deaf Day Traders - Part Deux

I am going to scoop the YouTube CC (closed captioning) bot with my superior human transcription of "JP Morgan Silver Manipulation Explained - Part 2" for deaf day traders. The cartoon bears are back and explain backwardation, that there is no actual physical silver left on the market and that the fraudulent fractional reserve gold system at the BIS (Bank of International Settlements) which apparently is controlled by The Ben Bernank and other central bank heads might hit the fan.

The tan colored bear in the cartoon speaks with a North American mid-western accent and the clueless brown bear speaks with a British accent.  The tan bear knows a trader at The JP Morgue who has given him useful insider info. The brown bear's spastic colon has perhaps worsened since part 1.

The transcript of the above video is as follows:

Tan Bear:	So we are back, after being on ZeroHedge.com, and I have some insider info from a trader at the JP Morgue this time. I'm going to blow the whistle again on a few things. [high pitched policeman's whistle noise]
Brown Bear:	I have already made a sh*t ton of money on the last video. So let's hear what shennanigans they are up to now.
Tan Bear:	Fair enough sheep. Word has it that the LBMA is on fire.
Brown Bear:	What is the LBMA, and why is it on fire?
Tan Bear:	The LBMA is the London Bullion Market and this is where the fire is. We didn't even see the smoke, it went straight to fire.
Brown Bear:	I'm getting bored again like last time, possibly because I've had so many immunizations. My ADHD is acting up.
Tan Bear:	The LBMA is where the central bankers are skinning the sheeple. The silver at the LBMA is in backwardation right now and has been for an unprecedented time.
Brown Bear:	What is backwardation? And why should I care?
Tan Bear:	Backwardation occures when there is market manipulation, when there can be no delivery arbitrage, because the asset is not currently available for purchase.
Brown Bear:	Has this happened before?
Tan Bear:	Who cares?
Brown Bear:	W-T-F? What do you mean who cares? What's the point to this video then?
Tan Bear:	Here's the insider info. A trader at The JP Morgue has told me something noone wants to hear.
Brown Bear:	Well...go on I'm listening now. My riddlin has kicked in. [cash register noise KA-CHING!]
Tan Bear:	There is no commercial silver left. It's all smoke and mirrors. It's the biggest dog and pony show known to mankind and the CFTC can do nothing about it other than pray.
Brown Bear:	Elaborate please. I don't speak sh*tstorm.
Tan Bear:	Do you really want to see how deep the rabbithole goes?
Brown Bear:	Yes. Give me the red pill.
Tan Bear:	OK I'm going to move fast so listen closely. This smoke signal, which is now raging fire at the LBMA as backwardation...this means there is no physical metal. We are already certain, as per my JP Morgue insider, that--get this--that the COMEX is settling in fiat paper. Millions of ounces have been moving in and out of the COMEX with enormous adjustments. This has never happened before...ever.
Brown Bear:	Houston, we have a problem.
Tan Bear:	I haven't even told you the good stuff yet. My insider has informed me, that there are two people on the CFTC that are on the JP Morgue payroll. I'm not sure who they are, but if I were blind I could see it being The Gens, The Dunn or The J Somm.
Brown Bear:	Why do we care about these people?
Tan Bear:	What I am about to tell you is Wikileak material. The five CFTC commissioners are the last bastion of hope for the American people. If they choose not to mandate position limits on silver then The JP Morgue will win.
Brown Bear:	I'm not sure that is Wikileak material, you donkey. But I see what you're getting at.
Tan Bear:	I'm not done. There are two more problems that may help the sheeple get out of this alive. There is a big problem at the BIS.
Brown Bear:	What's the BIS?
Tan Bear:	The BIS is the Bank of International Settlements. Would you care to know who runs the show there?
Brown Bear:	Let me guess? Your mother.
Tan Bear:	The Ben Bernank.
Brown Bear:	Oh boy, here we go again.
Tan Bear:	Guess who else is on the board there?
Brown Bear:	Blanky?
Tan Bear:	All the central banks' chairmen from all over the world. Please don't sh*t your pants when I explain what they've been doing with the international gold and silver swaps.
Brown Bear:	[obnoxious flatulence noise BRRAAAPPP! brown bear has likely soiled himself] Just [unintelligible]. Sorry mate.
Tan Bear:	The BIS has been running a fractional gold system. This will make The JP Morgue's manipulation look like Disneyland.
Brown Bear:	Well what are they doing over there.
Tan Bear:	They are conning countries like India in to buying gold in to the site accounts.
Brown Bear:	What is a site account?
Tan Bear:	The site accounts at the BIS are the fraud accounts. They pretend to allocate gold to other major players that aren't in their little circle jerk. [whurr, whurr, whurr, whurrrrr descending notes on tuba]
Brown Bear:	And just who is at the circle's jerk at the BIS?
Tan Bear:	All the major fiat printers like The Ben Bernank. But most importantly, King Merv.
Brown Bear:	Why is The King Merv so important?
Tan Bear:	Because he is loosely in charge of the LBMA.
Brown Bear:	You are making this sh*t up right? You have to be kidding me? Is this silver thing just a big web of fraud and lies?
Tan Bear:	Remember that 200 tons of gold that was bought by India a while back?
Brown Bear:	Let me guess. That went in to a comingled unallocated site account?
Tan Bear:	Of course it was. A trader at The JP Morgue has told me that China and Russia are laughing their heads off right now. It's no coincidence these two countries are requesting the actual physical [unintelligible]. The are smart enough to move it to their shores. The trust has been broken.
Brown Bear:	F-M-L
Tan Bear:	The Chinese are moving the physical to their shores. Last week's increase in mortgage interest rates was a smoke signal.
Brown Bear:	This is insane.
Tan Bear:	Is it? You must be living with normalcy bias, aren't you.
Brown Bear:	Jimmy Moore, Jimmy Moore. I love this end of the world stuff.
Tan Bear:	Do you know what will happen when there is a run on the unallocated accounts at the BIS?
Brown Bear:	Sh*tstorm [obnoxious spastic colon noise BRRAAAPPPP! brown bear must have brown underwear by now]
Tan Bear:	I thought The JP Morgue was balls deep in this but it seems we have an elephant in the room now. You had better look up the term "normalcy bias" because it's about to be put to the test.
Brown Bear:	What do we do?
Tan Bear:	Get off your ass, go down to the coin store or online bullion dealer and order physical. Don't worry about the price. Price means nothing. And if you leave here today with anything, leave with this. Price is fiat forget about it. You'd better start watching the physical markets.
Brown Bear:	[obnoxious flatulence noise BRRAPP!] Sorry mate. Your seriousness reminded me of $500 an ounce silver again. [obnoxious stacatto flatulence noise BRAP!] Oh boy.
Tan Bear:	You'd better so something about this, America. You are the only ones left to save our souls. Instead of buy a flatscreen TV go buy a tube of maples or eagles. Save yourself. The Chinese are selling their worthless fiat for silver. Are you?
Brown Bear:	Is this the last of The JP Morgue manipulation?
Tan Bear:	No. It seems we just got word from The Butler that the Chinese are holding the short swaps on The JP Morgue's books. But we will explain that debacle in part 3.

News of Russia and China Dumping Dollar in Favor of Own Currencies Ignored

I just wanted to write a quick blurb to put the issue of China and Russia trading in their own currencies back on the radar (a news story which broke on November 24, 2010 the day before Thanksgiving). This story has been drowned out by the North Korea versus South Korea conflict and Irish debt crisis, which have dominated the mainstream financial news. There definitely is a trend developing where the US dollar is being dumped in favor of other means of exchange, such as Brazil and China slowly eliminating the US dollar in favor of the Real and Yuan (announced back in June 2009). [1]  As Marek Kuchta of Gold in Mind points out in his recent article China and Russia Dump Dollar in Mutual Trade - No Big Deal in the Short Run, it is news in itself that Russia and China dumping the dollar in favor of their own currencies for bilateral trade did not get more attention in the western mainstream media:
...
"At the time of this writing [November 25, 2010], it has been about 8 hours since the announcement which was extensively covered in the Chinese and the Russian media as well as the financial blogosphere. The author of this article has even managed to make a YouTube video about it. Yet, there is no mention of it on any of the top financial media outlets, despite this being probably among the top 3 news for the dollar this year in terms of importance. All you hear about are the great Thanksgiving sales numbers, the "soaring stock market" and the PIIGS. All is good in America." [2]

The YouTube video mentioned in the above quote has been embedded here for your convenience:


The implication of the US dollar falling away as the world's reserve currency is pretty grim.  Since the dollar is the primary currency used to trade such valuable commodities such as oil, this creates a certain level of demand (for dollars) and prevents the dollar from becoming completely worthless.  Quoting myself from the article EUR/USD is 7% Backed by Gold What Backs the US Dollar?:
...
"The phenomenon by which oil dollars are repatriated to the US in the form of investment (often US Treasury Bills) or purchase of goods and services is called petrodollar recycling, which does lend intrinsic value to the dollar."
...
"2. If OPEC as a whole, or more and more countries start to trade oil or other commodities in other currencies other than the US dollar, the dollar will sell off." [3]

This of course means we in the US will be able to buy and afford less as the demand for dollars wanes.

Sources:
___________________________________________________
1. Brazil-China bilateral trade in Real and Yuan instead of US dollar MercoPress
2. China and Russia Dump Dollar in Mutual Trade - No Big Deal in the Short Run Marek Kuchta, SeekingAlpha
3. EUR/USD is 7% Backed by Gold What Backs the US Dollar? bearishtrader, Bearishtrader's Trading Blog

AUD/USD Gaps Up 37 Pips in Early Sunday Trading

The initial 37 pip AUD/USD gap up on the open of Sunday forex trading today seems to be in line with bullish Chinese economic data. Some traders are wary though of a possible rate hike to curb inflation. It remains to be seen how policy makers will react, e.g. if they consider the 3.5% CPI (inflation rate) in August to be somewhat of a one-time outlier due to food inflation caused by floods/crop destruction or if they foresee a greater inflationary trend.

Early Release China Data Favorable to Global Risk Appetite but Traders Might be Cautious of Rate Hike

Overall bullish August Chinese economic figures released after the US market close on Friday (Saturday in China) showed expanding M2 money supply (loan growth) as well as better than expected industrial production and a 3.5% CPI rate (mostly due to food inflation caused by the disrupted shipping and destroyed crops from flooding). [1, 5]  1.7% of the CPI figure results from the food component. [4]

However, the deposit savings rate in banks can not keep up with inflation (the one year deposit rate is 2.25%) so there is a call by some for the government to raise the deposit rate so that savers do not have a negative return.[2, 3]  This might cause traders to be wary of some sort of rate hike announcement next week.

I have therefore switched to a bullish stance on the AUD/USD for now, unless there is some sort of enormous rate hike announcement by the PBOC, which seems unlikely since the August inflation announcement might be considered an outlier due to the floods.

Sources:
_______________________________________________________________
1. UPDATE 2-China economy shows inner strength in buoyant data  
    Zhou Xin and Simon Rabinovitch, Reuters
2. China Should Raise Deposit Rates, Business Journal Cites PBOC Adviser 
    Huang Zhe, Bloomberg
3. China PBOC Mon. Pol. Panel Member Calls For Rate Hike: Press
    iMarketNews.com
4. China Data Wrap: Economy Powers Along, Despite Global Woes
    iMarketNews.com
5. China Aug M2 growth up 19.2 pct y/y, above forecast 
    Eileen Wang and Simon Rabinovitch, Reuters