Results 1 to 6 of 6

Thread: The beginning of the end of the (petro)dollar

  1. #1
    Join Date
    Nov 2010
    Location
    NE Wisconsin
    Posts
    3,930

    Default The beginning of the end of the (petro)dollar

    Economic Collapse Blog has had a series of really good articles lately.

    The latest one, titled: Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery - Is This The Beginning Of The End For The Petrodollar? really does a fantastic job of retelling the history of the "petrodollar"

    Here's a couple article excerpts:

    Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 1.39 million barrels of oil per day from Saudi Arabia. That was 39 percent higher than last February. So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in U.S. dollars. This petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia's most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy?

    It will not happen overnight, but as the U.S. economy continues to get weaker it is inevitable that the rest of the world will continue to question why the U.S. dollar should automatically have such a dominant position in international trade.

    Over the next few years, keep a close eye on Saudi Arabia.

    When Saudi Arabia announces a move away from the petrodollar system, that will be a major trigger event for the global financial system and it will be a really, really bad sign for the U.S. economy.

    The level of prosperity that we are enjoying today would not be possible without the petrodollar system. Once the petrodollar system collapses, a lot of our underlying economic vulnerabilities will be exposed and it will not be pretty.

    Tough times are on the horizon. It is imperative that we all get informed and that we all get prepared.

    But read the whole article. Highly informative and understandable!!
    It is sobering to reflect that one of the best ways to get yourself a reputation as a dangerous citizen these days is to go about repeating the very phrases which our founding fathers used in the struggle for independence. - Charles A. Beard

    In this day and age, the only path of honor for a patriot IS to become a traitor. - Miradus
    [/SIZE]

  2. #2
    Join Date
    Nov 2010
    Location
    NE Wisconsin
    Posts
    3,930

    Default

    LOL,

    Apparently I am my own thread killer.

    It is sobering to reflect that one of the best ways to get yourself a reputation as a dangerous citizen these days is to go about repeating the very phrases which our founding fathers used in the struggle for independence. - Charles A. Beard

    In this day and age, the only path of honor for a patriot IS to become a traitor. - Miradus
    [/SIZE]

  3. #3
    Join Date
    Oct 2008
    Location
    The Sanctuary
    Posts
    4,919

    Default

    As long as oil is denominated in dollars, we can print dollars(or "create" them electronically) and buy all the oil we
    need. Guess what happens when dollars are no longer the currency accepted for oil?
    Pastor Guest

    Free E- Book!

    "Steps Toward the Mark of the Beast"
    The Christian's Guide to the How and Why of
    the Coming Cashless/RFID Economic System


    Pastorguest.com

    "Believe on the Lord Jesus Christ, and
    thou shalt be saved..."

  4. #4
    Join Date
    Feb 2009
    Location
    Cleveland, OH
    Posts
    4,597

    Default

    In other news, Doc Fungcool has bugged out. Okey dokey
    ---------------------
    "It was believed afterward that the man was a lunatic, because there was no sense in what he said."
    Mark Twain

  5. #5
    Join Date
    Jul 2010
    Location
    Not yet where I want to be...
    Posts
    4,243

    Default

    http://www.bbc.co.uk/news/business-17471095

    Meanwhile, China is making deals to become the worlds reserve currency.

    China has been trying to promote the yuan as an alternative global reserve currency to the US dollar.
    It has signed currency deals with many of its trading partners, including Hong Kong and Japan.
    That has seen a rise in the amount of Chinese trade being settled in yuan instead of US dollars.

  6. #6
    Join Date
    May 2007
    Location
    Big Bend of Texas
    Posts
    5,115

    Default

    China has already hooked up with Brazil and Russia. Then, Japan and South Korea, although I don't know if those are completed. Just recently, Australia. And China is doing a lot of investing in various African countries.

    China is taking a page from Japan's book: Japan achieved by trade after WW II everything she'd gone to war to get. The US is doing a lot of war but is losing out in the world markets. Seems to be a lesson there.
    You're from BATFE? Come right in! I use all your fine products!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •