Wednesday, November 14, 2012

Dollar no longer primary oil currency as China begins to sell oil using Yuan

I've warned of this day coming many times, and despite complete neglect by the US media, this is probably THE biggest event in decades affecting the welfare and standard of living for all Americans. The USDollar is about to lose its global reserve currency status, as the "petrodollar" is no longer the international trade settlement currency.  Countries will no longer need USDollars in cross-border (oil) transactions.  This will have negative ramifications for the strength of the dollar--as well as reduced demand for US Treasury bonds.  Sinking bond prices = rising bond yields = rising interest rates = US government bankruptcy.

Expect our purchasing power to plummet, i.e. rising consumer prices despite stagnant and declining incomes.  A sinking economy will also mean social unrest.  See southern Europe.

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