Showing posts with label petrodollar. Show all posts
Showing posts with label petrodollar. Show all posts

Wednesday, June 28, 2017

The End of the (Petro)Dollar: What the Federal Reserve Doesn’t Want You to Know

Sovereign nations looking to de-dollarize (for good reason) may want to reconsider (for good reason).  The US military industrial complex and the banking cartels which fund the perpetual wars don't look kindly on those attempting to abandon the petrodollar's reserve currency status.

http://theantimedia.org/end-of-petrodollar/

Wednesday, October 29, 2014

Challenging the reserve currency status of the petrodollar appears to be a dangerous business these days.

http://www.caseyresearch.com/articles/proof/total-war-over-the-petrodollar

Monday, April 14, 2014

Paul Craig Roberts - 2014 Will Be Year Of Reckoning For U.S.

The death of the USDollar as the global reserve currency, the so-called "petrodollar" 2.0.

First, it was Iran who traded oil for gold.  Now Russia.  The other BRICS and the Saudis will soon  join the party.  Our government has sold us out.  Welcome to $50/gallon gas and a loaf of bread.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/11_Paul_Craig_Roberts_-_2014_Will_Be_Year_Of_Reckoning_For_U.S..html

Friday, April 4, 2014

Russia prepares to attack the petrodollar

This inconsequential article in the Russia media spells out a shift with huge geopolitical and monetary impact.  The USDollar losing its reserve currency status will affect all Americans in many unpleasant ways.

http://voiceofrussia.com/2014_04_04/Russia-prepares-to-attack-the-petrodollar-2335/

Wednesday, April 17, 2013

Rise of the PetroYuan


This author correctly assesses the rise of the petroyuan and the resultant decline of the petrodollar, but he doesn't expand on the net effects to US inflation--and the destruction of USDollar purchasing power. 

http://www.financialsense.com/contributors/dan-collins/rise-petro-yuan

Monday, January 23, 2012

China tiptoes to petrodollar recycling

China started bilateral trade agreements two years ago with their major trading partners.  Basically, bilateral trade agreement = death of the petrodollar (USDollar) as a reserve currency.

Here's the Cliff Notes version for the impatient:  the world will dump USDollars once they find out its true confetti nature.  Prices will go through the roof on things we will need.  For things we merely want (e.g. second desert homes, powerboats), not so much.

Anybody notice the Chinese aren't participating in the US Treasury bond auctions?  Could it be their reserves of $1.6 trillion in US Treasuries are making them a tad bit nervous?  But, but wait...US Treasury bonds are the last safe haven, right?

http://blogs.rediff.com/mkbhadrakumar/2012/01/19/china-tiptoes-into-petrodollar-recycling/

Friday, April 15, 2011

Did The World’s Largest Futures Exchange Enable $200 Oil?

Another nail in the coffin of USDollar hegemony.  The answer to the question is "yes."

http://www.zerohedge.com/article/guest-post-did-world%E2%80%99s-largest-futures-exchange-enable-200-oil
Since most countries rely on oil imports, they are forced to maintain large stockpiles of dollars 2,3,4 in order to continue imports. 5 This creates a consistent demand for US dollars and upwards pressure on the US dollar’s value, regardless of economic conditions in the United States.  This in turn allegedly allows the US government to issue currency below cost of currency production (seignorage) and bonds at lower interest rates than they otherwise would be able to.6 As a result the U.S. government can run higher budget deficits at a more sustainable level than can most other countries.  A stronger US dollar also means that goods imported into the United States are relatively cheap.  It appears to be to the US’ advantage to maintain US dollar hegemony.7

If the denomination of oil sales changes to another currency, such as the euro, many countries would sell dollars and cause the banks to shift their reserves, as they would no longer need dollars to buy oil. 8 Forty years of petrodollars would start to get flushed from central bank reserves.  This shift in petrocurrency reserve status would lower the volume and velocity of US dollar recycling and thus weaken the dollar relative to the Euro.  The EU would accrue the same benefits from Euro-denominated oil sales that the US.