Posted on 10/25/2013 11:57:19 AM PDT by Rusty0604
The number one American export is U.S. dollars. It is paper currency that is backed up by absolutely nothing, but the rest of the world has been using it to trade with one another and so there is tremendous global demand for our dollars. The linchpin of this system is the petrodollar. For decades, if you have wanted to buy oil virtually anywhere in the world you have had to do so with U.S. dollars. But if one of the biggest oil exporters on the planet, such as Saudi Arabia, decided to start accepting other currencies as payment for oil, the petrodollar monopoly would disintegrate very rapidly. For years, everyone assumed that nothing like that would happen any time soon, but now Saudi officials are warning of a "major shift" in relations with the United States. In fact, the Saudis are so upset at the Obama administration that "all options" are reportedly "on the table". If it gets to the point where the Saudis decide to make a major move away from the petrodollar monopoly, it will be absolutely catastrophic for the U.S. economy.
And without a doubt, the day is rapidly approaching when the petrodollar monopoly will end.
Today, Russia is the number one exporter of oil in the world.
China is now the number one importer of oil in the world, and at this point they are actually importing more oil from Saudi Arabia than the United States is.
So why should Russia, China and virtually everyone else continue to be forced to use U.S. dollars to trade oil?
That is a very good question.
In fact, China has been making a whole lot of noise recently about the fact that it is time to start becoming less dependent on the U.S. dollar.
(Excerpt) Read more at theeconomiccollapseblog.com ...
When we lose our reserve currency status,
if you think the economy is bad now...
whew... it’s gonna get rough.
Even in Enviro LALALAND.
Governor Browne of California just signed a bill permitting fracking in the Monterrey shale.
More Bartel's of Petro belles than in the Dakota's Bakken shale.
China is wisely trying to decouple from it’s dependency with the US and slowly let the yuan appreciate but it will take many years to do so.
The Yuan is still vastly undervalued and keeping it weak is Chinese current trade policy.
We in the US are at a tipping point where the US is losing control of it’s economic future and the dollar will be replaced in the future if we continue our irresponsibility, but it will take a good while.
The real news is that oil will go up again. And in related news, another record year is expected for worldwide auto sales (in other words, higher oil prices).
“We have more than enough oil and gas assets to cut these mouth breathers off.”
Liberals do not want an independent, rich, productive America. It’s all about sharing and wealth redistribution. They want us to be like the other sheep in the flock, not the sheepdog or, (heaven forfend) the sheepherder. Remember the president said in his Caro speech that too often America was dismissive and derisive to others. They want this American exceptionalism, to end. Obama has set about doing just that. Having the dollar as the defacto world currency was unacceptable. He volunteered to help the world replace it with a basket of currencies. (More than half of US dollars are in the treasuries of foreign countries. If all those dollars flow back here we will see inflation that will make the Weimar republic’s look quaint.)
We have increased our oil production in spite of Obama not because of him.
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