Is the end of the petrodollar near? Will dollar hegemony end in 2018 or will it be sooner, like next month?
Hmm... well... it's up to OPEC, who are currently considering offering oil sales valued in other currencies. They are in consultations with China right now over the decision, because China has pegged the value of the Raminbi to the US dollar (at a rate one eighth what it should be, if the Raminbi were allowed to trade on the open currency markets, which is one reason why Chinese goods seem so cheep to Americans, but that's another story). The reason the Arabs want to consult with China about it is not just because China has pegged the Raminbi to the US dollar, but because for years now China has been taking their profits from sales of stuff to the US and investing those profits in US T-Bills... up to 30 billion dollars per month at its peak, such that China was basically buying up the American economy with cheep goods sold to Americans, where you sell an American a cheep pair of runners that will wear out in a week, but you take the money from the sale of those runners and invest it in an American T-Bill, and then US taxpayers have to keep working indefinitly paying the interest on those T-Bills back to China.In other words, they sell you something once, which wears out and then you don't have it, but now for the rest of your life you have to keep paying a portion of your income to them.
It's an old trick going back to at least the time of Joseph and Egyptians. But if the US dollar collapses, all that Chinese investing in US T-Bills gets devalued, and with a small US dollar, suddenly it becomes cheeper for American's to buy goods made in home factories than from foriegn factories, so a low US dollar not only devalues Chinese investment in US T-Bills, it could also enable Americans to buy their economy back. That, of course, flys in the face of Chinese long term plans, which is why OPEC is consulting with China about the decision, so you can bet that if OPEC starts selling oil in currencies other than dollars, that somehow there's going to be exceptions or special provisions for China as part of the change.
The answer to all three is yes. The american dollar is falling around the world. Invest in gold.
Inflation goes up. Prices go up. They do not fall.
Expect the cost of living in the US to to get higher and higher.
This brief article details the actions, incentives, and related consequences that the United States has created through its attempts to maintain global hegemony through something known as the petrodollar system. This article will begin with a look back at the important events of the 1944 Bretton Woods Conference, which firmly established the U.S. Dollar as the global reserve currency. Then we will examine the events that led up to the 1971 Nixon Shock when the United States abandoned the international gold standard.
We will then consider what may be the most brilliant economic and geopolitical strategy devised in recent memory, the petrodollar system. Finally, we conclude by examining the latest challenges facing U.S. economic policy around the globe and how the petrodollar system influences our foreign policy efforts in oil-rich nations. The collapse of the petrodollar system, which I believe will occur sometime within this decade, will make the 1971 Nixon Shock look like a dress rehearsal.
If you have never heard of the petrodollar system, it will not surprise me. It is certainly not a topic that makes it's way out of Washington and Wall Street circles too often. The mainstream media rarely, if ever, discusses the inner workings of the petrodollar system and how it has motivated, and even guided, America's foreign policy in the Middle East for the last several decades.
Personal Note: What I am going to explain in this article is something that I believe is vitally important for every American to understand. Since 2006, I have written dozens of articles on the petrodollar system. I have appeared on many major news media outlets talking about the petrodollar system.
I even wrote a best-selling book entitled Bankruptcy of our Nation that spent an entire chapter exposing the petrodollar system. I have spoken about this topic all over the world. Suffice it to say, I believe that understanding the petrodollar system is very important to your financial well being.
I encourage you to print this article out and read it carefully. When you are finished with it, I encourage you to share it with your friends and neighbors. Share it on Facebook and Twitter.
Help us get the word out so that the American public can stir from its slumber and begin preparing for what lies ahead.
I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.
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