Posted on 03/15/2022 6:17:55 PM PDT by Enlightened1
The very basis of the US superpower status- The dollar as only world reserve currency is under threat.
The Colder War is a book by Canadian Author Marin Katusa—who is the Head of the energy division of investment advisory service Casey Research and this is a video describing some points of discussion.
What makes the US dollar unique is the fact that since the early 1970s it has been, with a few notable exceptions, the only currency used to buy and sell oil on the global market. This began in the 1970s when US President Nixon’s administration began negotiations with the government of Saudi Arabia to establish the petrodollar system. Under this system, the Saudis would only sell their oil in US dollars, and would invest the majority of their excess oil profits into U.S. banks and Capital markets. The IMF would then use this money to facilitate loans to oil importers who were having difficulties covering the increase in oil prices. The payments and interest on these loans would of course be denominated in US dollars.
Conspiracy Theorist out there have stated that the reason why countries such as Iraq, Libya, Syria, Iran and Russia are perceived enemies of the US and have had a military or an economic attack is to do with leaving the petro dollar system.
They state the real reason for singling out these countries is the petrodollar system described above which enables US to stay afloat despite being more than $19.8 trillion in debt as of end of 2016. The existence of petrodollars is one of the pillars of America’s economic might, because it allows the US to accumulate enormous debts without defaulting.
There is another twist here as well which is China, China is the leading member of the BRICS countries and is lining up the rest of the BRICS, the next eleven countries and that of the SCO Shanghai Cooperation Organisation and their currencies – to support Russia. Currency swaps between Russia (ruble) and China (yuan) for an initial US$ 25 billion have already been implemented to allow direct transactions between the two countries. Similar swaps are under way between China and Russia with other countries including the soon to become new members – Iran, Pakistan, India, Afghanistan, Mongolia, Sri-Lanka etc – and possibly in some not too distant future strategically located NATO member Turkey.
Yep. This is what we are up against!
Thank you Xiden. Maybe you can sanction the rest of the world.
Good move.
This will not end well.
This Youtube is childishly simplistic.
The dollar is used because it is still the most trusted currency. Period.
“…The dollar is used because it is still the most trusted currency. Period.”
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Well, the French had the world’s reserve currency from 1720 to 1815, just short of a century. Then the British had the world’s reserve currency from 1815 to 1920, a bit over a century. The U.S. has had it from 1921 to the present, just past a century of that status.
You’ll notice that sometimes things don’t last forever. The US dollar may be the most trusted currency TODAY but that may not last through all of our tomorrows… particularly with Biden steering the ship strictly following the orders of his unknown captains with their unknown and possibly malevolent motivations.
This isn’t going to go or end well, for America.
And… how long do you think that is going to last, when it is under assault from abroad and at home?
The financial ignoramuses always confuse oil being priced in dollars vs oil payments in dollars.
Many commodities like oil and gold use the dollar as the price benchmark.
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