Forty years ago, then-President Richard Nixon bought America 40 more years of economic hegemony by getting King Faisal of Saudi Arabia to accept U.S. dollars - and only U.S. dollars - as payment for oil. In exchange, the American government pledge to protect the Saudi princes from enemies foreign and domestic, and our country has continued that protection ever since.
However, some of the globe's finest monetary minds are warning that this long reign of the U.S. dollar in oil purchases will be ending this coming March. Worse still, Iran, also a major oil power, is threatening to bust open the oil market by offering its black gold to other currencies.
And this, more than any other threat to the stability of the American economic climate could be the last straw that breaks the camel's back. The value of the dollar has been undermined by every U.S. president since Nixon and this devaluation has been augmented to fantastically unwieldy heights under the administration of President Barack Obama.
Basically, as financier James Dale Davidson describes in a fascinating new treatise on this impending crisis, the production of the petrodollar produced a 40-year secular bull market for dollars. This was because all oil-importing nations had to pack their central-bank vaults with dollars so they could pay for their oil. That reality produced the boom in exports to the U.S. for everything from Korean cleaning devices to Japanese vehicles.
And with its petrodollar monopoly intact and the world increasingly thirsty for Middle Eastern oil, all the U.S. Federal Reserve had to do, as Davidson explains it, was merely print dollars.
However, as Iran has continued to look for methods to upset and obstruct the United States, its national planners struck on exactly what would prove to be their most efficient tool in undermining the U.S.
Beginning several years ago, Iran has been trying to get an alternative oil exchange up and running, one where oil and gas would be sold in non-dollar-denominated currencies. At first, Iran succeeded in creating only an exchange for the purchase of petroleum-based products, not actual barrels of the stuff. But now, led by Iran, a whole group of other nations is busting out and doing direct deals and swaps for oil that perform an end run around petrodollars. They include China, Russia, Brazil, Venezuela, Argentina, South Africa and South Korea - many of them our allies - according to Davidson. They're "blindsiding" the dollar, this financier says, and bringing about an inevitable huge devaluation of our currency as it becomes almost irrelevant.
Davidson believes that this new economic crisis will come to a head in March.
For this and various other reasons -- like our colossal national debt and the profligate policies of the Fed will -- the U.S. dollar will, without a doubt, break down.
We must trust in God's money, not flimsy paper money, for our future wealth. God's money is gold and silver.
However, some of the globe's finest monetary minds are warning that this long reign of the U.S. dollar in oil purchases will be ending this coming March. Worse still, Iran, also a major oil power, is threatening to bust open the oil market by offering its black gold to other currencies.
And this, more than any other threat to the stability of the American economic climate could be the last straw that breaks the camel's back. The value of the dollar has been undermined by every U.S. president since Nixon and this devaluation has been augmented to fantastically unwieldy heights under the administration of President Barack Obama.
Basically, as financier James Dale Davidson describes in a fascinating new treatise on this impending crisis, the production of the petrodollar produced a 40-year secular bull market for dollars. This was because all oil-importing nations had to pack their central-bank vaults with dollars so they could pay for their oil. That reality produced the boom in exports to the U.S. for everything from Korean cleaning devices to Japanese vehicles.
And with its petrodollar monopoly intact and the world increasingly thirsty for Middle Eastern oil, all the U.S. Federal Reserve had to do, as Davidson explains it, was merely print dollars.
However, as Iran has continued to look for methods to upset and obstruct the United States, its national planners struck on exactly what would prove to be their most efficient tool in undermining the U.S.
Beginning several years ago, Iran has been trying to get an alternative oil exchange up and running, one where oil and gas would be sold in non-dollar-denominated currencies. At first, Iran succeeded in creating only an exchange for the purchase of petroleum-based products, not actual barrels of the stuff. But now, led by Iran, a whole group of other nations is busting out and doing direct deals and swaps for oil that perform an end run around petrodollars. They include China, Russia, Brazil, Venezuela, Argentina, South Africa and South Korea - many of them our allies - according to Davidson. They're "blindsiding" the dollar, this financier says, and bringing about an inevitable huge devaluation of our currency as it becomes almost irrelevant.
Davidson believes that this new economic crisis will come to a head in March.
For this and various other reasons -- like our colossal national debt and the profligate policies of the Fed will -- the U.S. dollar will, without a doubt, break down.
We must trust in God's money, not flimsy paper money, for our future wealth. God's money is gold and silver.
About the Author:
Learn more about gold and silver. Or, stop by Anne Trimble's site where you can find out all about her latest bookFaith Through The Flames.
No comments:
Post a Comment