Petro-Dollar crisis

[Unca Walt]

This is just FOUR MINUTES long. Watch it. The Petrodollar is about to cease to exist. When this happens, the impact will be immediate -- as in you wake up one morning and every bank in America has closed.

WHAT WOULD YOU DO THEN?

The bottom line: WHEN the Arab nations accept roubles and yen, the dollar will disappear immediately.

Full story -- all the background regarding the four minute shocker -- is the second link.



https://wltreport.com/2023/12/01/warning-when-dollar-collapses-your-life-will-completely-2/

 

[pmbug]

That's a lot of hype over an issue that we've been watching and discussing on here for over a decade. A good starting point on this subject is here:

https://www.pmbug.com/threads/tin-f...nd-the-total-perspective-vortex.75/post-68879

P.S. Citations in the OP didn't touch on the CBDC issue which is another potential threat vector to the dollar's global status.

 

[Unca Walt]

"That's a lot of hype over an issue..." <-- that has NOT been discussed nearly enough, and is now coming due.

"There are 13 members of OPEC proper and 10 allies in the OPEC+ group.

"While Saudi Arabia is seen as the kingpin of the original OPEC member states, Russia is the major player among the 10 other countries that make up OPEC+. "

China wants to has gotten in past the USpetrodollar deal made 70 years ago between the US and Saudi Arabia.

That is not "hype". That is very RECENT NEWS that nobody seems to have noticed (this Nov 21).

The ONE THING that keeps the dollar alive is the deal that all the arab states will only sell oil for dollars.
That is that ONLY thing keeping the dollar alive. It accounts for our unusually high standard of living, when compared to the rest of the world.

Some overactive hypester noted the Chinese have made a currency deal with the House of Saud. OOPS.

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"China and Saudi Arabia have announced their first currency swap.

"The swap, worth $6.93 billion, comes as relations between the two countries have deepened in recent years.

"Saudi Arabia, the world’s top oil exporter, and China, the world’s biggest energy consumer, have worked to take relations beyond hydrocarbon ties in recent years, expanding collaboration into areas such as security and technology."
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For those that do not see this November 2023 deal for what it is: The Petrodollar exists because the US promised to defend Saudi Arabia in return for the Saudis using ONLY US DOLLARS for any oil sales to any country.

Now... within the last couple of weeks, that Nixon-formed deal has been broken for the first time in 70 years. The Chinese are working with the Saudis on what had been the USA's exclusive past responsibility and the reason for that partnership.

WHEN oil goes for anything but US dollars... the US economy is destroyed because the dollar will quickly become the bolivar/pengoe/peso/franc/etc. Worthless in days.

This is not hype, do not hold your head under a pillow just because it is awful to contemplate.

Russia now gets gold for gas from Germany. Despite Biden's Team mostly peacefully blowing up the gas lines.

 

[pmbug]

You misunderstood me. None of what you typed is news to me. Try reading the link I posted and you will see that all of it (and more) has been posted there.

 

[Unca Walt]

You misunderstood me. None of what you typed is news to me. Try reading the link I posted and you will see that all of it (and more) has been posted there.

Weakness of the medium. Your apparent dismissal of this tremendous news as "lot of hype" wasn't what you meant.

Yes, there is a blue ton of scary info. And not five in a hundred Americans are aware of it, and a lot of the rest simply do not want to hear about it.

This new Russia/China/Saudi stuff is a major -- and brand new -- move away from the US dollar.

"Saudi Arabia is deepening ties with China. On Monday, they signed a deal. To trade in their native currencies, and sideline the dollar. The deal is worth almost seven billion dollars. Qatar and Egypt have deals with China using yuan in place already. <-- The Nixon setup is crumbling to the yuan.

We are heading into interesting times. To give you an example of just how seriously this old stacker (since 1980!!) is taking it, lemme tell you that I have an annuity... and I am cashing it in (taking a 20+ percent tax whack) and buying specie with all of it while the fiat still works.

I am looking out for my kids and grandlings. I hope some folks read this and get their extra fiat out of banks and into PM's. Quickly.

 

[nickndfl]

The oil producers will take enough other currency for them to buy goods from that other country and maybe a little more to buy gold. They are not going to get ride of the $USD completely as it would be financial suicide.

 

[pmbug]

Weakness of the medium. Your apparent dismissal of this tremendous news as "lot of hype" wasn't what you meant.
...

Correct. It is a serious issue and deserves attention. My "hype" comment was directed at what I consider to be a bit hyperbolic/hysterical language/characterization/interpretation of events. This story isn't something that materialized suddenly. It's been developing in earnest over the last two decades. If it continues, it will likely play out over several more decades. But then, I'm not trying to sell you a book I just wrote or a subscription service. Supporting pmbug.com is totally optional.