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11 International Agreements That Are Nails In The Coffin Of The Petrodollar

from The Economic Collapse Blog:

Is the petrodollar dead? Well, not yet, but the nails are being hammered into the coffin even as you read this. For decades, most of the nations of the world have used the U.S. dollar to buy oil and to trade with each other. In essence, the U.S. dollar has been acting as a true global currency. Virtually every country on the face of the earth has needed big piles of U.S. dollars for international trade. This has ensured a huge demand for U.S. dollars and U.S. government debt. This demand for dollars has kept prices and interest rates low, and it has given the U.S. government an incredible amount of power and leverage around the globe. Right now, U.S. dollars make up more than 60 percent of all foreign currency reserves in the world. But times are changing. Over the past couple of years there has been a whole bunch of international agreements that have made the U.S. dollar less important in international trade. The mainstream media in the United States has been strangely quiet about all of these agreements, but the truth is that they are setting the stage for a fundamental shift in the way that trade is conducted around the globe. When the petrodollar dies, it is going to have an absolutely devastating impact on the U.S. economy. Sadly, most Americans are totally clueless regarding what is about to happen to the dollar.

Read More @ TheEconomicCollpaseBlog.com

3 comments to 11 International Agreements That Are Nails In The Coffin Of The Petrodollar

  • Kimo

    The don’t buy silver and gold they are going to get burned. Already the 401k and other forms of retirement are being pilfered by the big banks. Department of Justice is just sitting there. You can’t tell me all these FBI, DEA and Secret Service Agents are proud of what they are seeing happen to Americans and America.

    • bubba

      Kimo, when it all starts to burn…we will see what they decide.

      freedom or statism, communism, whatever…I’m ready for the fire and I damn sure know were I’ll be…

      “give me liberty or give me death.”

  • LaRouche is a stretch

    Gold will not get burned. You need to do your research. The Bank of International Settlements (BIS) (google it) is the Central Banks of the world banker. According to the new Basel III accord the BIS has dispatched a committee to research moving gold from a tier 3 asset to a tier 1 asset. This is important for several reasons. First, banks can only claim 50% of gold street value on their books as a tier 3. When it is moved to a tier 1 it will have parity with fiat currency debts like a sovereign bond.

    Why would the BIS do this? Because banks are required to keep a percentage of tier 1 assets on hand as collateral against outstanding paper debts (lending) by providing adequate collateral. Since the world is running out of good collateral the revaluing of gold by tier move will shore up the balance sheets and allow further printing (lending) at the same time. Is gold the only thing you need to balance your household needs? NO, of course not…….20-30% gold to cash is my recommendation. But ONLY AFTER all your other safety nets are in place.

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