China to Buy Russian Oil Gas – Petrodollar to PetroGold: Russia’s Wild Card via Maggie’s Notebook

Looks like we’ll have another Obama clusterfuck.

Barack Obama

Barack Obama

Russia dumping U.S. Treasuries in reaction to U.S. sanctions? Or has it already happened? The dawn of PetroGold replacing the PetroUSdollar?

Petro_Dollar_Bretton_Woods_1

Reading about the Petrodollar is incredibly disturbing to someone like me, who already manages to be incredibly disturbed about presidential executive orders, the unjust Department of Justice, broken borders and corrupt members of Congress. The Petrodollar forces one to understand that not much else matters to a U.S. citizen but understanding our failed monetary policy. After many decades of rendering the US dollar worthless, other than its stature as the world’s oil and gas currency, much of the world is ready to pounce. Bringing down the U.S.A. goes far beyond Islamic terrorists. Today, we are a weak and financially devastated country. The Petrodollar is vulnerable. We can’t change it with the current administration, and probably not with a new administration no matter which party wins — but we should be thinking of the few candidates we might believe bold enough to turn the world view of the U.S. around through strength of policy. Unless and until then, we can’t protect ourselves from it. The lesson: foreign policy matters. If you have avoided learning about the Petrodollar — victim of the ‘eyes glazed over’ syndrome, the following may be a quick primer.

Jim Sinclair argues that Russia has a much scarier financial attack which Russia can use against the U.S.

Specifically, Sinclair says that if Russia accepts payment for oil and gas in any currency other than the dollar – whether it’s gold, the Euro, the Ruble, the Rupee, or anything else – then the U.S. petrodollar system will collapse:

Indeed, one of the main pillars for U.S. power is the petrodollar, and the U.S. is desperate for the dollar to maintain reserve status.  Some wise commentators have argued that recent U.S. wars have really been about keeping the rest of the world on the petrodollar standard.

The theory is that – after Nixon took the U.S. off the gold standard, which had made the dollar the world’s reserve currency – America salvaged that role by adopting the petrodollar.   Specifically, the U.S. and Saudi Arabia agreed that all oil and gas would be priced in dollars, so the rest of the world had to use dollars for most transactions.

But Reuters notes that Russia may be mere months away from signing a bilateral trade deal with China, where China would buy huge quantities of Russian oil and gas…

In any event, a switch to pricing petroleum in anything other than dollars exclusively – whether a single alternative currency, gold, or even a mix of currencies or commodities – would spell the end of the dollar as the world’s reserve currency. [Zerohedge says Russia has already dumped U.S. Treasuries – read more here]

Read the rest of this post at Maggie’s Notebook

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2 Responses to China to Buy Russian Oil Gas – Petrodollar to PetroGold: Russia’s Wild Card via Maggie’s Notebook

  1. Pingback: China to Buy Russian Oil Gas – Petrodollar to PetroGold: Russia’s Wild Card | Maggie's Notebook

  2. Gunny G says:

    Reblogged this on CLINGERS… BLOGGING BAD ~ DICK.G: AMERICAN ! and commented:
    GYG !!!!!!!!!!!!!!!!

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