EconomicsPeak Oil

The Demise of the Dollar

This is significant:

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars. – Independent

If the significance of this is lost on you, please read Peak Oil, Petrodollars and Climate Change Apathy. The faster the speed of transition to non-dollar oil trading, the faster the U.S. dollar will implode. Days of hyper-inflation may soon be upon us.

Further Reading:

9 Comments

  1. The dollar is not falling any time soon, who do you think buys all china crap and who consume most of the oil, also do you think all the countries(china mainly) holding all of US debt in dollars want the dollar to fall?

  2. The dollar is going to fall soon. It has nothing to do with how much we buy from anyone. It has to do with a Global Elite working on globalizing the governments into one central Global Government utilizing a global bank to finance everything. They must destroy the strong currencies to get this accomplished.

  3. ecoisland – world isn’t revolving around the US anymore. there are plenty of other nations to sell oil and widgets too – rich nations that have invested in their own infrastructure and health rather than ship their wealth overseas. dig up the numbers.

  4. For a long time I shared the dollar-doom-n-gloom mindset until I spent some time getting to understand currencies… Mike Shedlock over at “Global Economic Analysis” has a few points that clarify some common things we overlook when we watch for a dollar fall based on a change from petrodollars.

    https://globaleconomicanalysis.blogspot.com/2009/10/ridiculous-hype-over-secret-oil.html

    -quote from his site-
    1) Oil is priced in dollars.
    2) Oil trades in Dollars and Euros right now in spite of the pricing unit being dollars. OPEC has recently admitted this fact.
    3) Clearly oil does not have to be priced in Euros to trade in Euros, or for that matter priced in Yen to trade in Yen. The same applies to any major currency.
    4) Neither Venezuela or Iran hold any dollar reserves. To the extent that either is taking trades in dollars, there is clearly nothing forcing them to hold dollars. By extension there is nothing forcing any OPEC country to hold dollars if it doesn’t want to.
    5) It takes less than a second for Forex trades to take place. 24 hours a day, 7 days a week, one can sell any currency they want and buy any other currency.
    6) The above logic applies to any currency and any commodity.
    7) Nothing is stopping anyone at any time anywhere from selling dollars for whatever currency they want to hold. Nor is anything stopping anyone anywhere at any time from selling any major currency for U.S. Dollars.
    8) Because currency conversion is instantaneous no one has to hold U.S. dollars to buy oil, copper, gold, iron, lead, wheat, soybeans, or anything else.
    9) Dollars are held (or not held) for reasons totally unrelated to pricing unit. Some of those reasons are political, some are based on sentiment, some on trade patterns and trade relationships, and some to suppress the value of local currencies to improve exports.
    10) Currencies float and so do the price of oil and commodities. Pricing oil (or any other commodity) in Euros will not cause a price change in dollars. Look at gold which is simultaneously priced in everything as proof.
    -/quote from his site-

  5. You can’t just keep printing paper money without devaluing the dollar.

    I think it would be a good thing for world trade if Countries traded in their own currencies. Certainly France and UK do. Asian countries seem to be afraid to do so. If they can’t trust the dollar what will they do?-turn to gold?

    I’d be buying gold shares and a lump of gold anyway.

  6. Hello John

    >>If we have our permaculture gardens why would we care about the dollar?

    Are you fully self-sufficient? (i.e. no trips to supermarkets, able to produce your own food, clothing, energy from within your local community?). If so, please tell me as I’d like to check out what you’re doing and show it as an example of sustainability if you don’t mind.

    If not, then of course a collapsing capitalist system will certainly have an impact on you and yours. And, unfortunately, I think that even if you are living a ‘holy grail’ existence – living with the sustainable use of local resources, within a dynamic and functional community – I’m afraid it’s impossible to be an untouched island of harmony and bliss when the globalised world is tumbling around you. You’ll never build walls high enough to keep the unprepared out.

  7. We’ll actually Craig I live in the middle of the pacific ocean on my own private island completely self sustained with a lifetimes supply of hemp clothing, and Birkenstocks.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Back to top button
Close