Petrodollar Under Threat

The US dollar is the required currency needed if you plan to buy oil from Saudi Arabia.  We promised them military protection...and they promised to sell oil in US dollars.  This helped to prop up the US dollar as the world's ONLY reserve currency.

But that could all be crumbling right before our very eyes...and there isn't 1 American in 10,000 that have ANY CLUE what this could mean for our country and our lifestyle of buying things with money that we don't have.

Shifting geopolitical alliances globally are placing the power and dominance of the petrodollar under severe threat. Recent political, monetary policy and military developments seem to be precipitating the ever-weakening position of the U.S dollar as the world’s reserve currency, as well as the decline in the popularity of the petrodollar.  

One of the key factors contributing towards this is the deterioration of the economic and military relationships between the U.S and Saudi Arabia. Some positions taken by the U.S. in relation to Iran and Syria have reportedly not been pleasing to the Saudis and have strained U.S –Saudi Arabian relations. The recent visit of U.S President Obama to Saudi Arabia was therefore being largely viewed in this context.  

Callum Newman of Dailyreckoning.com in a recent article titled ‘The Power Play to Eliminate the Petrodollar’ explains that it’s not a complicated arrangement: US muscle keeps the Saudi monarchy in power. In return, the Saudis price oil in US dollars. Pricing oil in dollars reinforces the dollar’s status as the reserve currency of the world. 

This arrangement has pleased both sides for the last 50 years, although it may be less pleasing to countries that must buy dollars in order to buy oil from Saudi Arabia. But the arrangement may be ending. Currency Wars author and analyst James Rickards pointed out in December that “The petrodollar system is collapsing for two reasons. 

The US has abused its privileged reserve currency position by printing trillions of dollars in an effort to create inflation…(Secondly) President Obama has taken steps to anoint Iran as the regional hegemon of the Middle East, and to ease the way, in stages, toward Iran’s possession of nuclear weapons capability. This is viewed as a stab-in-the-back by the Saudis and the Israelis and will lead quickly to Saudi Arabia obtaining nuclear weapons from Pakistan…Maybe it won’t be long before we’re all talking about the petroyuan”. 

Rickards further states that there is also a newly emerging alliance among Saudi Arabia, Israel, Egypt, and Russia that will have no particular use for US dollars and no reason to support them, marking the beginning of a significant diminution in the role of the dollar in the international monetary system. Certainly not good news for the petrodollar.  

The Saudis need not look far for new economic and military partners besides the U.S: China which is reportedly the largest importer of oil in the world also has the military muscle that could easily satisfy Saudi Arabia and fits the bill perfectly. China is also known to be rapidly increasing its gold reserves as it positions itself towards independence from the dollar and becoming a greater economic powerhouse in its own right, while also increasing its military defense spending.  

Several months back, zerohedge.com examined why petrodollar dominance is perceived to be under threat, largely based on key developments and likely outcomes within the U.S, between Russia/China, and certain Middle East countries:  
•Egypt: Hatred for the United States and its continued support of the Egyptian power base — regardless of who sits on the throne — is growing to a fever pitch throughout the region.  This is not healthy for the life of the petrodollar in the long run…circumstances are nearly perfect for war (which) will spread and will greatly damage oil markets. 
•Saudi Arabia: Without control over Saudi petroleum, the United States loses its last influential foothold in the oil market, and there is absolutely no doubt whatsoever that the dollar will fall as the petro-currency soon after. The desperation caused by such an energy crisis will make international markets beg for a solution, which global banking cartels led by the IMF are more than happy to give.
•Iran: A U.S. or NATO presence on the ground or in the air above Syria, Egypt or Iran will most likely result in the closure of the Strait of Hormuz, causing sharp rises in gasoline costs that Americans cannot afford.
•Russia/China: Russia has been contracted by the Chinese to supply 25 years of petroleum, and this deal follows previously established bilateral guidelines — meaning the dollar will not be used by the Chinese to purchase this oil…this is just the beginning of a chain reaction of oil deals shunning the dollar as the primary trade mechanism. These deals will accelerate as the Mideast sees more internal strife and as the popular distaste for the United States becomes a liability for anyone in power.
•The U.S: The dollar is now increasingly considered a ‘paper tiger’ currency: although the U.S still has oil reserves, the loss of the dollar’s global standing as the world reserve, would result in the debasement of  the currency's value and even the export of domestic oil as payment to foreign creditors just to satisfy outstanding debts. Additionally countries like China are already dumping the greenback in trade with particular nations.  

More recently the economic collapse blog has indicated that the agreement between Russia and China over Ukraine spells further trouble for the petrodollar. Michael Snyder explains: “…Russia and China hold approximately 25 percent of all foreign-owned U.S. debt, and if they started massively dumping U.S. debt it could rapidly create a nightmare scenario.  

Read more at http://www.prophecynewswatch.com/2014/April03/032.html#uHUXLGgsEpdCoU8T.99

Did you see that last sentence??  If not, let me cut and paste it again;  Russia and China hold approximately 25 percent of all foreign-owned U.S. debt, and if they started massively dumping U.S. debt it could rapidly create a nightmare scenario.  

Americans like to think they are holding all the cards and that nothing will EVER happen to change the status quo...because "This is America!"....but the dark forces who control this world are seeing that their time is fast approaching...a time to control and kill.

Let me remind you that America is no where in prophecy.  Where did she go?  Well, maybe she imploded...OR...maybe she exploded after the Rapture of the church took away all the SALT AND LIGHT and left no one at the controls who had any wisdom and knowledge?

"The fear of the Lord is the beginning of knowledge."