“Death of the Petro-Dollar, Told Ya So”

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  • Fri, Oct 09, 2009 - 10:43am

    #1

    pinecarr

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    “Death of the Petro-Dollar, Told Ya So”

Jim Willie has posted an interesting article on Financial Sence, “Death of the Petro-Dollar, Told Ya So”: http://www.financialsense.com/fsu/editorials/willie/2009/1008.html

Here’s the 1st paragraph:

“The story hit like a thief in the night, even bearing Biblical proportions. The end of the exlusive sale of MidEast oil in USDollars, the rise of Russian and Chinese influence in the Persian Gulf, the rise in importance for the Intl Monetary Fund basket of currencies, the final clarion call for the free ride by Americans on the Dollar Credit Card, and hidden implications that the Saudis must shop for a new security lord in the region with broad military might, these are revolutionary steps with profound geopolitical implications. The back-to-back stories in the UK Independent struck like powerful bolts of lightning in the middle of the night from a North American perspective. These articles by a highly respected journalist will be posted on the Banker Church Doors just like Martin Luther’s demands for change in the Protestant Reformation that smashed the monopolistic power of the Catholic Church centuries ago. Enough of the mixed metaphors. This is truly incredible news. The US will soon no longer be permitted to sell its indulgences. This is major Paradigm Shift material.”

 WIllie ends his report saying:

“Get ready for change. This is Grand Paradigm Shift on a global scale. Prepare for it or be ruined by it!! Ride the TSUNAMI of change or be drowned and crushed by it!

I have to say he verbalizes my fears.  I have no idea if things will play out to that extreme.  But given how blind so many are of the current situation, and how ill-prepared we are as a whole, that is my fear.

  • Sat, Oct 10, 2009 - 04:20pm

    #2
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: “Death of the Petro-Dollar, Told Ya So”

Jim Willie is the one of the best writers on the web. My only gripe with Jim is that he sees China as our masters. I feel they hold a bag of funny money and that the US COULD easily shift to a commodity backed currency and destroy all of China’s “wealth”. The problem I see is that the Federal government has given most of the gold to the federal reserve. They have also depleted the US silver reserve in a price suppression effort. It seems they don’t want America to gain the advantage but to become willing participant in a new global currency. Most people do not even realize that they are being made thirsty and are being lead to the watering hole of the master’s choice. People will demand a global currency not seeing the invisible hand that guided them to it.

  • Sun, Oct 11, 2009 - 12:03am

    #3
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: “Death of the Petro-Dollar, Told Ya So”

Hi Eichmann, thanks for the response.

Yeah, I am still uncommitted in my beliefs in China’s position in the current world situation.  I think they are making a lot of smart strategic moves. But I also think they are scrambling like mad to try to get from an unstable position to more solid ground before it is too late.  And I guess when I say “unstable position” I mean it in multiple respects: they need to reduce their economic dependency on the US as a customer, to reduce their huge holdings of US dollars, to improve their holding of critical resources and commodities like oil, and to make the relationships necessary to accomplish these and probably other goals.  And to try to keep the US Dollar from going down the toilet before they get to that more stable place.  I think that the Chinese have their work cut out from them in terms of maintaining employment and stability in their country.

So yes, when I hear people talk about China becoming the new economic giant and super-power, I take pause.  I don’t disagree that they have a lot of potential in that regard.  But I wonder if the people who see them that way also see the other side of the story, which are the enormous challenges and risks they face as well.

-pinecarr

  • Thu, Oct 22, 2009 - 07:24pm

    #4
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: “Death of the Petro-Dollar, Told Ya So”

I think you guys touched on a lot of interesting stuff regarding China, gold and silver.  No doubt those who have the gold will push the hardest for a gold backed currency.  Unfortunately, it won’t be the U.S. as I think we are down to a max of 3,100 metric tonnes of gold. At $1,000/troy oz, that works out to be around $99.65 billion – far short of our $15 trillion money supply (M3).  And, we cannot be sure if that is there since it hasn’t been audited for over 50 years.  On top of that, what we have left may be held as collateral by the Federal Reserve.

China has the upper hand as they are a creditor nation while we are a debtor nation.

Larry

  • Mon, Oct 26, 2009 - 11:39am

    #5
    Peak Prosperity Admin

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    Re: “Death of the Petro-Dollar, Told Ya So”

 

 Maybe bernanke will move to a different form of commodity backing

 From 371.25 grains of silver to…

 371.25 grains of wheat.

 ..  enough for a decent slice of bread… 

That’ll show those doomers that keep insisting the dollar is toast… !!   😉

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