https://twitter.com/disclosetv/status/1503728487840063491
That’s the end of the American century.
First Saudi Arabia accepts Yuan, then the rest of OPEC accepts Yuan, and petro-dollars are no longer American dollars, and the US Dollar is no longer the world’s reserve currency, and then the American economy collapses as the Dollar goes the way of the Papiermark.
Normally I would consider that hyperbolic.
But, no, I think you’re right.
Without a gold standard backing the dollar, and without the petrodollar, the dollar is just paper.
True, but the yuan is less than that, since its value changes at the whim of communists.
The speculation I’m seeing is that it won’t go down clean. As in, expect to see some ‘unexpected deaths’ among Saudi royals if they go any further than idle chitchat with China. Too many people have money dependent on the petrodollar.
Not enough. The Russians and Chinese agreed to trade between themselves in their own currency and not dollars back in 2010. Then there was the BRIC countries (Brazil Russia India China) agreeing to create their own currency based on a basket of commodities – gold and some other things, which started around the same time.
I’m not saying the dollar is going to be the standard forever – the Great Reset is aimed at destroying the dollar (at least somewhat) but the Brandon administration is doing a pretty good job of destroying the dollar themselves. I’d be surprised if it lasted much longer and I’ve been saying that since about 2005. Which is why I’m much more reluctant to play taps, until I see something big.
I think it’s going to be some sort of surprise thing, not something expected like some country leaving the EU or the Fed creating dollars out of thin air. Those are expected and central banks can have contingency plans. Exactly what it will be, I don’t know. The Ukraine war could do it, or the responses to the it.
Now as I think of it… people were telling me back in 2003 or thereabouts that oil would soon be priced in rubles instead of dollars, and that didn’t happen. (That was supposed to be yet another consequence of alienating The Arab World(TM), because all Arabs are alike and all adored Saddam or something.)