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THE END OF THE PETRODOLLAR WILL SLAUGHTER THE U.S. DOLLAR
Alex McGuire
une 9 saw one of the most significant attacks on the U.S. dollar to date, and most people missed it…
You see, most investors think the U.S. dollar is stronger than ever. After all, the greenback is up 3% this year.
But that couldn't be further from the truth…
For the last 15 years, the U.S. dollar has been heading for total destruction due to one major transition: the end of the petrodollar…
The End of the Petrodollar Is Here
The petrodollar is a system in which every oil export around the world is priced in U.S. dollars. The arrangement has been in place for 40 years and secures the dollar as the global reserve currency.
It started in 1973, when inflation and oil prices were skyrocketing. The United States desperately needed to set oil at a price that would help the dollar.
We ultimately made a deal with Saudi Arabia – the dollar would become the global reserve currency in exchange for the United States guaranteeing Saudi Arabia's national security.
The U.S. dollar surged from there – until 15 years ago. By 2000, it started falling.
The Federal Reserve Broad Dollar Index, which measures the greenback against other world currencies, has fallen 12% since then.
And it's heading for total collapse now that Saudi Arabia, Russia, and China are fighting for the end of the petrodollar.
Saudi Arabia has been on its way out of the petrodollar since U.S. President Barack Obama sided with Iran in 2013. President Obama stated he wanted to work with Iran to develop a nuclear program.
The United States broke its side of the petrodollar deal by siding with Saudi Arabia's largest enemy. Now, the Saudis have no problem breaking their side.
Saudi Arabia is leaning toward a new "petro-yuan" system. Since China's energy consumption is growing at an unparalleled rate, the Saudis are selling China more and more oil.
Russia also wants the yuan as the new global reserve currency. In fact, Russia just made a huge move toward the petro-yuan…
On June 9, Russian energy giant Gazprom started officially selling all oil in Chinese yuan. The decision makes the petro-yuan a joint global reserve and ends the United States' sole control over the global reserve currency.
This is not the first major attack on the U.S. dollar, and there are more coming soon…
"The dollar is out in the cold," explained the CIA's Asymmetric Threat Advisor Jim Rickards. "China is putting these yuan bilateral trade agreements in place all over the world. Once there's enough trade and enough volume in the currency, it can become a reserve currency."
"These are all straws in the wind, leading to the collapse of the dollar as the global reserve currency."
These foreign oil deals moving toward the petro-yuan are just one way the U.S. dollar is collapsing. In fact, there are five dangerous triggers that will destroy the dollar and cause economic collapse. This video will show you how these five "flashpoints" will permanently defeat the U.S. dollar…
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http://moneymorning.com/2015/06/16/the-end-of-the-petrodollar-will-slaughter-the-u-s-dollar/