{"id":464,"date":"2015-04-30T13:20:51","date_gmt":"2015-04-30T11:20:51","guid":{"rendered":"http:\/\/finalwakeupcall.info\/en\/?p=464"},"modified":"2015-04-30T13:20:51","modified_gmt":"2015-04-30T11:20:51","slug":"petrodollar-almost-dethroned","status":"publish","type":"post","link":"https:\/\/finalwakeupcall.info\/en\/2015\/04\/30\/petrodollar-almost-dethroned\/","title":{"rendered":"Petrodollar almost dethroned"},"content":{"rendered":"

King Dollar dethroned:<\/strong><\/p>\n

The Chinese hate the US dollar’s supremacy. They want their place in the sun. And they’re finding a lot of allies who are upset with the U.S. China\u2019s plan is to roll out the China International Payment System (CIPS). The new system will make it easier to process international payment transfers in China’s currency, the Yuan or Renminbi. As a result, the Yuan will officially become a global trading currency.<\/p>\n

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\"king_dollar_rgb\"<\/a>But the real goal<\/em> here is brutally simple: China wants to dethrone the U.S. dollar as the world’s international reserve currency. This is just one of a series of doors China is opening, unleashing forces that will become an irreversible flood of change. CIPS will use the same coding system as the existing international payments system, SWIFT, located in Brussels. That’s short for the Society of Worldwide Interbank Financial Telecommunications. Where 44.6% of the payments that go through are in U.S. dollars. Which really is the platform that makes the mighty US Dollar the world’s reserve currency.<\/p>\n

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The EU and US were recently putting pressure on SWIFT to kick Russia out of the international payment system. This movement was to punish Russia for its recent land grab of Crimea and \u2018stoking war in Ukraine\u2019, and SWIFT just did that.<\/p>\n

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But now the EU has got a second thought so it pressured SWIFT again to give Russia a seat on its board in this very exclusive club. This move is a slap in the face to the U.S. – SWIFT is bending over backward to accommodate Russia, as it’s terrified of the competition that is represented by China’s new CIPS system. The SWIFT folks don’t want Russia doing all its business in CIPS. But this may be too late. In fact, there is a lot going wrong in the US-currency Empire lately. And much of it can be traced back to China.<\/p>\n

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Americans don’t realize what an advantage they have thanks to the dollar being the world’s reserve currency. They basically can print money as much as the need. Washington never has to balance its checkbook – at least, not yet. Other countries must stockpile hoards of dollars just they can pay for services and merchandise on the international market.<\/p>\n

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However America’s License to Print Money is about to be revoked. Over the past two-years, the U.S. has slashed oil imports from Saudi Arabia. The U.S imported in December 2013 some 1.5 million barrels a day. Last year that number was nearly half of that. The increase<\/em> in American oil production and perhaps oil market manipulation has led to a 62% collapse in global oil price. Now Saudi Arabia plans to strike back. The weapon the new King Salman uses in the coming weeks could trigger a global economic shakeup on par or even worse compared with the 2008-2009 financial crises.<\/p>\n

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Petrodollar monopoly\u2019s end:<\/strong><\/p>\n

In the past two years, America has: \u201cCut oil imports from Saudi Arabia by a THIRD over a four-month stretch in 2014 that helped drive down the price of oil from $115 to under $50. And frequently struck heads with Saudi Arabia over its policies in Syria, Saudi’s rival. Each of these developments has enraged the Saudis.\u201d<\/p>\n

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President Vladimir Putin would love to see the petrodollar die, stating publicly, \u201cthe dollar monopoly in energy trade was damaging Russia\u2019s economy<\/em>.\u201d It\u2019s been reported that Russia has held secret talks with China to strike back at the U.S.<\/p>\n

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\"furious\"<\/a>They also held talks with Iran, as it looks for new alliances. Without Saudi Arabia joining them, Russia and China have found it difficult to cut the U.S. out. But now, Saudi Arabia and its OPEC partners are seeing their fair share of troubles as well.<\/p>\n

As the US is no longer Saudi Arabia\u2019s biggest customer – China is – and on top of that, lower oil price – caused by the US – are crushing their profit margins, as 50% lower oil prices are like a \u201cslap in the face<\/em>.\u201d – So the Saudis are\u00a0furious<\/em><\/strong>\u00a0too.<\/p>\n

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For the first time ever, the Saudis are considering striking back at the U.S. by cutting off their \u201cspecial relationship\u201d with America. Remember, they\u2019ve agreed to use the petrodollar only if the U.S. continues buying up their oil. And as the US is no longer the biggest customer – China is – they have no reason to use the petrodollar. The truth is, they may not be using it for much longer.<\/p>\n

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Actually the Saudis are considering their future of global economics with their new pals in East Asia. And indeed, Chinese officials have already reportedly been holding secret meetings with Saudi Arabia. All the indications are that Saudi Arabia, along with China, and Russia will soon launch the petrodollar-crushing move – that undoes the U.S. dollar\u2019s monopoly on all oil trade.<\/p>\n

\u00a0<\/strong><\/p>\n

\"OpecKingSalman\"<\/a>Expect that Saudi Arabia\u2019s new<\/strong> King Salman will soon announce his decision to join forces with China, Russia, Venezuela, Brazil and others, to begin trading oil<\/strong>\u00a0<\/strong>outside<\/em><\/strong>\u00a0<\/em><\/strong>of the U.S. dollar<\/strong>, and are going to use the Chinese petro-Yuan instead<\/strong>.<\/p>\n

Which effectively is going to end the petrodollar\u2019s over four-decade reign<\/strong>.<\/strong><\/p>\n

Even before Saudi Arabia and OPEC make their move \u2013 the petro Yuan already is gaining traction.<\/p>\n

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The Bank of Russia and People\u2019s Bank of China recently agreed to trade completely outside the U.S. dollar. – Singapore, Malaysia and Qatar have also agreed to currency swaps with China. In the case of Qatar, the deal establishes a direct trade with an OPEC nation in the very heart of the petrodollar system. Even Canada, and Australia recently have signed a currency swap with China! The petrodollar has reached a period of historic risk.<\/p>\n

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Decline of the dollar:<\/strong><\/p>\n

Forbes<\/em>\u00a0may have said it best:<\/p>\n

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\u201cThe decline of the dollar is almost assured, as not only the international community, but Americans themselves question the merits of holding a fiat currency with diminished purchasing power<\/em>.\u201d<\/p>\n<\/blockquote>\n

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\u201cChina holds $1.24 trillion. Japan $1.23 trillion. Worldwide, foreign nations hold somewhere in the realm of $6.2 trillion in U.S. dollars, stashed away in their accounts. – But if it\u2019s no longer a\u00a0requirement<\/em>\u00a0to trade oil in U.S. dollars, then suddenly, none of those countries need these excess dollars anymore. Rather, they are going to need a whole lot of Yuan instead.\u201d<\/p>\n

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These countries can dump the dollar and flood the market with all the U.S. dollars they don\u2019t need. – Essentially, if Saudi Arabia gives the go-ahead to replace the petrodollar, a sudden surge of excess dollars will immediately begin pouring out of all major countries. The dollar’s global dominion is coming to an end.<\/p>\n

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\"falling_dollar\"<\/a>Stop hoping it won’t happen and start getting prepared for it. Precious metals are a good hedge against economic upheaval. It will be clear that a dirty game is going on, and if you don\u2019t want to become victim, take action now. Simply, follow what China is doing; buy gold and silver when the creditworthiness of the U.S., the EU, and Japan is in such dire shape. For these reasons, you too should have a position in gold and silver; otherwise you could find yourself in the poorhouse with the rest of the unaware people. <\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

\u201cThe truth is that for most people in the world gold has done its job in the past 14 months, and the consequence of that is that gold has held its purchasing power well. All other forms of purchasing power, except the U.S. dollar, have declined.\u201d<\/p>\n

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How devastating would it be when $6.2 trillion are coming back into the U.S.?<\/p>\n

Consider; \u201cright now,\u00a0all<\/em><\/strong>\u00a0<\/em><\/strong>physical money in the U.S. totals just $2.9 trillion. That means these foreign dollars have the potential to more than triple <\/em>the money supply within the U.S. That\u2019s a devastating short-term increase, and a disastrous shift in US ability to\u00a0fund the US government.\u201d<\/p>\n

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And consider this; \u201cforeigners buy over 50% of Treasury Bonds, 37% by the US government, and 13% by American citizens. So 50% of U.S. Treasuries aren\u2019t bought anymore and that were the ones that financed the US debt.\u201d<\/p>\n

\"Debt<\/a><\/p>\n

As these countries don\u2019t have any need for dollars, they also don\u2019t have any need for Treasuries. So they\u2019ll sell them on the open market. Those are trillions of dollars in U.S. Treasuries getting dumped. The immediate impact will be a severe drop in the value of U.S. Treasuries and its currency, on which many retirees depend.<\/p>\n

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Two options are left, neither of which is good.<\/p>\n