opinion on Petrodollars

I am no economy expert (despite the fact i studied it)so I would like anyone with economic background to explain how does petrodollar system work and what is its impact on our global economy.

Would the movement away from petrodollar system cause similar crisis like the global financial crisis 2007-2008?

There is a lot of talk circulating around
so what are the myths and what are the facts

a reply to: MimiSia

While one chart might seem simple...

Petrodollar Mercantilism Explained In One Chart

This video might tell you it a bit better...

a reply to: BornAgainAlien

What I fail to understand is why nations agreed to it in first place
I mean we can not criticize it if we agreed to it

originally posted by: MimiSia
a reply to: BornAgainAlien

What I fail to understand is why nations agreed to it in first place
I mean we can not criticize it if we agreed to it

US Dollar was the only world currency tied to fold ($35/Ounce at the time of Bretton Woods). The fascists in DC manipulated the law in such a manner that featured no domestic convertability of the dollar (citizens of the US, in other words, were assured of no set value to their dollars... inflation was their master) while allowing for gold and silver certificates on the international stage. America's WWII allies were economically crippled by serious destruction in their back yards, so they had little choice but to accept the dollar as the global reserve currency.

Nixon further screwed the pooch when he eliminated the last vestiges of the gold standard to open up free global trade and remove sustainable limits to inflation.

As an American, I can't say I'd love to see the dollar lose world reserve currency status, because the resulting American depression would be astonishing... but from those ashes a better, less artificially and manipulated system sans the Federal Reserve's inflationary policies could rise, so there is always hope.

a reply to: burdman30ott6

Do you feel that people are taking appropriate measures to find an alternative to such risk ? or are we just relaying on the fact that it will never happened ?
I mean America being our biggest investor we are in the same boat ..

Worse collapse i think. But it needs to happen. Something has to stop them from printing money out of thin air. The dollar should be backed by something more than a promise. I welcome it,but it will be tough times for a while. Better for the long term future though. War has been waged from other trying to get off the dollar Russia currently in the works, Libya, Syria, Iran, china. All of those have been demonized after talking about getting off the exchange.

Petro in Petrodollars really means US dollars. All oil prices are quoted in US dollars. Makes the world safe for US Hegemony.This began under Nixon when he sent Kissinger to make a deal with the kingdom of Saud. you can wonder why the US is so embedded with them later.

No longer a safe bet as US dollar is saddled with trillions of debt. Look what happened to Libya, Qadaffi was planning to trade oil for gold. Iran is planning to do this, So is india, China and Russia. You want to know why the US is militarily threatening the nations it does, look no further…

Casey Research

originally posted by: MimiSia
a reply to: BornAgainAlien

What I fail to understand is why nations agreed to it in first place
I mean we can not criticize it if we agreed to it

Saudi Arabia was the biggest player in it all with going along, the groundwork for that was laid out much earlier.

It gave the US an unlimited debt card, so it was able to knock out opponents for them (Soviet Union) and Saudi Arabia (Iran).

Only now they are in a situation in which they have to take out opponents to keep the system up, Iraq, Libya, BRICS, nations, etc...if the Petrodollar dies (and already it`s starting to do that with more and more countries backing away from the recycling system) US can in no way pay for all the military around the World.

a reply to: BornAgainAlien

US can in no way pay for all the military around the World.

is that the only implication?
or would it have impact on the economy itself. if yes how bad can things get

a reply to: MimiSia

The economy itself and people in the US, Europe, China, etc,...so the whole World will feel it too...the BRICS countries are preparing for it already.

US would become just another powerhouse, instead of the strongest World power it is today after a painful reset. It`s not only the lack of being able to support so many bases, but also not being able to fund CIA/NSA/Black Projects/new Military tech development in the same manner anymore.

a reply to: BornAgainAlien

do u think they would rather go to war then let this happened?

a reply to: MimiSia

They already have done so, Iraq, Libya, Syria, Ukraine, etc.

a reply to: BornAgainAlien

so does this mean we are facing soon next global crisis? or are we still able to adjust the economy to avoid this..

Not really an opinion, here is a link to some facts:

www.economicreason.com...

The Typical Duration of a World Reserve Currency

The reserve currency transition is a cycle that has typically lasted in history somewhere between 80 to 110 years. Officially, the US dollar has been the reserve currency for 68 years. However, the US dollar was used in trade much before, since the 1920’s in fact. That would put the US dollar closer to 90+ years as the reserve currency. These cycles of about 100 years (one century) is very common in history: the ancients called it a saeculum which represented four seasons (spring, summer, fall and winter). As with all cycles, there was a period of growth, saturation, peak, and decline which represented these seasons. An excellent book on economic cycles, with a focus on the current cycle in which we find ourselves, is The Fourth Turning by William Strauss and Neil Howe. It is a must-read. Here is a quote from Strauss’s book:


“An appreciation for history is never more important than at times when a secular winter is forecast. In the fourth turning, we can expect to encounter personal and public choices akin to the hardest ever faced by an ancestral generation. We would do well to learn from their experiences, viewed through the prism of cyclical time. This will not come easily. It will require us to lend a new seasonal interpretation to our revered American Dream. And it will require us to admit that our faith in linear progress has often amounted to a Faustian bargain with our children. Faust always ups the ante, and every bet is double or nothing. Through much of the Third Turning, we have managed to postpone the reckoning. But history warns that we can’t defer it beyond the next blend in time.”

Since 1450, WRC was 1st Portugal then Spain, Netherlands, France, Britain.

In my view, the whole Ukraine debacle is about poking the bear to undermine BRICS, who together could form an economic coalition that can change the way the world does business and USA, the FRB, SA and the Zionist banking cartels are desperate to prevent that.

originally posted by: MimiSia
a reply to: BornAgainAlien

so does this mean we are facing soon next global crisis? or are we still able to adjust the economy to avoid this..

We are still facing one, the media has only plastered over things and they have postponed a total collapse only in the recent past, but some people are just less subjected to it as others...but the structural underlying situation hasn`t improved but more deteriorated, they only have stabilized the collapse to some degree.

a reply to: BornAgainAlien

thank you so much for explaining things to
me
generally if I wanted a piece of knowledge or opinion these days I would have to pay for it very strange world we live in. I am not prepared to think about kids and family if things remain this way. everything seems unstable and ait looks like we are just waiting for something to fall on ur head hoping it will avoid us when it does