Petrodollar Collapse: The Invention, Rise and Fall of the Petrodollar

Egyptian President Anwar Sadat (left foreground) and U.S. National Security Adviser and Secretary of State Henry Kissinger (right foreground) meet in November 1973 to discuss the petrodollar. Public domain photo via Central Intelligence Agency

From Peter Reagan at Birch Gold Group

The word “petrodollar” doesn’t come up as much as it did before the turn of the century. However, it’s important to understand the petrodollar system because it explains how the U.S. dollar was able to retain its global reserve currency status even after defaulting on the gold standard.

Note that this is an interesting but somewhat complex topic. If you want to really understand it completely, be sure to click the bold links for background and supplemental information. Professor Reagan’s class is now in session!

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The End of the Petrodollar?

Guest Post by Martin Armstrong

Another oil deal has been initiated without the use of the dollar. The India Ministry of External Affairs (MEA) announced that their latest trade deal with Malaysia would be settled in Indian rupees. “This initiative by the Reserve Bank of India (RBI) is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian Rupees (INR),” the formal statement noted.

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GRADUALLY, THEN SUDDENLY

“How did you go bankrupt?” Two ways. Gradually, then suddenly.”
― Ernest Hemingway, The Sun Also Rises

Gradually, then suddenly”: How the Protecting Our Democracy Act addresses institutional decay | ACS

“I do not say that democracy has been more pernicious on the whole, and in the long run, than monarchy or aristocracy. Democracy has never been and never can be so durable as aristocracy or monarchy; but while it lasts, it is more bloody than either. Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide. It is in vain to say that democracy is less vain, less proud, less selfish, less ambitious, or less avaricious than aristocracy or monarchy. It is not true, in fact, and nowhere appears in history. Those passions are the same in all men, under all forms of simple government, and when unchecked, produce the same effects of fraud, violence, and cruelty.” – John Adams

Hemingway’s famous quote about going bankrupt connects with so many because it is true on a personal basis and a civilization basis. It applies to individuals and empires in decline – like the American democracy. John Adams realized two centuries ago democracy was no better than monarchy or aristocracy over the long haul. We were handed a Republic by Franklin and his fellow revolutionaries, but we failed to keep it almost from the very birth of this nation.

As we rush towards our World War 3 rendezvous with destiny, aided and abetted by politicians placed in power by globalist billionaires hellbent on the destruction of our way of life, so they own everything and you own nothing, I can’t help but ponder who is to blame and could we have avoided this dystopian outcome.

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Saudi Arabia Considers Accepting Yuan for Oil

Guest Post by Martin Armstrong

Russia is not the only country turning to the yuan. Beijing is in talks with Saudi Arabia to begin purchasing oil with their own currency opposed to the USD. Saudi Arabia has long had a volatile relationship with the US, and seeing the harsh sanctions imposed on Russia is only making the yuan more appealing.

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