Dollar

Assault

Closing Chapter for Bretton Woods Accords & Petro-Dollar

The World Is Creeping Toward

 De-Dollarization

The issue of when a global reserve currency begins or ends is not an exact science. There are no press releases announcing it, and neither are there big international conferences that end with the signing of treaties and a photo shoot. Nevertheless we can say with confidence that the reign of every world reserve currency has to come to and end at some point in time. During a changeover from one global currency to another, gold (and to a lesser extent silver) has always played a decisive role. Central banks and governments have long been aware that the dollar has a sell-by date as a reserve currency. But it has taken until now for the subject to be discussed openly. 

The mechanism underlying today's “dollar standard” is widely known and the term “petrodollar” describes it well. This system is based on an informal agreement the US and Saudi Arabia arrived at in the mid-1970s. The result of this deal: Oil, and consequently all other important commodities, is traded in US dollars — and only in US dollars. Oil producers then “recycle” these “petrodollars” into US treasuries. This circular flow of dollars has enabled the US to pile up a towering mountain of debt of nearly $20 trillion — without having to worry about its own financial stability. At least, until now.

Putin Orders End To US Dollar Trade At Russian Seaports

Whether in response to rising scorching tensions with the US, or simply to provide support for the ruble, on Tuesday Russian President Vladimir Putin instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, RT reported citing the Kremlin website.

 DYI:  American world Dollar dominance is drawing to a close as the list grows for countries such as the newest Venezuela, throwing off the reserve currency petro-dollar chains.  However, this will not be the demise of the U.S. nor will it cause hyper Weimar inflation.  What is happening is an acknowledgement of America’s debt – [government, corporate & private] - and spend economy has debased her currency fewer countries wish to hold a depreciating asset.  This is why the barbarous relic – GOLD – reported for years in the alternative media and now is a stable among many main stream media outlets – is being implemented by Russia and China.

Also the Bretton Woods Accords that was signed by the Allies in 1944 American’s would provide the majority of the cost and man power in securing Europe’s defense plus protecting all sea lanes and accepting unlimited imports.  The idea behind this was obvious who ever controls the sea lanes controls the world – unfortunately this had a tragic flaw.  In order for countries to earn dollars they needed to under cut, first based on price then quality, gutting our industrial base.  These countries were simply playing by American rules much to our demise.  With the rise of Trump he has said enough is enough the rules must change.  This would have happened eventually – no matter who was President – as the U.S. simply can no longer afford to play the world domination game.

The U.S. has many advantages – access to the Atlantic, Gulf of Mexico, and Pacific with multiple world class ports – extensive navigable rivers and canals – massive farming along with natural resources.  This plus four reasons America will remain a super power. 

• The Unsung hero of energy – energy efficiency – from LED light bulbs to gas sipping autos – the U.S. has reduced its energy foot print significantly.  Businessmen all look to reduce their costs and one place is in energy usage.  Despite any ups or downs of the economy this trend is here to stay will only improve over time. 
• Fracking…Love it or hate it drillers are becoming more and more efficient in its usage extending the life of existing fields along with known shale deposits.  This has driven natural gas prices down to low prices along with moderating the price of oil.
• The development of thorium molten salt nuclear power.  Amazing as it is this is it is an old technology.  The reason it was displaced by the so called standard reactor was not electrical generation but the by products for nuclear bomb making [world domination].  Thorium is unusable for bomb making and as such is shunned by the major powers.  As energy usage has sky rocketed world wide development of thorium power is being ramped up significantly.  Thorium is very plentiful so much so it is not considered a strategic mineral.  Once developed and standardized a new thorium molten salt reactor will be at the same cost as a coal fired plant.  This will moderate significantly the cost of electricity bringing up point four.
• Coal liquefaction…Conversion of coal into liquid fuels technologies that have been around since WWII with many countries such as South Africa using the process for decades.  What is required is energy – such as abundant nuclear power to make the conversion process profitable.

The cross current of energy independence and world domination overreach U.S. foreign policy is in transition from controlling ALL major and minor sea lanes to those who benefit American imports AND exports.  With energy independence manufacturing will have a rebirth turning America into an export nation.  So…America will become disinterested of other countries (unless they have nuclear weapons) outside of our major trading partners.  A new world disorder will occur as America will shun entanglements – out of cost [world domination] and non-necessity of trade – many regions such as the Mid East will fall to the way side.  America will not become isolationist will simply become far more selective in its use of foreign power whether political or militarily.  All of this is within the time table of geopolitics which is to say this trend will increase proportionally year by year over the next two decades.

  DYI