We’ve gone over it a hundred times. Our economy is little more than smoke and mirrors, a lot of derivatives market manipulation, a sprinkling of drug money. And a whole lot of petro-dollars. The means whereas the Saudi’s forced the world to buy oil only in US currency units, backed up by its long ago near monopoly on production. If it wasn’t for the need of every nation to accumulate dollars to buy oil, no one would need to accept our currency. Slowly but surely the world has been sneaking around this requirement. The Chinese, some years ago, stopped buying new Treasury debt and has sold off a lot of its holdings. Treasuries are the vehicle of choice in holding dollars to buy oil. Now they only accept enough of our toxic crap to buy more Saudi oil. The days of the Chinese “having to” buy more of our debt are long gone. Many have voiced the theory that Iraq and Libya sinned by trying to ditch the dollar. But while we were punishing Iraq, a lot of small Podunk countries started partially abandoning oil dollars. Then China and Russia agreed to a local currency swap for energy. Russia is just behind Saudi Arabia in oil production. And China is right below us in importing oil. Now, reported by The Economic Collapse Blog on the 11th, Russia has gotten twelve out of thirteen Euro nations to buy natural gas with their currency rather than dollars.
The question is certainly not IF the petro-dollar will be largely abandoned but WHEN. Forget all our other and many financial problems- just the petro-dollar ALONE makes or breaks our economy. Since Russia is slowly getting more players in its new game, happily joined by China ( and, remember, both are heavily purchasing physical gold so that they will both control energy and also have an actual gold backed paper currency ), the game is already over. Only the timing of the end is in question. This country WILL have an economic collapse. Not in twenty years. In twenty years, the oil will largely be gone and the game for energy survival started in 2005. It is well underway, an event eagerly NOT covered by our media. Which means there is not time to pussyfoot around getting the US out of the oil patch and out of other empires financial affairs. In so many ways the rest of the world MUST see us fall for them to survive. Baring a miracle, I don’t see a way out for us. No, I’m not panicking this weekend. But I wouldn’t wait much longer than that. I’m accelerating my lumber, insulation, metal sheeting, water tank and solar panel purchases for execution the next two months or so. I’ve already pared down my excess bank account amount and turned it into surplus Russian ammo for my Enfield reloading ( and just in the nick of time ). I’m NOT waiting around hoping the collapse gets another “can kicked down the road”.
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