01-12-2018, 04:38 PM
(01-12-2018, 10:14 AM)Kinser79 Wrote:(01-11-2018, 04:23 PM)David Horn Wrote:(01-11-2018, 03:44 AM)Kinser79 Wrote: At current Saudi Arabia and most of OPEC are only passfied by keeping oil accounts in USD (just like Gulf War II was caused by Saddam Hussein wanting to price oil in Euro), but that might not always be the case. Iran is already selling oil in gold, Rupee and RMB. Russia is openly selling gas in Rubles or Gold taking USD as a third option only (which has essentially lifted the sanctions against them already--only the US is still maintaining them, and there import substitution is addressing the problem). I can't really blame the Europeans either, they have a colder climate and in winter the heat being on is quite nice.
Is there a point here?
Yes. Both Galen and I have mentioned numerous times that the petrodollar can, will and eventually must end.
I would also add that it means the end of Pax Americana because it will no longer be possible to print or borrow enough money to cover the Federal Governments obligations. It remains to be seen if there will be a formal default since there wasn't one in 1971 even though that is effectively what Nixon did in terms of the Bretton-Woods agreement. Gary North refers to the upcoming event as the Great Default.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises