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Today Marks The End Of The Petrodollar.
Hyperinflation, end of spoiled entitled American exceptionalism. Beginning of the end? Stay tuned to MONDAY'S STOCK MARKET and other economic indicators
The End of the Petrodollar
In January 2023, Alex Macris wrote a book entitled RUNNING ON EMPTY: How the Imminent Collapse of the Petrodollar System sets the Stage for World War III.
America’s global hegemony is based on the petrodollar system and the Russo-Ukraine war is rapidly bringing that system to an end. The end of the petrodollar will be the end of the world order as we have known it since 1945. Though the U.S. petrodollar system is perhaps the most important economic structure in the world, it is almost never discussed in mainstream sources.
In RUNNING ON EMPTY, author Alexander Macris traces the circumstances by which the petrodollar system came into being; the disastrous effect that the system had on US domestic and foreign affairs, ranging from deindustrialization to foreign wars to widening gaps between the 1% and the rest of us. With that background in place, the book explains the geostrategy of the major powers on Earth today, how those strategies lead inexorably to the Russo-Ukraine War, and how that war will usher in the end of the petrodollar system.
Yesterday, it was reported that Saudi Arabia is not renewing the 50-year petrodollar agreement with the US that expires on June 9, 2024.
What this means is that BRICSIA is increasing the economic pressure on the United States, by further reducing its ability to find buyers for its debt and thereby shift the effects of its debt-generated inflation to the rest of the world. Business Insider describes what it anticipates will result:
A movement away from the dollar—even in slow motion—will mean a rising cost of living for Americans. With fewer foreigners holding on to dollars, the US regime’s current runaway monetary inflation will create more domestic price inflation. In other words, movement away from the dollar will mean the US regime must engage in less monetization of the nation’s debt if it wishes to avoid runaway inflation. It also likely will lead to a need to pay higher interest rates on US government bonds, and that will mean a need for more taxpayer money to service the debt. It will mean that it will become more difficult for the US regime to finance every new war, program, and pet project that Washington can think up.
The U.S. Is Facing A Major Challenge As Petrodollar Loses Force
Oil Price
Feb. 2, 2023,
On January 17, the Saudi minister of finance, Mohammed Al-Jadaan, announced that the Saudi state is open to selling oil in currencies other than the dollar. “There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal,” Al-Jadaan told Bloomberg TV.
If the Saudi regime does indeed embrace substantial trade in currencies other than the dollar as part of its oil-export business, this would signal a shift away from the dollar as the dominant currency in global oil payments. Or measured another way, this would signal the end of the so-called petrodollar.
Running on Empty: How the Imminent Collapse of the Petrodollar System sets the Stage for World War III Kindle Edition
by Alexander Macris (Author), Gary Brode (Foreword) Format: Kindle Edition
America’s global hegemony is based on the petrodollar system and the Russo-Ukraine war is rapidly bringing that system to an end. The end of the petrodollar will be the end of the world order as we have known it since 1945. Though the U.S. petrodollar system is perhaps the most important economic structure in the world, it is almost never discussed in mainstream sources.
In Running on Empty, author Alexander Macris traces the circumstances by which the petrodollar system came into being; the disastrous effect that the system had on US domestic and foreign affairs, ranging from deindustrialization to foreign wars to widening gaps between the 1% and the rest of us. With that background in place, the book explains the geostrategy of the major powers on Earth today, how those strategies lead inexorably to the Russo-Ukraine War, and how that war will usher in the end of the petrodollar system. The final chapter delves into the frightening possibilities of World War III.
Running on Empty, is a must read for every American citizen struggling to understand what's happened to their country and what to do about it.
“Running on Empty is a work of genius for its multi-disciplinary conclusions. Many economists and stock market participants understand the long-term damage done to economies by institutions like the US Federal Reserve. However, fewer know the history of how the US abandoned the gold standard and replaced it with the oil of other countries. Until
now, I have not seen anyone tie the creation of the petrodollar to the hollowing out of the US manufacturing sector, the decisions by the US to enter or avoid military conflicts, and to the implications for the ability of the United States to maintain its status as the world’s only super-power... While most of you reading this won’t be able to take action to stop the harmful fiscal and monetary policies of the United States, you can still take action to protect your household and portfolio. Either way, once you’ve read this book, you’ll have a much better understanding of the forces that have shaped our financial past and how those same influences will affect our shared future. - Gary Brode, Deep Knowledge Investing
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