Saturday, September 28, 2013

The end of the petrodollar

From A Sheep No More: This article was translated from Dutch to English.

The end of the petrodollar

If Washington allows the printing presses run faster and keeps interest rates low, China understands that the U.S. Treasury for the long term is a losing investment. According to senior officials in Beijing, China between 2003 and 2010, some $ 271 billion lost by its bell went into U.S. Treasuries. And in June 2011, reported China's National Development and Reform Commission that another $ 578 billion will lose if they continue with these huge sums in the American debt.

End of Petro Dollar
Therefore, the Chinese government is now taking drastic measures to protect their wealth. They are not only going to get out of Treasuries. Their money back They sacrifice some short-term losses for long term gains. The International Business Times revealed a secret alliance with Russia that the mainstream media did not publish, together they launch the ultimate attack on the American supremacy. The last major U.S. export machine to attack and take, called the petrodollar. Ultimate source of global domination of the last 40 years away It is the beginning of an economic war between the U.S. and China, which will lead to the end of the 30-year bull market in U.S. government bonds.
To protect the petrodollar, the U.S., Saddam Hussein and Muammar Gaddafi slain and now impose sanctions on Iran, parties that do not respect the Petro Dollar. But with the swollen U.S. debt, which China now owns about 3.5 trillion dollars in U.S. currency, provides the perfect opportunity to get. America down the Bretton Woods agreement, made ​​the U.S. dollar the reserve currency of the world . This international game-changer gave the United States a clear economic advantage, but with a caveat, to prevent the Fed would not spoil, reckless dollars galore had every dollar the Fed crowds covered by gold and can be redeemed based on the standard rate of € 35/ounce.
But of course, the bustle FED lot more dollars than it had in gold to exchange, because of the huge expenses by conducting wars, the rest of the world suspicious about the ability of America to pay. All dollars in gold So many countries started the gold that was promised to demand.Then in 1971, President Nixon acknowledged that they would not be able to fulfill those obligations to do so he closed the gold window. This was actually the first American bankruptcy and caused a rapid decline in the value of the dollar. Causing oil prices rose. Inflation rose to 15% and higher. At the same time, GDP fell by 3.2% and the unemployment rate reached 9%.
The government imposed wage and price controls, causing gasoline shortages arose. But in 1973, when Secretary of State Henry Kissinger, devised a brilliant plan. America had great military power and Saudi Arabia that could be used to protect their huge oil empire. Kissinger exchanged the military might of America against the promise of Saudi Arabia to sell in U.S. dollars. Oil only That meant that every country wanted to buy oil from OPEC, was forced to use dollars. So when every other country that wanted to buy oil from the Middle East, was the first convert their currency into U.S. dollars. And since oil is used in all modern economies - and the Saudis a major player in the oil trade - this set the U.S. in a unique situation.
Countries around the world were first export goods and services to America to receive they needed to buy. Petrodollars America on the other hand could just dollars "print" to buy. Their own oil This meant that the huge U.S. deficits could enter the trade because they export the most valuable commodity in the world, the U.S. dollar. Until the early 1970s, America was the world's largest creditor. But from the beginning of the 1980s they began their first trade deficits to rise. And since the 1990s, their trade deficits become many trillions of dollars.
With the aim to earn that others needed to buy oil dollars flooded these countries the U.S. market with cheap cars, cheap TVs, cheap clothes, and in the opposite direction engulfed the U.S. simply the world with increasingly cheap dollars. An important condition was also agreed, OPEC countries were obliged to invest in U.S. government bonds, the demand for government debt raised, which the U.S. government could continue to borrow with reckless abandon and as the largest bond bull market created their profits, which the world has ever seen. But it was not only the government that borrowed money.
Consumers also borrowed for 14 trillion dollars, supplemented with 11 trillion dollars in corporate bonds, 17 trillion dollars in financial debt and $ 90 trillion dollars in unfunded liabilities such as Social Security and Medicare - it helps all contribute to the $ 140 trillion dollars the total U.S. debt - which is about 10 times as greater as the total domestic U.S. production.
The whole house of cards is maintained by the simple agreement in 1973 with the establishment of the petrodollar, which is actually now the main problem for the U.S. to maintain that. That was the reason to make war against Gaddafi and now Iran war because they are against the petrodollar. The smart Chinese see this as their best chance to defeat the United States and the end of the golden age of America to usher in an era of Chinese dominance. In the year 2008 gave the world a good example of what happens when the national Credit is repealed.The U.S. government spent trillions on bailouts and stimuli to prop up the economy. The same dynamics happening again, but on a much, much larger scale, in the bond.
Simply, the Chinese are preparing to release the biggest source of the address of their U.S. Treasuries-off and thus China has the U.S. in their grip. Americans are stuck in the past, burdened by the promises made years ago on claims. On the contrary, China is preparing for the future, with a full attack on the U.S. supremacy and their PetroDollars.
So far, China has announced since 2009 nothing about the size of their gold reserves, no one knows the true extent of it and the need for China to acquire gold. But in 2009 China Youth Daily quoted Ji Xiaonan advisor to the Council of State, when he said: "We advised that the Chinese gold reserves in the next 3-5 years to reach 6,000 tons and 10,000 tons possible in 8-10 years."
That would be the PBOC's largest gold holder to make the world, ahead of the approximately 8,000 tons of gold reserves of the U.S. - and all that gold is still present? This puts China in a perfect position to its role as a world economic leader to take over the U.S. who received this role by Bretton Woods. About
China knows that she can do this alone. Just as the U.S. 60 years ago, they must build global support for their initiative. For this, they have a wonderful plan designed in three ways contributes to, to come. Closer to their goal
China does more than just raw materials purchases on the open market. It also provides support and investment in resource-rich countries such as Africa and South America. And this for three immediate benefits to benefit: 
1. To achieve that they need to support a rapidly growing economy means 
2. To get rid of the massive amounts of rapidly depreciating dollar 
3. To get powerful allies in their pursuit of world domination. Around the world
In defense of Petro Dollar, the U.S. has a hidden agenda to counter China's action: The now retired U.S. Secretary of State - Hillary Clinton recently stated: The limit of Asian growth and dynamism is central to American economic and strategic interests.
The military intervention of France in Mali may seem at first glance, to have little to do with the U.S. "pivot" to Asia. But first as an exclusively French intervention, supposedly meant to be a UN sanctioned and African-led affair began as an exclusively French affair, it has now become a Western intervention. It is increasingly clear that it is intended to strengthen based on the requirements for U.S. 'Asia pivot''s strategic interests.
As the British Prime Minister David Cameron recently declared the crisis in Mali "will require an answer instead of months needed for years, even decades."
"One need look no further than the intervention in Mali to see if grateful assistance for the West. The al Qaeda threat All attention to the fight against al Qaeda in northern Mali provides the perfect cover for the U.S. and its Western junior partners to continue. Their grand strategy of containment against China And with China increasingly in competition with Western interests in Africa, one understands the neocolonial sudden urge of the West. "
With this comprehensive explanation will be clear that there is a dirty game going on, and if you want this to be a victim you should take action now. By simply following what China is doing, buying gold and silver as the creditworthiness of the U.S., EU and Japan deteriorate by the day. For these reasons, you should also have a position in gold and silver, otherwise you will find yourself in the poorhouse against the rest of the foolish.
Ask yourself: Are you ready if China carries out its last action which the dollar, the euro, and the yen collapse? Are you prepared when the oil and food prices skyrocket? Are you ready if China uses its financial power and the main aspects of your financial life dictates? Do not think that this is not going to happen.

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