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Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat
Russia threatened to dump its U.S. treasuries if America imposed sanctions regarding Russia’s action in the Crimea.
Zero Hedge argues that Russia has already done so.
But veteran investor Jim Sinclair argues that Russia has a much scarier financial attack which Russia can use against the U.S.
Specifically, Sinclair says that if Russia accepts payment for oil and gas in any currency other than the dollar – whether it’s gold, the Euro, the Ruble, the Rupee, or anything else – then the U.S. petrodollar system will collapse:
Indeed, one of the main pillars for U.S. power is the petrodollar, and the U.S. is desperate for the dollar to maintain reserve status. Some wise commentators have argued that recent U.S. wars have really been about keeping the rest of the world on the petrodollar standard.
The theory is that – after Nixon took the U.S. off the gold standard, which had made the dollar the world’s reserve currency – America salvaged that role by adopting the petrodollar. Specifically, the U.S. and Saudi Arabia agreed that all oil and gas would be priced in dollars, so the rest of the world had to use dollars for most transactions.
But Reuters notes that Russia may be mere months away from signing a bilateral trade deal with China, where China would buy huge quantities of Russian oil and gas.
Zero Hedge argues:
Add bilateral trade denominated in either Rubles or Renminbi (or gold), add Iran, Iraq, India, and soon the Saudis (China’s largest foreign source of crude, whose crown prince also happened to meet president Xi Jinping last week to expand trade further) and wave goodbye to the petrodollar.
As we noted last year:
The average life expectancy for a fiat currency is less than 40 years.
But what about “reserve currencies”, like the U.S. dollar?
JP Morgan noted last year that “reserve currencies” have a limited shelf-life:
As the table shows, U.S. reserve status has already lasted as long as Portugal and the Netherland’s reigns. It won’t happen tomorrow, or next week … but the end of the dollar’s rein is coming nonetheless, and China and many other countries are calling for a new reserve currency.
Remember, China is entering into more and more major deals with other countries to settle trades in Yuans, instead of dollars. This includes the European Union (the world’s largest economy) [and also Russia].
And China is quietly becoming a gold superpower…
Given that China has surpassed the U.S. as the world’s largest importer of oil, Saudi Arabia is moving away from the U.S. … and towards China. (Some even argue that the world will switch from the petrodollar to the petroYUAN. We’re not convinced that will happen.)
In any event, a switch to pricing petroleum in anything other than dollars exclusively – whether a single alternative currency, gold, or even a mix of currencies or commodities – would spell the end of the dollar as the world’s reserve currency.
For that reason, Sinclair – no fan of either Russia or Putin – urges American leaders to back away from an economic confrontation with Russia, arguing that the U.S. would be the loser.
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Thank you, pondview.
The idea that the rest of the G20 wants the U.S. economy to crash is just completely fanciful horseshit.
The "rest of the G20" are all dominated by politicians that are puppets of the international banksters, which have an overall agenda which does not care about any nations, but rather would like to destroy their power, so that they must become even more subservient to globalized control by the banksters' systems.
The problem is that the whole financial system was always a PONZI SCHEME, and all such pyramid schemes have limits where they are impossible to keep growing, and so, they must collapse ... Setting up covers to blame those inevitable collapses upon, so that the resetting afterwards may be ridden through, continues to possibly an aspect of the insane overall strategy of the globalized ruling classes (who do not have be any better than the history of backing up lies with violence enabled them to become in the past.)
ZIO's have ran the USA to the ground since 1910, but in actuality since they engineered the Civil War 1860's.
But for now a 100 year reference is best.
That, the zio's have
1.) Turned the US-MIL into a private MERC army at their disposal
2.) That the zio's have turned the FEDERAL-RESERVE into a INFINITE-FIAT free for all for every ZIO-CON on earth.
Shit yes, its a non-indefinite PONZI, so what better way to "RESET" than have a war with CHINA/RUSSIA.
Best of all TEL-AVIV get's the loot, and the USA has to pay restitution, and get the bill.
Then during the war any kind of 'blame' can be manufactured.
I try to keep things, simple and short. This was all be designed, to run America to the ground and bankrupt it,... then of course return and take it all back, and rinse & repeat.
Albert Pike and the order of Jesus........not exactly zion's.
Appears to me the zions are dupes and catspaws to the Jesuits......
"If you like your reformation you can keep your reformation"
I think most will agree that Albert Pike fall's into the defintion of the 'zionist'.
Hell much of Utah is zionist.
I'm quite clear that ZIONISM doesn't have a thing to do with JUDAISM.
Zionist is about theft, and thus no doubt Albert Pike should be seen as in an influence in the 'end game'.
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CIA ain't christian
Mossad ain't Jewish
Zionists are as shit aren't Religous
Al-Queda has nothing to do with Islam
Probably the biggest deterrennt to understanding the criminal nature of 'INFINITE FIAT', is this notion of 'religion'
If the Zionists have a religion then it is the love of "POWER".
"Al-Queda" has everything to do with islam.
I appreciate your exuberance, but I'm skeptical about this high level of influence you attribute to the ZIOs. Do you have any hard evidence that there is some ZIO organization(s) that is/are orchestrating all these large events? The Zionists may have played a part in this debacle, but I serously doubt that they are the sole masterminds.
That's why I chose here to reference the 1910 starting point about then is when Lord Balfour gave both the USA and Palestine to the ZIO's to manage.
Who are the ZIO's, Anglo-Saxon Empire,
Want to understand? Read all of Carrol Quigleys books.
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Lord Balfour cleverly gave the Zionists Palestine and Israel, but they always made sure their insiders directed the 'game'.
What better way to rob the world, than in the name of religion.
messymerry I appreciate your exuberance, but I'm skeptical about this high level of influence you attribute to the ZIOs.
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I've been planting those thoughts in zions head for years. I'm really the one that has done all the stuff zion says. I even have a nifty decoder ring and secret zionist message to prove it.
REAL FUCKING HISTORY OF THE USA.
1910 is a good reference
1.) Lord Balfour gives Palestine and USA to ZIO's
2.) Federal Reserve begins, ... which gives ZIO's unlimited wealth
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But yes, who controls Lord Balfour? Well that be the Anglo Saxons, Rockefeller, Rhodes,
Cecil Rhodes probably had the most to do with setting everything up, ...
But honestly folks you have to read books, you can't learn this shit in the condensed version on the internet,
Go online and buy all 4 of carrol quigleys books and read then, he was chief historian for CIA, and he was Bill Clintons MENTOR, ...
This stuff doesn't have shit to do with anti-semitism, it has all do with UNDERSTANDING THE REAL FUCKING HISTORY OF THE USA.
Carroll Quigley's books can be downloaded from his Wiki page. Roughly 3,000 pages in all.
love ya fred, but I guess your new generation, reading a book on the internet, ... fuck
How do you even know its all there, and and all 4 books, I was clear, and the 'hisory of civilization' is hard to find, ...
I'm highly suspicious the good stuff can be found on the internet, as its too easy to cut&paste,
George Town Univ is where prof Quigley worked, all people and state department cia, foreign service are required to read his 'books', I never hear of anyone read them off the internet.
I have many friends, who went to his classes, and they all have his 'books',
I really fear when everyone says 'download' a book, its so fucking ORWELLIAN,
Yes, I agree that music, movies ok, you know when something is missing,
But like the 'book' rise and fall of rome, from the 1800's much of the orginal over the years was pulled, because it offended, everybody christians and jews alike.
Go ahead read books on the internet, but I'm sticking with first edition non-abridged.
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These are classic books, get them and keep them forever, the shit on the internet can be pulled anytime by big-brother.
They have
"The Evolution of Civilizations - An Introduction to Historical Analysis"
"The anglo-American Establishment"
"Tragedy and Hope"
"Weapons Systems and Political Stability"
Looks like someone took the books off a shelf and scanned them in.
Admit it we own and are responsible for everything. W'll be by tomorrow to take all ur money, kk?
I am a Zion addict and I want to be healed. The Zions control my mind and all my thoughts. I resent that the Zions are responsible for all things human and wish to learn to live without the Zions, in my head.
Well the Zios control newspapers, TV, radio, Hollywood, universities and the political system itself (just check out the number of dual-citizen 'representatives'). Isn't that enough to be going on with?
When we say ZIO we mean 'ZIO-NEO-CON'
Think Cheney, wolfowitz, perle, cass sunstein, nudelman
Gates, zuckerberg,buffet
facebook, google, twitter, oracle, ... everything ran by cia/nsa assholes
Just think asshole, and that be the zio-neo-con,
Not a fucking thing to do with JUDAISM, but 100% to do with KLEPTOCRACY.
no big deal, just print more money and raise the limit on the EBT cards; problem solved.
Sounds crazy. Yet it's been "working" way longer than anyone dreamed possible....
To Putin: Just do it.
Saudis: You too.
From Putin: I Did.
Ask any coin dealer from CA to TX. ALL gold coins at coin shows along the border are sold out.... at ANY price for USD cash. Au is king. USD is toilet paper in the under world.
Rusty Loads at ANY price for USD cash.
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Apparently there are two sides to that coin (your statement), and you missed one side.
The well-armed people of the United States seem uninterested in stoping the gang banging of the citizenry by the American oligarchs. What's up with that tough guys?
time for marvel heroes 2Faces and Joker to fuck those oligarchs.
It will take a unifying event to make that happen. If the well armed citizen were to stick his head up singly or in a small group he will be executed. Only en mass can the yoke of the American Oligarchs be thrown off. The odds are low that such an event could happen and the results of such an event are historically bad. Oligarchs replaced by really bad pschopaths seems to be the historical trend.
As long as banksters can run things through their government sock puppets, they're safe.
The focus stays on the sock puppets through everyday abuse from petty rule enforcement to militarized police violence, masking the conditions created by elite looting.
Historically, elites just self-destruct through inbreeding or internal competition. Then the rest of us put things back together. Now we just have to encourage them to take the big leap before everything's screwed up past fixing.
No Enzyte.
I hold you directly responsible...
This is exactly what Jim Rickards was getting at in his book currency wars, when he and some friends were invited to a DoD simulation of financial warfare. A similar situation destroyed the dollar in the simulation. Sinclair is completely correct. State and treasury (and fed) is shitting their pants right now if they have half a brain. This is an extremely big deal. This should be front page.
Gary North posted this on Friday regarding a claim by Sinclair:
“$50,000 Gold in 2020? — Jim Sinclair’s Senior MomentGeez. Gary North is still around? I stopped listening to him around August of 1998,when he was hoping that Y2K would cause the rise of the New Theocracy (with him as Chief Theocrat, of course) where women would know their place and gays would be burned at the stake. Interesting how he flushed all those words from the Web on January 2, 2000.
You are being very kind with the "half a brain" remark.
So what if Russia sells resources for Yuan. All that does is force Russia to (a) buy more crappy landfill...er...I mean products from China or (b) convert Yuan to USD to buy other commodities that are priced in USD.
For example, Russia could buy Chinese missiles, most of which crash before reaching target altitude. Yep, thats a real good waste of good oil.
Or how about agricultural products that are highly toxic.
Russia could even buy melamine-laced baby formula.
Yep, lots of uses for those Yuan.
They will be begging back into the USD system.
Russia is going to lose a lot of money going through Yuan to get to USD.The other way around...USD to Yuan...is far more efficient. Its a deeper market with narrower spreads.
Wake me up when each of the G7 has over 10% of their trade weighted reserves in Rubles. But it wont happen because most of the G7 does little trade with Russia.
thank you spokesmodel
The Russians can be paid with USD or EUro that the Chinese have plenty of. Is that difficult to understand?
fijisailor The Russians can be paid with USD or EUro that the Chinese have plenty of. Is that difficult to understand?
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I don't think the Russians want USD or Euro which makes your comment mute. It's a currency battle. If they are trying to kill the petro-dollar, then it would be the last thing they would want. The idea for them is to encourage or force Asia and Europe to stop dealing in US dollars.
Russia could sell gas to Europe either in euro or rubble. I think that´s the point for Vitoria Nulland to precipitate the Kiev coup d`etat, manufacturing a crisis, forcing us, in Europe, to stop buying russian gas.
Rook takes Petro$. Checkmate.
'Checkmate' is a aerial sterilization product manufactured by the tribe to sterilize everybody on earth.
Google "SUTERRA", Israel,
It neither sterilizes nor does it affect "everybody", unless you are a leafroller.
Dig deeper, the technology has been licensed for years to deliver bio-weapons.
They even used this to spray Monterey years ago under a billion dollar FEMA contract.
All this is ran out of Israel, making them the #1 in the world for aerial bio-weapon deliver by DRONE.
The beauty is you can have a delay of up to 6 months before the active is released.
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Google Fort-Detrick, Litton-Bionetics, Suterra; Go ahead put your head in the sand, but survivors, need to know the enemy weapon systems.
Could we get them to spray this stuff on Detroit?
Sounds like Russia has nothing to fear. Horse shit. Cronyism is as prevalent in Socialism as it is in Capitalism...... and Russia's Cronys are crying. Putin's worried.
"The sky is falling the USD is falling"
The only problem is if you look outside the sky is not falling and the USD is not falling.
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The ZIO's have setup the most clever PAPER-MONEY-PONZI in all human history.
No way to compare past performance with prior paper currency.
CASE in point is the CIA's worldwide control of the black-market.
Sure as shit if columbia quit selling cocaine for USD, if AFGHAN quit selling OPIUM for USD, if black-market oil quit selling OIL for USD, yes the USD would be worthless.
BUT, and here is the REAL BUTT, the CIA as worlds-policeman cleverly encourages every criminal on earth to only accept USD, note when the COLUMBIAN coke guys a few years ago started taking EUROS, they were bombed and taken out, and then they went back to USD and all is now fine.
ERGO what I'm saying is that when the black-market quits being 100% in USD, then your premise will hold water, until then you be 'sky is falling' everyday, ... aka pissing upsteam in the wind.
So, there must be a G-20 of criminals to coordinate reform, too. Wait, the actual G-20 could do the job and spare more costs for the taxpayers. They just need to show their true colour.
I agree, the USD will continue to be the reserve currency for a while. The relative value against other currencies will go up and down. There is no currency that can replace the dollar right now. Even if certain countries wanted to replace it. Right now, money is created by debt. In order to supply the world with a sufficient amount of currency for trade, the reserve currency country must run a trade deficit in order to supply the debt to create enough currency for world trade. Not just for domestic. If China wants to have the reserve currency, it will have to change its whole economic strategy. It is impossible to be a mercantilist, which creates trade surpluses, and have a reserve currency the way thing are currently set up. China would have to let its currency float and become a consumer economy. However, they could use credit money, simply print the money instead of creating it with debt like Abraham Lincoln did during the US civil war and not need to change their mercantilist economic policy. But, they don't have the global military reach to enforce anything. The US dollar will be around until the people who own and run the US want to change it. When the dollar is replaced for world trade, it will be replaced by something created by the same people who control the dollar. It kills me how people think whoever is running things are incompetent. Anything that happens was planned and intended to happen. The interests of the owners are not the same as the interests of the serfs. Remember that. Sometimes, the building is worth more burnt down to the owners. If the serfs have to die in the fire and loose the shelter of the building, what do they care? They have billions more useless eaters to replace them. One day, "they" will burn down the dollar. I don't know when but I don't think they will for a while. It will be a political decision and have nothing to do with "economics" although "they" will either pay some douche to make up some economic reason it happens or some useful idiot douche on CNBC (like Laffer) will come up with something moronic to explain it and everyone will buy it. "They" will be laughing their asses off when they hear it. If they happen to hear it. I am sure they only watch CNBC when they need a laugh.
Thought about the following? China has over 1 Billion inhabitants and so they do really need not 300 Millione credit junkies of the US. You can bet they'll be finer without the US consumers then the USA with no more chinese producers. Hell if they decide not to deliver you mobile phone any more you are more or less busted.
Wow MOST excellent. Do you have a website?
You are one of the few people on ZH that actually get's it, what the fuck is actually going on.
The fear is that an alternative will take hold, even in some small way. The Russians, the Chinese, and the rest of the marginalized governments know the US has controlled the world via worthless paper and they too want in on it and they have been planning and scheming for a long time to get it. Underestimating an adversary is unwise. This is as serious as a heart attack.
http://en.wikipedia.org/wiki/Triffin_dilemma
No they don't want this, ... nobody want's this, it took the USA under ZIONIST control, over 100 years to make the USD the MURDER-INC 'reserve currency' that it is,
Nobody want's this no rational country wants this, it only works for the USA, because the USA is ran by a 'foreign power', that doesn't give a rats ass about what it means to those living in the USA.
Reserve currrency means ..
1.) Murder your own people
2.) Murder the world
3.) Export all your jobs
Why would anybody want this? They don't
What will come after the USD, will be the IMF-SDR, and it will be ran by the ZIONISTS, just like now, and they will issue INFINITE drawing rights to all countrys that suck their dick and take it in the ass.