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The Collapse Of The Petrodollar: Oil Exporters Are Dumping US Assets At A Record Pace
Back in November we chronicled the (quiet) death of the Petrodollar, the system that has buttressed USD hegemony for decades by ensuring that oil producers recycled their dollar proceeds into still more USD assets creating a very convenient (if your printing press mints dollars) self-fulfilling prophecy that has effectively underwritten the dollar’s reserve status in the post WWII era. Here’s what we said last year:
Two years ago, in hushed tones at first, then ever louder, the financial world began discussing that which shall never be discussed in polite company - the end of the system that according to many has framed and facilitated the US Dollar's reserve currency status: the Petrodollar, or the world in which oil export countries would recycle the dollars they received in exchange for their oil exports, by purchasing more USD-denominated assets, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assets and printed US currency) loop...
Few would have believed that the Petrodollar did indeed quietly die, although ironically, without much input from either Russia or China, and paradoxically, mostly as a result of the actions of none other than the Fed itself, with its strong dollar policy, and to a lesser extent Saudi Arabia too, which by glutting the world with crude, first intended to crush Putin, and subsequently, to take out the US crude cost-curve, may have Plaxico'ed both itself, and its closest Petrodollar trading partner, the US of A.
As Reuters reports, for the first time in almost two decades, energy-exporting countries are set to pull their "petrodollars" out of world markets this year.
Not long afterwards (and by that we mean “not long” in the sense that three months isn’t really that long when it comes to everyone catching on to what “fringe” bloggers say is likely important), Bank of America took notice in the form of interviews with a half dozen or so in- house economists whose views can be generally summed up as follows: “...the end of the Petrodollar recycling chain is said to impact everything from Russian geopolitics, to global capital market liquidity, to safe-haven demand for Treasurys, to social tensions in developing nations, to the Fed's exit strategy.”
Here’s Goldman with a bit of color on the projected magnitude of the shifting Petrodollar dynamic:
We estimate that the new (lower) oil price equilibrium will reduce the supply of petrodollars by up to US$24 bn per month in the coming years, corresponding to around US$860 bn over the next three years. The ultimate impact, however, will depend on a number of key current account buffers (goods imports, net factor income and service imports).
Against this backdrop we bring you the following, from Bloomberg which highlights the fact that oil producers are now liquidating their Petrodollar assets at a frenzied pace in the face of today’s “crude” realities:
In the heady days of the commodity boom, oil-rich nations accumulated billions of dollars in reserves they invested in U.S. debt and other securities. They also occasionally bought trophy assets, such as Manhattan skyscrapers, luxury homes in London or Paris Saint-Germain Football Club.
Now that oil prices have dropped by half to $50 a barrel, Saudi Arabia and other commodity-rich nations are fast drawing down those “petrodollar” reserves. Some nations, such as Angola, are burning through their savings at a record pace, removing a source of liquidity from global markets.
If oil and other commodity prices remain depressed, the trend will cut demand for everything from European government debt to U.S. real estate as producing nations seek to fill holes in their domestic budgets.
“This is the first time in 20 years that OPEC nations will be sucking liquidity out of the market rather than adding to it through investments,” said David Spegel, head of emerging markets sovereign credit research at BNP Paribas SA in London…
A concomitant drop in foreign reserves, revealed in data from national central banks and the IMF, is affecting nations from oil producer Oman to copper-rich Chile and cotton-growing Burkina Faso. Reserves are dropping faster than during the last commodity price plunge in 2008 and 2009.
The drawdown reverses a decade-long inflow into the coffers of commodity-rich nations which helped to increase funds available for investment and boost asset prices. Bond purchases have helped to keep interest rates low.
Oil producers recycled a large portion of their petrodollars -- a term coined for the dollar-denominated oil trade -- by buying sovereign debt of the U.S. and other countries. As they draw down reserves, Middle East countries are likely to sell “low-yielding European assets,” George Saravelos, strategist at Deutsche Bank AG, said in a note to clients.
Available data shows foreign savings by commodity-rich nations are dropping across the board. In Chile, the world’s top copper exporter, foreign savings fell $1.9 billion in February, the biggest drop in three years.
Analysts and officials anticipate that commodity-rich countries will continue selling off foreign assets through the year.
The IMF’s Arezki said that unless they cut spending, resources-rich nations “have no choice but to draw on their financial assets when available” as oil prices are well below the fiscal break-even needed by many exporting nations. The IMF estimates that many oil countries would only balance their budgets if crude prices recover to $75 or higher.
And so the liquidity drain is on, the only question is how far reaching the consequences will be and whether DM central bank largesse can effectively offset the implications of the petrodollar spigot being turned completely off for the first time in nearly two decades, representing a monumental fall from the more than $500 billion in EM Petrodollars that inundated the market just seven years ago. Here's an interesting take on this from Citi:
The longer crude prices persist at current levels, the more likely it is that these investors stop seeing inflows. And if that were to be the case, then the drop in crude prices could end up effectively offsetting further balance-sheet expansion from the BoJ and ECB.
Naysayers will argue that the two aren’t equivalent: QE is money creation while petrodollars are a zero-sum game. In other words, while petrodollars are being accumulated at a slower rate because crude prices have dropped, other economic actors are experiencing a corresponding windfall.
While that’s certainly the case, what matters is how the savings from lower crude oil prices end up getting invested relative to the investments made by sovereign wealth funds and FX reserve managers. And on that score, we suspect that petrodollar investors generally make conservative investments that are inherently fixed income-friendly, while the savings from lower gasoline prices tend to grow the top line revenue of consumer-oriented companies and the margins of those companies with significant transportation costs. As such, forsaken petrodollars rarely find their way back into fixed income markets.
In a very real sense then, we’d argue that the decline in petrodollar growth is likely to equate to less demand for fixed income securities and make the withdrawal of Fed QE that much more palpable.
* * *
As we said back in February, “...few actually grasped the implications of what plunging oil really means in a world in which this most financialized of commodities plays a massive role in both the global economy and capital markets, not to mention in geopolitics, with implications far, far greater than the amateurish ‘yes, but gas is now cheaper’ retort." In the end, the real question may be this: what happens socially and politically in EM oil producing states when, after years of depressed prices, the coffers finally run dry?
Here’s the schematic again:
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"Oil Exporters Are Dumping US Assets At A Record Pace."
Good! Keep it up!
One thing we've seen over the last 7 yrs of the collapse of this system... it's a really big system.
How many bitcoins do you suppose the Clinton Foundation holds?
Yes ~ it's a trick question...
End of an era. Petrodollar is now tainted with .gov lies. It will die even if everyone doesn't want it to because it has been horribly debauched and mispriced, hence our endless asset bubbles and ZIRP.
Nature has a way of bringing stupidity back into balance.
Wait till China tells the Saudis "As your largest customer we want to pay you for oil in RMB".....
Is that RMB backed by PMs? What part of all fiat will die don't people understand?
The petrodollar is going to go the way of Aaron Hernandez soon. From tight end to wide receiver.
I'm confused... If they are dumping treasuries should that add liquidity to the US market? Please explain it to me like I'm a Labrador.
Arf, arf!
the old zirp flirp.
dump treasurie>fund there own welfare state reliant on breakeven of 80/bbl. no surplus reserve. draws liquidity out hence petrodollar demise. the conversion is financing or drawing from previous petrodollar reserves which in turn exasperates the drawdown. usqe fucked> i call blackswan slow mo. and ya what if china pays with rmb? ha. dollar in trouble, the long demise is nearing its fuition...
The entire notion of the existence of something called "sovereign wealth fund" displays the extreme distortion of the petrodollar system. It clearly indicates that the US imports real goods and exports promises, and that others are forced to hold onto these promises and try to find something productive to do with them as they grow more and more massive.
If you refuse to hold onto our promises, we invade you, kick you out of our clearing systems, etc.
No wonder the rest of the world is so anxious for the US to fuck off.
Precisely. The US has only two things to trade; promises and bombs. Accept the former, or expect the latter.
the saudis PAY for cooperation from tribes of similar desert rats. since they earn less, they have to sell assets besides oil to fund their tyranny. a vast horde of seriously confused/deluded/religiously insane victims of birth location, are in fact funded by the oil.
that is just one part.
Chief, there are many possible zero hedge iinks on this issue, here is one. http://www.zerohedge.com/news/2015-04-13/what-happens-when-worlds-most-l...
Quintago, here is the best use of the line you used.........."from tight end to wide reciever".
https://www.youtube.com/watch?v=BerJdS2VJhA
Which one dies first? As long as the RMB can be used to buy goods, the Saudis will accept it. If they don't, Iran, Russia, and Venezuela will accept RMB. The Saudis aren't in control. They produce nothing but oil. If they refuse to sell except in exchange for precious metals, they will be back to living in tents in a year.
That's an illusion. The Saudis (family) control whatever they are told they control. They don't have the numbers, know-how, nor loyalty of their people. Take away outside support and there is no more house of sodomy.
LawsofPhysics.... Exactly. Once one of the biggies tips over, the insurance starts to kick in. Insurance in the form of derivatives.
People will soon really understand the concept of "global".
Actually, most people don't understand any of it, and don't want to.
Oil for gold, silver, palladium and platinum basket....coming.
Stack on.
RIPS
There's not enough physical precious metals in the world to facilitate global trade. Bartering would be more likely to happen than using gold to trade.
Maybe if they're priced at the current valuations that's true.
Fancy pants.
Im agreeing with ILL. If not physical. An exchangable script or transfer method...fully convertable at higher prices. No fractional reserves. Its accountability for what you trade your life for. Any questions?
RIPS
As their largest customer, the Chinese will say, and soon, "We want you to PAY US to take your oil"
... which is pegged to the dollar
@ nope,
I predicted this scenario a duplex of months ago on these thread. First we've seen the dumping of worthless Criminal Fraud UNITED STATES, CORP. INC. Tresuries now the dumping of Assests.
The end is near. Then complete bedlam & Chaos. Exactly what these Elite Psychopaths want.
"Be careful what you ask for. You might get it."
absolute power corrupts, absolutly. The US has abused its reserve currency status for decades, and they can't really control the actions of every govt on the planet(despite their best efforts, and they sure have been trying). If Saudi Arabia does anything too big to damage the USD, expect the big guns to come out: releasing the info showing saudi govt involvement in 9/11. This could very well be why that keeps coming up and being hinted at in the MSM. Not that I believe for one second that the SA govt being involved is all thats being covered up, but most people will, and the USG will need someone to direct the braindead mass's anger towards
it's going to be abused for a few more decades
your grandchildren will be dead and buried and it will still be abused
How many poker chips can you put into a bag of concrete? No tricks involved.
Obullshit!!!
You can't kill a fucking dead horse.
Dead, dead. been there, been dead.
Oil exporters are not dumping assets. For what dollars?
Then what currency? Gold? Laugh my fucking ass off.
Dumping them where exactly. Ohhhhhh, yes the fed is buying with a lick and a promise.
you asses (assets) r safe with us.
Just like the fairy tale from hell
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
If I were you I would not post whoring myself out on the inntertubes.
amen to that sir.
THE SCAM KEEPS GOING!
and for get the news......and their bullshit. Check out the crude CHART on what, could be whats termed a “W BOTTOM formation” See here => http://www.bit.ly/1fMcakI
discusting, that they get everyone SHORT CRUDE< and then right when these people are smiling about what they are goign to do with their new futures being SHORT CRUDE, they reverse it back up, and these people short crude, lose their ass.
Same thing happed a few years ago in crude, many more people short crude are going to get their god damn asses handed to them.
Queue Chinese QE to fill the void.
I know there's financial whizzes here on ZH.
Let's say I'm an Oil Producing Nation that has all these Euro Bonds and shit that had positive interest rates and I want to sell them in a negative interest rate environment. How much do I come out ahead?
Massive layoffs if oil is below 100 bbl. SHTF IN 3...2...1....
Ye reap what ye sow.
It's ridiculous to blame the Chinese and the Russians for the rampant, massive fraud that's been going on unchecked in the US for a very long...but that's what will happen.
The problem is it doesn't make any sense. The US has managed to project it's fraud into the future so well that people who aren't even born yet have already been robbed blind.
Can anyone really afford a hike in interest rates apart from savers?
And why does the FED or the ECB etc have to hike interest rates? Why can't the market be allowed to determine rates for once?
As for the dollar and all the currencies, they are losing their utility as stable and continuing units of value so in my books they should only be temporary repositories of earnings or capital pending a decision to either consume or invest.
OT:
Helicopters on the beach...too close for comfort. They fly over us all day and now they are landing 5 miles from their base?
Hmmm....maybe it was an emergency...Jade
http://www.cbs8.com/story/28811949/military-helicopter-makes-emergency-l...
RIPS
The Chinese army is filling up all those unused container ships. They will dock in Mexico and Cali and the Celestials will launch a two-prong invasion.
The Baltic Dry does not include Chinese troop transports.
Are there any savers left?
To let the market determine the interest rate for itself is analogous to new car-loan, mortgage loan, student loan takers throwing up incessantly without any ability to stop this backward flow of shit to the point where their bodies dissipate and just fade out of existence without ever being able to catch a breather
Family Guy(yes I know) reference -
https://m.youtube.com/watch?v=4eYSpIz2FjU
We haven't gotten to auto equity loans yet. Then there are teevees and iwatches too. Imagine a nation of zirp pawnshops.
Wait... if the U.S. can no longer export it's dollars overseas for oil... ah, yes, now I see why the ECB went with QE and why Japan is just openly monetizing debt... the Fed needed someone else to import dollars.
This really feels like that wile-e-coyote moment when he's feeling for ground underneath him.
Exactly. QE in the US technically ended but realistically did not. The cocksuckers in Japan and the EU are just covering. Everyone has to monetize because the system is broken and broke.
"Why Mr Yellin, so are white as a ghost. What happened?"
"I opened the supplies closet and it wass full of...Derivatives!"
"Let's light this candle!"
Burn the candles ! keep oil prices down and let opec dump petrodollar assets .
PSG futball club was also bought using it lol . They will loose their next match against barco in uefa q/f now .
That explains the strength in the dollar then. How long til they run out of USD assets to sell?
It might not matter if it becomes "trendy" with the psychopathic lemmings entrusted with the world's financial capital.
In theory it never ends, in practice, rather soon.
My tin foil hat is buzzing.
Did they)RoW) engineer the low oil price to collapse the petrodollar as its real aim ?
Hell of a day to quit thorazine.
where is your cigar churchill ?
They let the Saudis in on their "exit" from the dollar in exchange for undermining Russia in their drive for Lebensraum and pipeline routes for Israel in Syria. So the Saudis get a heads up on what to do with their dollar assets, and secure in the knowledge that any downside caused by their moves and conversions from the dollar will be masked by the connected and Amongst at the FedRes and on Wall St.
The extra bit is that the DC US' fracking industry will go tits up, and then fall into the hands of the Zionist banksters.
It's a win-win-win, "chicken dinner," for the Saudis.
The banksters need to repay us.
I stapled my tin-hat on, as it kept blowing off in the wind.
I've wondered that
no honor amongst thieves
especially as the shit hits the fan
it makes sense the two would end up trying to fuck the other
a military aint an economy so we got problems
then again the Saudi royals have a lot of enemies
and that's just their citizens
an now, everyone hates us
it's gonna get nasty
The end game being that one company will monopolize oil sales in the long run forcing governance to legislate against that in the long run.
and it's gone, fuck yeah
There will always be Japan, China, and "Belgium."
The Ruble was said to be in trouble when the rate hit 1:70, in January 2015.
Today the rate is down to 1:49.
ZH was the only site calling the Ruble a buy.
That is true, LoP.
When several here were cheering on the "demise" of the Ruble and hailing the "big stick dollar", ZH did say that the balance would get redressed.
bloomberg and some other sites too btw...
when something has nowhere to go but up, sure why not...
http://www.xe.com/currencycharts/?from=RUB&to=USD&view=10Y
http://www.xe.com/currencycharts/?from=RUB&to=EUR&view=10Y
http://www.xe.com/currencycharts/?from=RUB&to=GBP&view=10Y
etc.
you wanna show me how prescient you are? prove you called the collapse back at the beginning of 2014... oh yeah, and despite the daily drumbeats on this site I still don't see oil roaring back to save-your-skin levels for the Russians... they got fucked in the ass dry last year and have been sitting on an ice pack ever since...
I dunno if Oil will be roaring back or not.
The fact that f/x rate is 1:49 now, it's is far closer to 2009-2014 average 1:35 than it was when the rate hit 1:70 in January 2015.
another deluded cunt .
ZH is the ONLY site allowing idiots like you to peddle their tomfoolery
Picture is too small when expanded
Good post
total BS. when OPEC conservatively forecast future rev's at $80/bbl (when it was at $100) and now its half
of your conservative estimate, you sell your good stuff (USD) at the best price possible. this has nothing
to do w/ the demise of the USD. to buy what? Roubles? Yuan? CHF? Euro's? gimme a break
USD are the good stuff ?
American public school educamakated I assume.
All fuat is trash,especially the USD.
Well I thought as the dollar got stronger and foreign debt caused it to strengthen more parabolic style as the fed attempts raising rates on a crappy economy and it epically fails into NIRP (before hyper inflation or we flop over like we're Japanese) that I could go triple short the dollar on itself with UDNT but sniff sniff it's been liquidated.... Booo whooo whooo I so wanted to u didn't on a parabolic high!
Toilet paper, duh.
Yup.
Buy something that holds it's value.
I am going to sell Hitlery Depends at an outrageous price.
assistedliving.. you sound like you live in a alf.. watch faux 24/7?
you need to do a little more research before you show your ass to the world.
this post is spot on, and happening as we speak... whether you like it or not. phil robertson, assumedly one of your idols, has already moved his assets into something more tangible..
P < P + I
They buy tanks, missiles, and jets, duh.
Wow ... that means that Saudi Arabia is really f*cked.
Personally, I would prefer to produce something of value that be dependent on a crony system of extortion and parasitism.
But, then again, I have a clear conscience and have sworn no oaths.
Yes Saudi is fucked. They are hold worthless dollar reserves, they created a radically unstable situation in Iraq and Yemen, and they are surrounded by well used US military bases. Add to all that, their king just died and has something like 150 grandsons all looking to steer the monarchy toward themselves.
Not good.
Each of them gets his own oil well and 100 acres to rule.
Tyler, I gave the article a Poor rating, simply on the grounds that the pics were too small and of low res.
Call it Customer Feedback.
Are we at stalling speed? - Where's my parachute (woman)?!
The spring for higher oil prices gets coiled tighter!
Come on guys; it isn't like the rest of the world doesn't trust us anymore...
but you've just allocated 750+ million$$ to do a better job with ami propaganda/trust building BS
Dumping Oil Assets?
Gee, I thought those were valuable. . .
https://www.youtube.com/watch?v=N0ZlIQicFfo
http://stanmeyerreplications.net/
It's a sure bet Russia, a major oil and gas exporter, will not be seeking to cycle it's petro dollars into US assets, especially T-bills. That would be like buying bullets for your neighbor who has vowed to get drunk and gun you down some dark evening. China, has been told that the US military is sending 75% of it's most modern and combat capable military resources to within easy range of China, and that this is official policy to contain China. So how long would China seek to buy assets with it's dollar trade surpluses? Again, a case of buying bullets for a neighbor who is buying guns and pointing them at your house.
America, if you really take a hard close look at it's government funding and it's military spending, would die without the ability to print, buy, and have those dollars come right back home through dollar asst purchases. That cycle keeps the money printing going, the money printing keeps the 1 trillion dollar a year military budget going.
A trillion dollars of military budget is way too conservative. Even excluding the massive federal spending on NSA/FBI/Homeland surveillance infrastructures, the MIC as a whole is estimated to be several times bigger. If you estimate the CIA's black budget as unaccounted movement of funds through the DoD, then that by itself is most likely to be 2-4 times bigger* than the defence spending on all the tanks, aircraft, ships, men and other military equipment combined.
As far as I know, these unsupported entries (CIA Black budget) have not been disclosed for over a decade due to accounting irregularities that make them impossible to audit through the DoD budget. It's a frigging banana republic/Stalinesque festival of secrecy and fraud. From military equipment ending up on ebay to procurement practices that resemble a feudal oligarchy, it's amazing that not a single tax payer complains about the complete incompetence of the OIG and DCIS. Collusion seems likely when I read the job reviews about the US Dept of Defence of Inspector General, the low level auditors do not seem very happy with their job of writing for the editors instead of actually doing what they are paid to do.
*from 1999 and 2000, the last time the OIG disclosed the audit. But if anyone has seen any updates, please post.
When its all said and done-it is probably QUADRILLIONS in Pentagon tomfoolery that Mr and Mrs Joe Taxpayer get stuck with-either directly, when the Democrats tax them, or indirectly, when the Republicans borrow from the FED, and yell over thier shoulders as they walk out the door with bags o' cash: "Just send the bill to the taxpayers"
"s sending 75% of it's most modern and combat capable military resources to within easy range of China,"
every time they do that, they lose their asses.
America has a trust image problem worldwide. If Hillary runs in 2016, it will get worse.
IF Hillarious wins in 2016, it
WILL get much worse.
Don't think so small, we are not there yet.
hey! 'absorbant diaper' 'Hillarious'-it dont get much funnier than that!
Let me say it again:
The dollar is up on "exit," not "strength," and vise versa on the euro.
The banksters need to repay us.
"Hey you Saudis, if you assist us in our war against Russia for Israeli Lebensraum in Syria, we'll let you in on a little secret about the dollar, and the euro. We'll throw in some pipeline access as well. What do you say? For your uncle Zion?!"
Can y'all picture what Nigeria will be like when it goes broke?...and they will go broke. Boko Haram will be the least of their troubles. And Venezuela is on the same road to bankruptsy. If they believe times are tough now...
hairball
You know what? Fuck Nigeria. Boko Haram can have it. When the oil runs out nobody else will want it.
Bring Old Man Smallpox out of retirement and let him deal with Nigeria. Africa is the cesspit of the planet. While it's inhabited by Africans, that's not going to change.
My only interest in Africa is as the ideal place to dispatch Obama's miserable community when decent people have finally had enough of their shit.
Decent people who wish smallpox epidemics on families other than their own?
Meaning you?
Bring Old Man Smallpox out of retirement and let him deal with Nigeria
i bet you go to church every sunday LOL
The one man who spoke the truth...........thanks
Only two phrases seem appropriate now;
1) "Full faith and credit"
2) when fraud is the status quo, possession is the law.
USA will be the 1st Banana Republic with NO Bananas!
https://www.youtube.com/watch?v=EV4N2dk0cMk
We have banana plants. They grow all over the Gulf Coast. I even have three of them in my front room here in the Rockies.
Cool. Do they watch TV or anything?
How are they at conversation?
But with an Obanana
I will pay you Saturday for an Obanana today.
High Fructose Corn Republic, lets keep it commodity specific so we can better politically geo-locate said republics.
Yes, it's a plot.
A plot to stay alive by selling USD assets to continue funding the massive petro-kleptocracy social welfare bribes that used to be funded by high-cost oil sales.
You guys kill me.
When Saudi runs out of oil and cash, political Islam's threat to the Christian world will die with the Kingdom of Saudi Arabia, leaving Israel a free hand to clear the Middle East for Jewish settlement and become the regional hegemon God intended it to be.
Once oil prices return to what a free market will bear---up, way, way up---Russia will rapidly become the industrial superpower it would have become decades ago had it not been used as the guinea pig in banksters' experiments in central planning. The wonders Russia and Israel will acomplish together simply stagger the imagination.
It won't be all bad in north America and western Europe. For one thing they won't have illegal immigration problems any more.
If you think USA will let this happen you are naive. There will be a WWIII before anything of what you write coems to pass. The winna' of WWIII will decide what the future of humanity will be.
ain't no winna' this time around.
The "Chosenites" ARE gettng INSUFFERABLE
WAR!
What is it good for?
To save the petrodolla'!
Expect a serious false flag event pretty darn soon. if not sooner.
Could be any day. Thing about false flags is sometimes they work ( 9/11) sometimes they don't (ebola). I'm betting the next will "work" too good. Chaos is a bitch.
false flags are so passe.
Selling Oil for Gold? - say it ain't so.... I'd rather take paper fiat backed by nothing tanglible for my Oil.
It could be the better bet for a while.
Cash for deflationary episodes.
Gold for inflationary ones.
At least that's how I learned it.
The only way to free the markets from the grip of the Federal Reserve is to take the US dollar big time. Where nobody wants it.
That's the only time when you'll see the Federal Reserve panic and stop printing. By then of course it will be too late.
I love 2015
Yep it means we get close to that DOW collapse.
Here are some more signs of a coming recession.
http://michaelekelley.com/2014/12/20/leveraged-loans-predict-crash/
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
Here is how to prepare yourself.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Good luck!
the 'Recession' has come and gone....we are in a Depression....is MK trying to push an upcoming book or something?
The difference between 1930-1940 and NOW is that Kim Kardashian wasnt born yet...people talked, then....word got around
Jeb Bush is just a paper pusher, Hillary is a absorbing diaper.
George H Bush New World Order Speech http://m.youtube.com/watch?v=txukr5zgHnw....Hillary an absorbent diaper.....hmmmm
Sorry Zerohege followers, it's been there following from day one. Making you a debt imbecile whore.
The ShoddyArabians are not as stupid as you all imagine.
Contrary to conventional wisdom, they are cooperating with the Rushkins in bug-splatting U.S. shale and the alternative energy dreamers so as to ensure their market shares and the dominance of fossil fuels for a long time. It's hard to create alternatives to fossil fuels when the price of crude is circa $50 buck a barrel. So together the Shoddys and the Rushkins are trouncing all competition for their product.
They are selling off their dollar-denominated assets - why? Under cover of 'budget shortfalls' due to the low price of crude, they are shifting out of the dollar and into something else - just what we don't know yet. But we soon will.
The Shoddys are so pissed off at the U.S. for not keeping their side of the petrodollar bargain in that the U.S. isn't doing what the Shoddys expect regarding keeping the royals in power. Iran should have been sledgehammered with massive military intervention - but instead the Iranians are being nurtured to become the superpower at the head of the Persian Gulf - all this as a result of assinine U.S. foreign policy and a grand rejection of the secret petrodollar conspiracy with the Shoddys.
So the Shoddys know the future is East - Russia-China and a developing new world order that is non-dollar-centric. They are moving step-by-step to embrace that new world order, and it will include dumping the petro-dollar. But you do the move in as orderly a fashion as you can - that's what they are doing.
Behind the scenes this is taking shape - Tyler is dead wrong when 'he' asserts the death of the petro-dollar isn't occuring as a result of anything Russia-China are doing. Sure - U.S. actions set the environment wherein an exit looks appealing, but Russia-China are making all the smart moves to capitalize on that environment and to facilitate the orderly (for the participants) exit from the dollar-centric world order. That's what China's new international bank is all about, too.
I predict that in 2 or 3 years the world order won't be recognizable - it will be a whole new Eastern game.
you do much meth?....just sayin...
I predict that in 2 or 3 years the world order won't be recognizable - it will be a whole new Eastern game
Your right the 1944 economic scheme of the UN and america is about to go into reset with the russo-china pact an it appears australia is on board to...........
The dollar control is fast being replaced with a whole new monetary scheme.
"Dumping US assets at record pace". Really, WTF are they buying? Euros? Yen? Brics? The world is crap and USD denominated assets are the last man in the lifeboat.
How about their own currency? If Saudi Arabia and other Oil countries need to liquidate their petrodollar funds to pay for social spending or in their case 'entertaining the royal entourage' spending then this would be done by converting the Dollars into Riyads...
Those who dump UST do so in exchange for cash, cash that moves from one side of banks balance sheet to foreign bank accounts, thusly depleting cash reserves making is more scarce and driving up the Dollar. The Dollar is not strong just in reduced supply.
Petrodollar demise? LOL !! I don't think so. The big boys just changed their tactics a bit. In the 70s they did it via a MELT-UP in prices. Now they are doing it via a price MELT- DOWN . But at the end of the day, the outcome will be the same. Countries that got screwed on the butt for decades after the oil melt-up will be again screwed right on the butt by oil low prices. Brazil, Russia and other BRICS that invested billions on oil explorations and research (and betting their future on it) will see oil prices below profitability for a very long time. The Anglo-Americam empire is not there out of nations kindness. They know how to play the game : ) )
I'm truly amazed at the level of stupidity out there. I'm even more amazed that many of these people actually run our financial system.
Why don't the bankers collapse the US and buy it up pennies on the juan. I'd get rid of the WWIII neocons like right away, dismantle the US and live anywhere on the planet happy as a pig in bitcoin. I mean if I were a banker.
Cue the obligatory Rollover reference
They want everyone to go digital. Including mobile NFC.
Public Image Ltd. | Fat Chance Hotel
http://m.youtube.com/watch?v=I73SZuqOrI8
this is bullshit
#1. the US NAVY
#2. $9 Trillion in US dollar offshore obligations [i.e. DEBTS] that come due
US debt party favors will arrive on your lap.
http://m.youtube.com/watch?v=86DhWih3dmo
We are mentioned kids. Winks.
Sorry Tyler and Sacrilege, I may of pushed the evelope yesterday. Sorry you had to scub the posts. See above post. It repeats itself, not 25 minutes. Good educational piece.
;)
You ask 100 people in the US what the petrodollar is and perhaps three will know what you are talking about.
9 out 10 US doctors will prescribe you flakka to become insane.
CDC aproved for MDA administrative use.
Meanwhile in the world of currency devaluation, japan has become the largest holder of US treasuries. I Don't wish to parse this articles so you should read it for yourself and tell me what you make of this.
There are many messages in this article that have not been exactly out front in The media.
http://hosted.ap.org/dynamic/stories/U/US_FOREIGN_HOLDINGS?SITE=AP&SECTI...
...and they are glowing!
BFD! Now that fiat rules who needs the petro dollar, we now have the Fiat dollar, and since ' Deficits don't matter', who cares about recycling petro dollars. No, the only thing that will shake up the status quo is a full blown currency crisis , and that will not happen because our handlers will front-run it by their next scheme.
The reason I'm so pessimistic about 'we the people' finding a way out of this dirty mess is because I look at history. If God isn't dead, she's so fucking sick of us pathetic loosers, I find it hard to understand why she hasn't pulled the plug on this particular experiment.
Flush the Wall St Ponzi crapper of the chosen racer shaman banksters' rigged market "capitalist economy" free of the blood-spattered, filthy green toilet paper IOU petroscrip Saudi Mercan dollah shinola and let the long awaited tsunami of Goldman Suck$ derivative filth wash all over US.
Ah men!
The planet can hardly wait for Civil War reloaded when all our bouts of global genocide by Pentacon Kill Industries for the zero 1 % come back to this evil sewer "culture".
You have to hand it to TPTB.
They are ending the dollar by sucking everyhting out, then putting into their new vehicle, the Yuan. Rinse and repeat.
sell before the boomers do
.
then buy before the Xr's have all the assets
.
stay invested in dollars
There are still 6000 billion USD non US bonds that will keep high USD demand. so no worries USD_Index will keep going up.