48 votes

Timing the Collapse: Ron Paul Says Watch the Petrodollar

Good, new article on this important topic. A must read an as always upvote.

"By considering Ron Paul's words on the petrodollar, we will know when the dollar collapse is imminent."

http://www.internationalman.com/78-global-perspectives/1047-...

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This makes sense

why we are so concerned about Iran accepting gold for oil payments.

http://www.dailypaul.com/306174/iran-will-be-barred-from-acc...

I don't think Ron Paul is exactly correct on this issue.

In essence it's a financial/military agreement, like a protection arrangement. Ron Paul says, "This demand is artificial, since the US dollar is just a middleman in a transaction that has nothing to do with a US product or service". Well, not exactly true, it does have something to do with a service, that service is defense, the most important thing to a sovereign oil rich nation. I'm not justifying it, just saying. How long would Saudi Arabia last in an unstable world without US military protection? Those oil rich nations are low hanging fruit for the next military adventures state or rouge pirates looking for resources. Its our navy that keeps the sea lanes open for commerce and that's expensive. If they pull the petrodollar the US pulls defense because we won't be able to afford it and I don't think any other nation is able to be trusted or capable of doing what we do now.

So what are our alternatives?

Should we all be looking for a dip in Bitcoin to buy? Should we be looking for other alternatives such as the new Lightcoin (sp.?)...or just buy old silver coins? What is YOUR opinion?

PS. Please keep in mind that there are folks like me, who are unemployed and poor. I need to protect the very little that I have left.

------------------
BC
Silence isn't always golden....sometimes it's yellow.

"The liberties of a people never were, nor ever will be, secure, when the transactions of their rulers may be concealed from them." - Patrick Henry

Observation

In the comments area of the link you provided some interesting information pops up about Libya. Including the IMF and DSK.

How does one "Internationalize"?

"You absolutely must be internationalized before the US dollar loses its status as the premier reserve currency. Internationalization is your ultimate insurance policy."

Sounds like diversify your

Sounds like diversify your currency holdings.

This morning's news

How timely a story. Look at today's news...

China, is now the world's top oil importer and is looking to establish a successful crude oil futures contract priced in yuan.

In an earlier story this week that went unnoticed, China's central bank announced that it no longer plans to increase reserves in the US. dollar.

China Fires Shot Across Petrodollar Bow: Shanghai Futures Exchange May Price Crude Oil Futures In Yuan

My first lesson in economics...

My father was employed by an oil company in the Northeast. When he retired, he made the statement that if the United States didn't find sources of oil closer to home, in 20-25 years, the United States was going to have severe problems. He retired in 1972.

For a long time, I believed he was talking about our energy needs, which he was in part. I'm ashamed to say I didn't question him about his statement until the early 1980's, when I asked him to explain to me what he was talking about, his answer was enlightening.

"Not only are our energy needs being controlled by foreign countries, he stated, the value of our money is tied to oil producing foreign countries, thus the value of our money is controlled by foreign countries. If the price of gasoline was $0.36 in 1972, if the price of gasoline is $1.30 in 1982, did the quality of gasoline purchased increase? No. Did the quantity of gasoline purchased increase? No. Then we have to look at what's happening to the value of the dollar. As the price of gasoline increases, the value of the dollar decreases, it takes more dollars to purchase a gallon of gasoline. Oil cannot be replaced. If you fill your tank one week, you'll be back at the gas station the next week to replace the fuel in the tank. There's no way to recover the fuel you purchased the week before, it's gone. It is lunacy to peg the value of our money to a non-renewal energy source controlled by foreign countries (he was correct)."

Fast forward to today, gasoline prices haven't been below $3.00 a gallon in nearly 5 years. Remember the price of gasoline in 1972, $0.36 a gallon. The higher the price of gasoline, the higher the price of a barrel of oil, the less our money is worth. The destruction of the US dollar has been going on since at least 1972, talk about long range planning.

I'm also ashamed to admit the conversation with my father in 1982, was my first lesson in economics.

Phxarcher87's picture

this is

ridiculous you sound like one of those guys who were saying Roam was going to fall...

"Whenever you find yourself on the side of the majority, it is time to pause and reflect" - Mark Twain

"Roam"....are you serious?

...and you call the OP ridiculous! Is the education in this country so poor that you don't even know how to spell Rome? Criminy!

I think he was being ironic.

If my memory serves me correctly, Rome did fall. Look at his sig line. Maybe the misspelling was similarly facetious.

One of the problems with electronic communications is their inability to convey subtlety.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

"...once the dollar loses this coveted status,

http://www.internationalman.com/images/2013/11/crude-oil_10.jpg
"...once the dollar loses this coveted status, the window of opportunity to take preventative action will definitively shut for Americans. ...the US government will become sufficiently desperate and implement the destructive measures that governments throughout the world and throughout history have all taken (overt capital controls, wealth confiscations, people controls, price and wage controls, pension nationalizations, etc.)....The destruction of the dollar is going to wipe out the wealth of a lot people, and that will cause political and social consequences that will likely be worse than the financial consequences.