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Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat

Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic Threat

Russia Could Crush the Petrodollar

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.

Read more:
http://www.globalresearch.ca/forget-russia-dumping-u-s-treas...



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They should accept bitcoin.

Pandacentricism will be our downfall.

Everything else being equal, I can see that perspective

However, the petrodollar has two sides to it, it's the worlds reserve currency because the US agreed to provide for the defense of the oil rich countries. The whole reason that the OPEC countries agreed to this is because of the threat of the Soviet Union taking their countries along with the oil. So therefore if the dollar collapses, so does the defense agreement. So who is a uber-rich oil sheik to trust, Russia who just gobbled up Ukraine, or the US who keeps the oil lanes open and their borders secure?

Um... haven't we been

Um... haven't we been invading and drone missile striking middle east nations and installing puppet dictators for the last 40-60 years? I don't know about you, but when choosing a security guard, I tend to look for the one who won't kill my family members and neighbors.

Your statement is correct, I agree

The drones are mostly new to the current president, but the last two presidents were way to aggressive in foreign policy. I believe in the non-intervention policy, we should not me meddling in other countries internal affairs. When we do we create more problems, if we were involved in the internal affairs of the Ukraine, we stepped out of line. Russia reacted and we have a situation, not good. If Ron Paul was president I doubt we would be in this situation with Russia.

Let it crash!

Time to level the playing field and start anew!