The petrodollar is dead

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Geometric Thinking Update

By Jim Fredrickson

 

The Petrodollar looks to be dead

This is not the time/place for a dissertation on the origin or significance of the petrodollar.  Suffice to say, the arrangement was for USA to provide military protection to the dictators in Saudi Arabia in return for the Saudis selling oil only in US $, and re-investing their excess $ in US treasuries.  It was a clever scheme that enabled USA to live far beyond it’s means for some 50 years.

However, it is becoming quite clear that this unholy alliance has ended.  Saudi Arabia is now in full revolt against USA, as it is making a determined effort to bankrupt US oil producers.  We can only guess at what event was the “last straw” that broke the arrangement.  Regardless, the agreement is clearly dead.

It may or may not have something to do with the fact that INSTEX is now live, having completed its first transaction.  INSTEX has made it impossible for the USA to use SWIFT as a weapon – a tool of extortion against the world.  For a very long time USA could place sanctions on whatever country it wanted to, and by not allowing that country to access the SWIFT exchange, that country could not easily do business with the world.  Iran was the latest victim of that tool of economic terrorism, but even USA’s allies in Europe could see how criminal SWIFT had become, and agreed to work with Iran to create an alternative financial network.  INSTEX was that network, and it is now live.

The day after INSTEX completed its first transaction between Iran and Europe, making US sanctions toothless, Trump tweeted he might attack Iran.  Coincidence?  Not likely.

Meanwhile Saudi Arabia is flagrantly “flipping off” the USA with its oil sales, and there is a worldwide selling of US treasuries taking place.  We can safely surmise that the Saudis are amongst those selling.  This confirms that the Petrodollar agreement is dead.

If true, this means that the era when American could easily live beyond its means – importing real goods like TVS  and cars, while exporting little else but small green pictures of Benjamin Franklin, valued at $100, is over.  Is it just me, or does the sudden appearance of the “Plandemic” (fake pandemic) seem rather well-timed? 

Just the when the cabal and the cult needed a boogeyman to shift blame for the coming financial devastation onto, the world was shut down because of a virus.  A virus which after 5 months has still killed less people worldwide than the common flu.  In the months to come I am reasonably certain MANY more people will die as a direct result of the economic catastrophe now unfolding, than the virus will have even made to feel a bit ill.

Buckle up.  The “re-set” we have been warned was coming seems to be here.  I have no idea what is coming next, but it will either be a world of much greater freedom, or a world of chains.  We will see.

Buckle up.  The “re-set” we have been warned was coming seems to be here.  I have no idea what is coming next, but it will either be a world of much greater freedom, or a world of chains.  We will see.

This is not financial advice, just words of wisdom from someone who has seen it all over the past few decades.  Do with it what you will.  Happy Trading!

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