The End of the Petrodollar and Fall of the United States of America Empire.
Can America survive the emerging powers in the East? China is currently the largest importer of oil on the planet and they’ve decided to make a move on the petrodollar with the petroyuan. China plans to release the petroyuan within 2 months, at the end of 2017 and before 2018. The petroyuan will be backed by gold and the move is already fully supported by Russia and Iran. Both Russian and Iran export large quantities of oil to China and would also mitigate some of the sanctions imposed by the USA if they were able to reduce their dependence on the US dollar and the petroyuan is a solution.
The USA has enjoyed decades of supremacy as a result of the petrodollar, making the dollar the world reserve currency. Many of the world’s goods are priced in US dollar and these are used to make trades, with the most important good being oil. Oil powers nations and nations wanting to buy oil must, therefore, have reserves of US dollars to be able to purchase oil from the world market.
After the financial crisis of 2008, the US central bank, the Federal Reserve Bank (FED) has been relentlessly printing dollars to stimulate the economy. They called it quantitative easing and there were a few of these and they printed a lot of dollars.
The supply of dollars has increased but we haven’t seen much inflation, and this is because countries are hoarding dollars. Being the world reserve currency and being used to purchase primarily oil and other goods, countries all over the globe hoard dollars and keep much of them out of circulation. If the petrodollar loses its status, the USA risks runaway inflation as more and more countries dump the dollar in exchange for the petroyuan.
The last time a country tried to undermine the hegemony of the US dollar, it got bombed to smithereens. We would like to think that the army is there to protect a country’s citizens and maybe it was so once upon a time. Today, the army is there to protect the elites and once those elites feel threatened, they flex their muscles and breathe fire. Saddam Hussein wanted to sell his oil in Euros and was promptly taken care of using the false flag of “weapons of mass destruction”. Muammar Gaddafi was to sell his oil in a novel currency called the gold dinar but never got around to it. Just like Hussein, his country was decimated, and he was murdered in the streets, worst than a stray dog.
China is not Iraq nor Libya, and direct conflict is out of the question for the Americans.
So, what can we expect? We can expect another war, perhaps the Americans will destabilize the region via North Korea. Or maybe we’ll finally see the end of another empire and this may be the preferable option. The USA has been highjacked by corruption. Both, the Republican, Democrat, technocrat and mainstream media elites want to see the USA flooded with immigrants, cheap labor, and cheap votes, all at the expense of the European American culture and people.
Like the phoenix, will America rise from its ashes or be remembered as Rome is remembered today – just another empire lost?