Why It Really All Comes Down To The Death Of The Petrodollar


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Why It Really All Comes Down To The Death Of The Petrodollar (ZeroHedge, Aug 22, 2015):

Last week, in the global currency war’s latest escalation, Kazakhstan instituted a free float for the tenge causing the currency to immediately plunge by some 25%. The rationale behind the move was clear enough. What might not be as clear is how recent events in developing economy FX markets stem from a seismic shift we began discussing late last year – namely, the death of the petrodollar system which has served to underwrite decades of dollar dominance and was, until recently, a fixture of the post-war global economic order.


1 thought on “Why It Really All Comes Down To The Death Of The Petrodollar”

  1. I have been saying this for a while, since Spring of 2010, when Hugo Chavez introduced the first electronic currency, the Sucre, to the world. Russia and China adopted his system, and spread it to the rest of the world. For the first time in modern history, nations could do business with each other without first converting to the US dollar. The Sucre translates the value of each nation’s currency at the time of transaction, making the need for any world reserve currency obsolete.

    To me, this was inevitable, as I have posted here ad infinitum since 2010.

    Now, less than five years since Russia and China adopted the system, it is becoming clear the US dollar has lost much relevance. Even harsher is that the Saudis who have supported the petrodollar are going to get hurt. No big deal, they can afford the losses……..

    The dollar is fast losing relevance, and nothing they do with central banks or anything else will reverse that fact……..

    It was caused by corruption and greedy guts grabbing all opportunities, making it very difficult for the innovators to flourish without selling out to the big corporations…………….The US has been gutted by its leaders and greedy gut supporters………

    Big changes ahead for the USA.


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