The End of the Petrodollar!
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If you haven`t heard of Petrodollars, you`re not alone.
Mainstream Media Will NOT Dare Speak of this Subject.
The petrodollar, essentially replaced the Gold Standard.
On August 15th 1971, President Nixon shocked the world by officially ending the U.S. dollar-to-Gold peg(AKA: Gold Standard). Demand for U.S. dollars started plummeting; ultimately threatening the Dollar`s Status as the World Reserve Currency.
Two years later, in an effort to maintain global demand for U.S. Dollars, the Petrodollar System was created. The Petrodollar is without a doubt, THE Most brilliant political and economic move for the U.S. Government.
(1973 -1975)-The U.S. "Persuades" oil producing nations to sell their oil in U.S. dollars ONLY. In return, the U.S. would protect these nations from Russia and any other nation that could cause harm to their oil fields.
A Sweet Deal for the U.S. is coming to an END!
OPEC nations are not happy! In the Early 70`s, the U.S. Dollar was still Valuable and Treasury Bonds were Paying 18 to 19 percent Today that`s not the case.
On April 17th, President Obama added Insult to Saudi Injury, he unveiled a $52 Million dollar plan to "end” oil manipulation and bring down the price of oil.
First, the Commodity Futures Trading Commission (CFTC) publicly admits price manipulation is very rare, and those isolated cases take place in thin traded markets like: Ethanol, Electric products and central coal, NOT Light Sweet Crude Oil (ticker symbol: CL),. which is the focus of Obama`s price control.
Is it going to work? It`s working, Crude oil traded at $106 per barrel on April 17th;
the recent lows have been $80 to $81 per barrel.
The CFTC will now have the power to bypass Exchange Rules and increase Margin Requirements. It`s Government “Price Control"; we all know how that turns out, Just look at Zimbabwe.
The CFTC will increase fines from $1M to $10M; if they use the same ratio, margin requirements on oil will increase from $6,880 to $68,800 per contract. Even if it`s Quarter of that, the oil market WILL Still Crash! An example was recently seen when the exchange raised margin on silver, prices dropped from $42 per oz to $26 per ounce.
Most Commercial & Institutional investors will be squeezed out of the market, they simply can`t afford to keep ALL their open positions. Leaving an open field for Government controlled investment houses like JP Morgan and AIG.
YES, Oil prices will go Lower, BUT It`s a temporary fix.
Oil is traded around the world, other exchanges will eventually return to Real Economics.
Oil is pegged to the U.S. Dollar; dollars are printed out of thin air, everyday more & more Dollars are chasing the same commodity,.. oil prices WILL Rise again!
President Obama can bring down oil prices... long enough to get elected.
Obama doesn`t realize, he`s only further angering OPEC nations, that are already Irritated they're being paid in worthless Dollars. Now, Obama will artificially Drop the Price of their Precious commodity!
How Angry Would You Be?
Plus, the 1970`s treaty mandated nations who accepted payment in Petrodollars to "invest" their profits in U.S. Treasury Notes, Bond and Bills. The current Fed Fund Rate is near Zero; treasuries are paying near Zero. Meaning, OPEC nations are being paid in worthless paper dollars, then forced to invest their profits in U.S. Treasuries, which are paying next to nothing! Oil producing nations Are Not Happy! The Petrodollar system is in danger!
How important is the Petrodollar system to the U.S. Government?OPEC nations produce approximately 30 Million barrels per day; at an average price of $100 U.S. per barrel. That means 3 Billion U.S. dollars are "artificially" purchased every day.
What happens to the Value of the Dollar when THAT “artificial” demand comes to an end?There`s no doubt, the purchasing power of the Dollar will come crashing down!
Oil producing nations have questioned the logic in accepting Worthless paper, for their Precious Oil. Several countries are moving away or have already moved away from the Petrodollar system. Examples include: Iran, Syria, Venezuela, and North Korea (AKA: the Axis of Evil).
It gets worse. Other nations like China, Russia and India are already using other currencies AND Gold to purchase oil. On February 28th, 2012, Reuters reported: "Iran will take payments from its trading partners in Gold instead of dollars"
What WILL the U.S. Government do to Preserve the Petrodollar system? Of course, we don`t know what will happen, we can only look at what HAS happened:
Saddam Hussein demanded payments for oil in Euros, instead of U.S. Dollars,.. End of story!
Gaddafi, wanted to introduce the Gold Dinar and replace the U.S. Dollar. Do you think the U.S. would be interested in Iraq or Libya, if their major export was honey? It`s about oil; it`s about how oil is priced.
Iran has started to sell its oil in other currencies,.. We`ll wait to see what happens.
When the country of Qatar announced some minor diversification of their national FOREX saving account, the U.S. Military ordered a pullout of several Thousand troops.
When South Korea in 2005 twice suggested similar diversification on their FOREX account, suddenly U.S. Military exercises were conducted off their shore.
The writing is on the wall!
The path of replacing the U.S. Dollar as the International "Go To" oil currency is already well on its way.
The creation of The Iranian Oil Bourse-IOB (AKA: Iranian Oil Trading Exchange) opened the first phase in February 17, 2008; it now accepts all major currencies in its transactions, except the U.S. dollar!
On March 28th, the International Herald Tribune(IHT) provided an update on Iranian oil finances, it states: "Iran`s oil sales attack the fragile global banking system extended from the Western dominated financial world."
When the artificial demand for the dollar ends, the U.S. Dollar Will End!Ask yourself this: If China becomes Saudi Arabia`s most important trading partner...Why would Saudi Arabia continue to sell its precious oil for worthless paper dollars?
China NOW imports more oil from Saudi Arabia than the United States does!
The final nail in the coffin could be just a few months away! Are YOU ready? The largest oil exporter in the Middle East (Saudi Arabia) has teamed up with the second largest consumer of oil in the world (China). These two strategic partners are building a Gigantic new oil refinery, that will be fully operational in the Red Sea port city of Yanbu, by January 2014.
Although it`s not "officially" confirmed, the output will be offered and traded in the Iranian Oil Bourse; in every major currency EXCEPT the U.S. Dollar. Yet, another sign the Petrodollar will become obsolete.
China is running circles around the U.S. when it comes to locking-up strategic oil supplies, worldwide.
Egypt is Now building its largest refinery EVER, with investments from China. A $23 Billion agreement has just been reached between China and Nigeria, three gasoline refineries and fuel complex will be built in Nigeria, funded by China.
Foreign Nations are writing a message on the wall... The End of the Petrodollar system!
✔ The Iranian Oil Trading Exchange, which accept payments in Gold and all major currencies, except the U.S. Dollar.
✔ Russia & India now buy oil from Iran, they settle the transactions in Gold.
✔ The China & Saudi Arabia joint venture, the creation of the Mammoth New Refinery.
✔ China the second largest consumer of oil, publicly purchases oil from Iran.
A Message is being sent: The End of the Petrodollar System! President Obama can win the Election and turn the country into a “Socialistic-Democracy.” Bernanke and the Feds can Quadruple the National Deficit - it would be a walk in the park compared to what WILL happen, when the Petrodollar System becomes obsolete!
China, our Biggest Creditor, has been dumping its U.S Treasuries and Dollar holdings. They are now one of The World Largest Holders of Gold. What do they know?
The writing is on the wall. You can HOPE for the Best or Protect your Family from what's ahead!
When the Dollar came OFF the Gold-standard in 1971, the Price of Gold rose OVER 2,400%!
When the Dollar Comes OFF the Oil-standard, the Price of Gold could rise OVER 6,400%!
You can do what citizens of Argentina, Germany, Belarus, Hungary, Chile, Peru, Angola, Yugoslavia, and Zimbabwe did; Hold-On to your Paper Money … OR... Learn from History... FIAT Currencies - the paper counterfeit money you're earning and sticking in the bank and trading with now - ALWAYS FAIL!
Private Ownership of Physical Gold & Silver,
Has Never Been More Crucial!
My associates and I are exchanging our fiat currency for gold and silver as quickly as we can earn it. JOINUS TODAY! For more information, write miketummillo@me.com and type "KINGS" in your SUBJECT BAR.
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