The End Of America Started In 1950 And Took A Giant Step on September 12

Ever since WWII, this nation has been going downhill and on September 12, we see an event that will definitely doom the American economy in short order.  It was on that day, China made arrangements to buy and sell oil using the Yuan and no longer use the dollar.

This is a major slap at us and one which our government is completely ignoring it which tells us that it is major.  Have you heard anything about this?  We haven't. A quick check on Google mentions a couple articles in 2012 and only one in 2013.  This means the US government is hiding the facts which is bad!

The use of the Yuan will start with oil and spread to all foreign transactions. How long will it take? We suspect that before the end of Obama's term.

What do you think?

Conservative Tom

The Dollar Is Losing Ground As The Primary Oil Currency

September 23, 2013 / jennifer / Comments Off

China begins To Sell Oil Using Yuan Threatening The Petrodollar

On September 12th, something happened that could very well change the structure of our economy and the health and wealth of the dollar as the world reserve currency.  China made the announcement that it plans to bypass using the American dollar for oil purchases, and plans to sell oil using the Yuan.  This is the first time anything like this has happened since the 1970s when Kissenger created the trade agreement with the Royal house of Saud that oil will only be bought and sold using U.S. dollars.  For the U.S., this turn of events has significant importance as it could change the way the world purchases energy, and could threaten the dollar’s position as the world reserve currency.

How Will The Yuan Being Used For Oil Purchases Impact The U.S?

On September 6th, China announcemend that their banking system, communications, and transfer systems were all ready to make oil trades, and that if any nation out there wishes to do so, they could trade using the Yuan rather than the U.S. dollar.  Since that date, we have seen the dollar fall from 81.467 to 79.73.  To further complicate the matter, on September 7th, China made an agreement with Russia, where Russia agreed to sell China as much oil as they desire without any limitations and they will only sell oil using the Yuan, not the dollar.

The Threat To The Petrodollar Could Seriously Injure The U.S. Economy

For the U.S., the implications are far reaching.  Oil is basically the standard currency across the world.  It’s the commodity that everyone needs, everyone fights for, and it drives economies.  Ever since crude oil became the driving force behind the economy, the U.S. has held the petrodollar.   This all out attack by Russia and China could provide the catalyst to crumble the U.S. economy taking away.  If the rest of the world catches on and begins trading oil using the Yuan instead of the dollar, the U.S. may find it difficult to finance its ever mounting debt load and the full implications of our dwindling manufacturing sector and massive debt load could be felt by the American people.  The very reason the Fed has had so much play with the U.S. dollar is because of the position held by the U.S. as the petrodollar.  Should we ever lose that status, we may no longer have willing foreign investors to finance our debt, or the ability to exercise such loose monetary policy without feeling the forces of massive inflation.

The U.S. Will Lose Control In The Middle East If The Petrodollar Is Lost

Another ramification of this new play by China, is the U.S. may lose its ability to control Iran and other rogue nations within the Middle East.  How would the sanctions hold up against Iran, if Iran could simply turn around and begin selling its oil using the Yuan rather than the dollar.  That’s a set-up for a nuclear disaster if I’ve ever seen one.

For more information on how the changes in “oil money” could have an impact on the U.S. economy, and on your investments in general, speak to a Redhawk Wealth Advisor near you today.