Biden’s ban on Russian oil imports was supposed to be a “powerful” blow to Putin’s war machine.
What if it turns out to be a devastating blow against the dollar instead?
For nearly 40 years, the U.S. “petro-dollar” has been the international reserve currency.
The “gold standard”…except it’s no longer backed by actual gold.
It’s backed by the “full faith and credit of the United States”.
Well….what happens when that faith evaporates?
What happens when major nations (called the BRICS nations) pull out and stop using the dollar?
Usually a massive implosion.
It’s happened time and time again throughout history.
In fact, currencies don’t usually retain their status as world reserve currency for much longer than 200 years, and the U.S. dollar is “long in the tooth”.
Typically though, countries do all they can to retain their status, they don’t usually shoot themselves in the foot with a self-inflicted fatal wound…
But that’s exactly what Biden is doing in his move against Russia.
Gee, it’s almost like he WANTS to see America and the dollar fail?
Because if you wanted to preserve the dollar’s status in the world, you’d do everything possible to keep all nations, especially the BRICS nations, using it.
So what does Biden do?
Tries to ban the Russian Ruble and force them into an alternate system which doesn’t involve the U.S. dollar.
It doesn’t take a rocket surgeon to figure out how that ends, does it?
Check this out…as calculated by the US Energy Information Administration:
In 2021, imports from Russia accounted for 8% of all U.S. petroleum imports, which includes the 3% share of crude oil imports and the 20% share of petroleum product imports.
The Ruble initially tanked after Biden’s actions, but now has regained all of it’s strength and is started to outpace the dollar.
Take a look:
The #Russian ruble has recovered to its pre-conflict levels, closing Friday at 80.40 RUB/USD. This allowed the Central Bank of Russia’s Gov. Nabiullina to cut the key interest rate from 20% to 17%. It looks like the ruble has weathered the storm. pic.twitter.com/nvtVbCirmn
— Steve Hanke (@steve_hanke) April 9, 2022
https://twitter.com/bronson00471184/status/1513531671638908939?s=21&t=38lB5Ws2znC8fOzzkMM4CA
https://twitter.com/retirementrise/status/1512431867718508554?s=21&t=38lB5Ws2znC8fOzzkMM4CA
More increases in US fuel prices are expected.
But soaring fuel prices won’t be the only potential adverse effect on your wallet.
Suppose Putin and the rest of BRICS (Brazil, Russia, India, China, South Africa) decide to unhinge the dollar from global energy trade.
What happens then?
That would kill the petrodollar global reserve currency Nixon and his architect, Kissinger, created in 1975.
In a recent article at The Wire, this exact scenario is covered:
The common payment system based on local currencies has been discussed in BRICS for some years but not pursued seriously on the ground. The Ukraine crisis has given a fillip to the idea of moving away from the US dollar in regional trade…
Russia has tapped into this sentiment and is even talking about linking the ruble to gold. Putin has floated the idea of Western economies depositing gold with Russia to buy rubles, with which oil and gas can be purchased. Putin has, in fact, decided to save the ruble by linking its value to gold. By pegging 5000 rouble to 1 gram of gold, he is seeking to counter the collapse of the Russian currency with the backing of gold.
This is a very powerful and disruptive idea because at one stroke, a large part of the global energy trade could move away from the dollar. And linking a currency to gold can be seen as an economically responsible act, discouraging the wanton printing of currency, as the US has been doing for the last 15 years.
In this period, the Fed’s balance sheet has grown from $800 billion in 2008 to $8.5 trillion in 2021. A tenfold increase in the printing of currency would have been impossible if the dollar was backed by gold, as it was until Richard Nixon delinked it from bullion in 1971. Nixon closed the gold window to prevent foreign governments from selling dollars to accumulate gold as a hedge against persistent inflation in the US.
Interestingly, the US faces a similar inflationary situation today and Putin is trying to revive gold and other non-dollar payment mechanisms as a medium of exchange. It is a clever move because gold also has natural resonance with India and China, the largest importers of gold in recent decades.
This morning we learned inflation just set a new record all time high (and these are records you do NOT want to set).
Folks, the U.S. economy is inches away from just completely shutting down.
The only reason it is still even functional right now is because of the incredible base President Trump set.
But even that boost will soon run out and after that comes the implosion.
It’s just simple math folks…
When you see these kinds of numbers, no country has ever survived:
JUST IN – U.S. inflation hits 8.5% in March, highest in more than 40 years.
— Disclose.tv (@disclosetv) April 12, 2022
HOLY SHLIT! US inflation just hit 8.5% – the highest since the 70s-80s. Blows out anything from the war on terror#Bidenflation is the new pandemic
— Jack Poso 🇺🇸 (@JackPosobiec) April 12, 2022
As one smart mathematician observed, for every action there is an equal and opposite reaction. So while Biden is trying is trying to break Russia, Putin will try to do the same in return.
Putin won’t be alone in his efforts to end the petrodollar. China has already taken steps to undermine the petrodollar. Saudi Arabia, according to the WSJ, is also currently in talks with China to price some of its oil sales to China in yuan.
If the petrodollar implodes, buckle up. Our Fed won’t be able to print its way out of that mess, nor will our government be able to binge on debt anymore.
So, what can you do?
Well, I’m not a financial advisor.
Let me make that disclosure very clear.
I’m a journalist, but as a journalist we’ve seen this coming for over a year.
We’ve reported on it many times before.
In fact, one of my favorite guests to have on my show is Bo Polny and Bo has been been telling you the U.S. dollar is headed for collapse based on his analysis of time cycles.
He’s been telling me that on my show for over one year.
He’s been saying it back when it sounded crazy…back when none of this was in the news.
When he first said it, we got so much hate mail.
People said he was crazy…
People said his analysis was wrong…
Well, guess what?
Turns out he was dead on and maybe we should all start listening to him MUCH more closely?
Here’s my latest article on Bo and then scroll down for our latest interview where you see he covered all of this “before it was news”.
Bo rocks.
Read here:
Bo Polny Returns! The Final Trimester Is Nearly Over, God Wins! [Bitcoin Critical Moment]
Watch here on Rumble:
Michael Saylor agrees with Bo:
#Inflation is worse than you think, and #Bitcoin is better than you know.
— Michael Saylor⚡️ (@saylor) April 12, 2022
If we're about to hit massive inflation (even worse than we already have) you want to be in assets that inflate.
Gold.
Silver.
Bitcoin.
Cryptocurrencies.
Bo explains it all in his video above and in his slides (link below).
I also have a link below for you if you want to get his Crypto Newsletter -- Bo offers WeLoveTrump readers a 50% discount and you get immediate access to his entire history of Newsletters plus all new ones.
Prepare.
Get ready.
Protect your family.
It's going to get rough...
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