US Dollar On Last Leg?

US Dollar On Last Leg - Here's Proof

What few Americans know, and what even fewer care about, is that more dollars are used outside of the United States than inside of it… primarily for the purpose of buying and trading oil.

This a position the United States government was able to set up decades ago, and one we guard at all costs, since the creation of the “petrodollar” is what has afforded us our amazing lifestyle.

And now that position is in very real danger of collapsing…

Recently Russia signed an agreement that moves much of their purchasing power off of the U.S. dollar entirely, and this could have absolutely devastating effects on the U.S. economy.

As reported by Freedom Outpost:

The largest natural gas producer on the planet, Gazprom, has signed agreements with some of their biggest customers to switch payments for natural gas from U.S. dollars to euros.

And Gazprom would have never done this without the full approval of the Russian government, because the Russian government holds a majority stake in Gazprom.

There hasn’t been a word about this from the big mainstream news networks in the United States, but this is huge.

When you are talking about Gazprom, you are talking about a company that is absolutely massive. It is one of the largest companies in the entire world and it makes up 8 percent of Russian GDP all by itself.

It holds 18 percent of the natural gas reserves of the entire planet, and it is also a very large oil producer. So for Gazprom to make a move like this is extremely significant.

Many other Russian organizations are also abandoning the dollar as well.

So why is this happening now?

After the U.S. imposed economic sanctions on Russia, Russia retaliated with their own economic warfare.

This was not a surprise. The Russians had clearly stated their intentions. “We will find a way not just to eliminate our dependence on the U.S. but also profit from these sanctions.”

So the Russians are simply following through and doing what they said they would do if the U.S. imposed sanctions.

Ultimately, the Russians are seeking to weaken the power the United States has had on the trade of oil since 1970.

And the best way to weaken the petrodollar and cripple the U.S. is to get other countries off of the petrodollar as well.

When Iraq sought to trade oil in dinars instead of dollars, the U.S. started a war. But the U.S. is not going to start an overt war with Russia. The country is too big.

Since starting a war with Russia is off the table, there is really only one alternative for the U.S. government: Sit back, stay quiet, and hope the average American doesn’t realize the significance of what’s happening to the dollar.

Obviously, it will take some time for all these dollars to make their way back to the U.S. So as Michael Snyder says, don’t expect the fallout to happen immediately, but “enjoy the good times while they last.”

My comments: The US has been Derelict in its printing of worthless money. Its Printing of worthless money is in effect stealing from everyone who holds US dollars. It is amazing that other nations have put up with this "stealing" for so long. As this article indicates, other nations may cut the US dollar out of their financial transactions. This would require the US to be "honest" for a change and that will mean the US will have to curtail its printing of worthless money which would be a DEVASTATING  BLOW to the US economy.