Thanks DinariDori for sending this to us:
islandg1211 - Saudi-China could end PetroDollar- Breaking News - Currency Reset Step
Why did we ever invest in foreign currency?
One reason was because we saw the writing on the walls for problems with the USD.
No more Gold Backed USD:
When President Nixon took the USD off of the Gold Standard, he switched the USD to a fiat based currency. The public didn't noticed nor thought about the consequences. They never will get it because neither will the education system nor the MSNM ever teach the history of monetary policy.
The debt explosion:
Nixon's action set into motion the "addiction to debt" mentality where printing money created a bubble waiting to burst. Then 2008 happened, which caused a domino effect throughout the globe as every country held and traded USD, while their own economies tanked, their debt grew, and their local currencies had comparatively less demand. Although the USD looks good only because everyone else is in a worse situation.
Reduced use of USD:
The demand for/use of USD for International Trade, Oil Sales, IMF's SDR Basket, and probably very soon foreign currency reserves for Central Banks, is systematically and gradually being reduced. We knew this was coming, and it is happening.
Post Bretton Woods/WWII, the USD was the only global currency for all trade, oil sales, and was the highest value held for foreign currencies reserves by Central Banks around the world. But, could that last forever?
With the US economy declining to second place as China's economy expands, clearly, things are going to change. 18 months ago, I began sending articles every time I saw a major currency trade between countries happen, as this was the beginning of the currency reset.
The biggest deal ever made was the oil deal between China and Russia in which it would NOT be in USD, but rather in Russia's, China's, and Vietnam's currency (aren't you glad we bought Dong to hedge against the USD?) More countries began signing trade deals in their own currencies, dropping their use of USD. The Saudi and OPEC system was set up by the US to only use USD. This is a huge demand for USD.
Today's Breaking News: Saudis may stop the Petrodollar:
The Saudis and China are negotiating today for their oil trade to be in their own currency and Not USD. This would be a huge hit for the demand for the USD. China is Saudi's biggest customer. OPEC still accounts for 39% of the world's oil supply, and is OPEC's biggest oil exporter. Although, the Saudis are sighting the new 9/11 Victims' potential lawsuits law, and they are looking to sell their US Treasury holdings and stopping the Petrodollar sales over Congress's law, the reality is this was probably going to happen anyways.
The use of the USD is being systematically reduced, while the increase of national currencies is increasing, particularly China's, emerging market countries, and now the oil exporting countries of Russia and probably Saudi Arabia. Expect more oil exporting countries to follow.
By resetting the global currency use to reduce the USD's previous monopoly on trade and oil sales, it raises up local countries' currency and reduces the "domino effect" when something happens to the USD, like becoming second best to China.
COMBINE THE EFFECTS OF THESE NEWS STORIES:
1) The LARGEST DEAL the globe has ever seen happened 18 months ago when Russia agreed to sell China oil NOT IN USD.
2) China joined the IMF's SDR basket, REDUCING USD this week.
3) Saudi's and China negating today for oil sales in their own currencies, CUTTING OUT USD (and U.S. Treasuries)
4) Digital Currency Exchange trading platform coming online. With blockchain digital currencies becoming the next gen technology, converting and trading systems had to be in place. That's happening now. That whole system is designed for non-USD usage. The U.S. will have to have a digital model to use.
What's next for the USD?
Will anyone be surprised when Central Banks sell USD to buy Chinese Yuan, other emerging asset backed currencies, and digital currencies? That's coming, IMO.
The currency diversification held by the IMF and Central Bankers was planned for, and countries all over the world are phasing out the USD. This has been planned for and the change is happening.
Now, do you think there is in fact a global currency reset happening?