Economic Collapse

This is another nail in the coffin for the US Dollar.

27 October 2009 - TEHRAN - The Iranian Oil Bourse was inaugurated on Monday in the Persian Gulf island of Kish as a venue to export oil and petrochemical products.

National Petrochemical Company’s Managing Director Adel Nejad-Salim said in the opening ceremony that all petrochemical products will be gradually offered on the market, IRNA news agency reported.

The oil bourse is intended as an exchange market for petroleum, gas, and petrochemicals in various currencies, primarily the euro and Iranian rial, and a basket of other major currencies.

On February 4, 2008 the Iranian Cabinet approved the creation of the oil bourse in two stages - first for crude and second for oil byproducts transactions.

Iran, having the world’s second largest gas reserves and third largest oil reserves, is trying to play a more active role in oil and petrochemical transactions in international markets.
© Tehran Times 2009

Related to this I advice you to read the now classic article “The Proposed Iranian Oil Bourse” by economist Krassimir Petrov and also read my post about what this means and also the historic background to all this. Many things are happening pushing the once all mighty dollar further down the tube. Again, this is very bullish for gold.

On the 14:th I wrote in response to a BBC report on Putins visit to Beijing, China:

“Yes, Medvedev and Jintao is moving away from the US dollar and will settle this 20-year-deal in their own currencies. You should also move away from fiat paper of the west and move into your own currency: gold. Be your own banker, as a friend of mine says.”

On the same day the Russian news outlet “RIA Novosti” quoted Putin on the topic:

“Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans,” Putin said.

Now that the Fed is buying almost all the Treasury bills since the demand from foreign buyers is almost gone, the only thing that keeps the US dollar from going down the tube is the petrodollar: Currently buyers of oil, natural gas and other commodities have to first buy US dollars to make their purchases. When these commodities are available in other currencies, the End of the Dollar is here.

Dear readers. This might be the biggest financial news to hit the Internet since Bear Stearns and Lehman Brothers. I, and many other experts with far better understanding than I have, such as Catherine Austin Fitts and Krassimir Petrov, have been saying this for years: Oil will not be priced in US dollars for long. When the move away from the Petrodollar happens, the US Empire will fall. From The Independent:
Read the rest of this entry »

Dear readers,

The End of the Dollar is really starting to hit world news. I think this will hit main stream soon and by autumn or early winter or so everyone will question the US dollar. However, this will put strain on ALL currencies, so if you have savings, NOW is the time buy some cheap gold while its still available.

Here are a few interesting headlines:

Chavez seeks Arab support for oil-backed currency
This is really important, since the “demand” for USD is often related to oil only traded in USD. I very much recommend this article by Austrian-school Krassimir Petrov:
The Proposed Iranian Oil Bourse

“The American Empire depends on the U.S. dollar. The proposed Iranian Oil Bourse
will accelerate the fall of the U.S. dollar and hence the fall of the American Empire.”

“When in 1971 foreigners demanded payment for their dollars in gold, The U.S. Government defaulted on its payments on August 15. The popular spin of this default was that “the link between the dollar and gold was severed”. The proper interpretation is that the U.S. Government went bankrupt, just like any commercial bank is declared bankrupt.

However, by doing so, the U.S. declared itself an Empire. It had extracted an enormous amount of economic goods from the rest of the world, with no intention or ability to return those goods. The world was effectively taxed and it could not do anything about it: it could not force the U.S. in bankruptcy proceedings and take possession of its gold and other assets for payment, nor could it take forcefully what it was owed by declaring war and winning it. Essentially, the U.S. imposed on the world an inflation tax and collected an imperial seigniorage!

From that point on, to sustain the American Empire and to continue to tax the rest of the world via inflation, the United States had to force the world to continue to accept ever depreciating dollars in exchange for economic goods and to have the world hold more and more of those dollars, while those dollars depreciated. It had to give the world an economic reason to hold dollars, and that reason was oil.”

Also note the efforts from China to push for a New World Currency:

• Dollar falls on Geithner’s openness to China’s currency proposal
• China expands currency swaps to avoid trading in dollars

And:

• Russia backs partial return to gold standard

Interesting times…