PetroDollar System In Trouble As Saudi Arabia Continues To Liquidate Foreign Exchange Reserves

[Pluvious]

Between the (coordinated) efforts of Russia and China to dethrone America's position as the World's reserve currency, and the core support provided by the "Petrodollar" (which has given us the luxury to "print" trillions on demand to fund our wars and lifestyle), we are seeing a sea change in the works, slowly creeping up on us.

Not to mention other forces at play, such as cipher currencies, dwindling gold supplies, and emerging markets.

Both China and Saudis have stopped buying our Treasury Bonds, if Japan starts to as well, it could be game over man.

"...it is quite interesting that Saudi Arabia continued to liquidate its foreign exchange reserves in April even though the price of oil was above $53 for the majority of the month. I believe the Kingdom of Saud is in BIG TROUBLE. That is why they are trying to sell an IPO to raise much needed funds.

As Saudi Arabia continues to liquidate more of its foreign exchange reserves, it means serious trouble for the PetroDollar system. Again… without “SURPLUS” funds, the Saudi’s can’t purchase U.S. Treasuries. Actually, for the past three years, Saudi Arabia has been selling a lot of its U.S. Treasuries (foreign exchange reserves) to supplement the shortfall in oil revenues.

If the oil price continues to trend lower, and I believe it will, Saudi Arabia and the PetroDollar system will be in more trouble. The collapse of the PetroDollar system would mean the end of the U.S. Dollar supremacy and with it, the end of gold market intervention."

http://news.goldseek.com/GoldSeek/1497801931.php

[Eyeball_Kid]

1. Trumpy can cash in his gold toilets and other trinkets. That ought to hold off

financial crises for decades.

[yurbud]

2. this is why our policy of "kick everybody thinking about giving up petrodollar in the nuts" is nuts

Our coercive attempts to control other countries through the petrodollar and various banking schemes gives them a powerful incentive to get out of that system, so their own wealth can't be used to bomb them back to the Stone Age.

[yurbud]

3. what are establishment Democrats saying or doing about this?