Jackass' Red Glare Upon The Petrodollar

145

For your holiday listening pleasure, Jim Willie returns for a comprehensive discussion of the petrodollar and how current events around the Arabian Peninsula are a sign of great distress for this monetary scheme.

Again, what is the "petrodollar". The idea was championed by Henry Kissinger in 1973 as a way to create ongoing demand for US dollars by maintaining the pricing of crude oil in dollars only. The effects of this were two-fold:

  1. To create constant demand for dollars...dollars which were now completely unhinged from any gold backing...and this demand would soak up any excess supply of new currency being printed in the US for military and social purposes.
  2. To force oil-exporting nations to keep their foreign currency reserves in dollars, thus creating an ongoing demand for US treasury bonds. This constant demand for bonds would help to keep interest rates...and thus the US debt service cost...unnaturally low.

As a result, any threat to this system, whether it has come from Iran, Iraq or Libya has been squashed either politically or militarily over the past 40+ years. The current flare-up of tensions between Saudi Arabia and Qatar must be viewed through this prism and that is the primary topic of this 47-minute discussion.

To that end, please be sure to review these links while you're listening:

I hope that you find this helpful and informative. Thanks for listening.

TF

  145 Comments

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Joseph Warren
Jul 5, 2017 - 1:06pm

@AngryChef - David Rockefeller. . .

may he be burning in the fires of Hell at this moment, thought that the Communist Chinese provided the perfect example for governance. They seemed to have recognized the Maoist path wasn't working. Before China was 'opened up' they weren't able to even feed their own population. China has a long history of internal revolts and such conditions are a threat to the ruling class. Rockefeller admired that the Communist leadership seems to be able to combine economic success with a totalitarian technocrat run, brutal police state. (Those in the West, including Rockefeller, helped make this possible.) The reply that the U.S. is hardly better now isn't much of a retort IMO.

Yes, opening up mutually beneficial trade, including the Silk Road, is probably a good thing. But, material success for a relatively small sector of the population, without political and personal freedom isn't a model that most of us would desire. IMO too many generations of Americans focused on trinkets & consumerism while their Liberty was stolen from them.

'Man does not live on bread alone.'

Regards, - JW

flipper22
Jul 5, 2017 - 12:12pm

I Agree with Shrek on AM

We should cut Andrew M some slack. All of us want to see a true pricing mechanism in PM's. However, the power to price PM's needs to be clawed/pulled away from the BB's and doing so is a monumental task. From threads that I've read there are efforts under way to provide an avenue for miners to sell there product in ways where the BB's and their large fees are cut out of the equation. If the BB's can't have access to as much metal then a chunk of their pricing power will be clawed away.

Be patient folks....buy when sentiment stinks (like now). I can't think of a time when sentiment was so negative (even Dec-15).

Jul 5, 2017 - 11:15am
Orange
Jul 5, 2017 - 10:48am

Bullion Coin

Not sure what the difference is with Gold Money. I can transfer gold to different currencies and spend it on a debit card.

shrek
Jul 5, 2017 - 10:45am

Andrew Maguire

We should cut Andy some slack here. Some of his predictions have been wide of the mark, but he is working hard on behalf of PM investors.

He has also been feeding us wholesale bid levels from the London market. That's potentially useful information that we won't get anywhere else. It would be a shame if Andy stopped quoting those numbers because of people being rude about his efforts.

BillD
Jul 5, 2017 - 10:27am

Speaking of Andy

6m6 minutes ago

Short delay 1st ever institutional grade Crypto currency.$Billions of physical orders ready to rumble .

... more...

3m3 minutes ago

& with a yield has Soverign and institutional support. Orders ready to hit the market on launch day.Offer to sell phys to rise

boomer sooner
Jul 5, 2017 - 10:14am

Hmmm

Rand Tumbles On Report South Africa Seeks To Nationalize Central Bank https://www.zerohedge.com/news/2017-07-05/rand-tumbles-report-south-afri... In the article it states that the is more than 600 shareholders in the Central Bank, and yet they don't have a say in monetary policy. Sure. Bloomberg article behind Hedge definitely has a negative tilt, lol. Butter and bread shall not meet soon, I wish.

canary
Jul 5, 2017 - 10:13am

Factory Orders (hard data)...

Prior -0.2% (revised to -0.3%)

Consensus -0.5% Actual -0.8%.

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

lakedweller2
Jul 5, 2017 - 10:05am

AM

Don't even know what he was referring to so I am still waiting...also waiting on Regulators.

Angry Chef
Jul 5, 2017 - 10:02am

If This Doesn't INFURIATE You...You're Not Human!

While some are distracted by the "Norks" your Government is building a gigantic prison complex for you. Your enemy is internal. Not external. We complain about the rigging of our PM markets yet vilify countries that stand up to the same Governments that are vilifying us !

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