Tag Archives: petrodollar

If we want to better understand the answer to the elusive question of "When will the fiat U.S. dollar collapse?", we have to watch the petrodollar system and the factors affecting it.

If the dollar keeps rising - which I don't believe it will, or can - U.S. exports will fall and imports will rise, negatively affecting GDP and the trade deficit. Things are going to get choppy.

The petroyuan has launched. Let's investigate its success or lack thereof, primarily the latter.

Once the grip of the fiat “dollar” gives way, and it is slowly losing ground, then the price for gold and silver will find their more natural value - and not until then. When might that happen? It could be weeks, it could be months, maybe even another year or two, but whenever it happens, it is more likely to be an overnight “adjustment.” Plan accordingly.

Is it time to throw in the towel? Is the bull market in precious metals really over? I don't think so because my analyses suggest that nearly all of the fundamental factors that have been driving the gold price higher in the past decade have only strengthened in the past two years. Now that the correction has most likely run its course, I expect gold to bounce sharply higher. Here are 10 reasons why.

The struggle over Ukraine has caused Russia to completely re-evaluate the financial relationship that it has with the United States. If it starts trading a lot of oil and natural gas for currencies other than the U.S. dollar, that will be a massive blow for the petrodollar, and it could end up dramatically - and negatively - impacting the average American's current standard of living. Let me explain.

Before gold can rally, it has to first turn the trend from down to up. We see no evidence of a change in trend. The bearish spacing is repeated, again, as a reminder that it represents a weak market within its down trend. How anyone can posit a bullish scenario from what the charts show flies in the face of known facts, as depicted in the charts.

Russia is a huge supplier of oil and gas — traded in US dollars — which gives it both leverage over near-term energy flows and, far more ominous for the U.S., the ability to threaten the dollar’s reign as the world’s reserve currency - and it’s taking some big, active steps towards that goal.

There is not a shred of evidence that the price of gold is about to embark upon a much higher trajectory. What the market is saying is that nothing in the news is disturbing the bottoming process.

Most Americans simply don't understand that Russia and China have the power to collapse the U.S. economy by going to a gold for oil system. All they have to do is pull the trigger. Let me explain. Words: 1515