Commodity Trade Mantra

Posts Tagged ‘Petrodollar’

A Technically Reasonable Correction in Gold Prices

For those who persist in looking at gold as an investment, the fall in gold prices in May is simply within the bounds of a normal correction. But they would be missing a vital point & that is by buying gold they are selling an inferior form of money. Not only is the dollar already demonstrably overvalued when priced in gold, but there is a growing inevitability of a further, substantial declines.

Watch How The Petrodollar Di(v)es As US - Saudi Relations Crack

U.S.-Saudi interests are diverging in many ways. Saudi Arabia’s 40-year pact with the United States is on the verge of ending. What happens next will have ramifications for the dollar for decades to come. We could be nearing the end of the petrodollar & I would not want to be holding U.S. Treasuries. With current interest rates I don’t want to hold them anyway.

Decline of the US Dollar – The Consequences

We cannot blame China and India, or Russia if they wish to protect themselves from western systemic risk by shifting their trade settlements away from the dollar. It is becoming clear to Asian leaders at least that the dollar’s reserve status is an anachronism of the past & cannot last, a simple deduction that raises important questions not addressed for over a century.

Why Citi Thinks Oil Is Going To $20

Citi warns the oil market should bottom sometime between the end of Q1 and beginning of Q2 at a significantly lower price level in the $40 range (perhaps as low as the $20 range for a while) – after which markets should start to balance, first with an end to inventory builds and later on with a period of sustained inventory draws.

Silver and Gold Truth Versus Fiat Money Lies

What do loss of confidence, loss of faith in financial systems & pervasive lies have to do with gold and silver? They far more truthful money that central banks can’t print or create from thin air. The truths we have been told about fiat money are lies. Don’t believe the lies that unbacked debt based paper currencies will survive (they never do).

Probability For A Lower Gold And Silver Low Has Increased

An area of resistance in silver and gold held to push price lower, last week, though volume and price activity has a positive bias. Physical gold and silver are being bought for a specific purpose, and price is not the objective…security is. Remember: “if you do not hold it, you do not own it” has proven to be true in too many cases.

Gold-Backed Currency? Not Any Time Soon, But Be Prepared

How can there be a gold-backed currency? While all eyes are focused on some kind of gold-backed currency emerging to replace the failing petrodollar and skyrocket gold and silver prices, all should be aware of the current world reserve currency and how all of these war-induced skirmishes are to maintain and protect it.

What a Reserve Currency Should Look Like

The perfect reserve currency is provided by private institutions who guarantee gold redemption through contracts with independent agents in many easily accessible and safe areas of the world. Failure of the issuer to redeem for specie would be prosecutable for breach of normal commercial and criminal law.

Rise of the Petro-Yuan & the Slow Erosion of Dollar Hegemony

Linking the dollar to international oil trading was key to creating a new version of dollar primacy (“dollar hegemony 2.0”) & by extension, in financing another forty years of American hegemony. With the rise of the “petroyuan,” movement towards a less dollar-centric currency regime in international energy markets is already underway.

How The Petrodollar Quietly Died, And Nobody Noticed

Basically, the Petrodollar, long serving as the US leverage to encourage and facilitate US Dollar recycling, and a steady reinvestment in US-denominated assets by the Oil exporting nations, and thus a means to steadily increase the nominal price of all USD-priced assets, just drove itself into irrelevance.

Total War over the Petrodollar

The CEO of Total, before his death & his CFO were both strong supporters of Total raising the $27 billion in non US dollars & moving the project forward with the Russians. If Total doesn’t close the $27 billion financing it needs to move forward with the Yamal LNG project then we’ll know someone stepped in to prevent an attack on the petrodollar.

PetroDollar On Its Deathbed. Are Gold & Silver About To Rally?

The pillars are crumbling for the debt-laden, gasping for life petrodollar. Central banks are suppressing gold and silver to eliminate competition to their paper debt Ponzi scheme. China & Russia, backed by massive amounts of gold, are engaged in deals to foster growth & encouraging other countries to build and grow from within.

Can Petrodollar Survive Low Interest Rates?

After concluding that US policymakers could never again manage the relationship of Fed Funds rates to oil prices, creditor nation policymakers began reverting to the oil settlement asset that had been used for decades before the Petrodollar – physical gold. What does this mean for gold and oil prices going forward?

The Nail In Petrodollar Coffin: Gazprom Accepts Oil Payment In Ruble, Yuan

Russia will export energy to either Europe or China, and receive payment in either Rubles or Yuan, in effect making the two currencies equivalent as far as the Eurasian axis is concerned, but most importantly, transact completely away from the US dollar thus, finally putin'(sic) in action the move for a Petrodollar-free world.

Russia Iran Sign Historic 500,000 Barrel A Day Oil Deal - Petrodollar Under Threat

Russia signed a historic $20 billion oil deal with Iran to bypass both western sanctions & the dollar based western monetary system yesterday. The 5 year accord will see Russia help Iran “organize oil sales” as well as cooperate in the oil-gas industry, construction of power plants, grids, supply of machinery, consumer goods & agriculture products.

Russia Buys 18.6 Tonnes Of Gold In June - Currency Wars Intensify

The Russian central bank officially increased its gold holdings by 16.8 tonnes to 1,094.8 tonnes in June, the IMF’s International Financial Statistics report showed. In ounce terms, Russia increased its gold holdings by some 500,000 ounces, to 35.197 million ounces in June from 34.656 million ounces in May.

France Assures Push Against Petrodollar Is Not A "Fight Against Dollar Imperialism"

To complete the French triple whammy offensive against the US Dollar, French FM says “now is the right time to bolster the use of the euro” adding, more ominously for the dollar, “we sell ourselves aircraft in dollars. Is that really necessary?” But carefully added up with diplomacy, “This is not a fight against dollar imperialism.”

Gold And Silver – Technical Charts And Fundamentals

Despite people’s views on gold and silver being in a down trend, from a larger perspective, both are in up trends & that is what the overall news is saying & what everyone senses: gold and silver should be higher. It just depends on your frame of reference. Here is a list of events that are impacting the suppression of gold and silver.

Gold and Silver versus the Petrodollar Peril

The record flows of gold and silver into private hands, as well as public entities over the last few years is an indication people have that all is not well with the petrodollar. The change in reserve currency status of the US dollar has been underway for several years & it’s now picking up speed with a deal that Russia & China signed.

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