City Average, All Items,â Retrieve Data, Select âMore Formatting Options,â Select â12-month Percent Changeâ and âRange between 1913 to present,â Retrieve Data. Countries accumulated dollars in their reserves to engage in international trade or to exchange them with the US government at the official rate for gold ($35 an ounce). "Sanctions After Crimea: Have They Worked?" Washington is not only losing its economic and military power but also its soft power that rested in Washingtonâs propaganda about making the world safe for democracy. How do we stop this deadly cycle that has killed millions in just two decades? economic collapse, Kimberly Amadeo is an expert on U.S. and world economies and investing, with over 20 years of experience in economic analysis and business strategy. This creates a ⦠Alert They Are Sending 50 Million Barrel Oil Bomb For 2020 Petrodollar Collapse On the 20 th of April of 2020, at around 2pm, something historic happened: WTI, short for West Texas Intermediate, crude oil futures traded at negative prices for the first time ever. For example, the United States sanctioned Iran for refusing to halt its development of potential nuclear weapons. Similarly, it hit Russia with trade embargoes for invading Crimea and creating a crisis in Ukraine.. SWFI. petrodollar, “When government fears the people, there is liberty. Bureau of Labor Statistics. What Ron Paul is referring to here is the petrodollar system. "Nixon and the End of the Bretton Woods System, 1971-1973," Accessed April 7, 2020. Their oil revenue dropped along with the dollar. The cost of imports, denominated in other currencies, increased. Investors have been speculating for years about the demise of the âpetrodollarâ deal struck by Henry Kissinger and Treasury Secretary William Simon in 1974. This demand is artificial, since the US dollar is just a middleman in a transaction that has nothing to do with a US product or service. The destruction of the dollar is going to wipe out the wealth of a lot people, and that will cause political and social consequences that will likely be worse than the financial consequences. In 1973, Nixon asked Congress for military aid to Israel in the Yom Kippur War. The newly-formed Organization of the Petroleum Exporting Countries halted oil exports to the United States and other Israeli allies. These companies improve Saudi infrastructure through technology transfer. NATO Review. December 2019; November 2019; October 2019; September 2019; August 2019; July 2019; June 2019; May 2019; April 2019; March 2019; February 2019; January 2019; December 2018; November 2018; ... Petrodollar Collapse Looms As Russia Accelerates De-dollarization âThank God This Is Happeningâ Russia Says Time Has Come To Ditch The Dollar It is very possible that one day soon, Americans will wake up to a new reality, just as they did on August 15, 1971. Demand for Treasurys would plummet, and interest rates would rise. That makes their national income dependent on the dollar's value. The Most Dangerous Event of the 21st Century, Join an Elite Group of Freedom Seekers, Investors, Adventurers, and Speculators, Making the Most of Your Personal Freedom and Financial Opportunity Around the World. It was evident long before Nixon closed the gold window and ended the Bretton Woods system on August 15, 1971, that a paradigm shift in the global monetary system was inevitable. The conspiracy theory says the US dollar's value is propped up because Saudi Arabia and other countries sell their oil for US dollars. That’s precisely why NY Times best-selling author Doug Casey and his team just released a pressing new report, Surviving and Thriving During an Economic Collapse. A look at the future of the petrodollar and how it will evolve in the future. A sudden dollar collapse would create global economic turmoil. Accessed April 7, 2020. She is the President of the economic website World Money Watch. The COVID death rate is clearly not in keeping with a pandemic. Making the Most of Your Personal Freedom and Financial Opportunity Around the World! Friday, March 6th 2020, will go down in history as the day of the collapse of the global petrodollar system that has existed since 1960. Petrodollars and the System that Created It, The Decline of the Dollar vs Collapse and How to Protect Yourself, 6 Rich Countries That Own Most of the World's Oil, How the COVID-19 Pandemic Will Affect Oil Prices in 2021, China's Plan to Replace the U.S. Dollar with the Yuan, Why Countries Peg Their Currency to the Dollar, How a 1944 Agreement Created a New World Order, Top 10 Economic Predictions for the Next Decade, The Causes and Implications of Russia's Ruble Crisis, 6 Currencies Used in the U.S. Dollar Index, Laying the Foundation: Roosevelt Meets with King Abdul Aziz, Nixon and the End of the Bretton Woods System, 1971-1973, Consumer Price Index Database, All Urban Consumers, The U.S.-Saudi Arabian Joint Commission on Economic Cooperation, Top 89 Largest Sovereign Wealth Fund Rankings by Total Assets.