http://dailyreckoning.com/no-iran-deal-no-petrodollar/
“This gave the dollar a special place among world currencies, and in essence ‘backed’ the dollar with oil,” explained Rep. Ron Paul in a prescient speech on the floor of the U.S. House in 2006. “The arrangement gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as dollar influence flourished.”
P.S. “The petrodollar deal worked beautifully for 30 years,” explained Jim Rickards in early 2014. “Through the ’80s, the ’90s and early 2000s, it really did prop up the dollar. But in December 2013, President Obama reneged on the deal. He engaged in the beginning of a detente with Iran, which is a bitter enemy of Saudi Arabia. So the U.S. is saying to Iran, ‘Hey, you’re our cop on the beat and our best friend in the Middle East. This was a stab in the back to the Saudis. By the way, Saudi Arabia sells most of its oil today to China, not the United States. So how long will it be until they start accepting yuan or gold for oil?” Guest Finian Cunningham takes a guess, right here.
“This gave the dollar a special place among world currencies, and in essence ‘backed’ the dollar with oil,” explained Rep. Ron Paul in a prescient speech on the floor of the U.S. House in 2006. “The arrangement gave the dollar artificial strength, with tremendous financial benefits for the United States. It allowed us to export our monetary inflation by buying oil and other goods at a great discount as dollar influence flourished.”
P.S. “The petrodollar deal worked beautifully for 30 years,” explained Jim Rickards in early 2014. “Through the ’80s, the ’90s and early 2000s, it really did prop up the dollar. But in December 2013, President Obama reneged on the deal. He engaged in the beginning of a detente with Iran, which is a bitter enemy of Saudi Arabia. So the U.S. is saying to Iran, ‘Hey, you’re our cop on the beat and our best friend in the Middle East. This was a stab in the back to the Saudis. By the way, Saudi Arabia sells most of its oil today to China, not the United States. So how long will it be until they start accepting yuan or gold for oil?” Guest Finian Cunningham takes a guess, right here.
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