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11 International Agreements That Are Nails In The Coffin Of The Petrodollar

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Is the petrodollar dead?  Well, not yet, but the nails are being hammered into the coffin even as you read this.  For decades, most of the nations of the world have used the U.S. dollar to buy oil and to trade with each other.  In essence, the U.S. dollar has been acting as a true global currency.  Virtually every country on the face of the earth has needed big piles of U.S. dollars for international trade.  This has ensured a huge demand for U.S. dollars and U.S. government debt.  This demand for dollars has kept prices and interest rates low, and it has given the U.S. government an incredible amount of power and leverage around the globe.  Right now, U.S. dollars make up more than 60 percent of all foreign currency reserves in the world.  But times are changing.  Over the past couple of years there has been a whole bunch of international agreements that have made the U.S. dollar less important in international trade.  The mainstream media in the United States has been strangely quiet about all of these agreements, but the truth is that they are setting the stage for a fundamental shift in the way that trade is conducted around the globe.  When the petrodollar dies, it is going to have an absolutely devastating impact on the U.S. economy.  Sadly, most Americans are totally clueless regarding what is about to happen to the dollar.

One of the reasons the Federal Reserve has been able to get away with flooding the financial system with U.S. dollars is because the rest of the world has been soaking a lot of those dollars up.  The rest of the world has needed giant piles of dollars to trade with, but what is going to happen when they don’t need dollars anymore?

Could we see a tsunami of inflation as demand for the dollar plummets like a rock?

The power of the U.S. dollar has been one of the few things holding up our economy.  Once that leg gets kicked out from under us we are going to be in a whole lot of trouble.

The following are 11 international agreements that are nails in the coffin of the petrodollar….

#1 China And Russia

China and Russia have decided to start using their own currencies when trading with each other.  The following is from a China Daily article about this important agreement….

China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

#2 China And Brazil

Did you know that Brazil conducts more trade with China than with anyone else?

The largest economy in South America has just agreed to a huge currency swap deal with the largest economy in Asia.  The following is from a recent BBC article….

China and Brazil have agreed a currency swap deal in a bid to safeguard against any global financial crisis and strengthen their trade ties.

It will allow their respective central banks to exchange local currencies worth up to 60bn reais or 190bn yuan ($30bn; £19bn).

The amount can be used to shore up reserves in times of crisis or put towards boosting bilateral trade.

#3 China And Australia

Did you know that Australia conducts more trade with China than with anyone else?

Australia also recently agreed to a huge currency swap deal with China.  The following is from a recent Financial Express article….

The central banks of China and Australia signed a A$30 billion ($31.2 billion) currency-swap agreement to ensure the availability of capital between the trading partners, the Reserve Bank of Australia said.

“The main purposes of the swap agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation,” the RBA said in a statement on its website. “The agreement reflects the increasing opportunities available to settle trade between the two countries in Chinese renminbi and to make RMB-denominated investments.”

China has been expanding currency-swap accords as it promotes the international use of the yuan, and the accord with Australia follows similar deals with nations including South Korea, Turkey and Kazakhstan. China is Australia’s biggest trading partner and accounts for about a quarter of the nation’s merchandise sales abroad.

#4 China And Japan

The second and third largest economies on the entire planet have decided that they should start moving toward using their own currencies when trading with each other.  This agreement was incredibly important but it was almost totally ignored by the U.S. media.

According to Bloomberg, it is anticipated that this agreement will strengthen ties between these two Asian giants….

Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.

Japan will also apply to buy Chinese bonds next year, allowing the investment of renminbi that leaves China during the transactions, the Japanese government said in a statement after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing yesterday. Encouraging direct yen- yuan settlement should reduce currency risks and trading costs, the Japanese and Chinese governments said.

China is Japan’s biggest trading partner with 26.5 trillion yen ($340 billion) in two-way transactions last year, from 9.2 trillion yen a decade earlier.

#5 India And Japan

It is not just China making these kinds of currency agreements.  According to Reuters, India and Japan have also agreed to a very large currency swap deal….

India and Japan have agreed to a $15 billion currency swap line, Japan’s Prime Minister Yoshihiko Noda said on Wednesday, in a positive move for the troubled Indian rupee, Asia’s worst-performing currency this year.

#6 “Junk For Oil”: How India And China Are Buying Oil From Iran

Iran is still selling lots of oil.  They just aren’t exchanging that oil for U.S. dollars as much these days.

So how is Iran selling their oil without using dollars?

A Bloomberg article recently detailed what countries such as China and India are exchanging for Iranian oil….

Iran and its leading oil buyers, China and India, are finding ways to skirt U.S. and European Union financial sanctions on the Islamic republic by agreeing to trade oil for local currencies and goods including wheat, soybean meal and consumer products.

India, the second-biggest importer of Iran’s oil, has set up a rupee account at a state-owned bank to settle as much as much as 45 percent of its bill, according to Indian officials. China, Iran’s largest oil customer, already settles some of its oil debts through barter, Mahmoud Bahmani, Iran’s central bank governor, said Feb. 28. Iran also has sought to trade oil for wheat from Pakistan and Russia, according to media reports from the two countries.

#7 Iran And Russia

According to Bloomberg, Iran and Russia have decided to discard the U.S. dollar and use their own currencies when trading with each other….

Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow.

The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization, the ambassador said.

#8 China And Chile

China and Chile recently signed a new agreement that will dramatically expand trade between the two nations and that is also likely to lead to significant currency swaps between the two countries….

The following is from a recent report that described this new agreement between China and Chile….

Wen called on the two nations to expand trade in goods, promote trade in services and mutual investment, and double bilateral trade in three years.

The Chinese leader also said the two countries should enhance cooperation in mining, expand farm product trade, and promote cooperation in farm product production and processing and agricultural technology.

China would like to be actively engaged in Chile’s infrastructure construction and work with Chile to promote the development of transportation networks in Latin America, said Wen.

Meanwhile, Wen suggested that the two sides launch currency swaps and expand settlement in China’s renminbi.

#9 China And The United Arab Emirates

According to CNN, China and the United Arab Emirates recently agreed to a very large currency swap deal….

In January, Chinese Premier Wen Jiabao visited the United Arab Emirates and signed a $5.5 billion currency swap deal to boost trade and investments between the two countries.

#10 China And Africa

Did you know that China is now Africa’s biggest trading partner?

For many years the U.S. dollar was dominant in Africa, but now that is changing.  A report from Africa’s largest bank, Standard Bank, says the following….

“We expect at least $100 billion (about R768 billion) in Sino-African trade – more than the total bilateral trade between China and Africa in 2010 – to be settled in the renminbi by 2015.”

#11 Brazil, Russia, India, China And South Africa

The BRICS (Brazil, Russia, India, China and South Africa) continue to become a larger factor in the global economy.

A recent agreement between those nations sets the stage for them to increasingly use their own national currencies when trading with each other rather than the U.S. dollar.  The following is from a news source in India….

The five major emerging economies of BRICS — Brazil, Russia, India, China and South Africa — are set to inject greater economic momentum into their grouping by signing two pacts for promoting intra-BRICS trade at the fourth summit of their leaders here Thursday.

The two agreements that will enable credit facility in local currency for businesses of BRICS countries will be signed in the presence of the leaders of the five countries, Sudhir Vyas, secretary (economic relations) in the external affairs ministry, told reporters here.

The pacts are expected to scale up intra-BRICS trade which has been growing at the rate of 28 percent over the last few years, but at $230 billion, remains much below the potential of the five economic powerhouses.

So what does all of this mean?

It means that the days of the U.S. dollar being the de facto reserve currency of the world are numbered.

So why is this important?

In a previous article, I quoted an outstanding article by Marin Katusa that detailed many of the important benefits that the petrodollar system has had for the U.S. economy….

The “petrodollar” system was a brilliant political and economic move. It forced the world’s oil money to flow through the US Federal Reserve, creating ever-growing international demand for both US dollars and US debt, while essentially letting the US pretty much own the world’s oil for free, since oil’s value is denominated in a currency that America controls and prints. The petrodollar system spread beyond oil: the majority of international trade is done in US dollars. That means that from Russia to China, Brazil to South Korea, every country aims to maximize the US-dollar surplus garnered from its export trade to buy oil.

The US has reaped many rewards. As oil usage increased in the 1980s, demand for the US dollar rose with it, lifting the US economy to new heights. But even without economic success at home the US dollar would have soared, because the petrodollar system created consistent international demand for US dollars, which in turn gained in value. A strong US dollar allowed Americans to buy imported goods at a massive discount – the petrodollar system essentially creating a subsidy for US consumers at the expense of the rest of the world. Here, finally, the US hit on a downside: The availability of cheap imports hit the US manufacturing industry hard, and the disappearance of manufacturing jobs remains one of the biggest challenges in resurrecting the US economy today.

So what happens when the petrodollar dies?

The following are some of the things we are likely to see….

-Oil will cost a lot more.

-Everything will cost a lot more.

-There will be a lot less foreign demand for U.S. government debt.

-Interest rates on U.S. government debt will rise.

-Interest rates on just about everything in the U.S. economy will rise.

And that is just for starters.

As I wrote about earlier today, the Federal Reserve is not going to save us.  Ben Bernanke is not somehow going to pull a rabbit out of a hat that will magically make everything okay.  Fundamental changes to the global financial system are happening right now that are impossible for Bernanke to stop.

We should have never gone into so much debt.  Up until now we have gotten away with it, but when demand for U.S. dollars and U.S. debt dries up we are going to experience a massive amount of pain.

Keep your eyes and ears open for more news stories like the ones referenced above.  The end of the petrodollar is going to be a very significant landmark on the road toward the total collapse of the U.S. economy.

So what do you think the fate of the U.S. dollar is going to be in the years ahead?

Please feel free to post a comment with your thoughts below….

  • Buzzy Watts

    If we aren’t the bloody City of Babylon, I don’t know who is.

    • wheedle

      City of Babylon sums it up nicely.

      Washington DC has known this was coming for a long time.
      Both political parties have shamelessly ruined this country.

      • Right on Wheedle,both parties have ruined this country!!!!

      • Ben

        And it was by design.

    • 314edpiper

      I agree, but with a touch of Sodom and Gomorrah thrown in to make our self induced plight more realistic. I mean, after all, we elected the people who made these decisions and sat idle while they unraveled our economy.

  • Rudolf

    You forgot to mention the agreement between Brazil and Argentina the two largest economies in South America, Since a year ago, maybe less they are using they own currencies…


  • Doug

    Nothing I can do about that…guess I’ll have to trust God.

    • required

      Trusting God: Nothing I can do about that. Guess I’ll have to do something material.

  • watchermax

    Without the status of reserve currency, our standard of living will plunge dramatically. A cascade effect will follow as trillions of worthless dollars come rushing home. More dollars seeking limited goods leads to…hyperinflation. The writing on the wall is bold as hell, but the MSM will not give any warning. After all, they are in biz to sell advertising. Not much use for that if the people can’t afford a can of beans let alone a high end auto. Form strong bonds with your community, together we are a force to be feared. Alone, or as a single family you will have a very short brutish life. God Blessed us and we pissed it away for flat screen t.v’s

    • Flaggdies

      Man you hit the nail on the head with a Mac Truck….

    • mondobeyondo

      People are either too ignorant, highly misinformed, or simply don’t care. Even Stevie Wonder can see what’s coming…

  • bart

    I went to tour some South East Asia countries like Vietnam,Cambodia,Lao and Thailand last year..even street vendors now accept Chinese yuan..

  • GSOB

    Trade is one thing. The petrodollar system is another.
    This article convolutes and confuses the two.

  • Wilson

    9 out of 11 examples above list China, they will have the new reserve currency, trade dollars for the yuan now

    • Tim

      I don’t think it’s wise to trade one fiat currency for another. It’s not just the USA’s economy that is collapsing; this is a global event. Trade your dollars for tangible items that have value and that you will need in the future–food, water, clothes, tools, etc.

  • Nostradamus

    “We should have never gone into so much debt.”

    Too late. The Fourth Turning will come in full force. Guarantee.

    US dollar will be lucky to be reduced to 40%, from 60%, of world’s reserve. But one event is helping – the Euro. Eurozone crisis, made worse by US banks stirring the pot behind the scene, is delaying the dollar reckoning. Which is why Eurozone masters are working overtime to fix their mess; and put a ‘China wall’ against the American money and power masters. It is not an exaggeration to say that Euro politicians are royally pissed at anything across the ‘pond’.

    In the meantime, China-Russia Shanghai Group alliance are moving forward with the grand plan – significantly reduce the power of the US dollar, and American geo-political power. It is working. Witness how Sec. of State Clinton huff and puff on Syria and absolutely nothing happen at the UN.

    “We should have never gone into so much debt.”

    The trouble with US politicians and power masters of the past 2 decades, after the end of the USSR, is that even with today situation given to them as fully revealed foresight, they will nevertheless proceed to ‘bring it on’. Such breathtaking degree of hubris can only end after the full force of the Fourth Turning has run its course.

  • By destroying our manufacturing base and focusing on cheaper imported goods (almost 100%) at this point our corporate structure has basically committed suicide and sold out the American republic. It will be interesting to see what retribution will be wrought upon those who sold our country and the American people down the drain when the petrodollar changes the course of history.


    Ive been talking about this for years. 99.9% of the idiot populace doesnt evan know what the petrodollar is. No one has a clue how privileged we have been, but theyre about to find out when no one can afford to live anymore and the riots on the streets begin. Cheers.

  • michelle

    like rats abandoning a sinking ship…

  • tappedops

    Bring it on… i sold my truck 2 years ago… ride an illegal brakeless murdering fixed gear fulltime… rain or shine… people hate me for it… close the friggin strait see if i care…

  • Mad-Max

    That’s right. Most Americans are clueless. These countries are smart enough to desert a sinking ship that’s too ignorant and corrupt to save itself. Can you blame them? This crash will be hard. But we have many other crashes right behind them. One after another and another. It comes from decades of kicking the can down the road and the problems just build up. Now they will start to burst.

    Run-a-way capitalism, corruption, greed and bad leadership will be the death of the republic. How much more can we stand. We only have one chance to fix this country before it’s too late. It’s time to use “The Nuclear Option” that the founding fathers left behind when our country starts to feed on itself just before it dies.

    “Democracy never lasts long. It soon wastes, exhausts and murders itself. There was never a democracy that did not commit suicide.”
    ― John Adams

    Wake up people – It’s TIME!

    “Be Smart!” –

    U.S. Citizens
    Read “Common Sense 3.1” at ( )

    Non U.S. Citizens
    Read “Common Sense 3.2” at ( )

    To be truly great we have to do great things. Free people don’t have to live like slaves. The real question is, are you really free?

  • Highspeedloafer

    As of today though, dollars still buy canned food, seed, lumber, tools, wells, guns, ammo, supplies, land, fertilizer, fuel, batteries, oil lamps,tobacco, solar systems and pepsi. Thats where every spare dollar should go till it will buy no more.

  • dmitry


    The future is so dim, thanks for the heads up.


  • Paul

    China is building huge oil storage systems. They are going to use the declining dollar of their reserves to buy cheap oil to fill their tanks to hedge against shortages and price rises.

    Their foreign reserves are about 3 trillion USD.

    If they buy all the oil for whatever price, American streets will be just parking lots.

  • Paul

    The Chinese yuan is not fully convertible.

    Chinese people are only allowed a limited amount of foreign currency. And they must apply for any exchange at the Bank of China.
    Even foreigners who work in China are only allowed a limited amount to exchange into foreign currency, and only with approval by the BOC.

    China is afraid of floating their currency, that’s why there are only a limited amount of bilateral agreements with selected countries.

    • Old Man

      The Yuan is not fully convertible, now. But it is convertible per each of the bilateral currency swap agreement with each country. This is the first step. China has begun the next step – it is setup a special bank to do convertible trade with foreign countries, under strict rules. This is a pilot to operate a convertible currency trading system. To learn how to manage it.

  • With jobs so tight now, where are all these folks going to work that are on Welfare or other government stuff (food stamps for me)? Jobs will be even tighter. Chuckie Schumer admitted today that the USG is incapable of cutting the budget. This was a very rare time when a democrat wasn’t telling a lie. So, there is no political solution. We already have terminal cancer I believe. How will it all end and when will it end? Maybe we will all just slowly slide into the ecnomic status of Mexico, and it will happen so gradually nobody will notice?

  • nadia

    not really, when Glass-Stegall will pass it won’t be relevant

  • chiller

    I’m wondering how long before the tipping point arrives when people run for the dollar exit. As the US got stronger at the expense of the rest of the world, we got bolder in our strong arm tactics bullying everyone. Now the world is slowly banding together in an orchestrated manner to pull the financial rug out from under the US. Being the bullies we are will no doubt start a very large scale confrontation as the US makes a last attempt to punish non-dollar believers.

    • Old Man

      It is true that US bullying the world is a cornerstone of US foreign policy after WW2. Indeed, it has been far more than economic bullying – such mild treatment is reserved only for friends and allies. Do you know many wars, battles and military conflicts US has hit against other countries after 1945? It is, on average, one hit per year.

      That the world has had enough long ago is established. Just that nobody dares to do anything about it.

      The last time an American president, with full Congressional support, displayed such utter arrogance and contempt for the world was just before Bush 2 decided to launch an all-out military invasion of Iraq. Remember there were massive demonstrations all over the world against such preemptive invasion without cause? From London to Moscow, from Calcutta to Sydney, millions of people asked Bush ‘Don’t do it. Don’t destroy US reputation.’ Bush went on US TV and announced “We do as we pleased. We don’t need UN Security Council approval (for invading a country who has not attacked the US). Either you’re are with us or against us.” The people cheered when they saw ‘shock and awe’ busting up Iraq and its people.

      You know, there are reasons why arrogant empires fall from its own accord.

  • jox

    Very good job putting together all those agreements.

    As the last quote says, the downside of the petrodollar has been that “The availability of cheap imports hit the US manufacturing industry hard”. So then, when the petrodollar dies, there will be one important advantage: everything is going to be more expensive, BUT US manufacturing jobs will soar.

    • Josh

      “BUT US manufacturing jobs will soar.” no so much, the factories are gone, so is all the equipment for manufacturing. we would have to start completely over like at the start of the industrial age except we dont have the food system like the industrial age we have one where food is transferred 1500 miles to the consumer, back then it was all local based, plus they didnt have all the debt we currently have on our backs. plus our dollar will be worthless at that point. i believe there will be minimal jobs, most likely the people who make it through the collapse of the food system will be spending all their time surviving, bartering, protecting their home and such. there will be no time for a “job” unless you count surviving a job because thats what it will be.

    • newbeflipflop

      Hi Jox,

      If foreigners have dumped the dollar and Americans are broke. Than who will buy the products from the US manufacturing? Good luck on your idea of US manufacturing will soar. Interest rates will go up, all our machinery is in foreign countries now and we are to broke to buy products from those US manufacturing.

      Good luck to all.

  • When the Bretton Woods agreement was hammered out back in 1944 it was assumed that the United States would be the dominant power in the world & that the dollar would be the new international currency – for about 27 years until August 1971 this agreement worked out fine until then President Nixon cut the U.S. completely off the gold standard for international trade – since then the dollar has been a fiat currency backed with nothing but the promise to pay on the full faith & credit of the U.S. government – that “full faith & credit” is now being stretched beyond all credulity with a soon to be 16 trillion dollar debt & the Fed’s flooding the banks with more & more paper money that each day loses a little more value – other countries have figured this out & want nothing to do with the dollar – the REAL day of reckoning will come when: 1. the dollar is refused to be accepted worldwide or 2. if the Chinese currency becomes the dominant currency around 2016 or so & 3. Other countries refuse to buy our government debt & then interest rates will HAVE to go up – did you know that we only sold 39% of our debt overseas? The Fed bought the other 61% – wait until the Fed ends up buying 100% of our debt – folks it won’t be pretty!

    • Old Man

      And why did Nixon de-coupled the dollar from gold? The immediate reason was France was going to call on the US Treasury to redeem its dollar reserve for gold, which Nixon saw as an affront to American power. But the real reason was the Fed was printing massive amount of dollar to pay for the Vietnam war, thus creating 15% inflation. France want out of the dollar and Nixon won’t let it. In effect, Nixon defaulted on US dollar debt.

  • john.s

    still waiting..

  • Bigdog1

    Just one more huge example of the dying American empire. The legs are being kicked out from under the average America & the average American has been so dumbed down that they don’t even realize it. The collapse of the dollar along with the intentional offshoring of manufacturing jobs forever lost coupled with the destruction of the US dollar with the criminal printing of trillions and trillions backed buy nothing by lying politicians coupled with the orchestrated implosion of the one strength for domestic energy production – coal burning power plants being shutdown by the criminal unconstitutional EPA; the complete lack of enforcement of financial regulations on the criminal banks, COMEX, & Chicago MERCANTILE EXCHANGE where known fraud has been perpetrated against investors for years; a banking system that in & of itself with it’s fractional banking mechanism – how much longer before the largest economic implosion occurs in what was once the greatest economic the world has seen – I just don’t see how much longer it will be before the wheels come completely off the wagon economically, socially & politically. God help us……………

  • Tobrojo

    I have heard that one of the primary results of WW2 was that much of the worlds oil was in US and Brittish hands. Makes you wonder in light of these developments if history may try and repeat itself?

    • Mal R.

      “one of the primary results of WW2 was that much of the worlds oil was in US and Brittish hands”

      Not so much.

      • GaryToo

        oh yes, why do you think Rommels africa korps fought so hard with the allies in northern africa over useless desert? OIL BELOW.

  • pete

    It’s cool how the human body rids itself of waste. It is starting to look like the world economy works about the same way??!!


  • YankeeDoodle

    Were like a drunk in a fight that has been beaten bloody and refuses to acknowledge he has been beaten and continues to get up so he can be beaten some more.

  • Jason

    Saddam in 2000 used the only WMD he had by selling oil in Euro’s. This made the dollar depreciate rapidly against the euro shortly thereafter. Shortly after the 2003 invasion the Iraqi oil was quietly converted back into dollars. The msm never reported on it.

    Iran for some time has not traded in dollars………..

  • Evie

    That is what the usa deserves building an economy based on debt and handing the banks trillions of dollars. What incompetant leadership to allow this to happen. The citizens and the country mean nothing to these people.

  • Johnny Apple Seed

    Great Article Michael… I will definitely inform the younger working generation (18-25) on these issues of the petrodollar and recommend them reading some of your other articles.


    • Michael

      Thank you 🙂 I very much appreciate all those that help spread these articles around.


  • Professor Gary

    A technical error was written in points #2 and #3. You claim that both Brazil and Australia do more trade with China than anyone else. That is contradictory because they can’t both be the greatest trading partner simultaneously. The point you are making though is unaffected and worth the consideration of all Americans.

    • Michael

      I was correct, but I think I could have said it more clearly.

      Brazil exchanges more goods and services with China than Brazil does with anyone else.

      Australia exchanges more goods and services with China than Australia does with anyone else.

      Does that help make things clearer?


  • anderum

    key word: China

  • nojoke4153

    Agenda 21?

  • Dave in TN

    Your analysis is spot on except that you missed one critical variable and that is the ability and willingness of our nation’s overlords to make war in order to protect the status quo. Is it not true that Saddam Hussein (IRAQ) and Moammar Gadhafi (LIBYA) began to implement oil trading in the Euro? And gee, look what happened to them. Bottom line, IMHO, is that all bets are off.

    • Zedgehero

      Yeah, but Saddam was our friend then our enemey, where Gaddafi was our enemy then our friend then our enemy. Why can’t we just get a facebook page so we can keep up with who our friends are on the playground, because sometimes I get confused. Like Pakistan- Friend? or foe? Yemen? Saudi Arabia? Russia? Holy S@$@ do we have any friends left bedsides our western civ subsidaries? I told you we need a facebook page!

      • GaryToo

        good comment and judging by the successful revolutions in libya and now looking strong in syria, al quaeda was the enemy and now the friend to go in and do the dirty work under the table armed by nato.

  • Kathy Smith

    It’s ok I heard yesterday from a “reliable” MSM news station that Ben Bernanke was telling Congress how he is going to save our economy. This should make all of us feel alot better. LOL!!!!

  • Alex

    Lindsey Williams said it folks…the dollar will be dead by December 2012!

  • A.S.

    Notice how China is found in almost every item? It seems that China and Russia will rule the world. I predict when oil price goes up, so will gold. And when gold per ounce goes above the Stock Exchange index, this will be FINAL END of the U.S. which there will be 0% change of recovery. It will be the called the Greatest Armageddon Economic Collapse.
    So people, stock up on food, water, supplies, guns, and ammo as much as you can. There are ways to get free food: just watch the Extreme Coupon videos on YouTube to learn how to buy free food.

    • Old Man

      Russia is the world biggest exporter of oil, gas, and one of the biggest in raw materials. China and Europe buys a huge amount of these. These gigantic trades are being done NOT in US dollar, as they would in the past.

      The biggest dollar trade US has is with Canada. Twice as large as China and Japan combined. This is still done in easily convertible US-Cdn dollar. Which is one good reason not to piss off Canadians, one thing American politicians love to do just by second nature.

    • Josh

      please be careful of this so called free food, ive watched that show extreme coupon sadly the coupons are for food that is basically poison. if you read the boxes at the stores and start researching whats in the products its scary, i no longer call the grocery store, grocery store i call it the poison store. the key to surviving is to have food that is nutritional.

      • A.S.

        I would only use those coupons for laundry stuff, cleaning supplies, bathroom supplies (nothing to put into the mouth like toothpaste), etc. If I were to get things that are poison, I would use it to trade/barter for good healthy things.
        When I get an overage, I will use that to buy fresh fruits/veggies, etc. If I were to find something healthy, I would look for coupons for whole grain brown rice, even if not organic (I know, organic is better, but it will be free) and the like. It is possible to use coupons for healthy stuff; when the come, just stock pile hundreds of them. And use the rest like I said to barter with (yeah kind of hypocrite of me to be healthy yet giving poison to others in exchange for things that i need and cant’ buy with coupons).

    • Andrew

      China will swallow Siberia in less than a decade;
      mark my words A.S.

      • A.S.

        I am not doubting that….I very well know that China or Russia will become the new Super Power of the world.

  • Justacomment

    Its easier to take first place than it is to keep first place. Guess this was bound to happen.

  • Bob Marshall

    “I place economy among the first and most important virtues and public debt as the greatest danger to be feared.” Thomas Jefferson. We know our government is much smarter than our founders were in their day.

  • erheault

    AHHH but we have Obamma and all of his highly trained staff that can handle any problems that may arise, Fear not Big Ben also has a plan to save the economy in fact the helicopter is now warming up and the bales of dollars have been loaded aboard wating for the command, Rest assured we are in good hands.

  • 1stVArifleman

    No pecuniary consideration is more urgent, than the regular redemption and discharge of the public debt: on none can delay be more injurious, or an economy of time more valuable.
    George Washington

    No generation has a right to contract debts greater than can be paid off during the course of its own existence.
    George Washington

    If ever again our nation stumbles upon unfunded paper, it shall surely be like death to our body politic. This country will crash.
    George Washington

    I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
    Thomas Jefferson

    …democracy will cease to exist when you take away from those who are willing to work and give to those who would not.
    Thomas Jefferson

    It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars.
    Thomas Jefferson

    The central Bank is an institution of the most deadly hostility existing against the principles of our constitution.
    Thomas Jefferson

    Paper is poverty,…it is only the ghost of money and not money itself.
    Thomas Jefferson

    History records that the money changers [(bankers)] have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance.
    James Madison

    The refusal of King George III to allow the colonies to operate an honest money system. Which freed the ordinary man from the clutches of the money manipulations was probably the prime cause of the revolution.
    Ben Franklin

    All the perplexities, confusion and distresses in America arise not from defects in the Constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation.
    John Adams

    You are a den of vipers. I intend to rout you out and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.
    Andrew Jackson

    The money powers prey upon the nation in times of peace and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. They denounce as public enemies all who question their methods or throw light upon their crimes. I have two great enemies, the Southern Army in front of me, and the financial institutions in the rear. Of the two, the one at my rear is my greatest foe.
    Abraham Lincoln

    I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed.
    Abraham Lincoln

    The government should create, issue, and circulate all the currency. Creating and issuing money is the supreme prerogative of government and its greatest creative opportunity. Adopting these principles will save the taxpayers immense sums of interest and money will cease to be the master and become the servant of humanity.
    Abraham Lincoln

    Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.
    James Garfield

    I am the most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by its system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.
    Woodrow Wilson

    A world banking system was being set up here…A superstate controlled by international bankers…Acting together to enslave the world for their own pleasure. The Fed has usurped the government.
    Louis McFadden

    The [Federal Reserve] Act establishes the most gigantic trust on earth. When the President signs this Bill, the invisible government of the monetary power will be legalized…….The greatest crime of the ages is perpetrated by this banking and currency bill.
    Charles Lindbergh

    Long Live the Constitutional Republic!
    Sic Semper Tyrannis!

    to any Fascist Monitor: Molan Labe

  • GA

    Michael. With Europe the way it presently is and China having its own economic issues, will investors continue to seek safety in the US? If so, how long do you think that will last? Plus, is it possible that all of the recent infringements on personal liberties, such as NDAA and others are being put in place in advance of an anticipated dollar crash and the subsequent chaos that would result?

    • Michael

      Those are some very good questions.

      I think that investors will not be seeking safety in the U.S. for too much longer.

      And I definitely think that preparations are being made for the chaos that is coming.


  • As the dollar value declines so will the stock market/investments., The major purchaser will be the FED. Eventually the bank comglomerate will “own” the Western system. My opinion is that there will be a peak in inflation, then a drop.

    In the mean time there will be much confusion and manic behaviors on the part of the Government leading to more problems.

    During this stage you will rely a great deal on your preparation.

    Old Timer

  • José

    bye bye, $

  • José

    Please send me your old dollars to heat my house this winter.
    Thank you.

  • Mr GoodmanUK

    Lets get it right, everything won’t cost more. The USD will be worth a lot, lot less so you’ll need a lot more of them to buy things with.

    Understanding the Petrodollar cycle is the biggest thing you need in order to comprehend what is going on it the world.

    Lets not forget the US military role in future events though.

    If the US…a la, UN manage to take down the Syrian regime leaving the flood gates open to attacking Iran it will merely be a great big sign to the BRICS nations……mess with the petrodallar cycle at your peril.

    • Josh

      “Lets get it right, everything won’t cost more. The USD will be worth a lot, lot less so you’ll need a lot more of them to buy things with.”

      no matter how you say it you will get the same result. no one will be buying anything, even if the cost stays the same and the dollar value drops meaning you will need more of them, money just doesnt appear out back on the money tree. you cant just go get more dollars. companies arent going to increase everyone’s wage if the value in the dollar drops. they will have the same amount of dollars with less value meaning… no one will buy anything!(i believe we are already seeing this)

      i would have to disagree with the statement everything wont cost more.
      most everything has gone up in price in the past few years, some times they by pass this in some products by making the package smaller so youre paying the same price for less of something so in all reality the price has gone up.

  • goldnguns

    James Dale Davidson says the same thing. The era of the petrodollar is rapidly closing. Invest in entities that short the dollar, buy gold/silver, and agricultural land (even in a coop but get some tillable acreage). “we have met the enemy and he is us”

  • Seratone

    Wow looks like China is totally playing power politics to destroy us economically. No surprise there!

    On an unrelated matter, I found an interesting article Michael on the impact of defense sequestration cuts. We here in the DC area are hugely concerned about this.

    • Old Man

      Pretty stupid comment.

      If China wants to destroy the US economically (which is utterly stupid), it won’t have bought more than $2 trillion of Uncle Sam bonds, and won’t still be buying more every month. It won’t be exporting so much to the US and thus depend on it. And it won’t be sending its best students to US universities.

  • marc

    With all these deals is it possible many of these countries are exchanging their worthless pieces of toilet paper while they keep for themselves the mighty US dollar….

  • Barn cat

    Iran has also been selling oil to India and Turkey for gold.

  • Washington

    PROOF: Mitt Romney Is As Liberal As OBAMA!!!

  • Washington

    Syrian opposition prepares provocative act against Russian warships group – Central Navy Portal source

  • Ronald Morrison

    You fail to note that the United States is becoming an energy giant with massive supplies of: coal, natural gas, oil, wind, and others.

    Also, we can always bring our troops home and create fortress USA.

    Finally, if we decide to fully support Israel, since Arab oil is no longer important to the USA, than we can expect to reap God’s blessings as promised in Genesis 12:3: “And I will bless them that bless thee, and curse him that curseth thee: and in thee shall all families of the earth be blessed.”

    • Ronald Morrison

      You fail to note that the United States is becoming an energy giant with massive supplies of coal, natural gas, oil, wind, and other forms of energy. Thus, the USA no longer needs to rely on importing oil from unfriendly nation.

      USA can always bring its troops home and create fortress USA and let the rest of the nations of the world take care of their own security problems.

      Finally, if we decide to fully support Israel, since Arab oil is no longer important to the USA, than we can expect to reap God’s blessings as promised in Genesis 12:3: “And I will bless them that bless thee, and curse him that curseth thee: and in thee shall all families of the earth be blessed.”

      • Ronald Morrison

        You fail to note that the United States is becoming an energy giant with massive supplies of coal, natural gas, oil, wind, and other forms of energy. Thus, the USA no longer needs to rely on importing oil from unfriendly nations.

        USA can always bring its troops home and create fortress USA and let the rest of the nations of the world take care of their own security problems.

        Finally, the USA can now decide to fully support Israel, since Arab oil is no longer important to the USA, than we can expect to reap God’s blessings as promised in Genesis 12:3: “And I will bless them that bless thee, and curse him that curseth thee: and in thee shall all families of the earth be blessed.”

        • GaryToo

          did repeating that nonsense 3 times like a mantra help you try and believe it.
          1 Fracking is futile. You destroy the water table for a very expensive and very short lived well.
          2 The us causes all the worlds “security problems” by attacking and interfering in other countries. The rest of the world would be happy to take care of it self. (the book on sending you home has been written in korea, vietnam and now iraq and afghanistan). Nobody is coming to invade you, they just wait for you to give up when you come to invade them.
          3. check out how much oil you import before imagining you could ever be self sufficient.

  • Evie

    The us military is also the largest consumer of oil in the world.
    Everything will be just fine people if you work for low wages.



  • Antonio Gonzalez

    ” The era of the petrodollar is rapidly closing.” Why ? because America never can’t pay back the petrodollars.

    Really the America working country is dead, and the world needs run forward.

  • Love Your Blog it’s full of truth and always talks about what’s important.
    Thanks for your work.

  • Ronald Morrison

    You fail to note that the United States is becoming an energy giant with massive supplies of coal, natural gas, oil, wind, and other forms of energy. Thus, the USA no longer needs to rely on importing oil from unfriendly nations.

    USA can also bring its troops home and create fortress USA and let the rest of the nations of the world take care of their own security problems.

    Finally, the USA can now decide to fully support Israel, since Arab oil is no longer important to the USA. By fully supporting Israel the problems now faced by the USA will be a thing of the past because the USA will reap God’s blessings as promised in Genesis 12:3: “And I will bless them that bless thee, and curse him that curseth thee: and in thee shall all families of the earth be blessed.”

    • GaryToo

      you have already fully supported israel and the blessing bonanza is all over red rover. get real mate.

  • jsmith

    Right now you can buy silver dimes for $2.50 to $3.00, quarters for $6.00 to $7.00 and half dollars for $12.00 and up. I believe silver will go up even more and will be used instead of Federal Reserve notes.
    You should be able to buy a house for a couple of ounces of gold, and for smaller transaction you can use silver Eagles and the above silver coins. Of course most of you will ignore this advice. Michael, do you own both metals? Got gold? Got silver?

    • mondobeyondo

      I did exactly that this weekend at a local swap meet. Bought some pre-’65 dimes, quarters and half dollars. It cost me nearly $80 (in Federal Reserve Notes), and money is very tight right now. But I know a bargain when I see one…hehehe.

  • Charles Santos


  • Pastor Joel

    Matt 24:15 the Gospel must be preached to all the world. I don’t think everything will fall apart untill that happens. Rev 16:12 states very clearly, that China will be the next super power of the world, after the Rapture of the Church all bets are off for the USA the only place we could appear is in Jerusalem as one of the nations that are gathered together against it Zech 12:3

    • Nathan

      There will be no rapture.
      John 3:14-15
      All will suffer the tribulation, it’s just that those that believe will, as the Israelites were commanded in the wilderness as they were bitten by the

    • Nathan

      There will be no rapture.
      John 3:14-15
      All will suffer the tribulation, it’s just that those that believe will, as the Israelites were commanded in the wilderness as they were bitten by the serpent and those who looked steadfastly on the serpent that Moses held up, so will those who suffer the tribulation that steadfastly remain fixated on Jesus Christ who is “THE HOLY WORD”, will suffer the tribulation without harm. As did Job who after his trial was placed in a more glorious position than

      Now that that’s out of the way.
      As far as the United States demise is concerned, there will be no rising power in China. The entire world is going to collapse under this coming upheaval.
      If we are reading from the same HOLY BIBLE.
      The entire world is only being positioned for war! And that’s all.
      Petro dollar, Metro dollar whatever.
      There is no demise of the U.S. We are witnessing a global demise. The entire world is in the clutches of satan.

    • nyarlotep

      Wow, that has absolutely nothing to do with anything. Thanks for sharing, though.

      • David Evans


    • joe oberr

      How do I know that your personal guesswork on bible verses is correct?

    • jose

      People keep looking for an external savior to come out of the sky to save them from their own sins(missing the mark; or “moon” following the steps of the lunatic). There are no external saviors. Better prepare with gold and silver, food storage and a little common sense because it is coming. Can’t look for an external savior when all religions are allegories based on a hidden internal kingdom. The days of the US are numbered. We have been weighed and found wanting. The scales of libra are unbalanced severely. We are heavy with burden and don’t have rest. Stop saying good morning and start getting used to hearing good mourning. We are ripping what we have sown like the military man in pan’s labyrinth and now we have to pay up. The individuals of this country need to be prepared to protect themselves, there families, friends and even neighbors in the coming crisis. Jesus kicked the tax collectors and usurpers from the temple but yet we have protected taxation a sin in the christian and islamic religions. You want salvation go read the gospel of thomas. Otherwise back to our current situation if you do not have gold, silver and food – wow – good luck.

  • LP

    Maybe once we can no longer just exploit the cheapness of a lot of 3rd-world-manufactured junk that we don’t need anyway, mooch off the spread on currencies with our “petrodollar” and suck money out of the real economy with a bunch of creatively designed ponzi schemes, Americans will decide enough is enough and DO something again–like grow food and make products.

    • Tee Gee

      Pastor Joel;
      The Gospel has been preached in all the world. We’re Here. The buds on the fig tree are green, and the fruit is nigh. Isn’t that the sign? The Chinese are building a road to Europe. Supposedly, it will go through Jerusalem.
      And the number of the army of the horsemen were two hundred thousand thousand: and I heard the number of them.” [Revelation 9:13-16]

  • i’vegivenup

    The clock is ticking…tick…tock…tick…tock…

  • Ben

    Start learning some tangible skills, store up food, ammo and medical supplies. Work with your neighbors. Even though they are unpreparerd, you will need to rely on one another. Some parts of the country will be worse than others.


  • Brunner

    … and if the decline of the dollar in conjunction with the economic collapse weren’t enough, there will be a lot of ‘revenge activity’, the likes of the Euro payback, which will utterly devastate the USA intentionally even more because we have screwed just about every country on the whole globe in the last 60 years. Unlike our one quarter profit “long term” memory, other people have far longer memories. May God have mercy on all those spoiled American kids who have learned nothing, know nothing, do nothing, want everything at everybody else’s expense. I truly feel excruciatingly sorry for them already.

    • Zedgehero


  • Rebel Scum

    Hello Michael-

    I have a question for you.

    The dollar is the world’s reserve currency, so I am assuming that 100% or close to 100%, of all international trade is conducted in the petrodollar. If you add up all 11 of these new international trade agreements, what percentage of the petrodollar used for trade will be left??? Since the world’s second and third leading economies have cut out the dollar and with europe going down the tubes, do you think the petrodollar will now account for say 50%, 30% or 25% of all international trade?

    I think the answer would be the icing on the cake for such a well written artice…and it would really open some eyes.

    Thank you

    • Michael

      I think that we are going to see the use of the U.S. dollar steadily decline. It will be hard to put an exact number on it because it will be constantly going down.


      • tony

        I think we are seeing the decline in the USA with the wealth destruction in our majority held assets like housing . And with all the Industry and manufacturing gone whats left that can be valued and grown with a future growth estimate that can be calculated to pay the debts ?

  • davidmpark

    The countries that made these agreements did so for their own gain and protection – I fault them not on it.

    Right now I seek to distance myself from the utilities and food grid by mine own production and industry. Will it cost jobs for me to do this? Not really; it’s just a single home doing it. Will my family still do shopping? Yes; there’s some things we don’t make. Does this make me a villain?

    They do according to what is advantageous to them: by using their own currencies and not the failing US dollar they do wish to protect themselves when the dollar is finished off by Congress and the Administration. The situation is bad for us and in many respects, it’s our fault.

    We allowed our leaders to do horrific things to our monetary system for decades. We allowed the spending without answering to their people. We did not hold them nor the profiting institutions accountable using either societal pressures, ballot initiatives, punishment at re-election times, or in court.

    The answer for us is individual and familiar preparation and production. Prepare for the worst by gaining a year supply of basic commodities and then learning how and gaining abilities to replenish everything you use.

    The dollar, under current leadership at every level, coupled with our unconscionable debt and appetite for sins, will collapse. The final nail on the coffin probably brought by hyperinflation followed by an EMP.

    • HecatesMoon

      I think China saw an opportunity and jumped on a good chance to push the U.S. under. And no, you aren’t a bad person for shopping!! Ha!
      David, I like you. You’re cool. 🙂
      (Is “cool” still cool? Or is it something else now?)

    • HecatesMoon

      Say Davidmpark, I think you’re a good person to go to for an opinion on something like this…
      Some people are apparently about to build a house on acreage we don’t own, but we will be left staring at them which we do not want.
      I can go out and buy evergreen trees that are larger and spend what…probably $20 or more per tree, but get some sort of immediate coverage or I can buy little bitty trees- 5 for $50.
      We would have to wait for coverage, but the type of tree I am looking at grows 3 to 4 feet per year.
      What do you think?

      • davidmpark

        Yeah, any shrubs or trees on the market will be about 1 – 1.5 feet tall, so you’ll need to wait several years for coverage. So, go for the $20 ones.

        • HecatesMoon

          Thanks, David. 🙂 I couldn’t make up my mind. I thought…”well I can look at them for a little bit.” but on the other hand, if shtf too awful soon, I’d be sitting out in the open for everyone ELSE to see.
          Ugh…they tore down every single tree and every bit of brush all along the fence line of the road along their portion of the field. We are wide open now along this huge bend of road.

  • Us Preppers who alot of people ridiculed,laughed at,sneered at,or told us that we were paranoid, well remember this “he who laughs last laughs the loudest”.
    I am also glad I learned how to make ethanol and have the means to grow corn to produce it.

  • A great article as always. The mainstream media and even alternative media harp on our debt. As bad as that is it pales in comparison to the loss of the dollar as the world’s reserve currency. This would bring the US into third-world territory. What is happening to us is eerily similar to what has happened to Argentina who’s standard of living once surpassed ours. It’s been ten years and from what I understand Argentina is still going downhill. The question is will the USA go into permanent third-world status?

  • chiller

    Here’s a site that carries a deck of cards with some of the players in the US responsible for their corrupt behavior.

  • Nancy

    As a single mom of four I often wonder if I’m living/ raising my children in the right state. Four years ago after the real estate crash and my last home purchase gone south I moved my family to Hawaii. I know that the will of our Father will done no matter. But I can’t help wondering if I’ve put my family in even a more dangerous situation. Prices here for EVERTHING are so much higher to begin with I just wonder if also we’d be a target of interest due to the very large military bases here in Oahu?
    I doubt Joel has the time to read all the comments but I’d be grateful for any constructive advice.
    Thank you and God Bless!

    • Sarah

      Not to mention the fallout from Fukushima. You couldn’t pay me to live in Hawaii right now, but maybe that’s just me – something about living on an island seems claustrophobic to me – nowhere to get away to if it became necessary.

      Nancy, I think you are right to be concerned. Coming from a fellow single mom, I don’t know what kind of financial situation you are in, but I would get the heck out of Hawaii and move someplace where the land is cheaper and the water is clean while you still can. In this real estate market you might as well rent for awhile anyway. I know that’s not very constructive advice, but sometimes just making the decision can kick start the process. I wish you all kinds of good luck.

      • SilverSurfer

        I lived in Honolulu for 14 years, and left for Europe 7 years ago. The fallout from Fukushima is much less of a concern for Hawaii than it is for the west coast of the mainland USA. Just take a look at the maps of the fallout online. It is all going well north of Hawaii. However, I wouldn’t be eating any fish!

        The bigger concerns, and why I am happy I left (although I miss Hawaii a lot) are 1) in case of war or societal collapse Hawaii would be starving within a week 2) in case of war Hawaii is one of the top target areas in the world, and of course, 3) the entire USA is heading rapidly towards being a totalitarian state. Aloha, and good luck!

  • The U.S.A. will not stop deteriorating until it has been completely destroyed and handed over to its enemies. Read Leviticus chap. 26. This planet and everything in it belongs to Yahweh, GOD of the Hebrew Bible, the only true GOD. He will do what he pleases with everything in it. He makes the laws and humans are to abide by His laws or that nation that does not will be taken away from those people and given to another.

    • Brick Top

      “He makes the laws and humans are to abide by His laws or that nation that does not will be taken away”

      I guess You’re God is OK with the Vatican and IsraHell, and their proven history of child molestation, murders, drug smuggling, money laundering, etc, etc? Idiot.

      • Paula W

        WHY would you ‘guess’ that Brick Top.??
        Don’t you read the Bible
        Do you have no idea who God describes the ‘harlot’ church and who the true and the false are and how to know the difference.
        I ‘guess’ not huh ???

  • Viv

    I don’t believe it’s all but lost. Something can still be done as long as the decision is made to do it and to do it well. I just wonder what will be Obama partition in that demise!

  • I will repeat that when I read articles like the one above, I think that this is a good metaphor for future of USA economy:

    Exploding iceberg in Antarctica!

    Bit by bit, the people that control the people that control the government of the USA have been hollowing the system out. They appear to want to destroy the republic, and they are clearly succeeding in doing so. I can not think of anything but implausible series of political miracles that could change the path that we are on … therefore, there MUST come some time in the future when that video above is a good metaphor for what finally has to happen.

    However, the difference is that the collapse of the American economic system is on an astronomically amplified scale, with consequences that are quite impossible to imagine.

    I also think that there are correlations between nature going nuts, at the same time as civilization goes crazy.

    We have very rapidly built a system of global electronic fiat money fraud, backed up by atomic weapons. The collapse of a system of that ASTRONOMICAL SIZE no longer fits within any kind of common sense comprehension. Rather, we are looking at the magnification of lies, backed by violence, by billions and trillions of times, … until the collapse into chaos of such an incomprehensible system is a psychotic breakdown somewhere in the quadrillions of times more insane than we can actually imagine.

    The magnitude of the triumph of the frauds, backed up with violence, that built the currently established systems seems to have become the only thing keeping them going … Nobody can imagine what happens after the American Dollar and American Military became like flying unicorns and dragons, whose sheer unintelligiblity was the only thing keeping them in the air. We have outdone old Orwellian ideas by several orders of magnitude. The secretive ESF, Exchange Stabilization Fund, that appears to be behind the five biggest banks holding hundreds of trillions of units of whatever the hell their derivatives complexes represents, have systematically stabilized a pyramid scheme house of cards to be able to built, until it went over the dark side of the moon.

    Every “success” of the established systems made it possible for its huge lies to make and maintain FRAUD TO BE KING OF THE WORLD.

    The longer that the established systems “succeed” in their efforts to stabilize themselves, and to benefit from that, then the more unimaginably spectacular must be the final psychotic breakdowns, due to the fundamental insanity of global electronic fiat money frauds, backed by nothing but mass destruction weapons.

    We are witnessing the triumph of organized crimes on an astronomically amplified scale, which no longer makes the slightest bit of common sense anymore, and which, therefore, cannot be predicted nor understood with any kind of residual common sense.

    To return to the image in the video above, the difference is that we are sailing in and through, looking up at those systems that we are INSIDE OF. Therefore, the whole world is deserving of a “Darwin Award!”

    Our ability to get away with backing up huge lies with violence for so long has created a system that we almost all depend upon to live, but which is utterly insane, to an astronomically amplified degree.

    The American Dollar and American Military became the heart of the global money/murder systems. We are living on the basis of astronomically amplified systems of organized lies operating organized robbery. However, we blithely keep sailing through those established systems, taking them for granted. It is apparently impossible for us to understand what we are doing!

    Thus, again, I think of that video I linked above, and with the qualifications that it is astronomically bigger in the real world, and that therefore, we are now INSIDE of that metaphor, it nevertheless looks like only a matter of time until what we see in that video happens around us too.

    That is way too awesome in SIZE to believe that holding gold or guns will help us to survive through that economic collapse. I also do not believe we could collapse coherently back to any other, even older, level of technologies.

    The current systems of electronic fiat money frauds, backed up by atomic bombs, are NEVER going back to gold and guns, nor to any other coherent image of past levels of human development.

    People are deluding themselves to believe that. We are going to have to change our politics as much as we changed our physics, before we have a hope of surviving the real physics that we have already created, or could reasonably expect to create.

    Our science and technologies have multiplied everything by billions and trillions of times. However, the basic design of Neolithic civilization then became based on lies, backed by violence, that was billions and trillions of times BIGGER. I see barely the slightest signs that our society will be able to understand what is going to a happen to it. Rather, we shall be going through an extraordinary social psychotic breakdowns, that goes far, far beyond the ability of the socio-psychopaths that control our civilization comprehend!

    I guess there was never any way out of the dilemmas of the human experiments in the evolution of intelligence. As Einstein joked, it seems that human stupidity is infinite. However, there must be some limit, somewhere, to the established systems of global electronic fiat money frauds, backed up by the threats from mass destruction weapons. We just have no way whatsoever to actually imagine what those will be …

    As in the video linked above, each of these 11 examples of the collapse of the American (petro) Dollar system are like watching small pieces of the whole break off, and fall away, while STILL the basic system stands. However, as each new piece falls away, and the system as a whole gets more and more hollowed out, theoretically, there must come some point where the arch of the system as a whole collapses down to whatever level of reality is left there afterwards.

    Perhaps some of us may survive through that somehow, and thereafter come to better terms with things like electronics and atomic energy, to rebuild some new systems, from the surviving seeds of the old, … but to do so requires we change our politics just as much as we changed our physics, in order to make those technologies possible, which drove the creation of American Dollar and American Military, that we take for granted today.

    The kind of politics we need in the future is almost beyond imagination. One thing I am sure of, is that it could not be a return to old fashioned gold and guns systems. There is no science fiction anywhere that I am aware of that came remotely close to imagining this … The ASTRONOMICAL AMPLIFICATION BY MANY ORDERS OF MAGNITUDE leaves no story tellers and no audiences left to comprehend that!

  • NorthernCanuck

    This article, from 2010, sounded a clear alarm:

    In China, many younger military leaders view America as the ultimate enemy
    By David Gewirtz for ZDNet Government | October 12, 2010

    (extract)”…While these younger leaders see America as a market in much the same way their elders did, the younger leaders also see America as a competitor for increasingly scarce resources that they need in ever increasingly large quantities.

    They also don’t trust us.

    While older Chinese leaders had long seen America conduct Cold War relations with a predictable level of severity, the younger leaders have seen us invade sovereign nations and they’ve seen our capricious governing style. They’ve seen how our poor economic management can have worldwide repercussions. And they’ve seen how willing we are to mortgage our future for a few votes today.

    To these young Chinese leaders, America seems like the dangerous old bear, not Russia.

    There’s another difference between younger Chinese leaders and older ones. The younger leaders, while not quite young enough (yet) to be digital natives, are still quite tech savvy. They understand computers and computer networks. They understand hacking. They understand cyberwarfare.

    They understand how a cyberattack could disrupt a nation or a company.

    They also understand traditional military. That’s why China is not only building its own carrier, they’re also investing in carrier-killing technology.

    And, they also understand that they can undercut Americans for jobs and provide similar work output for a tenth of what American IT workers can afford.

    These younger Chinese leaders need to be watched.

    Unlike their elders, these young leaders and young warriors are not just capable of playing on the traditional military battlefield, they’re also fully prepared to battle us economically and even across the Internet.

    Terrorists are one thing. But a fully empowered China, testing us politically and in cyberspace, while at the same time loaning us trillions (with all the resulting entanglements and obligations) — that’s almost terrifying.

    As time goes on, more and more younger, digital generation Chinese leaders will come into power, and the United States will have to alter its policy to take their changing attitudes into account.”


    Chinese video game ‘Glorious Mission’ chooses US Army for its enemy

    May 18, 2011
    By Molly McHugh

    “A new military training video game pits Chinese forces against the US.

    Video game violence never fails to garner more attention than it deserves, but a new title called Glorious Mission has become something of a controversy. The game comes from PLA, which is not an acronym for a development firm but instead the People’s Liberation Army of China. The PLA collaborated with Wuxi Giant Interactive Group to create the game which pits Chinese soldiers against their main opposition, the US military.

    Glorious Mission (also known as Mission of Honor) is being used a training tool for PLA recruits treads on some dangerous territory by piquing U.S. concerns of nationalism and anti-American sentiments. Using video games for military training methods is nothing new; in 2008 the U.S. Army invested $50 million to develop games for combat preparation. What’s raising eyebrows with Glorious Mission is the choice to focus on American troops as China’s primary enemy….”

    • Michael

      Very, very good points about China.


    • Gay Veteran

      which country has military bases surrounding the other?

      America has military bases surrounding China

      • jimbo

        These bases cost much to operate and provide no benefit for their cost. This is yet another reason why America is going down, bankrupting itself with unnecessary military spending.

  • mondobeyondo

    These other countries, making agreements with other currencies, already see the writing on the wall. They know the U.S. dollar will eventually lose its reserve currency status.

    When that happens, it will be very, very bad news for America.
    Enjoy the good, comfortable American way of life while you still can. It will not last for much longer.

  • Kem Iccle

    You need to start becoming more self sufficient. Grow your own food and produce your own electricity and most of all buy guns and ammo.

  • Colin Love

    The steps taken by countries other than the USA are part of the move to the ‘New World Financial System’ which was planned hundreds of years ago. The only mention of what is happening in these times in very old books is that ‘The Meek shall inherit the earth’ and I take that to mean that equality will arrive. There are nearly 150 countries now part of the new system which is backed by Gold and eventually all countries will join this system as the paper economy is in demise. Money will cease to be required in the times ahead and Love of self and others will become the most valuable asset as it can take us to places beyond our dreams.

  • The American People are asleep as it is not their issue…to be held liable for a private banking enterprize…if people study the history of Virginia Company, Constitution as charter to King…then it all starts to come to focus…we have never had control over our currency or minerals in USA, under NEW DEAL corporation called USA Inc. was formed…most Americans are 14th Amendment Citizens or “bonded slaves.” They have utilized our Birth Certificates as bonds to back up their currency…this is evil and must be exposed…most Americans had nothing to do with exploitation of the world it was the Walled Street Illuminated minds that conceived this diabolical plan not common man…wakeup America…study your history become involved RON PAUL

  • Megashellac

    Anyone have a clue as to how long before it collapses??

  • Nancy

    Michael, I am new to your articles and want to thank you for keeping me informed on what is really happening in and out of our country. I posed an earlier question but mistakenly not directly to you.
    If you have a moment I’d so appreciate your feelings on a single mom of four continuing to live in Oahu or if it would be wise to head back to the mainland?
    Thank you again,
    Nancy in Oahu

    • Michael


      In this environment it is really hard to uproot a family from their support system and move them to an entirely new area of the country.

      But living on an island in the middle of the Pacific Ocean is probably not the best long-term survival plan either.

      So I would pray really hard about what to do. God is much smarter than we are.


  • GaryToo

    thanks michael for getting this important information out. I believe that takes courage as almost no reporter or pundit is game to go near the subject (in western media). I believe the govt is absolutely seething about this development, which would not be happening at all if they had kept debt within servicable limits.

  • Peticolous

    Very interesting and apposite article. I will continue to monitor the site for the sense being spoken here.Except, where do all these religious idiots come from? It is to America’s vast disadvantage that people actually believe they are the best nation on earth, God’s chosen people, he will provide etc. ad nauseam. Repeat after me : *******************.

  • Watchmann

    I think David Wilkerson wrote a couple of books that pretty well describe what is taking place here today in the US and around the world. While David refused to allow himself to be called a prophet, he was nonetheles a spokesperson for God in that he attempted to warn the nation of its sin, i.e. trangression of the Law according to the Apostle John (I John 3:4), and wrote also about what the outcome would be if we did not repent and do it (life) God’s way. Interestingly, David’s first prophetic book, ‘The Vision’, was written from a vision he saw in the summer of 1973. Next summer it will be 40 years since that event and 40 is the number of testing from a Biblical perspective.

    He spoke of major corporation’s bankrupties occurring, corporations that no one ever expceted would enter bankruptcy, how the dollar would come under pressure and a call would arise for a new world currency, of how the nations of the world would lose trust in the dollar and abandon it, of how a black box, one that bacame the the computer, would bring all sorts of vile phornography into our homes for unsupervised children to consume, the inability of government to fix the declining economy and in fact how the actions it took would backfire, how over a third of the US would be declared a disaster area, how the days of the dust bowl would return and a number of other things. he also spoke of how the real church of God would go underground- which it has. It had to come out of the false ‘prosperity’ and ‘destiny’ messages of many US churches.

    David’s next to the last book, written in 1998, just after the Long Term Capital fiasco, was titled, ‘America’s Last Call: On The Brink Of A Financial Holocaust’. Some specifics of it were a coming meltdown of the US bond market and the loss of over 70% of the value of much real estate as evidenced by streets full of homes with ‘For Sale’ signs in front them but with no buyers. David’s message was simply that unless we quite doing the things we were doing, the same things ancient Israel did, we too would face the same discipline. Period. End of story! God is Holy. He is not your buddy even though He loves you! He is your God, your Creator!

    Jesus said the nations would be perplexed before he returned. Do you think anyone has a good idea about how to fix our debt problems? How about the corruption in the governments? How about corruption among many of our other leaders including those in the “Church”, who haven’t got a clue what is going on around them? How about our spiritual problems? We don’t even talk about spiritual problems anymore.

    Jesus said to look up when you see these things begin to happen because your redemption is drawing near. If you had looked up beginning in December of 2010 you would have seen a strange sign in the heavens. If you continued to pay attention to what was happening there, you would have read about signs that occurred there, signs validated even by NASA and the Vatican (though not with any understanding), as recently as just this month that were far out of the ordinary.

    Yes, the King is coming! But not until His people are convinced that He is really the only One we should follow. When we can say, “Blessed is he that cometh in the name of the Lord” and we don’t mean the soon to appear anti-christ, then He will come! The time of Jacob’s Trouble is near at hand and unfortunately, most of the ‘Church’ still believes in a pre-trib rapture.

    And possibly, as many might think, I am a kook. Not, however, a religious kook, but a kook for Jesus. I know whom I have believed in and I am persuded that He is able to keep that which I have committed unto Him, against that day! Keep the warnings coming, Michael. Some will listen and heed, but many will not. A watchman must always warn, however!

    • Michael

      Yes, I am just trying to do my best to warn the people from my little spot on the wall. 🙂


  • CatNap

    The term, “Federal Reserve Notes” should replace the usage of “U.S. Dollars” in this article.

    Also, calling them “Petrodollars” is technically wrong, too. They are really “PetroFRN’s”.

    The United States allowed the Federal Reserve to take control of us and through the printing of their “notes”, spread that cancer to the world.

    Well, the world is sick of the Federal Reserve and is showing them the door. Should we be surprised?

    The Federal Reserve is about to collapse, so what will replace it? That’s the Million FRN question!
    (Can you say world currency?)

  • A.S.

    What is this that I hear about September 21, 2012 being the end of the petrodollar?

  • Nonsense. People have lived since man learnt to walk upright without electricity or petrol. USA could simply distribute all unused land , and tell the people to grow their own crops and build their own houses, raise their own livestock, make their own leather or fur goods, compost their own sewage, collect their own rainwater or dig their own wells. End of problem, everyone gets a few acres. BTW there is no such thing as money. There is no such thing as economy or collapse. Too bad for the plutocracy or corporatocracy though! Even if education was free now, citizens will return to 1400s settler-era America! Citizens please elect ONLY a President or Governor with the above intent. Executive Order 0 (Zero) for land distribution will be that reset button America needs.

    BTW there is no such thing as poor people, jobs, concept of money much less a petro-dollar or a Global Financial System or a recession or depression.

    • Anonymous

      We do not live in an era where the choice of living without electricity or petrol is present. Get out of your non-realist mind and accept that poor people, jobs and all the other types of terms given to classify the current civilization is given a term for a REASON. Simply debasing the term serves no purpose.

  • Econman

    Basically, when the monopoly money Fed notes lose reserve status, the USA is done as a superpower & the economy will completely collapse.

    Why else would the Department of Homeland Stupidity be buying billions of rounds of hollow point bullets, enough for shooting every American twice?

  • Econman

    Basically, when the monopoly money Fed notes lose reserve status, the USA is done as a superpower & the economy will completely collapse.

    Why else would the Department of Homeland Stupidity be buying billions of rounds of hollow point bullets, enough for shooting every American twice?

    It’s now inveitable. Why should the rest of the world sell precious goods & natural resources for fake money?

  • Jeffrey L. Pease

    Do you have any info on the etf that tracks the decline of the petrodollar with a basket of currencies that are to rise simultaneously?

    • DaveZiffer

      You don’t need such an ETF. Just invest in mutual funds that invest in creditor countries (preferably “value” funds). You don’t need anyone’s help to “short” dollars because you already own dollars. Just use them to buy things that are not denominated in dollars.

  • Nevertheless it will be a rather slow death to the dollar… gradually almost everyone will start avoiding the dollar, now already we have more dollars in less hands!

  • Doug

    JFK was killed trying to get rid of this corrupt private central bank, and the military industrial congressional complex. Had he succeeded, we would not be in this mess!!

  • Doug

    When the dollar became the reserve currency of the world in 1944 it was backed by gold, today it worthless paper! You can’t blame other nations for not wanting to use it!!

  • Sani Fornus

    This is good news. The US will no longer be able to finance useless, worthless wars with worthless US dollars.

  • RW

    Hey. I have been watching everything from on high here in the US. I know the US Dollar is about finished. I’ve tried to prepare for years, by buying a decent sized travel trailer, making it solar powered, some kind of portable water well digging device and a truck strong enough to pull it all safely. All together I’ve came up with an estimate of $40,000 to $60,0000 depending on how good of a travel trailer and truck I can find. However I injured my back in 2010(Which prompted my search for a cheaper more portable home, which led me to sites like these.), and I can no longer work a steady job to get all this stuff. Any of you rich folks mind helping a poor, injured guy out? 🙁

Finca Bayano

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