The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

The Prepper's Blueprint

Don't Buy Survival Food Until You Read This - If you stockpile the wrong foods, you could be setting your family up to starve. It sounds harsh, but the truth is too many people with good intentions are making critical mistakes with their food stockpiles. Watch this video now >>
The End of Obama? Approaching Obama scandal could change the White House Administration and our country overnight... Click Here
Gold Buying Guide: Golden Eagle Coins

Archives

The Mystery Of The Shemitah

The Growing Rift With Saudi Arabia Threatens To Severely Damage The Petrodollar

Are You Ready For The Death Of The Petrodollar - Photo By RevisorwebThe number one American export is U.S. dollars.  It is paper currency that is backed up by absolutely nothing, but the rest of the world has been using it to trade with one another and so there is tremendous global demand for our dollars.  The linchpin of this system is the petrodollar.  For decades, if you have wanted to buy oil virtually anywhere in the world you have had to do so with U.S. dollars.  But if one of the biggest oil exporters on the planet, such as Saudi Arabia, decided to start accepting other currencies as payment for oil, the petrodollar monopoly would disintegrate very rapidly.  For years, everyone assumed that nothing like that would happen any time soon, but now Saudi officials are warning of a "major shift" in relations with the United States.  In fact, the Saudis are so upset at the Obama administration that "all options" are reportedly "on the table".  If it gets to the point where the Saudis decide to make a major move away from the petrodollar monopoly, it will be absolutely catastrophic for the U.S. economy.

The biggest reason why having good relations with Saudi Arabia is so important to the United States is because the petrodollar monopoly will not work without them.  For decades, Washington D.C. has gone to extraordinary lengths to keep the Saudis happy.  But now the Saudis are becoming increasingly frustrated that the U.S. military is not being used to fight their wars for them.  The following is from a recent Daily Mail report...

Upset at President Barack Obama's policies on Iran and Syria, members of Saudi Arabia's ruling family are threatening a rift with the United States that could take the alliance between Washington and the kingdom to its lowest point in years.

Saudi Arabia's intelligence chief is vowing that the kingdom will make a 'major shift' in relations with the United States to protest perceived American inaction over Syria's civil war as well as recent U.S. overtures to Iran, a source close to Saudi policy said on Tuesday.

Prince Bandar bin Sultan told European diplomats that the United States had failed to act effectively against Syrian President Bashar al-Assad and the Israeli-Palestinian conflict, was growing closer to Tehran, and had failed to back Saudi support for Bahrain when it crushed an anti-government revolt in 2011, the source said.

Saudi Arabia desperately wants the U.S. military to intervene in the Syrian civil war on the side of the "rebels".  This has not happened yet, and the Saudis are very upset about that.

Of course the Saudis could always go and fight their own war, but that is not the way that the Saudis do things.

So since the Saudis are not getting their way, they are threatening to punish the U.S. for their inaction.  According to Reuters, the Saudis are saying that "all options are on the table now"...

Saudi Arabia, the world's biggest oil exporter, ploughs much of its earnings back into U.S. assets. Most of the Saudi central bank's net foreign assets of $690 billion are thought to be denominated in dollars, much of them in U.S. Treasury bonds.

"All options are on the table now, and for sure there will be some impact," the Saudi source said.

Sadly, most Americans have absolutely no idea how important all of this is.  If the Saudis break the petrodollar monopoly, it would severely damage the U.S. economy.  For those that do not fully understand the importance of the petrodollar, the following is a good summary of how the petrodollar works from an article by Christopher Doran...

In a nutshell, any country that wants to purchase oil from an oil producing country has to do so in U.S. dollars. This is a long standing agreement within all oil exporting nations, aka OPEC, the Organization of Petroleum Exporting Countries. The UK for example, cannot simply buy oil from Saudi Arabia by exchanging British pounds. Instead, the UK must exchange its pounds for U.S. dollars. The major exception at present is, of course, Iran.

This means that every country in the world that imports oil—which is the vast majority of the world's nations—has to have immense quantities of dollars in reserve. These dollars of course are not hidden under the proverbial national mattress. They are invested. And because they are U.S. dollars, they are invested in U.S. Treasury bills and other interest bearing securities that can be easily converted to purchase dollar-priced commodities like oil. This is what has allowed the U.S. to run up trillions of dollars of debt: the rest of the world simply buys up that debt in the form of U.S. interest bearing securities.

This arrangement works out very well for the United States because we can wildly print money and run up gigantic amounts of debt and the rest of the world gobbles it all up.

In 2012, the United States ran a trade deficit of about $540,000,000,000 with the rest of the planet.  In other words, about half a trillion more dollars left the country than came into the country.  These dollars represent the number one "product" that the U.S. exports.  We make dollars and exchange them for the things that we need.  Major exporting countries (such as Saudi Arabia) take many of those dollars and "invest" them in our debt at ultra-low interest rates.  It is this system that makes our massively inflated standard of living possible.

When this system ends, the era of cheap imports and super low interest rates will be over and the "adjustment" to our standard of living will be excruciatingly painful.

And without a doubt, the day is rapidly approaching when the petrodollar monopoly will end.

Today, Russia is the number one exporter of oil in the world.

China is now the number one importer of oil in the world, and at this point they are actually importing more oil from Saudi Arabia than the United States is.

So why should Russia, China and virtually everyone else continue to be forced to use U.S. dollars to trade oil?

That is a very good question.

In fact, China has been making a whole lot of noise recently about the fact that it is time to start becoming less dependent on the U.S. dollar.  The following comes from a recent CNBC article authored by Michael Pento...

Our addictions to debt and cheap money have finally caused our major international creditors to call for an end to dollar hegemony and to push for a "de-Americanized" world.

China, the largest U.S. creditor with $1.28 trillion in Treasury bonds, recently put out a commentary through the state-run Xinhua news agency stating that, "Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated."

For much more on all of this, please see my previous article entitled "9 Signs That China Is Making A Move Against The U.S. Dollar".

But you very rarely hear anything about this on the evening news, and most Americans do not understand these things at all.  The fact that the U.S. produces the de facto reserve currency of the planet is an absolutely massive advantage for us.  According to John Mauldin, this advantage allows us to consume far more wealth than we actually produce...

What that means in practical terms is that the United States can purchase more with its currency than it produces and sells. In theory those accounts should balance. But the world's reserve currency, for all intent and purposes, becomes a product. The world needs dollars in order to conduct its trade. Today, if someone in Peru wants to buy something from Thailand, they first convert their local currency into US dollars and then purchase the product with those dollars. Those dollars eventually wind up at the Central Bank of Thailand, which includes them in its reserve balance. When someone in Thailand wants to purchase an imported product, their bank accesses those dollars, which may go anywhere in the world that will take the US dollar, which is to say pretty much anywhere.

And as Mauldin went on to explain in that same article, a significant amount of the money that we ship out to the rest of the globe ends up getting reinvested in U.S. government debt...

That privilege allows US citizens to purchase goods and services at prices somewhat lower than those people in the rest of the world must pay. We can produce electronic fiat dollars, and the rest of the world accepts them because they need them to in order to trade with each other. And they do so because they trust the dollar more than they do any other currency that is readily available. You can take those dollars and come to the United States and purchase all manner of goods, including real estate and stocks. Just this week a Chinese company spent $600 million to buy a building in New York City. Such transactions happen all the time.

And there is one other item those dollars are used to pay for: US Treasury bonds. We buy oil and all manner of goods with our electronic dollars, and those dollars typically end up on the reserve balance sheets of other central banks, which buy our government bonds. It's hard to quantify the exact amount, but these transactions significantly lower the cost of borrowing for the US government. On a $16 trillion debt, every basis point (1/10 of 1%) means a saving of $16 billion annually. So 5 basis points would be $80 billion a year. There are credible estimates that the savings are well in excess of $100 billion a year. Thus, as the debt grows, the savings also grow! That also means the total debt compounds at a lower rate.

Unfortunately, this system only works if the rest of the planet has faith in it, and right now the United States is systematically destroying the faith that the rest of the world has in our financial system.

One way that this is being done is by our reckless accumulation of debt.  The U.S. national debt is now 37 times larger than it was 40 years ago, and we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in U.S. history combined.  The rest of the world is watching this and they are beginning to wonder if we are going to be able to pay them back the money that we owe them.

Quantitative easing is another factor that is severely damaging worldwide faith in the U.S. financial system.  The rest of the globe is watching as the Federal Reserve wildly prints up money and monetizes our debt.  They are beginning to wonder why they should continue to loan us gobs of money at super low interest rates when we are beginning to resemble the Weimar Republic.

The long-term damage that we are doing to the "U.S. brand" far, far outweighs any short-term benefits of quantitative easing.

And as Richard Koo has brilliantly demonstrated, quantitative easing is going to cause long-term interest rates to eventually rise much higher than they normally should have.

What all of this means is that the U.S. government and the Federal Reserve are systematically destroying the financial system that has enabled us to enjoy such a high standard of living for the past several decades.

Yes, the U.S. economy is not doing well at the moment, but we haven't seen anything yet.  When the monopoly of the petrodollar is broken, it is going to be absolutely devastating.

And as I wrote about the other day, when the next great economic crisis strikes it is going to pull back the curtain and reveal the rot and decay that have been eating away at the social fabric of America for a very long time.

Just check out what happened in Detroit recently.  The new police chief was almost carjacked while he was sitting in a clearly marked police vehicle...

Just four months on the job, Detroit’s new police chief got an early taste of the city’s hardscrabble streets.

While in his patrol car at an intersection on Jefferson two weeks ago, Police Chief James Craig was nearly carjacked, police spokeswoman Kelly Miner confirmed today.

Craig said he was in a marked police car with mounted lights when a man quickly tried to approach the side of his car. Craig, who became police chief in June, retold the story Monday during a program designed to crack down on carjackings.

Isn't that crazy?

These days, the criminals are not even afraid to go after the police while they are sitting in their own vehicles.

And this is just the beginning.  Things are going to get much, much worse than this.

So let us hope that this period of relative stability that we are enjoying right now will last for as long as possible.

The times ahead are going to be extremely challenging, and I hope that you are getting ready for them.

Be Sociable, Share!
  • K

    As bad as the collapse would be. I would prefer it to being the slaves of the Saudis. Right now I would remove all support for them, and let their neighbors know it.

    • no what i mean vern?

      We are whores and slaves only because we’re willing.

    • MeMadMax

      Don’t shoot! Let it burn!

    • anita railing

      why havent countless conservative administrations removed support then? instead all the “hero” republican presidents actually kiss these creatures, KISS THEM!

      • K

        Simple answe, money. It is the only reason anyone puts up with them.

  • Jimbo

    Don’t worry. According to Frank/TonyS and JamesS (who are the same person), everyone wants dollars because it makes their economy look good. If the dollars do come back to the US, rather than cause hyperinflation, there will in fact be a trade surplus which will strengthen the US economy even further.

    Add that surplus to the national debt (which according to TonyS is actually private sector savings) and the USA is doing very well.

    Time for this site to close down.

    • Nic

      This why they want USA person back to USA via fatca….

  • Rodster

    Another way to look at it is the rest of the world is selling us free stuff and now the world is finally admitting it. A a result all Empires fail and the United States will be no exception except that it has a vast amount of lethal weapons including Spy info on everyone.

    This won’t end well and both gangs that are running I mean ruining Washington will will have a final say. They won’t go quietly

    • davidmpark

      If they won’t go quietly, then let’s MAKE SOME NOISE!!!!

  • RayS

    I dont understand how things keep going as if all is well. So many dangers ahead yet we always seem get around them. God cant be pleased with America…and America has for the most part disgarded and ignore all that Pleases God.

  • Kim

    We don’t need the Saudis! We have trillions of dollars of resources locked up right here at home. Just gotta make those boys move that fracking equipment at little faster…

    • Gay Veteran

      yep, lets pollute yet more water on wells that rapidly deplete

      • Libsare Ajoke

        LMAO

      • davidmpark

        Actually, the crude is made in the earth’s mantle and as it rises bacteria further refines it.

        Oil wells in Russia and other countries that had to re-tap near spent wells found they were refilled.

        • Gay Veteran

          riiiight

          • davidmpark

            Prove it wrong, sugarplum!

          • Gay Veteran

            look junior, you allege something YOU prove it

          • anita railing

            Holy crap these people are unbelievable! Yep, all that abiotic oil will be coming up any day now so you can buy a monster truck to take you to the revival meetin’

          • Gay Veteran

            Americans will hold on to their gas guzzling trucks until the choice is between gas and food.
            A lot of ignorant people believing that cheap oil can be had in the U.S.

          • Hammerstrike

            Russia follows the abiotic oil theory and guess what?
            It is Russia that is exporting oil to the US and the zeropean union.

        • Hammerstrike

          Yes, oil is abiotic in origin, it is not “fossile”.

          educate-yourself.o rg/cn/davemcgowanstalinandabioticoil05mar05.sht ml

    • FounderChurch

      The only problem we have is we are hollowed out spiritually. We have abandoned God and He has abandoned us. Until that changes, nothing else will change.

      • Undrkva Brtha

        now that you’ve proven that this ‘god’ chap simply imitates humankind, what’s your point?

    • anita railing

      yeah that’s it, frack more and we can run more hot tubs, heated towel racks, sport fishing boats, real necessities of life..

  • Silver Lodge

    I believe the initial agreement back in the 70′s with Saudi Arabia was that we would guarantee them protection in the region in exchange of all oil transactions being done in US dollars.

    If that was the case, then it should come as no surprise that when we are perceived to not be holding up our end of the agreement, that they would end things on their end of the deal.

    All of those US dollars no longer being used in oil transactions will soon be flying to their home country. And when there are more dollars in existence within our borders, that can only mean one thing. Higher prices on everything, aka. INFLATION.

    Protect yourselves immediately, folks.

    • FounderChurch

      You can’t crap on your allies and renege on your promises without finally your word becoming worthless followed by you becoming worthless. Followed by your enslavement, and degradation. Read the Book of Judges. FounderChurch at gmail.

  • jakartaman

    Well – I have been looking for the straw that will rumble this house of cards.
    This is more than a straw iti’s a load of bricks.
    I thought maybe Israelis attack on their nuclear facilities – or a derivative burst. But this is highly probable and yes it will be at a minimum a 25% immediate haircut to the dollar value – then the real slide and collapse begins.

    • Libsare Ajoke

      but when

      • jakartaman

        Clente says summer of 2014?

        • Libsare Ajoke

          good, I’ll be back from my spring vaca and ready to rock and roll

  • A Dodgy Bloke

    I am quite sure the Saudis are upset at BHO for not pounding the tar out of the Syrians. I doubt the Saudis are ready to trash the petro dollar for the simple reason who steps in as their protector? The Russians? hardly. The Russians are well aware most of the Islamic madness they are dealing with comes out of SA. The Russians are willing to put up with only so much from SA. I think the Saudis are close to that line. If anything happens at the winter games head for the hills.
    The Chinese also have there own Islamic issues where the blame can be laid at the door step of SA. Nether Russia or China are willing to stand aside and allow the Saudis to undermine their society like we are in the US Political Correctness doesn’t exist in either country.
    I think the Saudis are trying to put pressure on various connected elites who depend on Saudi money for contracts or foundations. The Saudis throw a lot of money around Washington, contracts for consulting, foundations, campaign funding. This money can go else where to France the UK or elsewhere in Europe. This may or may not have any effect on BHO and friends. We’ll see.

    • MichaelfromTheEconomicCollapse

      I think that you make some very good points. The Saudis are definitely overplaying their hand.

      Michael

      • FounderChurch

        America is likewise overplaying their hand. Point is the Saudis can fail any number of times, as they are a supporting character, but the top dog is only allowed to fail once, and it is curtains and the glue factory for him.

    • tacoma

      Who is going to protect the Saudi except the US? Nobody else can do it as effectively. But US cannot protect the Saudi and region alone, not anymore. So the Saudi must find a different arrangement. It can be a combination of India (who has the second biggest navy in the region) and Russia. They too will do it for the same reason as the US – money. A switch to a Russian backed security arrangement to replace that of the US, and the subsequent dumping of the USD as petrodollar, will be a most pleasant win for Russia both in economics and global reputation.

      • anita railing

        Not a chance in hell

      • JOHN OWENS

        Russia or China would gladly pick up when we are done

    • MeMadMax

      China…

      • FounderChurch

        China…

    • anita railing

      Saudis are undermining our society how? WE’VE been rubbing their thighs for decades !

      • GSOB

        vile, yet true

      • Undrkva Brtha

        without the Saudis, the USD would have never become a reserve currency… and Israel would never have existed

    • Hammerstrike

      Political correctness exist in Russia, it is just that Russians are far more critical of it, don´t so easily accept such garbage wile other europeans are gutless cowards.

      The saudomites are cowards too, they are rather scared of a meeting with their supposed deity.

      • A Dodgy Bloke

        Thanks for the enlightenment on Russia. I agree with you on Europe and the Saudis.

  • whteshark

    The rest of the world wants the American taxpayer to police the world and in exchange they buy up our debt so we can buy a lot of junk and talk about what a rich country we are.

    Alot of low info voters will have a big surprise coming to them when this corrupt financial paradigm comes crashing down on their heads.

    • Keywee

      No-one ever asked you to police the world. In fact, many of us would prefer that you just stay the heck out of other countries business because you have a habit of making bad situations worse. Much of the instability in the world today is directly caused by “Team America:World Police”.

      • whteshark

        Really? When Europe was a giant toilet bowl after WW II, W. Europe didn’t want us to stay and keep the Russian Bear out? What country keeps the sea lanes open? Why doesn’t Europe tell us to take our troops and go home?

        I’m absolutely fine with pulling out of NATO; The UN; the WTO; and handing Asia over to the Chinese. Let the world devolve into an erratic, unstable multi-polar world…..just don’t come crying to us. Once we leave–and we will be leaving sooner ot later–we’ll be gone for good.

        • Gay Veteran

          NATO no longer serves a purpose, unless it is to serve as a source of troops for our imperial adventures (see Afghanistan)

        • Keywee

          Don’t confuse the actions of the governments of the countries you mention with the wants of the citizens of those countries. I’ll say it again, much of the instability in the world is caused by US involvement rather than solved by it. I am looking forward to the day when you leave, I certainly wont be crying for you to come back. Deal with the problems in your own backyard instead of interfering with the affairs of other countries under the guise of helping them.

  • davidmpark

    All the more reason to unlock our raw materials.

    Here’s an idea: we unlock 50% across the board raw material reserves: crude oil, shale oil, all mining products, all rangeland types, water, etc. and send control to the states. The states can auction off the resources to local citizens only and open up their own, both public and private claims, according to their strengths. Raw material reserves are estimated at $120 trillion in the US. We need about $18 trillion right now.

    At the same time, close off the borders and allow no more talks on amnesty. The illegals need to go home now. And scale back the overbearing regulations or allow the states to perform those functions without federal oversight. All states have divisions that seem to mimic the feds departments. States must roll back their zoning regulations to allow for more home production of foods and needed items.

    Next will be interesting. The Fed Reserve Bank must be audited and the dollar’s control returned to the Treasury Dept. Individual state’s should look into adopting Texas and Utah’s laws allowing gold and silver to be used as currency alongside the dollar.

    And here’s the fun part: transfer all welfare controls to the states and have everyone on disability resubmit their claims for review. I know this will be a pain in the #$%, but it’s needed. I would do it for my wife as well. The administration has bastardized disability designations to include practically anything. The only one’s that should be considered are intellectual disabilities or related Conditions, severe Traumatic Brain Injury (TBI), physical disabilities that completely impairs employment, and moderate to severe Autism – less than 1% total population. The rest are the slackers and freeloaders that should be dropped in it.

    Close new student loans and funnel the FAFSA grants to under two-year training programs only to train for the newly opened production field jobs, or employers can fill this function and the FAFSA can be closed down. This will make the freeloaders go to work as they’ll earn more than being on disability.

    Do this and hold Congress accountable. Obama and his entourage must also be brought up on treason charges for giving aid to Al Qaeda in Syria. Tell the Saudi’s no to their demands for WWIII.

    Or we could all keep planning for a collapse and fight for our lives.

    This is the best I could come up with for a solution. I’d rather be productive. What does everyone else wanna do?

    • whteshark

      The problem here is you make sense in a country that stopped making sense a long time ago.

      What does everybody else want to do you ask?

      That’s kind of a loaded question at this point.

      • davidmpark

        Yeah, let’s get some ideas. Try and find some solutions along with the preparations.

        Better to do your best and fail than not attempt at all. You never really know that it’ll collapse until you do your best to stop it.

        • FounderChurch

          Check my Disqus Posts for a start on ideas.

          • Hammerstrike

            Do you have your won website or blog?

          • FounderChurch

            Google “FounderChurch” as one word with quotes for 5000 hits. Read them all and start getting an education.

            *”Life And Life More Abundantly”*
            Google “FounderChurch” for Teachings

      • no what i mean vern?

        And when did the country stop making sense? My guess is in November in ’63.

        • YoOleMe

          … try 15 Apr. 1861

          • no what i mean vern?

            Equal bet on 1913 (establishment of the Fed).

          • YoOleMe

            … they’re simply a “progressive” “Bi-partisan” effort — AIN’T POLITICS JUST GGRRRREEEEAAATT!!!!

    • Jimbo

      Petrodollar Oil is free oil. It is paid for with worthless printed paper. Of course the Dollar appears to not be worthless at the moment (if you look at the markets) just like any Ponzi scheme appears not to be worthless until it collapses.
      In isolation, each problem for the USA economy is bad enough but there are so many different problems all happening all at the same time that I can see no way out.
      The collapse is already here and it is a culmination of a myriad of decisions and events that have taken place in the last 100 years.

      • davidmpark

        I want to fight it! Yes, it’s a ponzi scheme – put pressure on Congress or change ‘em out to get the results that will work for us. Yes, it’s collapsing – we can restore it.

        We have the money we need literally underfoot. Let’s get the raw materials and restore it.

        • Mike Smithy

          The Congress are a bunch of muppets and we have a President that wants to destroy the country. The system needs to completely crash before we can fix it. You are correct in proclaiming that from the ash-heap, any recovery will be predicated on energy independence.

          • Undrkva Brtha

            The presidents who destroyed your country are: Roosevelt, Nixon, Reagan, Bush 1 & Bush 2. Obama cannot undo decades of idiocy that you voted for. There is nothing he can do to save the USA – so he’s doing the next best thing – cushioning the fall…

      • tacoma

        Actually there is only one root cause of ‘so many’ problems. USA has recklessly squandered its post-WW2 advantage of the mighty dollar. Even the lost tribe of Chad knows that. But what beweilder the entire world is why. Because it is so very stupid.

        • Jimbo

          The dollars “exorbitant privilege” as reserve currency would be recklessly squandered by anybody given the same advantage. Reserve currency status and the ability to print money will always lead to taking the easy way out.

          There is only one possible ending to this. The printed and exported currency will come home and the dollar will self destruct.
          I don’t agree that everyone understands how the dollar works as a reserve and how the US have gained such an advantage.
          If they understood the Ponzi, they would not have signed up to it or continued to play along after Nixon defaulted in 1971.

          • EuroKat

            The fact that Amerika has the biggest army of them all does not hurt. At all :)

          • alex

            an enormous army that will not fight for free. the military force of america is bound to its status as an economic superpower, drop either and it is gone.

          • Undrkva Brtha

            Biggest Army?!? Haahahahahahahaha – hardly – the Iraq war was also the end of the USA’s military dominance.

            The Chinese and the Indians could simply wipe out the USA – and don’t forget Russia LOL

      • Bruce

        There is NO way out. Anyone who says we can pull out of ths mess is delusional or ignorant!!!!!!!!!!

      • ladyblueii

        Well they can say whatever they want too. Obama’s Regime can’t not fool us any longer. Action’s speak loudly! He is not for us….He is not interested in the United States. He wan’t us to fall so we can become a Muslim Nation. His whole purpose for Presidency. He is trying hard to make us a communist country! If anyone can not see that? I call ignorant. Must educate yourself. Don’t be fooled like many of us were. The change he is serving up is a bunch of CRAP on a spoon! People are getting wise to his game. It is not about us….It is about POWER & MONEY! We will be owned by the WEALTHY.

        • Undrkva Brtha

          Were you born stupid or did someone help you get this way?

    • tacoma

      It’s easy to write a manifesto.
      Now go run for president or something to make it happen.

      • FounderChurch

        Problem with posters is they are all talk and no action. They need to organize themselves to ever have any power or deserve to govern.

        • davidmpark

          I’ve done all the action I can with my circumstances.

          • FounderChurch

            Contact me, we can talk as to how we can serve one another. If God is for us, then who can be against us. FounderChurch at gmail

          • davidmpark

            I’m independent. Always have been, always will be.

            You make your coalition and do good in this life. :)

          • FounderChurch

            All loners are losers, and all losers are loners, period

          • anita railing

            It takes a village right?

          • davidmpark

            I am a loser in the world’s eyes. But I am doing exactly what I’m supposed to do. :)

          • FounderChurch

            My guess is you are following your father the devil and may be deceived. God hates loners.

          • davidmpark

            In the LDS faith we have something called a “Patriarchal Blessing.” Technically, it’s revelation directly from God that is specific to the person. As the scriptures is revelation and prophesy for all nations; the blessing is revelation and prophesy for that person alone.

            Mine is very specific: “Your first and foremost responsibility in this life, David, is that of a family.” It’s stated twice.

            There’s a lot more revealed, but that is why I must be independent. I cannot make any political confederation, party, or ideology a higher priority than my family. Church authorities are in complete agreement with this.

            Say what you will – I AM doing exactly what I’m supposed to do.

          • Hammerstrike

            Which is exactly why your society have turned into a clogged toilet.

            And your famiy won´t escape its filth short of living in the wilderness.

          • davidmpark

            What?!

          • Hammerstrike

            Lack of organized response is what allowed the clique to become the threat it is now and western societies to find themselves on the brink of collapse in the first place.

            Eventually, if Obama and his clique take and secure dictatorial power, what will happen to loners then? They´ll be showed into the meat grinderl, big fish eat small fish.

            If the clique fail, the state breaks down and society falls into chaos and squalor, people will have to organize if they want safety and survival.

          • Undrkva Brtha

            Obviously his family is better off than yours – which has I put up with YOU – a superstitious imbecile

          • Hammerstrike

            U mad, bro?
            Ya smucks had decades to act against the plutocracy but did nothing because you had it good, because it did not affect you personally.
            Your dear leader leaves even one of his own supporter to be gang-banged and murdered but it still doesn´t occure to cretins like you why that is a problem, zero understanding of the bigger picture.
            So SHTF, governement will simply seize whatever it can from the populace along with mere looters, instead of feeding it.
            And when it does, remember those fault it is, some may be more guilty than others but you´ll juste have to look into a mirror.

          • GSOB

            I have always asked myself why the LDS website does not mention anything on their homepage about sin.

            I have concluded long ago, the LDS excludes sin from the homepage because it’s ugly and they know that the general public would rather pay to join.

          • davidmpark

            If you got a problem with the Church; take it up with Christ – it’s His Church.

          • Undrkva Brtha

            isn’t ‘christ’ another greek myth invented by a bunch of terrorist-thieves called the Vatican about 600 or 700 years ago?

          • davidmpark

            Ask Him.

          • Undrkva Brtha

            Sin is a superstitious Christian assumption at best, and political propaganda otherwise… Get a life, moron

          • Undrkva Brtha

            Good on ya, mate – screw the superstition – you’re doing it right!

          • YoOleMe

            SOUNDS LIKE YOU, Sir FounderChurch, can use a little John 7:24 medication — assuming yours is a church of Biblical Christian beliefs!!!!

          • alex

            jesus was a loner for 40 days in the desert, so daddy hates him too now? you made an otherwise dreadful day hilarious. if people like you constitute the majority vote (god forbid) then america is going bankrupt AND medieval. kindly refer to the 1930′s in Germany, some politician found the stereotype curly dreadlock wearing, big-nosed rich guys to be hated aswell. combined with an economic recession he purged them with public acclaim or at least silent acceptance. If you want to be “christian” try getting to the bottom of the religion. “he who is guiltless cast the first stone” (we all are guilty for something, so do not judge so easily) to quote only one principle.

          • FounderChurch

            You Atheists are pathetic loner loser failures. Jesus was the total opposite of a loner. He had 12 disciples, and thousands now billions of followers. Even in the desert fasting he had Lucifer with him heckling him. So he wasn’t alone even there,

          • Undrkva Brtha

            I suppose you were there to witness this… or did you just quote a story book sold by a church?

          • Undrkva Brtha

            Hahahahaha – well said. If FounderChurch ever found out that jesus looked like Gaddafi, he would be a FlounderingChurch ROFL

          • Undrkva Brtha

            Superstition at its best. You ARE stupid

          • Undrkva Brtha

            Just go and do your meth, church-hole

        • laura m.

          Patriots have never come together over many decades, because of majoring on minors; this is why the country is trashed. Another major issue is the churches have been subverted and neutralized from the seminaries and nat. assoc. down to the gelding sissy pastors/priests and their sheeple. Start home group churches and don’t register under the 501c3 either. Since the 50′s the churches have been destroyed by gov.

          • FounderChurch

            Contact me at founderchurch at gmail.

          • Undrkva Brtha

            Oh, if only!! No one can destroy a terrorist as mighty as the Vatican, mate

        • Undrkva Brtha

          Organize your superstitious schizophrenia for starters – people like you support the Vatican – the greatest terrorist outfit in the world. Clean up your head, and then your superstitious creed. Then come back and we’ll see

      • davidmpark

        I’m a 35 year old unpaid caregiver. I’m ugly as #$%&. Hated by all political spectrums around here. Not wealthy. Not influential. And I’ve already been shot.

        No, no one’s gonna back this oaf for office.

        The only action I can do is to petition for zoning regs to be scaled back.

        Just want to throw out some ideas for my betters. :)

        • GSOB

          Post a picture and let us see how ugly you are

          • davidmpark

            Oh, I’m ugly. Trust me. :)

    • MeMadMax

      Will never happen.
      The EPA and libtards would have a kinipsin-fit..

      • anita railing

        Richard Nixon and his EPA libtards?

      • Justin Case

        Perhaps that is exactly how we get rid of the EPA, an economic collapse. If they don’t have the funding then they can not operate.

    • FounderChurch

      Good start, but your plan needs some refinement. We need a National Conference, with you in attendance, on the future of America, where the delegates are carefully picked.

      No establishment insiders allowed to attend. Your plan has merit in general, but the specifics can and should be polished up with the ideas of others. No man knows it all. I’m ready, how about you. FounderChurch at gmail. .

      • davidmpark

        Guess they’d need someone to cook lunch…

        • Justin Case

          I wouldn’t trust Founder Church to cook up some meth much less lunch. The guy is a lunatic, please don’t encourage him.

          • davidmpark

            I was talking about myself doing the cooking. Those kinds of meetings are usually the fanatics taking all the time, whilst the other folks end up with the catering bill.

    • Hammerstrike

      Nice idea but the thing about oil from Saudomite Arabia and other gulf states is that it is cheaper to pump out than the oil in the USA, thought there have been some technological improvement in the last decade.

    • anita railing

      nothing about reigning in the military industrial complex that is just as large as the welfare complex, nice try but it’s a little more complex than that

      • davidmpark

        This is about how to deal with the Saudi’s. I didn’t cover the military industrial complex as it was off subject. Any ideas?

        • Undrkva Brtha

          The deal with the Saudis is all about the military industrial complex mate.

    • George

      Won’t happen – Agenda 21. We are in a planned, managed decline to 3rd world status

    • GSOB

      Don’t tell me… you voted for Mitt?

      • davidmpark

        And you voted for Obama?

    • Anon

      You should run for office!

  • iran iraq saudi war

    riyadh needs to take a page from the french, appease, give tehran whatever they want
    that’ll at least buy some time to rearm,once them tanks scream across the border,it’ll be way too late.buy as many abrams, a10′s, bradleys they can get their hands on, they’re gonna need em

  • retro22

    +-

  • Gay Veteran

    “Another way that the faith in the US dollar is declining is that we have a government where the two parties are perpetually at conflict….”
    Conflict? You mean the appearance of conflict. When it comes to empire abroad and the national security & surveillance state at home they are in full agreement.
    The only purpose of “conflict” is to convince people there is actually some difference between the 2 parties when in fact the 2 parts are owned by the elites that rule this country.

    • no what i mean vern?

      Plus, it’s good ruse to make us little people watch them fight about which of our civil rights and vanishing social benefits we’re allowed to keep.

      • Colin

        The conflict between the two parties began in the years after the Civil War. Look up Andrew Johnson and the Radical Republicans. (Of course, this was before our nation was an empire.)

        I doubt the elites wanted to see their profits disappear if the nation defaulted. Many in the business community were expressing their displeasure with the two week crisis.

    • FounderChurch

      You Libertarians are not only no solution, you are an increasing part of the problem. You need to shape yourselves up, and stop cursing and disrespecting God and Believers, and stop pushing selfish individualism, which never was, and never will be. Humans are not designed to be lone wolves at each others throats. .

      • Paul

        “You Libertarians”?? ‘Way to contradict yourself with your own rebuttal. Good work. He should abandon his independence of thought and join the American Jesus Hive shouldn’t he.

  • 2Gary2

    Last month, Denmark was crowned the happiest country in the world.

    Yep-more socialist countries are happier that capitalist USA. Time for USA capitalism to go bye bye. Its not working for the vast majority of people.

    Tax the GD rich and spread the wealth.

    • davidmpark

      Who cares?

      Happiest country award?! That’s your gauge for achievement?!

      How ’bout a gold star from the UN for playing nice with the other children?

      For crying out loud – we’re adults, with God given agency. We can choose to be happy or not.

      • 2Gary2

        What I posted is so far over your level of understanding its like talking to the wall.

        I think if you asked the majority of Americans they would care.

        • davidmpark

          Seriously, medication and a date would do wonders…

      • anita railing

        what’s that? I can’t hear you. I’m trying to get my meds refilled and everybody is fighting and screaming.

    • Rodster

      Great, send me your address and i’ll pay for your one way ticket.

      • 2Gary2

        what if I use the money for something else?

        • wenmklbfwejlhrfwejklwe

          Then you would be a typical liberal democrat. Take money in the name of doing one thing, then use ot for something else.

    • anita railing

      what’s that, my meds ran out and now I have to get some meth from my crackhead friend so we can get enough energy to get to walmart

  • 2Gary2

    who cares what these muslim pigs think?

  • Guest

    Hah, the only reason these House of Saud thieves are still in power is because of America’s security guarantee. If they want to play hardball, the US can always destabilize the Eastern Provinces where the Shi’ites live, and where the Saudis pump most of their oil.

    Bandar needs to eat a chill pill and relax. I am so tired of these Saudis and Israelis always trying to fight their wars to the last American. The only way America will lose the Petrodollar is through a self-induced default, not those Saudi cowards.

  • DDuana

    Hah, the only reason these
    House of Saud thieves are still in power is because of America’s
    security guarantee. If they want to play hardball, the US can always
    destabilize the Eastern Provinces where the Shi’ites live, and where the
    Saudis pump most of their oil.

    Bandar needs to eat a chill pill and relax. I am so tired of these
    Saudis and Israelis always trying to fight their wars to the last
    American. The only way America will lose the Petrodollar is through a
    self-induced default, not through the acts of these Saudi cowards.

    • no what i mean vern?

      Very true, to a point. It’s the behind the scenes back room deals that are currently being made between countries that essentially cut out the US dollar as middle man. I think it’s gonna be a slow,slow burn at first…see it ratchet up withing 5-7 years (I conjecture).

      • no what i mean vern?

        Oh, and plus, our elite in the US government are too “intelligent” to be left in the sinking boat they put us in. Lots of bribes and handouts will be given before the rats abandon the sinking American ship. You’ll see Obama run outta this country so fast, you’d think he was on fire. Nancy Pelosi and Reid in tow.

    • anita railing

      why has holy usa always supported these tyrants if they’re such devils? cricket, cricket, cricket

  • markthetruth

    One thing though Saudis are now Already Consuming 1/4 of the Oil they produced for their Electric Plants. Less to Export which could cause a Problem with Supply in the future.

    the end…

    • http://www.economic-undertow.com/ steve_from_virginia

      The Australian ‘oil discovery’ is a kerogen deposit that will be too costly to extract.

      Fuel has to be paid for, if using the fuel does not pay for itself the returns must be borrowed. Unless you drive a bus, a delivery truck or a farm tractor, you don’t pay for your fuel by using it.

      When credit runs out as it is doing right now, kerogen deposits become unaffordable.

      • Hammerstrike

        Well, unless someone use a 200 megaton bomb, kerogen becomes far less deep.

  • 2Gary2

    The house of Saud and the tea party have a lot in common. They are both extremist pigs.

    • 2Guest2

      Ok Hoss

    • anita railing

      I’m luvin’ it!

  • Saintmatty

    Each time you go to the store buy a case of some non-perishable food to sock away. You never know what can happen. I need to get a few days of water yet. Just be ready to stay home for a few days. Have some cash, tradeables, silver coins and you know what else if you can get one and what is needed to use one. Keep a low profile, speak softly and carry a big stick.

  • Jim Davis

    Please quote credible news sources, not the worthless Huffington Post.

  • Joe

    Thank God….

  • MAL3313

    You didn’t finish the story about the attempted car jacking on Detroit’s police chief and the rest of it is even more shocking. He went on to say that when he realized he was about to be car jacked he sped up, steered around the car jackers and…RAN AWAY! Then one of the car jacking task force detectives told a reporter that if ordinary citizens get “bumped” or rear ended and think they are about to be car jacked they should “Motion to the other car to follow them and drive to the police station” Detroit has the most cooperative criminals in the world.

  • dbomb12

    I all makes sense now, Obama was installed by the shadow Government to bankrupt the country (Cloward and Piven) destroy the dollar, alienate all Americas allies to transfer all the wealth through the Chinese authoritarian government and use that model to establish the N.W.O.

    • Gene Baugh BBA

      So now it’s the Chinese who are behind the NWO? and all the Saudi Kings and the Middle Eastern nations and Israel and all the warlords in Africa are going to just fall in line with this idea?

      • dbomb12

        If the payoff is high enough, absolutely

  • Philip Arlington

    This ignores the fact that numerous countries which don’t issue the reserve currency have somehow managed to issue more debt relative to GDP than the United States.

    • Jimbo

      Debt is one thing and other countries holdings of US dollar reserves is in addition to the debt. The US has imported goods and services and exported dollars in exchange. Other countries hold those dollars to exchange in trade with other countries. Roughly half of the dollars in existence are outside of the USA.
      The problem arises when other countries choose not to hold dollars anymore or reduce their holdings. Surplus dollars will return to the USA and cause inflation to rise (as more dollars compete for the same number of assets or goods).
      This is an additional problem that the USA faces on top of the debt issue but any crisis with the dollar either as a reserve or as a debt will impact equally on both.

  • tacoma

    Saudi is not demanding the US fight war for them.

    The oil crisis of 1970′s was the result of US on the side of Israel in the 6-Day war between Egypt and Israel. Saudi put an embargo on oil export to the US resulting is a crisis and gas price hitting the roof. To solve this problem, US offered to defend Saudi interests and that of its allies in exchange for Saudi using the USD to buy oil. The also resulted US installing a massive naval force in that region. And later the beginning of a Islamic blow-back that reached its height in 9/11. It’s all about the oil.

    So now the US refuses to intervene in Syria despite Saudi’s demand. Well then what do you expect? US ends its side of the bargain, Saudi ends theirs.

  • Orac4Prez

    Countries are already moving out of the US dollar. In Australia, we have many companies that trade with China in Yuan and many would like to buy oil/petroleum in $A or yuan. That makes it easier to balance the books. Wait until US business has to deal with currency fluctuations. As it is, many companies hedge and work the cross rates to maximise profits. Many businesses are petrified that the US will do something really crazy (causing a rapid precipitous drop in the $US) and suddenly they will be stuck with contracts in $US while inputs are all in local or other currencies, We only buy very little in the way of US manufactured goods these days, so it makes sense to “dump” $US.

    After all the US has dumped the “Made in the USA” mantra – why are you surprised that everyone is following suit? Business leaders have gutted their companies, their reputations and their workforce. Many products just have a chinese made logo, so dump the greedy CEO’s and the ad agencies and buy the Chinese product without the logo and you’ll save heaps!

    If you want to buy a quality product buy local and you’ll usually find they are concerned with their reputation and clients and you’ll be far better off!

    • Hammerstrike

      It isn´t the US dollar since 1913.

      Federal reserve is pretty much a cartel of PRIVATE banks.

      The same is true on the other side of the Atlantic, a massive outcry, even godwin argument when the Hungarian governement sought to limit the “sovereignity” of the “Hungarian” central bank.

      • Orac4Prez

        Ha Ha! Just try telling your debtors that… What does your currency have written on it… USA???

        Wait until the new Fed Reserve Chairwoman taps Obama on the shoulder and asks for the interst and principle payments!!! You’ve missed the point of he whole exercise. It is the US dollar, but they have priivatised the profit and socialised the debt. In case you dont get it – you work hard, they get the profit. They screw up and you pay for it.

        A win-win for the banks. But if that seems unfair don’t worry. The IMF has new strategies and rules which make the money the banks and the banks can confiscate it if you are irresponsible and dont spend it. What happened in the Bank of Cypress is just the start….

        You should be greatful that they allow you to actually withdrawn anything.

        • Hammerstrike

          Yes I know.

          Debt may be socialised but the US governement does not control the dollar, thus US dollar is not technically correct.
          Federal Reserve Dollar or Bankster Dollar would be more accurate.

          You know of the euro trick in Cyprus, right?

          • Orac4Prez

            Itsw very common to have management contracts on different activities in a company. Hospitals even have management contracts and yet the name doesnt change. It the US dollar pure and simple. Too bad.

            Dont like it then why not buy out the management! Or dissolve the contract if they aren’t performing.

            The obvious alternative is to remove the contract with “Obama and congress”. Of course, you will still have the debt!

            My recommendation is to replace them with Orac (computer from British sci fi show from years past!)

  • Georgiaboy61

    Re: “The Growing Rift With Saudi Arabia Threatens To Severely Damage The Petrodollar.”
    Sooner or later, a break will have to be made from the corrupt Saudi-backed petrodollar system. Since the government (and thereby much of the rest of the economy) has become addicted to easy (fiat) money and cheap credit, it isn’t going to be easy, but postponing the day of reckoning won’t do any good.
    The Saudis are our enemies, and always have been – the smiles on the faces of their leaders have always concealed the knives they were trying to plunge into our backs. Good riddance to them…. we’re better off without them.

  • Steve

    Michael while I can agree with what you wrote you left out some very important information.

    This is a Muslim Battle with Russia and China in the middle of it. The Saudis and Qatar are Sunni while Syria is Shiite. Qatar, the largest exporter of gas, wants to run a pipeline across Syria into Europe. It cannot because of what I just mentioned; It needs overthrow of Shiite Syria. Thus the Russians support the Shiite Syrians to keep out Sunni gas from Qatar. Thus the Russians ensure they are the major, if not only, supplier of gas to Europe. China is currently building an oil pipeline from Iran (Shiite) across Afghanistan to China and therefore supports the Shiites.

    So the whole Middle East is about oil and money while Americans continue to die there for no valid reason but only to be paid mercenaries for the Saudis.

    But your concern about the Dollar would be solved if we only drilled our own oil and gas instead of being dependent on foreign oil while ignoring our own resources that would also create jobs.

    • EnjoyTheCollapse

      I think one of the main reasons we are not more aggressively pursuing our own energy independence is due to our need (discussed in Mike’s article) to maintain the Petrodollar status of Saudi oil exports. By developing our own oil resources we would be, in effect, competing against our own dollar as the world’s reserve (petrodollar) currency since natins would then be buying US dollars in order to trade them back to us for our oil.

      • Undrkva Brtha

        bingo!

  • FounderChurch

    DEMOCRATS are, and always have been, poison for America. They hated this country from the beginning, preferring France or Spain or any country but their own and they still do.

    They are intrinsic traitors. It is in their blood and DNA. You can chart this from the very foundations of the Republic to the present. Every Democrat President has effectively waged war on this Country.

    Now, here comes the greatest traitor of them all, King Obama, the Prince of Bel Air. He is showing his horns repeatedly by angering and alienating every ally we have built up over the centuries.

    Now comes Saudi Arabia, a country that Obama has been spiting on, that has been our faithful ally through thick and thin for the last century, and even it is now beginning to turn on us. This is just one example of Obama’s hatred of America’s interests.

    Face it, a Super Power without allies quickly becomes Public Enemy number one among the nations of the planet. And someday soon, if this continues, America’s back will be broken, and we may well end up conquered in one way or another, and placed under occupation by UN forces, and forced into some sort of UN trusteeship.

    And it will serve us right for electing Democrats. Democrats will finally have brought that fate down upon us.

    • TooLittleTooLate

      I would argue that Lincoln killed 600,000 Americans in an illegal war to stop states attempting to legally seceed from a union they no longer wanted to be in.

      Slavery only became an issue for the president at the end of the war.

      Now, while I won’t argue that slavery was a major part of why the states that wanted to leave the union wanted to leave but, that does not mean that the republican president had a reason to go to war with them.

      Because of that war, states like Texas, the one I’m in, can not expect to be able to leave the U.S. and become the 19th largest economy on the planet.

      I see Lincoln as being no hero for the U.S. ( even though slavery needed to be abolished )

      • anita railing

        go back to mexico then

        • TooLittleTooLate

          I don’t want to go to Mexico. I also don’t want to be an Indian….. Governments suck…. I surely don’t want to have a contract with our, “oh so great” government saying that I have land or something….. Not when there is gold in them thar hills.

    • TooLittleTooLate

      I would say that most of our issues are with democrats but, there are also republicans that are JUST as bad. John McCain, Lindsey Graham and many more republicans are just as guilty.

      It seems like there is really only one party on so many issues. Spending is an issue they disagree on currently but, not as much as you would think. There are no republicans except maybe 4 or 5 of them that want to do the things that need to be done to put this country on track fiscally.

      Paul Ryan’s spending plan wouldn’t have done anything to help our current situation… the most any of them seem to be willing to risk their political neck on amounts to rearranging the chairs on the deck of the titanic.

      When it comes to issues of personal liberty, both parties are enemies of our constitution and by that, I mean enemies of the republic and the people in it.

      When government becomes so overreaching as to make you a criminal to put salt on the table of your own resturant or serve a drink with sugar in it over 16oz… then, it makes us all criminals, doesn’t it?

      A government like this should NEVER be allowed to stand.

    • anita railing

      You my friend are a moron

  • FounderChurch

    Number 16 The Leftist Huffington Post.

  • Lese Majeste

    And where will the Saudis get the spare parts for all those US made weapons they have?

  • http://www.alanpressreport.com/ Liberty Bell

    This begs the question. The Obama administration has been hell bent on going to war with Syria; unfortunately Putin put a kink in plan A,

    Now plan B; have the Saudis pretend they are upset over our failure to go after Al-Assad; thereby threatening the dollar as the reserve currency, thus putting a fire under congresses butt to authorize military action they would not normally take. How am I doing so far?

    • TooLittleTooLate

      That about sums it up. This is a war the house of Saud wants over energy resources, pipelines etc. It has to do with Sunni/Shia stuff too.

      Saud wants Syria and Iran wiped out to maintain their own power and control. Usually, they can drag us into it since we are already in bed with them and have mutual reasons for the same wars. ( however contrived they happen to be )

  • TooLittleTooLate

    We as a country have made decision after decision for a very long time to maintain the petro-dollar. Lots of political wars have been fought to maintain our currency status. We make up all sorts of reasons for it. Syria is no different.

    So, do we sink the economy, or risk doing so or do we kill more brown people?

    We all know that our country has been in decline for a long time now. If countries were kids, ours would need a good spanking, no doubt.

    The level of graf, corruption and now tyrany astound me and, there will be a reset. I wish it would come sooner than later and, I only hope we don’t have more wars and more killing in the name of the corrupt thing our once great country has become.

    The EPA now has a SWAT team…. the only political movement that wants political restraint is deamonnized openly by BOTH parties…. We need to get this reset done and hopefully return to the things that once made this country the best in the world.

  • Bushisugly

    Saudi Arabia; The evil empire.

    • anita railing

      finally

  • TooLittleTooLate

    It’s VERY telling that the Huffington post would use the Tea Party as the number 1 reason that faith in the dollar is declining. LOL The Tea Party’s only major stance is to restore faith in our dollar by reducing spending. Idiots.

    • Gene Baugh BBA

      At a time when reduction of government spending would make GDP go negative.

  • El Pollo de Oro

    Remember what Gerald Celente says: when all else fails and the economy is showing no signs of improvement, the politicians take you to war. It appears that Barack “Goldman Sachs” Obama has backed off the idea of idea of an imperialist invasion of Syria……..for now. But the neocon bloodlust remains, and it is only a matter of time until the imperialist Republi-Cons and imperialist Democraps get us into a war. Perhaps in Iran, perhaps in Yemen. But The Banana Republic of America (formerly Los Estados Unidos) cannot afford an empire. Between a debased currency, record deficits, a brutal depression that’s only going to get worse and a dying middle class, the last the BRA can afford is empire-building.

    “To the Washington policy wonks and power-mad social climbing Beltway sycophants of power, the
    American empire can just keep on expanding, exporting its goodness and its decadent culture all over the world. Bankruptcy, either financial or moral, doesn’t enter into it: our rulers have even less fiscal sense than they have moral sense.”—Justin Raimondo, AntiWar.com

    “You are launching all these multi-trillion-dollar wars and have no way to finance them.”—Dr. Paul Craig Roberts

    “In many of our most impoverished urban centers—our internal colonies, as Malcolm X called
    them—mobilization, at least at first, will be difficult. The urban poor are already in chains. These chains are being readied for the rest of us.”—Chris Hedges

    “We’re so addicted to debt that the highest interest rate we can afford is zero.”—Peter Schiff

    “Instead of using the bailout money as promised— to jump-start the economy—Wall Street used the funds to make the economy more dangerous.”—Matt Taibbi

    “There is a breaking point for humanity, and we’re seeing it all over the world.”—Blake Sawyer, editor of EscapetheUSAnow.com

    “The United States is slowly descending into what Nazi Germany was.”—The Patriot Nurse

    “We’re sandwiched between authoritarian government and street thugs.”—Alex Jones

    “Truth is treason in the empire of lies.”—Ron Paul

    Imperialist war will not save La República Bananeira de América, pesadilla del tercer mundo y tierra de sueños destrozados.

  • Trailer Park Investor

    Yea Challenging!
    That’s like calling the Great Depression a blip on the radar.
    Weather it’s Derivatives, PetroDollar, Interest on Bonds, Economic Collapse (not just us but the whole world) It’s like a huge swollen bag of manure hanging over all our heads and you are just waiting for one of these big events to start the bag to burst. But while you are watching these big potential problems a little fly lands on your swollen bag of excrement and takes a little bite and BOOM the bag explodes all over us.
    NO ONE was watching out for the little fly, everyone was so fixated on all the big events they totally forgot about the small ones.
    No one thinks about Japan’s Economic collapse.
    No one thinks about Fukashima the radiation that has already leaked and is leaking daily into the envioment. OR that their are over 15,000 fuel rods that have to be removed from the storage pool at reactor #4 and the slightest earthquake, Monsoon or accident can cause catastrophic results for the whole Nothern Hemisphere.
    Now you know why George Bush bough a 100,000 acre ranch in Padigonia

  • BackSpace

    Sheesh, we are already losing the petrodollar.
    Have been since 2009 when Russia and China entered into their Oil for Yuan pact…
    I guess these two countries were a little too big to bully like Iraq for selling its oil for Euros in 2000-2003…
    Since then, the BRICS nations have set themselves apart from the dollar/petro dollar as well, trading in the yuan…. Add Angola, Sudan, Venezuela, Australia, Japan……
    London is to become the next off shore trading hub for the yuan.
    All this since hObamy came to power …
    Its over… we’re toast… there is no fixing this kind of broken.
    BS

    • GSOB

      Don’t blame the POTUS

      This is capitalism at work in the world.

      • anita railing

        Oh yeah Ayn Rand loves this stuff, if she were alive she’d be living in libertarian heaven, SOMALIA

        • GSOB

          Ayn Rand is a breed of libertarianism.

          She can’t be called a Constitutionalist because she rejected faith and religion altogether.

  • Chris

    Saudi Arabia is clearly very annoyed that the USA and West in general didn’t do what it wanted and bomb Syria back to the stoneage in support of the Saudi backed ‘rebels’.
    It would be a good thing for the USA and West to wean themselves off Saudi oil.

    • Hammerstrike

      And muslim immigration.

  • 2Gary2

    Walmart is just the largest of a whole range of businesses in the US
    that have shifted some of the burden for employee wages and health
    insurance to the general taxpayers. From an economics and public policy
    standpoint, it stinks.Businesses are able to transfer costs and risks
    without penalty, and general taxpayers develop antipathy toward the
    working poor (you know, the whole 47% thing).

    There should be severe tax penalties for any employer who hires someone
    and then encourages them to apply for government assistance. The whole
    point of having a job is to keep people off of assistance and if an
    employer is too cheap to pay them a livable wage (especially an employer
    who takes in $400 billion a year) then they deserve to be taxed to pay
    for the entitlements of their employees…

  • Richard

    Although I expend a lot of my intellectual energy going after your grammatical and syntactical shortcomings, Michael, I feel I have to make different kind of point here today.
    Having the world’s reserve currency is not all peaches-and-cream. It is of no particular use to the U.S if all countries are doing is to use the dollar to make payments between each other. For example, if China wants to buy soybeans from Brazil and uses the U.S. dollar, it simply creates a foreign exchange transaction between forex dealers which has the net effect of transferring dollars from a Chinese bank account to a Brazilian one.
    Look at highly successful countries such as Sweden or Switzerland or Singapore. Their currencies are not reserve currencies, yet those countries seem to do very well. In many respects, the reserve currency syndrome is a noose around the neck of America’s economy.

    P.S. Grammar and sytax both fine today, although your habit of asking a question and then slapping yourself on the back for asking yourself such a “very good question” is rather irritating and, of course, quite superfluous and unnecessary. I’d lose the habit, if I were you. (I’ve mentioned this before, by the way).

    • Jimbo

      You are forgetting the fact that all of those Dollars used in trade between other countries originated in the US and were used to purchase goods and services from other countries for the benefit of the USA.

      As long as those dollars stay outside of the USA, they have no impact on the US economy.

      If those Dollars return home though, they will cause rampant inflation.

      Put simply, if you pay for everything with IOU’s but instead of asking you to honour them, your suppliers use those same IOU’s to trade with other suppliers, you have acquired your goods for free. However, if your suppliers decide to redeem the IOU’s en masse, you are in big trouble.

      The reserve currency status has benefited the USA by allowing it to obtain goods and services in exchange for IOU’s. Loss of reserve currency status will destroy the US economy.

      Roughly half of all the dollars in existence live outside of the USA.

      • Ricahrd

        “Roughly half of all the dollars in existence live outside of the USA.”
        That is just not true! You have fallen into the usual trap. It’s not the DOLLARS that “live” outside the USA… it’s the DOLLAR HOLDERS that live outside the USA. The dollars themselves never left the USA. Why would they? They are useless outside the USA.
        And if they haven’t caused inflation in the USA to date, why would they in the future?

        • Jimbo

          I have not fallen into a trap. I understand economics, FX markets and international trade. There is plenty of information on this subject on mainstream sites and if anyone is mistaken I am afraid it is you.

          Here is a working example.

          I work for an Australian company that has a $2,000,000 USD bank account. We acquired the US dollars by selling goods to US companies. We then use those dollars to buy raw materials from countries like South Korea.

          That is what a reserve currency is. It is used in international trade as it is (or rather was) considered to be a stable means of exchange and hedge against currency fluctuations.
          As long as those dollars are outside of the USA, they don’t cause inflation within the USA because they are not competing for goods and services within the USA.
          If the dollar became unstable or if its reserve status was compromised, the company I work for would reduce its holdings of Dollars. If everybody else was dumping dollars as well, they would have to be redeemed by purchasing goods, services or assets from the USA.

          Any increase in the amount of dollars within the USA will cause inflation.
          It may interest you to know as well, that the majority of US banknotes in existence are physically held by foreigners in foreign countries.

          • Richard

            “We then use those dollars to buy raw materials from countries like South Korea.

            As long as those dollars are
            outside of the USA, they don’t cause inflation within the USA because
            they are not competing for goods and services within the USA.”
            Try to think this through. IT DOESN’T MATTER WHERE THE DOLLARS “ARE”, they are dollars and they are useless outside the USA. If you buy from Korea, ALL THAT HAS HAPPENED is that the dollars have gone from your bank account to the Koreans’. Why is it so important to you that a trade took place between you and Koreans as opposed to between Joe Sixpack and his uncle in Cleveland, OH? As far as “inflation” is concerned, it is just as likely that inflation in the US will be affected by your raw materials purchases (look at the Chinese purchases of Brazilian grains – they have a direct effect on the Chicago markets – even if they are bought and sold directly) as if Joe concluded a massive copper deal with his uncle in OH.
            A reserve currency is a menace to its host country. It causes imbalances and unwanted volatility in trade and balances of payments. America would be better off handing over that poisoned chalice to China (or whoever).
            (By the way, I was an FX/bullion trader for years in Paris in the 1980s, FWIW)

          • Jimbo

            You make a valid point that my company buying raw materials from Korea can cause an increase in demand and a knock on inflationary impact for other importers (including the USA).
            You still miss the point about the advantage that the USA has had from being the issuer of the reserve currency.
            This is a well established fact, Michael details it above at some length and it is also accepted by the mainstream.
            I don’t know how to simplify my examples any more than I already have so I will not discuss this further.

          • Richard

            I took the trouble to refute your suppositions point-by-point. For example, I mentioned volatility, I mentioned other wealthy countries whose currencies never came close to being ‘reserve’ countries, I talked about currencies not leaving the host country, etc. You have not addressed a single one of these things (except the inflation one) and then you have superciliously have the nerve to announce that you “will not discuss this further”.
            It is EXACTLY – but EXACTLY empty and futile conversations like that with Americans that drove me out of your country after 22 years.

          • Jimbo

            I am English, I live in Australia. I understand what I am talking about. You have a misunderstanding of how reserve currency works and I have provided a very simplified example which you have failed to understand.
            The two million dollars held by my employers is held in an Australian bank. It is not in the USA. The deposited dollars come from sales made to the USA.

            That I assume refutes your incorrect assumption that currency never leaves the host country. Now please go away.

          • Richard

            Hey, don’t take my word for it. About 93% of the $58 billion in cash held by Microsoft’s foreign
            subsidiaries is invested in U.S. government bonds, U.S. corporate bonds
            and U.S. mortgage-based securities, according to SEC filings. Check it for yourself. It’s public information. Knock yourself out.

  • mohsensamiei

    That which is rotten & false will fall as is the case with the dollar and no amount of propping it up will resolve the problem. The sooner it falls the better as this prolonged agony is a slow death.

  • bob cratchette

    would not take to much to push the dollar off its throne, china,russia ,india and brazil all want a different reserve currency and china and Russia have been buying gold like crazy they will offer a gold backed currency what has the good ole usa got to offer bunch of food stamp recipients worthless paper otherwise known as the American dollar ah yes we have assets like Detroit to offer face it people the usa is done we basically have a non functional fed govt and a majority entitlement class and a non citizen muslim in the whitehouse hell bent on taking the country down who is responsible for nothing makes his own laws and everyone just shrugs their shoulders and says oh well

  • DJohn1

    I agree with them. They should be thinking over their relationship with us. But I think we need to rethink our relationship with them as well.

    • GSOB

      When goods don’t cross borders, soldiers will. –

  • Stephanie S

    So what this is saying is that the junk at Wallymart won’t be cheap anymore? That the low-info obots will have to pay $65 for a crap toaster that breaks in two months? Hahahahahaha.

  • GSOB

    “The U.S. Constitution may be flawed, but it’s a whole lot better than what we have now. –

  • GSOB

    “The American heritage was one of individual liberty, personal responsibility and freedom from government.

    Unfortunately,that heritage has been lost. Americans no longer have the freedom to direct their own lives.

    Today, it is the government that is free – free to do whatever it wants. There is no subject, no issue, no matter not subject to legislation.”

    – Harry Browne

  • gfmucci

    “So let us hope that this period of relative stability that we are enjoying right now will last for as long as possible.”

    Michael: Did you read what you wrote? It appears you are promoting the very same kick the can down the road mentality that you are arguing against.

    This is the precise attitude that is causing our “leaders” to make things worse…increasing our debt as much as possible, ultimately destroying the long term value of our dollar so that the stability we are enjoying right now will last for as long as possible, and, we should add, making things much much worse than they would be if we addressed reality sooner. Yes, live for today, for tomorrow we crash. Even you predict that will not end well.

    • GSOB

      The office of the government is not to confer happiness, but to give men the
      opportunity to work out happiness for themselves. That, I’m sure, we all can agree with.

      We have borrowed time, I think that his point,… not kicking the can down the road.

      We have precious time to prepare.

  • Joseph

    There’s something wrong with this article 1 being the United States recently passed Russia as the worlds #1 Oil and Natural Gas Producer and Export, also in a oil field deep under the rocky mountains there is approximately 2 trillion barrels of untapped oil.

    Besides those few errors, the day’s of the U.S. Dollar being the world reserve currency are ending.

    • Nobody

      Oh, you mean the US, whose oil production actually peaked in DEC of 1970 at 9.5 mbl/day of production (US EIA’s own data)? Texas, as a state, peaked back in 1972, and Alaska produces only around 600,000 bl/day, from a 1989 peak of 2 mlb/day.

      Those shale plays are a joke, along with this myth about oil under The Rockies. Please read something else besides the christian bible: The biggest con ever portrayed on humanity.

  • anita railing

    the coup d’tat from bible bangin’ Bush in 2000 was quite a piece of work was it not?

    • FounderChurch

      Bush with all his faults was head and shoulders above the totally unqualified traitorous illiterate incompetent laid back cigarette smoking lying street punk druggie named Barry Sotoreo Barack Hussein Oblowhard that Democrat Muslim loving Lefties cursed us with through a stolen fraudulent election.

      • anita railing

        Where can I get some of this crack that you smoke?

        • Justin Case

          Perhaps he’s doing meth. All the important snaggle toothed shot-out sausage smokers are doing it now days.

      • Undrkva Brtha

        Wow – you’re stupider than the bible

        • FounderChurch

          Troll!!!! Begone

          • Undrkva Brtha

            are you jesus the troll-killer?

    • YoOleMe

      When
      asked the question, “Who is your favorite philosopher?” in the 2000 VoteDotCom
      debates, and “Shrub” REDUCED the name of Jesus Christ – meaning Jehoshua, i.e. God
      The Saviour of mankind – TO THAT OF A MERE “philosopher” : Mr. Bush blew out any foundation he may have
      had for being Christian in Biblical nature!!! Certainly, his subsequent
      performances have proven veracity of his answer!!!

  • TooLittleTooLate

    Don’t think you can give me a history lesson. My point was simple. Lincoln was a Republican… in fact, his election made a new party… the republicans….. He was so great that he killed 600,000 Americans that would have been just as happy leaving without firing a shot. Slavery was horrible but, that wasn’t the reason the war started but, it was the issue that brought it to a head… the issue was states that wanted to LEAVE.

  • TooLittleTooLate

    LOL… I’m LUCKY enough to have paid 40,000 in taxes last year to the FED. I filed an extension for the first time in my life…. I had taxes done for me and, I paid… I got a letter for the idiots two days ago….. they said I owed the whole thing even though I paid them… they now say I owe another 900 dollars for not paying them on time ( even though I did )… fun, fun, fun.

  • http://www.economic-undertow.com/ steve_from_virginia

    (Sigh …)

    There are all sorts of oil producers in every part of the world. Any and all of them sell their petroleum for whatever currency is freely traded in foreign currency markets.

    The United Arab Emirates sells oil to the French gaining euros, then swaps them in Dubai for Indian rupees or Korean won. There are smart-phone apps to indicate rates of exchange and means to hedge changes in the forex rates. The currency trades themselves are a simple matter of point-and-click.

    Because the Chinese gain a lot of foreign currencies in trade they use these to buy energy including coal and uranium, that way they can keep a tight leash on their own currency which does not trade freely on forex markets.

    The US is the world’s producer of CREDIT along with the City of London, whether a particular currency is the unit of account or medium of exchange does not matter very much; the obtain of credit is vital. No credit = no industrialization.

    Because the US govt is willing and able to backstop the US finance industry, that industry is willing to lend dollars around the world. Because no other government is able to do such a thing = dollars are predominant in trade. Keep in mind, no lending backstop = no trade.

  • FounderChurch

    STOP!!! THINK!!! STFU!!! LISTEN!!! NO CHILDREN=NO COUNTRY=NO ARMY=NO ECONOMY=NO LIBERTIES=NO FREEDOMS=DEATH AND HELL.. BIRTH CONTROL IN “YOUR” BEDROOM IS TO BLAME. AMEN!

    • Nobody

      HALEJELULIA!!!

      (Please ignore my spelling)

  • Mark Caldwell

    Michael, I wanted you to see this headline:

    “Rand Paul To Block Federal Reserve Nomination Until The Fed Is Audited”

    Sorry it’s kind of off topic, but not really.

  • Richard O. Mann

    America. It was fun while it lasted.

  • Kent Harris

    Get rid of income tax and the Federal Reserve.

  • jt

    Curious thought: the other foreign govt’s buy our dollars with their own fiat currency. Seems like no one has any skin in the game. The US will always pay it’s debt, because the Fed will always print more digital dollars to do it. Don’t know this is going to end, because every other central bank plays the same game. No hard assets ever change hands. ” You pretend my currency has value, and I’ll take it and pretend yours has value as well!”

    • Jimbo

      What actually happens is that other countries send goods to the US (oil, food, TV sets etc.) and the US gives them dollars in exchange. The other countries then hold onto the dollars so that they can do business with each other with those dollars. They also use some of the dollars to buy US treasuries (which are just more IOU’s). The problem will come when other countries want those IOU’s made good and start spending the Dollars they have in the US.

  • GoldenEagles

    I am wondering what the real concern here is. What alternative do the Saudi’s have when it comes to the use of U.S. Dollars as the standard of trade exchange? What currency would they choose to replace the U.S. Dollar? The Eurodollar? Europe is teetering on the verge of economic collapse, much closer to the edge than America. The Russian Ruble? The Chinese Yuan? If these currencies piled up in the Saudi Treasury, what could they do with them? The U.S. Dollar is used as the global trading currency because the heart of everyone on the planet knows this, there is only one shining star of hope on the planet for the continuation of freedom, which is associated with the freedom to accumulate wealth under a system of laws that protect that wealth from government confiscation, and that hope is now, and will always be in America.

    • onceproudamerican

      The war in Iraq and the war drums about Iran are because they didn’t/don’t take US Dollars for their oil… Nothing going on in the middle-east is about ‘terrorism’,, ‘democracy’, or for ‘human rights’…

    • gotham1883

      The Saudis would move, like Iran, to a barter system. It works, believe it or not. It is how historically countries traded with each other. It is what countries will return to. It is originally how wealth was redistributed about the world.

  • George

    I live in fairly small college town in the South and things are pretty good here right now for many of us. However, I recently traveled through GA, FL and later in AZ, and I was amazed at the poverty – the closed businesses and factories, the un- and under-employed and the beggars.

  • Justin Case

    You are the typical Christian that turns people off. You are arrogant and demand that others follow your way as it is the only way to success. Calling Libertarians Godless is stupid and telling them to fake a belief so as to not offend others who believe some gibberish that you feel is important is idiotic. I would consider my self religious and if I had to choose a title I guess it would be Christian but you dude, are an A S S.

  • yo1man1dude .

    Just venting by Saudis. What other country is willing to be a major force in carrying out their goals of overthrowning Shiite nations and impose sharia law? China? Russia? Denmark? Peru? Zimbabwe? I think not. Whatta laugh. Yes they are mad at Obama but it will embolden them to double their contributions to the next Republican Presidential candidate. They can sit the stew for 3 more years.

  • Theeconomywontcollapseblog

    This article seems to suggest that others have benefits to the collapse of the petrodollar. I’m not really sure they do- it would be highly inconvenient for everyone if we had to establish a different currency to trade with. And I don’t quite see the relevance of an attempted police car jacking… That happens all the time everywhere.

  • Theeconomywontcollapseblog

    Any US economic strength was built on stealing other countries natural resources, or exploiting the ones it had already stole (native land) anyway. Primarily flesh to begin with. Once other countries started doing this they were bound to catch up and overtake! Just look at China’s exploitation of its own labour force for industrial growth. America just needs to do more stealing eh! Maybe send more troops to the middle east- we’re not stealing they’re resources fast enough.

    • gotham1883

      Moron.

  • Rita Baker

    yep, we are in f’ing trouble and the people in this country remain lazy and fast asleep!

  • Undrkva Brtha

    Go home and pray, you superstitious moron

    • FounderChurch

      Go ahead, curse God and die…

      • Undrkva Brtha

        ROFL – what’re you – stupid, or just illiterate?
        1) there is no ‘curse’ there – if there were, I’d curse some intelligence into you
        2) I’m sure this ‘god’ chap doesn’t need your assistance given that he hasn’t put up a job ad for a spokesperson yet
        3) death is natural – you’ll die too – if you haven’t figured this out, please see a psychologist
        good luck!

  • Silencer

    Pretty much the only thing standing between the Dollars reign and demise is the fear nations have of being attacked by our military if they dare attack our currency dominance by attempting to use an alternative currency for exchange, over some Hollywood-like media-fed scenario.

Emergency Essentials/BePrepared
Agora Financial
Thrive Life
FEMA Hates This

Austin Coins
Family Survival Plan - Check This Out!
High Blood Pressure?
The End Of America?
MHAdNew_125x125 copy(1)
FINCA BAYANO
Survive After Collapse
cheaper to burn dollars than paper

Silver.com

Camping Survival
Facebook Twitter More...