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The End of the Petrodollar?

Say you’re an up-and-coming superpower wannabe with dreams of dominating your neighbours and intimidating everyone else. Your ambition is understandable; rising nations always join the “great game”, both for their own enrichment and in defense against other big players.

But if you’re Russia or China, there’s something in your way: The old superpower, the US, has the world’s reserve currency, which allows it to run an untouchable military empire basically for free, simply by creating otherwise-worthless pieces of paper and/or their electronic equivalent. Russia and China can’t do that, and would see their currencies and by extension their economies collapse if they tried.

So before they can boot the US military out of Asia and Eastern Europe, they have to strip the dollar of its dominant role in world trade, especially of Middle Eastern oil. And that’s exactly what they’re trying to do. See this excerpt from an excellent longer piece by Economic Collapse Blog’s Michael Snyder:

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  • Hans Nieder on October 10 2012 said:
    How old is the opinion that the dollar is doomed...

    10, 20, 30, 40 years...

    Russia, a one trick pony? Red China, a command economy?

    You will see the ruble and the Mao at your local dollar store, before they become world reserve currencies...

    NOTE: Party members are entitled to black market exchange rates, with you Costco card..
  • Scott on October 10 2012 said:
    Russia is a world stage superpower again.

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