PRLog - Sep. 18, 2012 - PALM BEACH GARDENS, Fla. -- examiner.com reports: [ On Sept. 11, Pastor Lindsey Williams, former minister to the global oil companies during the building of the Alaskan pipeline, announced the most significant event to affect the U.S. dollar since its inception as a currency. For the first time since the 1970's, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers & began selling the commodity using their own currency.
If we lose USD priced global oil trade the dollars future is heavily in question
Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."
"On Thursday, Sept. 6... China made the official announcement "Our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, & as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar." - Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11
This announcement by China is one of the most significant sea changes in the global economic & monetary systems, but was barely reported on due to its announcement taking place during the Democratic convention last week. The ramifications of this new action are vast, & could very well be the catalyst that brings down the dollar as the global reserve currency, & change the entire landscape of how the world purchases energy.
Ironically, since Sept. 6, the U.S. dollar has fallen from 81.467 on the index to today's price of 79.73. While analysts will focus on actions taking place in the EU it is not coincidence that the dollar began to lose strength on the very day of China's announcement.
Since China is not a natural oil producing nation, the question most people will ask is how will the Asian economic power get enough oil to affect dollar hegemony? That question was also answered by Lindsey Williams when he pointed out a new trade agreement that was signed on Sept. 7 between China and Russia, in which the Russian Federation agreed to sell oil to China in any & all amounts they desired.
Lindsey Williams: "This has never happened in the history of crude oil. Since crude oil became the motivating force behind our (U.S.) entire economy, & everything in our lives revolves around crude oil. Since crude oil became the motivating factor behind our economy... never, ever has crude oil been sold, bought, traded, in any country in the world, without using the American dollar."
"Crude oil is the standard currency of the world. Not the Yen, not the Pound, not the Dollar. More money is transferred around the world in crude oil than in any other product."
"On Friday, Sept. 7, Russia announced, that as of today, we will supply China with all of the crude oil that they need, no matter how much they want... there is no limit. And Russia will not sell or trade this crude oil to China using the American dollar." -Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11
These duo actions by the two most powerful adversaries of the U.S. economy & empire, have now joined in to make a move to attack the primary economic stronghold that keeps America as the most powerful economic superpower. Once the majority of the world begins to bypass the dollar, & purchase oil in other currencies, then the full weight of our debt & diminished manufacturing structure will come crashing down on the American people.
This new agreement between Russia & China also has serious ramifications in regards to Iran, & the rest of the Middle East. No longer will U.S. sanctions against Iran have a measurable affect, as the rogue nation can simply choose to sell its oil to China, & receive Yuan in return, & use that currency to trade for the necessary resources it needs to sustain its economy.
The world changed last week & there was nary a word spoken by Wall Street or by politicians who reveled in their own magnificence as this event took place during the party conventions. A major blow was done on Sept. 6 to the American empire & to the power of the U.S. dollar as the world's reserve currency. China, along with Russia, are now aiming to become the controllers of energy & thus, controllers of a new petro-currency. ]
Since August 1971 when President Nixon opted to close the gold window, the United States has been funding global trade with a completely fiat (paper money not backed by ANYTHING) currency which causes inflationary consequences when interfered with. If the federal reserves monetary policy decisions over the past 4 decades since the removal of the dollars link to gold have exported inflation to the world, why would the world put up with these consequences in hopes of helping the US economy? The answer is because Henry Kissinger negotiated that from the 1970s on that if US mega oil companies were permitted to drill, extract, process, refine & export the middle east oil to the world, the governments of the land would be rich from the profits without lifting a finger what so ever. Because it was such a good deal a detail was added to benefit the US, THAT ALL OIL TRANSACTIONS WORLDWIDE FOR EVER MORE WOULD BE PRICED IN US DOLLARS THUS MAKING THE DOLLAR SUPREME GLOBAL CURRENCY & PERMITTING THE FED TO FORCE THEIR MONETARY POLICY ON THE WORLD AT LARGE WITH NO RECOURSE.
This is exactly why the FED has been able to slash interest rates & print endless QE in order to attempt to establish some economic activity at home while exporting the consequences of these actions to the world for so long. Since Russia was successful in their attempts finally get an explosive & seemingly endless oil source under control & manage the flow effectively, they have been able to offer more oil reserves to the world than the collective middle east oil producing nations combined! Russia & China 2 years ago announced the largest energy deal in history but made it clear they would never transact in USD for this unlimited energy deal moving forward! This is dangerous as it begins to fracture the idea that the world is beholden to the USD while offering an energy source that does not require these nations hold billions of dollars in reserves for future energy purchases which frees them from the consequences of inflation & dollar devaluation that the FED has decided is what is best for the “recovery”
China has announced not only with they be the conduit to get the Russian oil to the world thus sidestepping the middle east dollar oil hegemony but that they will not accept USD! On top of supplying physical barrels of Russian oil to the world this deal also offers oil trading platforms that appear poised to fracture the Wall Street monopoly of energy trading as well. This is happening at a critical point where the FED is hoping that the QE3 campaign will encourage investors to put money back into markets & this will somehow create the recovery at home. But if the world is running away from the USD & into China’s currency this will only accelerate the dollar devaluation & decimate the savers & retirees at home.
Knowing that ALL GLOBAL TRADE IS DONE IN DOLLARS, what will happen when the worlds most consumed commodity no longer needs the dollar? My biggest fear is that there are possibly tens of trillions of paper dollars printed over the decades that since no longer needed for their biggest expense will be marked “return to sender” & will flood the US economy. When the FED admits that a higher inflation option is all they have left you need to establish an inflation hedge in gold & silver bullion immediately. Remember that it is a far better option to PREPARE your portfolio than to attempt to REPAIR your portfolio once the damage has begun. Tick, tock.