Petrodollar
What is a petrodollar? An unsophisticated explanation of a petrodollar would be the currency that oil producing countries accept for purchase of their oil. Thus far, this has been the American dollar. This has made the American dollar the number one accepted currency worldwide. As a result, also making America itself the most powerful country on earth.
You see, the American dollar actually is backed by something other than people’s credit. It is backed by oil. With the EU forming in 1992, and then the Euro being introduced in 1999, it has given the good ol’ American dollar a run for its money. Ever since, the American dollar’s exchange rate has been falling, and has finally fallen behind that of the euro. Starting in 2000, Sadaam of Iraq decided to start accepting only euro for his food for oil program. See what I am getting at?
In order for other oil consuming countries to purchase oil, they have to obtain dollars. They do this by establishing trade with the United States to obtain dollars. They then spend these dollars to Arab countries to obtain oil, and then OPEC turns around and recycles these same dollars back to America into banks, securities, and real estate. Sometimes this is a good explanation of the crazy reports we here about mansions in America being sold for $150 million or mega yachts being purchased. It is a requirement that these dollars get recycled back into this form. The brokers of these properties already know they are going to get a huge sale each year. Recycling these dollars back into America also boosts our economy just that much more.
Anyways, the American dollar has been weakening in relation to the euro. If all oil trade was to be converted to euros, our economy would suffer. Possibly to the extent of economic collapse. But I am no economist. The only strategy for us at that point, is to form another Union just as the EU did. A North American Union between the United States, Canada, and Mexico with the Amero as the new currency. Now does the lame corrupt attempts at Immigration Reform start to make better sense?
These are the real issues facing America in the up and coming future. Something has to happen eventually. The Fed is just trying to keep our heads above water for the time being. Just don’t be suprised if you wake up one morning and realize that every dollar in your 401K or your bank account is worth no more than a peso. If you’re lucky. Isn’t life grand? Meanwhile, all the rest of the elites will be toasting wine glasses and living it up in their European estates as they purchase cheap property in the U.S. much like what was done is the old Soviet Union after it collapsed. And you? Well, you get to join the rest of the Mexicans selling oranges on the street corner.
So maybe flexing our military muscle to defend our dollar isn’t such a bad idea afterall. At least we’re doing something instead of standing by and allowing for a world wide currency shift to do us in. It just wouldn’t be American do to otherwise.
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