08/11/2017 (Fri) 16:29:21
When the Chinese, and Asians in general, begin to buy Saudi oil, and Gulf oil in general, the entire geopolitical balance of power will suffer a massive tectonic shift. The Petro-Dollar will be recognized as dead, no longer the standard. If not dead, it will be regarded as having left the Intensive Care ward and heading to the Morgue, a white sheet over its lifeless cadaver, with a cemetery plot being selected. With logic on the argument’s side, no standard can have such large exceptions on the buyer side or seller side. The advent of the Dual Universe will have its dawn, with the USD sphere coexisting with the RMB sphere. The impact will then fall on the global banking reserves for more avid bond dumping. Concerns will be raised on how the USGovt and USFed can manage the heaping volumes of dumped USTreasury Bonds. The derivative machinery will be put to screeching strains, even given some adverse publicity.
The Asians will shed their USTBonds, in favor of both RMB bonds and Gold bullion. The game will change in a way to make clear the end of the King Dollar Era. The great transition from Western sovereign bonds to Gold bullion will begin in earnest. Forty years of exported inflation will be reversed, and wreak havoc upon the USEconomy. The United States will be compelled to create and launch a new domestic only dollar, all in time, complete with official denials. Let it be dubbed the New Scheiss Dollar, complete with a long sequence of devaluations. The $500 billion annual trade deficit will become a major talking point. It will open the door for the United States to the Third World.