I like Andy Schectman and I also like Kitco News. Here, Andy is interviewed by Michelle Makori. The Petrodollar deal which Kissinger made with Saudi Arabia is discussed, along with Nixon’s departure from gold-backing and the world’s current moving away from the dollar. There’s a one-hour video and a short article…
End of the Petrodollar?
Excerpts from the article:
Saudi Arabia reportedly let the 50-year petro-dollar agreement expire on June 9th, opting to sell oil in multiple currencies instead of exclusively using the U.S. dollar. Andy Schectman, President and Owner of Miles Franklin Precious Metals, warns that if the "petro" is taken from the "dollar," the U.S. currency will be backed by "nothing," which could trigger "catastrophic" consequences…
The foundation of the petrodollar system lies in a 1974 agreement between Saudi Arabia and the United States. Under this deal, Saudi Arabia agreed to recycle its petrodollars into U.S. Treasuries in exchange for a security guarantee from the U.S., creating a strategic alliance that has significantly influenced global politics for decades. By 1975, all OPEC members had agreed to price oil in dollars and invest in U.S. government debt…
If the U.S. dollar is no longer the primary payment option for oil, Schectman foresees a massive spike in interest rates as one of the consequences, with the situation getting quite chaotic for the U.S.
“If this happened all at once, it would be catastrophic. It would be chaotic because the natural reaction of the dollar being dumped globally is hyperinflation. It would hit our shores in a tsunami of inflation,” Schectman said. “The dollar would collapse, the stock market would collapse, the bond market would collapse, the banking system would collapse, the insurance companies would collapse. Everything. This is the great reset.”
…The move away from using the U.S. dollar in international trade transactions is not new, but it has been accelerating…