The US dollar is only worth 4 cents today compared to 100 years ago thanks to the FED Res bank and their over printing of money.
The US were clever back in the 70's when they made the US$ the reserve currency for oil purchases (The Petrodollar) and then for commodities. Every country has to purchase in US$ - but why??
Every country currently has to trade in US$ to obtain US$ to purchase energy in the form of oil or gas. So they sell items at an insanely cheaper price to the US for their highly over-inflated US$.
Countries are indebting themselves in order to purchase the almighty US$.
That is why the US$ always has such a high exchange rate price - even in times of war or bubbles... Countries need the US$.
But what happens when the BRICS (Brasil, Russia, India, China & S.Africa) countries go away from using the US$??? The US$ will be seen for what it is really worth.....nothing.....
THAT will be the end of the US economy. Period.
What Putin has threatened is that very scenario, with sanctions imposed on Russia now going to cause Russia to drop the US$ and start the selling of their oil/gas/commodities in their own countries currencies. Hell, China and Russia have signed up already, India is paying for some energy in gold, so they've already turned their backs on the US.
Russia has even withdrawn funds from US banks, and is selling off their US treasury bonds, that in itself could possibly start a run on the banks....
Russia supplies the majority of Europes energy needs, so if they say use the Ruble, then I guess they'll have to use the Ruble.... or... they can shut off the supply... that'll make some countries asses twitch... and if they use the Ruble, then they'll have to supply Russia commodities to get the Rubles.....
Do you think sanctions are really gunna hurt Russia?? Not on your life!
If you've got cash lying around - buy a sidecar......!!!!
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