Yes it has been quite a while since I last put up a report at this blog about the pending economic collapse of the United States of America…. All of the recent news has been focused squarely on the crisis in Ukraine, and recently on the still strange disappearance of Malaysian flight MH370. It is troubling that our attention has been so squarely focused in on these two events, and especially the push by the criminals in the US Government for possible war against Russia!I have come to believe very strongly that the mad rush towards war by the insane leadership occupying Washington DC against a nuclear armed Russia is not an accident, but may be exactly what these lunatics want…. It is a fact that a major global war has been the means through the last century to take a nation out of economic depression. It therefore can be reasoned that these nuts want a new war to solve the most recent economic crisis. However, this time a war against Russia (and very possibly China) could quickly escalate into a full blown nuclear war where there will be no winners, and very possibly rather than solve the US's economic woes, it would mean the destruction of that nation entirely.There has been the recent push by the US Government to threaten Russia for its legal annexation of the Crimean peninsula by imposing economic "sanctions" against Russia. This to me is one of the most stupid moves the idiots in Washington could ever try…. Russia has long been a major supplier of raw materials, especially oil and natural gas, to Western European markets, and the imposition of these laughable "sanctions" would only make the Russian government retaliate by cutting off those much needed supplies and possibly bring much of the European Union to its knees. But there is one way that Russia can retaliate against the United States directly that could in fact bring the United States to its knees as well that few people are talking about…But I am covering right here in this article…..I came across the following article from Washington's Blog (www.washingtonsblog.com) that gives a perspective of the recent push by Washington DC to impose economic "sanctions" against Russia that could spell disaster for the United States itself. This article is entitled: "Forget Russia Dumping US Treasuries…. Here Is The Real Economic Threat", and shows clearly that if the US is stupid enough to try to economically ruin Russia through "sanctions", then Russia could easily retaliate by destroying the Petro-Dollar scam, and as a result very possibly destroy the entire US economy as a result. I have that article right here for everyone to view for themselves, and I do have additional thoughts and comments to follow:Forget Russia Dumping U.S. Treasuries … Here’s the REAL Economic ThreatPosted on March 21, 2014 by WashingtonsBlogRussia Could Crush the PetrodollarRussia threatened to dump its U.S. treasuries if America imposed sanctions regarding Russia’s action in the Crimea.Zero Hedge argues that Russia has already done so.But veteran investor Jim Sinclair argues that Russia has a much scarier financial attack which Russia can use against the U.S.Specifically, Sinclair says that if Russia accepts payment for oil and gas in any currency other than the dollar – whether it’s gold, the Euro, the Ruble, the Rupee, or anything else – then the U.S. petrodollar system will collapse:Indeed, one of the main pillars for U.S. power is the petrodollar, and the U.S. is desperate for the dollar to maintain reserve status. Some wise commentators have argued that recent U.S. wars have really been about keeping the rest of the world on the petrodollar standard.The theory is that – after Nixon took the U.S. off the gold standard, which had made the dollar the world’s reserve currency – America salvaged that role by adopting the petrodollar. Specifically, the U.S. and Saudi Arabia agreed that all oil and gas would be priced in dollars, so the rest of the world had to use dollars for most transactions.But Reuters notes that Russia may be mere months away from signing a bilateral trade deal with China, where China would buy huge quantities of Russian oil and gas.Zero Hedge argues:Add bilateral trade denominated in either Rubles or Renminbi (or gold), add Iran, Iraq, India, and soon the Saudis (China’s largest foreign source of crude, whose crown prince also happened to meet president Xi Jinping last week to expand trade further) and wave goodbye to the petrodollar.As we noted last year:The average life expectancy for a fiat currency is less than 40 years.But what about “reserve currencies”, like the U.S. dollar?JP Morgan noted last year that “reserve currencies” have a limited shelf-life:As the table shows, U.S. reserve status has already lasted as long as Portugal and the Netherland’s reigns. It won’t happen tomorrow, or next week … but the end of the dollar’s rein is coming nonetheless, and China and many other countries are calling for a new reserve currency.Remember, China is entering into more and more major deals with other countries to settle trades in Yuans, instead of dollars. This includes the European Union (the world’s largest economy) [and also Russia].And China is quietly becoming a gold superpower…Given that China has surpassed the U.S. as the world’s largest importer of oil, Saudi Arabia is moving away from the U.S. … and towards China. (Some even argue that the world will switch from the petrodollar to the petroYUAN. We’re not convinced that will happen.)In any event, a switch to pricing petroleum in anything other than dollars exclusively – whether a single alternative currency, gold, or even a mix of currencies or commodities – would spell the end of the dollar as the world’s reserve currency.For that reason, Sinclair – no fan of either Russia or Putin – urges American leaders to back away from an economic confrontation with Russia, arguing that the U.S. would be the loser.NTS Notes: This is very serious, and something that everyone living in the United States should absolutely not take lightly…Right now, most Americans are totally unaware about how precarious their fragile economy really is…The fact is that Russia could very easily dump what little is left of their US Treasuries and start at any time to trade their Petroleum in a currency other than the US dollar. The result would be catastrophic for the United States itself. The fact is that since the introduction of the Petro-Dollar scam back in 1973, the US economy has hinged on the fact that up until now ALL Petroleum products have been traded internationally in US dollars. This trading in US dollar has forced all nations to keep US dollars as their "reserve currency" because every major industrialized nation requires oil imports for their own economies. But now, Moscow can end that requirement of nations to trade in US dollars by having Petroleum trading done in Rubles, or in the case of China.. The Yuan.If nations were to stop using the US dollar as their reserve currencies, the US dollar will rapidly devalue, and indeed collapse. The result could be the US economy coming to a screeching halt……This is why to me this insanity by Washington to push "sanctions" on Russia makes no sense… It is suicidal for the US itself!The next while will be very interesting indeed…. The liars in the US media have been promoting the lie that the US can win an "economic war' against Russia, but the fact is that such a ridiculous "war" will see the US and its citizens as the only losers…More to comeNTS
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