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EC Il | One of the worst kept secrets in the world is that the Saudi's have already cut a deal with Pakistan to provide them with nuclear weapons if Iran attains the capability. Then what? Saudi Arabia will still need conventional weapons support from the U.S., but the "dollar" becomes a still useful but not required medium of trade in the oil market. Mr Rickards is correct. The demise, if you will, will likely occur over time. I think the majority of the 10% decline in dollar trade probably has come with the rise of the Euro, but there are storm clouds on the horizon with the PIGS. Will they go their own way? Also, maybe Germany decide they are tired of propping up these countries to the tune so far of a quarter trillion? For me, the scariest part of the equation is this. The U.S. defense annual budget, even today with the winding down of the wars in Iraq and Afghanistan, is still more than the next five countries combined. Our leaders, who were recently proven to be bought and owned by the big banks with the passage of the "taxpayers are liable for our derivative losses" portion of the budget bill, would probably be quite willing to go to war to protect our "national interests." Anyway you play out the multitude of scenarios, there is a very large chicken coming home to roost! | |
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Killing the petro dollar
