Red Alert Warning Signs: Is the US Dollar Going to Collapse?

The world’s situation is spinning out of control with Russia’s war in Ukraine and massive changes in the oil market.

India recently bought Russian oil at a discount. Arabian countries are exploring selling oil for non-US currency transactions.

Let’s be clear: the US dollar relies on the global oil trade. If that starts sliding away, the US dollar could plummet and lose its spot as the world reserve currency.

Here’s a look at what that means…

Understanding the USD’s Power

The USD (Federal Reserve-issued “US” dollar) is the word’s primary reserve currency.

That basically means it is top dog. Most nations hold large amounts of it and agree by treaty to use it for a certain amount of foreign trade in order to maintain global stability.

This is particularly important for the global oil market, where countries convert their currency to the USD in order to buy oil. This keeps the USD value up and is part of why it’s referred to as the petrodollar.

However, that dollar dominance appears to be rapidly coming to an end. Federal Reserve Chairman Jerome Powell says that’s OK and there can be more than one world reserve currency.

Powell is right, of course, but what he’s saying means point-blank the US could soon be experiencing a rapid fall from its position of financial power.

Let’s be honest about the current reality: our nation is federally in debt to the tune of $30 trillion dollars. Moreover, we are led by a senile old man who’s not doing anything significant to stop our dollar from dying.

Red Alert Signal of USD Fall From Grace

The top red alert signal the USD may soon become just another low-value currency came recently from Saudi Arabia.

The corrupt oil dictatorship has been a key ally of Washington for decades; they’re a giant washing machine for our money that makes sure the USD stays in prime position by selling their oil only for USD.

They’ve only accepted USD since 1974, helping enormously to cement the Federal Reserve’s position as the world’s bank.

However, the Saudis say they’re rethinking that and may start accepting Chinese money (the yuan, or CNY), instead of USD. The impact would take a huge chunk out of the dollar’s power and be a strong slap right in the face of the Federal Reserve and Joe Biden.

Saudi Arabia pumps out over six million barrels of oil per day and floods the world market with them. If they start selling even a small percentage of that in another currency, it would be a massive shift in confidence away from the USD.

Here’s What This Means for Americans

Financial talk like this can often seem really abstract. So here’s what it means for Americans if the USD loses its place as the world reserve currency…

In simple terms, it means that the world would stop using USD for trade. America’s welfare-warfare addiction of using the dollar would come to an end.

Americans would find their incomes nosedive, their purchasing power disappear overnight, and life get a lot poorer and more chaotic in a very short period of time.