Friday, March 21, 2014

Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China | Zero Hedge

http://en.wikipedia.org/wiki/Holy_Grail

While Europe is furiously scrambling to find alternative sources of energy should Gazprom pull the plug on natgas exports to Germany and Europe (the imminent surge in Ukraine gas prices by 40% is probably the best indication of what the outcome would be), Russia is preparing the announcement of the "Holy Grail" energy deal with none other than China, a move which would send geopolitical shockwaves around the world and bind the two nations in a commodity-backed axis. One which, as some especially on these pages, have suggested would lay the groundwork for a new joint, commodity-backed reserve currency that bypasses the dollar, something which Russia implied moments ago when its finance minister Siluanov said that Russia may regain from foreign borrowing this year. Translated: bypass western purchases of Russian debt, funded by Chinese purchases of US Treasurys, and go straight to the source.

To summarize: while the biggest geopolitical tectonic shift since the cold war accelerates with the inevitable firming of the "Asian axis", the west monetizes its debt, revels in the paper wealth created from an all time high manipulated stock market while at the same time trying to explain why 6.5% unemployment is really indicative of a weak economy, blames the weather for every disappointing economic data point, and every single person is transfixed with finding a missing airplane.

Read More:   http://www.zerohedge.com/news/2014-03-21/petrodollar-alert-isolated-west-putin-prepares-announce-holy-grail-gas-deal-china

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The country of New Zealand has dropped the latest bombshell on the US dollar as shared in this video by announcing that they will begin trading directly with China in another blow to the status of the US dollar as the world’s reserve currency. With China and Russia previously dropping financial bombshells on the US, the coming end of the dollar as reserve currency will leave unprepared Americans destitute.

An increasing number of financial experts are saying the United States dollar is no longer a reliable and dependable currency – and that its downfall is inevitable. There are even some experts who think the dollar is so unstable that the Chinese Yuan will soon become the world’s reserve currency, or currency of choice.

“In my view the dollar is about to become dethroned as the world’s defacto currency basically,” Canadian billionaire investor Ned Goodman said. “We’re headed to a period of stagflation, maybe serious inflation, and the United States will be losing the privilege of being able to print at its will the global reserve currency.”

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