New Worries America on Verge of Losing Petrodollar Privilege
As gold prices continue to hold firm near the $2,000 level, bulls are eying big developments ahead for the monetary metal along with the global monetary system.
Gold’s potential ascendancy to new record highs is coinciding with a decline in the global status of the U.S. dollar as world’s reserve currency.
China is pushing for its currency, the yuan, to be the primary competitor to the dollar in international trade. It has forged new partnerships with Russia and other countries who are willing to deal directly in Chinese yuan.
Of course, it’s no surprise that Russia is working to undermine the U.S. dollar standard. Western sanctions have attempted to blacklist Russia from the global financial transactions and forced the Kremlin to pursue alternatives which include doing international business in rubles, yuan, and even gold.
What U.S. officials fear now is that Saudi Arabia could announce it will no longer price oil exclusively in dollars. Any abandonment of the petrodollar would formally signal the end of the dollar’s status as world reserve currency.
Prof. Steve Hanke: Central Bank Buying & Looming Recession Both Great for Gold: Video
Tom welcomes back Steve Hanke Professor of Applied Economics – Johns Hopkins University.
Faith? Foreign Central Banks Bailing On US Treasuries (Japan And China Among Others Are Fleeing The US Titanic)
Apparently, foreign Central Banks have lost faith in Biden and The Federal Reserve. Foreign Central Banks are selling US Treasuries.
Other than The Fed, Japan and China are the two largest holders of US Treasuries. And they are bailing.
