The #Petrodollar Died. So what happens next? #forex #money
The Petrodollar just died. Zero Hedge ran an obituary notice for the Petrodollar last week.
Reuters reports energy-exporting countries are set to pull their “Petrodollars” out of world markets this year. This shift is likely to cause global market liquidity to fall: “this year the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012. This is according to BNP Paribas calculations. Petrodollar recycling peaked at $511 billion in 2006.”
The Petrodollar began with the Arab oil embargo during the 1973 Arab-Israeli war. Henry Kissinger devised a plan that allowed the US to finance foreign wars and to force colonized nations to pay for their own occupation. The US went off the Gold Exchange standard when President Nixon said on Sunday August 15, 1971 that the dollar would no longer be converted to gold on demand by foreign…
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