three pcr essays in a row and this one is certainly a concern on the horizon but created by the empire and turning on it;

Washington’s Power Will Decline With the Dollar

Paul Craig Roberts

Saudi Arabia’s recent announcement that the government is open to accepting payment for oil in currencies other than the dollar is a major announcement ignored by the presstitutes.  The end of the petrodollar would have severe adverse effects on the value of the dollar and on US inflation and interest rates. 

For a half century the petrodollar has supported the value of the US dollar and ensured financing for America’s large budget and trade deficits. By billing for oil in dollars, the Saudis guaranteed a worldwide demand for US dollars.  Without this demand for dollars, the constant increase in the US money supply would have eroded the dollar’s exchange value in terms of other currencies.  As the US has offshored so much of its production for home use, the US is import-dependent, and the widening trade deficit would have eroded the dollar’s exchange value and resulted in high inflation.

Similarly, as the world needed dollars for oil payments, countries held dollars in the form of interest bearing US Treasuries rather than currency, and this made financing easy for large US budget deficits.  

The petrodollar supported the continuing role of the dollar as world currency after President Nixon closed the gold window in 1971, in effect ending the Bretton Woods system following WW II that gave the US dollar the reserve currency role.  Under Bretton Woods, foreign central banks had the right to demand US gold for their dollar holdings.  When France made this demand, Nixon abrogated the Bretton Woods agreement.  To save the dollar’s value and its reserve currency role, the petrodollar system was created.........more........