Soon, King Dollar will lose its supremacy, and the dollar will be just another insignificant local currency.

Jamie Redman –
"Petro-Dollar System Crumbles: US Dollar Could Collapse from the World's Oil Wars"  
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  (Image source)}

– Flash Points –

1 – About 10 days ago, the price of oil dropped below zero.
2 – The plummeting oil price could lead to a collapse of the dollar.
3 – The position of the US dollar is already weak and fragile.
4 – We can expect hyperinflation of the US dollar.

– Synopsis –

In a recent article for bitcoin.com, Jamie Redman outlined how the petro-dollar system has been deteriorating before our very eyes. Consequently, the US dollar is headed for a total collapse.  

Pop Goes the Bubble 

The dollar’s tenuous position is not the result of the coronavirus, nor or the pandemic’s impacts on the global economy. The coronavirus is simply the pin that has pricked the massive petro-dollar bubble. As economies around the world went into lockdown, the demand for oil plummeted. And so did the price.  

Down Goes the Dollar 

Under the petro-dollar system, the US dollar is essentially “tethered to”  the price of a barrel of oil. So now, with the price of a barrel of oil set at less than zero, the dollar too is – for all intents and purposes – worth less than zero. Sure, it may be supported by a massive war machine, but it’s clear to see that even the US’s military might is fading.   _{(Image source)}

Long-Perm Abuse 

While the petro-dollar system is actually began in the early 1970s, its actual origins date back to the post-war Bretton Woods system, under which the dollar essentially became the world’s reserve currency.    

After the US started abusing the system, by printing massive amounts of money to fund its war in Vietnam, the Bretton Woods system collapsed. The gold standard was abandoned (“temporarily, ” said President Nixon), and subsequently, all countries were free to print as much money as they wanted (“permanently,”  they assumed).

– Insight from Outside –

The petro-dollar system has always been a flawed, corrupt, and manipulated arrangement. It has survived this long only because its victims have ignored the flaws and the corruption. 

Exorbitant or Extortionate? 

Under the Bretton Woods system, the price of the dollar was tied to gold, and the prices of all other currencies were tied to the dollar. That gave the US an “exorbitant privilege”  to print massive amounts of what was essentially the global reserve currency. As one would expect, the US soon began to abuse that “privilege.”   _{(Image source)}

When France rightfully tried to exchange its dollar holdings for gold, Nixon unilaterally abandoned the Bretton Woods system. Essentially, he said that France could not claim its gold. Some call that “theft.” 

Criminal Partner  

A few years later, Nixon convinced Saudi Arabia to sell its oil for only dollars, and not for any other currency. Since then, the US has used its “exorbitant privilege”  for its own advantage, and to the severe detriment of its trading partners.    

That is about to end. Iran and Venezuela have suffered greatly under the skewed petro-dollar scheme. And those 2 countries are not alone in looking forward to the day when the petro-dollar system crashes and King Dollar loses its supremacy.

When that happens, the dollar will be nothing more than an insignificant local currency – at best.