A Glance At The Economic Politics At The Global Stage

...The Planned Stoppage Of The Petrol-dollar System

By Ebi Dressman

The constant romance between China and Russia and the aim to make Russia Ruble and China Yuan the world exchange digit and many more brings to mind the plan to end the Petro-dollar system.

And what is Petro-dollar system?

The petro-dollar system simply means an exchange of oil for U.S. dollar between countries that buy oil and those that produce oil. The petro-dollar was the result of the oil crisis in the mid-1970s when prices spiked to record levels. It helped increase the stability of oil prices denominated in U.S. dollars.

For years, Russia and China have looked sideways to re-monetize gold and exit abuses of SWIFT system as a geo-political tool against them and to make Russia Ruble and China Yuan the world single exchange digit, but how to do it, how to exit without the West declaring it an act of aggression or w.a.r against the West was the main focal point.

And most of us thought that Russia invasion of Ukraine might have just accomplished that end for both Russia and China. Now freed to declare themselves SWIFT system outcasts by the western govt hands, Russia can now say “we will turn oil pipelines back on, but not for dollars.” Can you now imagine what was running through our mind then?

We also expected that after then, Russia will now declare that Europe or any other country that wants Russian oil as 3rd largest global oil producer or Russian/Ukrainian wheat which is 1/4 of worlds production must pay in gold, or use the ruble-yuan gold backed payment system, but after months of the Russian/Ukraine w.a.r, Russia is yet to do that as we expected

I also thought they will leverage as an oil producer to cut off supply to cause price shocks to the West. A good part of the population could immediately be unable to heat their homes with gas as well.

Almost equal to the oil shock they will also have the ability to cause food shortages and price spikes through the disruption of wheat production as one of world largest wheat producer. While this is ongoing, China will now act to soak up Russian production of oil and wheat to soften the blow to their strategic partner. This will again be through the Yuan-Ruble facility and at some point overtly-stated gold backing of that system by Russia and China. The West will of course declare those last two bullets as acts of global aggression and direct threats to the world monetary system.

At this point there will be a clear fracture of the world’s monetary system into two competing structures (East/West structures), circling back to the initial point that the 50 year global petro-dollar system has just officially been ended by Putin.

If all of these analysis is indeed correct, then the petro-dollar system will be weakened.

But at the end, Russia and China are yet to take any of these actions.

Then, the big question comes to mind:

Can they do it?

Can the world actually cut off dollar?

Over the years, many leaders who opposed the usage of the dollar have been reportedly killed in a mysterious circumstances

Can other leaders take this bold step?