{"id":12507,"date":"2015-09-22T07:05:01","date_gmt":"2015-09-22T12:05:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12507"},"modified":"2015-09-22T07:05:01","modified_gmt":"2015-09-22T12:05:01","slug":"the-clock-is-ticking-on-the-u-s-dollar-as-worlds-reserve-currency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12507","title":{"rendered":"The Clock Is Ticking On The U.S. Dollar As World\u2019s Reserve Currency"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Finance\/the-Economy\/The-Clock-Is-Ticking-On-The-US-Dollar-As-Worlds-Reserve-Currency.html\" target=\"_blank\">The Clock Is Ticking On The U.S. Dollar As World\u2019s Reserve Currency<\/a><\/h3>\n<p><strong>The View From Hubbert\u2019s Peak<\/strong><\/p>\n<p>In 1971, the American President put an end to a 2,500 year trend; the Wall Street Journal called it \u201cNixon\u2019s Worst Weekend.\u201d Considering the old boy had some really bad ones, this must have been something special. In August of that year (on Friday the 13th) it was decided that the U.S. would\u00a0<a href=\"https:\/\/www.youtube.com\/watch?feature=player_embedded&amp;v=7_Xw5tWsOQo\">no longer pay out gold<\/a>\u00a0for its paper dollars. OPEC Ministers took note, and in September they met, deciding it would be necessary to collect more paper dollars, if possible, since gold was no longer on offer and oil was the only asset they had to sell.<\/p>\n<p>It would take another two years for those decisions to matter (during the October 1973 embargo in the wake of another Arab-Israeli war). The Oil Embargo marked the end of \u2018free\u2019 energy, and kicked off a massive rise in the price of oil because the U.S., the world\u2019s swing producer since Colonel Drake\u2019s Pennsylvania strike in 1859, had finally reached peak production at around 10 million barrels per day in 1970. This moment is the original\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Hubbert_peak_theory\">Hubbert\u2019s Peak<\/a>, the beginning of decline for the U.S. oil industry, at least until recently. The surge in U.S. production since 2010 has stalled out around 9.5 mb\/d and, due to the Saudi decision to give the American tight oil producers \u2018a good sweating,\u2019 that rate has begun to fall in the last few months.<\/p>\n<p>It is certainly possible that U.S. production will surpass the 1970 peak, but with low prices it is hard to say when that will be; it is also hard to say how long that will last as tight oil wells have a devilishly high rate of decline. It is worth noting, as Arthur Berman has recently done in his\u00a0<a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/The-Biggest-Red-Herring-In-US-Shale.html,\">fine article<\/a>, that even the best producers are losing money now, and lots more are being lost by those who are not the best. Making it up on volume is a dog that does not hunt for $45.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Clock Is Ticking On The U.S. Dollar As World\u2019s Reserve Currency The View From Hubbert\u2019s Peak In 1971, the American President put an end to a 2,500 year trend; the Wall Street Journal called it \u201cNixon\u2019s Worst Weekend.\u201d Considering the old boy had some really bad ones, this must have been something special. In [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[9172,951,7963,9173,5332,617,4219,839,1474,5482],"class_list":["post-12507","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-bretton-woods-agreement","tag-currency","tag-henry-hewitt","tag-oil-embargo","tag-oilprice-com","tag-peak-oil","tag-richard-nixon","tag-us-dollar","tag-us-oil-production","tag-world-reserve-currency"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12507"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12507\/revisions"}],"predecessor-version":[{"id":12508,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12507\/revisions\/12508"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}