{"id":16505,"date":"2016-01-15T06:50:10","date_gmt":"2016-01-15T11:50:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16505"},"modified":"2016-01-15T06:50:10","modified_gmt":"2016-01-15T11:50:10","slug":"oil-bust-could-end-dollar-domination","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16505","title":{"rendered":"Oil Bust Could End Dollar Domination"},"content":{"rendered":"

Oil Bust Could End Dollar Domination<\/a><\/h3>\n
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The US dollar survived the collapse of Bretton Woods in the \u201870s because its use in crude oil transactions made it the king of reserve currencies, but can it survive a collapse of petro dollars? Can the world survive the catastrophic geopolitical consquences that would follow?<\/em><\/div>\n
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There is an overriding belief that the U.S. dollar can hold onto its status as the world\u2019s king reserve currency simply because of petro dollars. But in recent years, a serious threat to this system has developed\u2014and the risk of the dollar being dethroned is very real.<\/p>\n

The U.S. dollar has reigned supreme since the end of WWII, when the\u00a0Bretton Woods system<\/em>\u00a0gave it is initial power. With Bretton Woods\u2019collapse in 1971, oil became its new saviour and kingmaker as the U.S. dollar became the prime currency for crude oil transactions.<\/p>\n

In 1973, the U.S. made a pact with the Saudi King to conduct all crude oil trades in U.S. dollars\u2014in return for U.S. protection of its oil fields. Because of world hunger for crude, the demand for U.S. dollars experienced a similar, sustained hunger.<\/p>\n

Related:\u00a0$380 Billion In Upstream Projects Delayed As Oil Keeps Tanking<\/strong><\/a><\/p>\n

The major producers of crude oil had an abundance of dollars, which was recycled back into the system to purchase dollar-denominated assets. The consumers pay for crude oil in dollars; hence, they always have to keep a steady reserve of dollars, thereby maintaining a high demand for the the currency.<\/p>\n

This is now under threat, and history risks being repeated.<\/em><\/p>\n

The Bretton Woods system failed due to the\u00a0over valuation of the dollar<\/a>\u00a0as spending increased over the war in Vietnam war and America\u2019s Great Society programs.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Oil Bust Could End Dollar Domination The US dollar survived the collapse of Bretton Woods in the \u201870s because its use in crude oil transactions made it the king of reserve currencies, but can it survive a collapse of petro dollars? Can the world survive the catastrophic geopolitical consquences that would follow? There is an […]<\/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":[2,3,5],"tags":[936,303,11731,3521,5332,626,661,662,679,701,839],"class_list":["post-16505","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-bretton-woods","tag-fed","tag-julianne-geiger","tag-oil-bust","tag-oilprice-com","tag-petrodollar","tag-qe","tag-quantitative-easing","tag-reserve-currency","tag-saudi-arabia","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16505","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=16505"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16505\/revisions"}],"predecessor-version":[{"id":16506,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16505\/revisions\/16506"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}