The following video is a short clip from a presentation given by Canadian billionaire Ned Goodman concerning the end of the dollar as the world’s reserve currency.
When Nixon closed the gold window in 1971, severing the dollar’s final remaining link to gold, he did not destroy the currency’s international standing. In an ironic twist, it served to kick off the dollar’s rise to global hegemony, thanks to Henry Kissinger who convinced Saudi Arabia to sell its oil only for dollars. This was the birth of the so called Petrodollar in which oil profits measured in dollars made their way back through Western banks, ultimately creating an enormous source of demand for US Treasuries. The result has been a forty year debt based expansion of US power and influence saddled on the back of the dollar’s de facto use as the global currency.
Mr. Goodman believes that the dollar will soon lose that valuable status. He notes that in during the very first meeting with Vladimir Putin, China’s president Xi Jinping entered a deal to secure all of the oil that China needs – purchased directly with Renminbi. The eventual result will be a period of significant dollar based inflation as countries around the world increasingly transact without dollars. China has 3.5 trillion dollars which it is spending as quickly as it can. A course of action soon to be adopted by the United States and the rest of the world as the dollar loses its desirability.
In a separate interview Mr. Goodman stated that “I don’t wait for inflation. It’s hard to call, but it’s impossible for me to see the U.S. getting out of trouble without printing more money.” – A sentiment recently confirmed by Ben “no taper” Bernanke.
Take a look at the entire clip.