Ever since the “Bretton Woods” agreement the U.S. Dollar had the status of a world reserve currency which boosted our economy and gave us an advantage that other currencies didn’t have. After inflation forced Nixon to abandon the Gold standard, Kissinger came up with a brilliant plan to allow the U.S. dollar to retain it’s standing as a world “reserve” currency. In exchange for U.S. military aid the Saudis would agree to only accept U.S. dollars for their oil. This was a win-win situation and soon other OPEC countries followed suit. This was the beginning of the “Petrodollar” which has allowed the dollar to retain at least a portion of its former glory all these years since.
Some people believe that the real reason for the Iraq was because Iraq threatened to abandon the petrodollar which would have disastrous repercussions on our economy. But now it appears that Obama is in the process of throwing the petrodollar under the bus. In this video Alex Daley, Chief Technology Investment Strategist for Casey Research interviews Jim Rickards about Obama’s plan for abandoning the Saudis in favor of Iran and thus dooming the Petrodollar in the process.
Jim Rickards is the author of many best-selling books, covering a variety of topics on economics and investing. His latest book is titled The Death of Money: The Coming Collapse of the International Monetary System.
In this exclusive interview, Jim explains the difference between a “trade currency” and a “reserve currency” and why it matters to you. He covers Gold, inflation, the international monetary fund’s “Special Drawing Rights” plus he also shares his view on the changes in US foreign policy—the newly announced partnership with Iran to help fight ISIS and recent moves away from the petrodollar deal with Saudi Arabia—and what they mean for the dollar, gold, and investment markets in general. ~ Tim McMahon, editor
Jim Rickards was a featured speaker at the most recent Casey Research Summit in San Antonio. This interview just scratches the surface of the topics Jim covered in his speech but you can grab a complete recording of that speech, and all 25 of the others, in the Summit Audio Collection, which is on sale with a juicy preorder discount for just a few more days.
You may also like:
- So Long, US Dollar As World’s Reserve Currency
- Oil, Petrodollars and Gold
- Inflation and CPI Consumer Price Index 1970-1979
- What Is Fiat Currency?
- Is gold really an Inflation hedge?
- What are “Foreign Exchange Reserves”?