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What is petrodollar system, and what does it do?
Posted By -NO AUTHOR- On 03/12/2012 @ 9:12 pm In Front Page,Money,Politics,U.S. | No Comments
In this podcast, Jerry Robinson on "Follow the Money Weekly" reveals the impacts that could follow the exchange between U.S. Defense Secretary Leon Panetta and Alabama Sen. Jeff Sessions.
In that exchange, Panetta referenced the United States seeking permission from international influences for future decisions that could involve actions on the part of the U.S. military.
Sessions was shocked by the implications, and Robinson explains the connection between the 2003 Iraq War and the petrodollar system.
In addition, he provides a revealing scenario of what a collapse of the petrodollar system would look like in America.
In an article about the issue, Robinson links the global oil demand – which is expected to grow, to the demand for the U.S. dollar.
"By perpetually expanding the U.S. Money supply, America's standard of living increases as well. … The only problem with this situation is that the only way that it can be sustained is if the demand for the dollar and for U.S. debt securities remains consistently strong," he wrote.
"If the artificial global dollar demand, made possible by the petrodollar system, were ever to crumble, foreign nations who had formerly found it beneficial to hold U.S. dollars would suddenly find that they no longer needed the massive amounts that they were holding. This … would come rushing back to their place of origin … America."
Also appearing on the program is popular trends watcher Gerald Celente, who talks about the buildup to war in Syria and an "interesting solution" to the Iranian problem.
Also, Tom Cloud updates on the economy and talks about recent developments from the Federal Reserve, as well as the price of gold, silver and palladium.
Then, Jay Peroni explains how investors should respond to inflation and John Bearss has an update in his Retirement Minute.
Podcast is 1:08:13.
Jerry Robinson is an economist, published author, columnist, radio talk show host, and international conference speaker. Robinson has been quoted as an economic authority by USA Today, FoxNews and many other news agencies. His columns have appeared regularly in numerous print and web publications, including WND. In addition, Robinson is also the editor-in-chief of the popular economic newsletter, "Follow the Money Quarterly."
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