The death of the dollar?

POSTED BY: SIGNYM
UPDATED: Sunday, August 23, 2026 15:35
VIEWED: 15891
PAGE 13 of 15

Jekyll Island Author Declares Revolution Is Only Way to Escape the Fed's Planned Crisis

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Fitch downgrades US' long-term ratings from 'AAA' to 'AA+'

https://finance.yahoo.com/news/fitch-downgrades-us-long-term-215304540
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Moody's Cuts USA's Aaa Rating Outlook To 'Negative'; Treasury Dept "Disagrees"

Friday, Nov 10, 2023 - 01:48 PM

Who could have seen that coming?

After a disastrous 30Y bond auction this week, a collapse in Treasury market liquidity, and an accelerating rise in the market's perception of the United States' credit risk, Moody's has just cut its outlook on US credit ratings to negative from stable.

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https://www.zerohedge.com/political/moodys-cuts-usas-aaa-rating-outloo
k-negative

However Moody's maintains Aaa rating.

What happened here?
Well, the USA Treasury regularly sells Treasury bonds (i.e. lend me $ today and I promise to pay you back with interest) in order to continue operating the government in deficit mode.

Last Treasury auction, (30-year bonds) other institutions (other governments, banks etc) were reluctant to buy. Cash money was not raised. This not only indicates that other institutions see Treasury bonds as not worth buying at a particular interest rate (a bit too risky for that reward ), it also impedes the USA government from rolling over its debt at manageable interest rates.


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"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger

Loving America is like loving an addicted spouse - SIGNYM

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Petrodollar Endgame Moves Even Closer

The UAE just stopped transacting oil in U.S. dollars. BRICS now controls most of the world's nuclear arsenals, oil and precious metals & rare earth minerals. It's time to wake up.

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I'll be the first to admit that two of the main themes on this blog – the United States' sovereign debt crisis and the deterioration of the petrodollar – have been extraordinarily slow-moving theses.

In both cases, there have been developments that stand at odds with my contentions. For example, US stock indices continue to move higher, despite our economy grinding to a halt, and the BRIC nations have not developed and put forth their own reserve currency to combat the dollar, as I have suggested may happen. They also haven't backed any of their sovereign currencies with gold, as I have also suggested. While the timing hasn't proven me right as quickly as I would like, it doesn’t mean that things aren't ticking forward for both of these forthcoming realities.

And, in the case of the death of the petrodollar, there was a huge development in late November that was under-reported and unnoticed by the market.

The death of the petrodollar is one of the key waypoints in the US dollar losing reserve currency status, as I have written about at length in the past. And while the US dollar used to be the only currency that foreign nations would trade oil in, that has now come to a screeching halt.

Not only is Saudi Arabia trading oil in other currencies than the dollar (notably the Yuan), it now appears the UAE is also strategically shifting away from the US dollar in its oil transactions, marking a significant change in the global financial landscape.

This move, involving potential deals with up to 15 countries including China, Russia, and Egypt, is part of the de-dollarization trend I have predicted, led by the oil sector. Led by the BRICS alliance, the move is redefining global economics and challenging the US dollar's dominance in international trade.

When you take this into account alongside the fact that Russia is strengthening its ties with China and Saudi Arabia, it is tough to think anything but that we are still solidly on the path to global de-dollarization. Just yesterday it was reported that Russia was working closely with Saudi Arabia and OPEC — who has many member nations in the BRICS consortium — on oil cuts.

Shortly after Russian President Vladimir Putin's unexpected visit to Riyadh to meet with Saudi Crown Prince Mohammed bin Salman, a joint statement from Russia and Saudi Arabia was released. OPEC along with Russia and other allies, agreed to voluntary cuts totaling about 2.2 million barrels per day, predominantly led by Saudi Arabia and Russia maintaining their 1.3 million bpd cuts.

I asked my friend Andy Schectman of Miles Franklin Precious Metals for his exclusive take on the situation for my Fringe Finance readers. He’s one of the smartest people I know when it comes to understanding the dollar globally — and he’s all but predicted the exact scenario that’s taking place.

“The OPEC members decided in 1973/4 to price all oil sales in US dollars and invest any excess in US Treasury bonds in exchange for US military protection. This is how the petrodollar system got its start, and for the last 50 years, due to this arrangement has created a ‘synthetic’ demand for the dollar, and established the US dollar as the benchmark for oil trade globally,” he explained to me.

He continued: “The US Government has done more to destroy this country in the previous few years than any external enemy could have ever done. By using sanctions and other forms of coercion, we have turned the US currency and the SWIFT system into weapons that has forced out a large portion of the global population creating a global backlash that is accelerating.”

“Without a doubt, the deliberate emergence of new cooperating powers is causing a significant global power shift that the world is currently experiencing. The emergence of

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