The Petrodollar System is Over

Cheap oil and record financial markets are also over.

Hello,

Hope you are having a great week so far.

Since the petrodollar system began in 1974, the deal has been that the US buys oil from Gulf states and the Gulf states use that money to invest back in US financial markets. Gulf States have made money in American markets while also receiving security guarantees.

As we have seen in the Iran conflict, the security guarantees from the US are all talk. Talk is cheap when the missiles start flying…literally. From condos in Dubai to LNG plants in Qatar, if you are friends with the Americans, you are a target.

The systems American are use to over the past 40 years will not be the same. Fiat money has all ended the same in the past, and that is as a failed system with a gold backed system replacing it. The question is, will we that in the near future?

Time will tell. Thanks for being a part of this.

Casey Donaldson

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