On March 6, Congress passed overwhelmingly, at the behest of the Obama Administration. new economic sanctions on Russia for their intervention in the Crimean region of Ukraine. In doing so, President Obama has now placed the dollar and entire Treasury reserve structure at risk, and as Dr. Jim Willie noted yesterday, has brought America to the brink of its 'Waterloo'.
If the Kremlin demands Gold bullion (or even Russian Rubles) for oil payments, then the interventions to subvert the Ruble currency by the London and Wall Street houses will backfire and blow up in the bankster faces. Expect any surplus Rubles would be converted quickly to Gold bullion. If the Chinese demand that they are permitted to pay for oil shipments in Yuan currency, then the entire Petro-Dollar platform will be subjected to sledge hammers and wrecking balls. The new Petro-Yuan defacto standard will have been launched from the Shanghai outpost. If the Saudis curry favor to the Russians and Chinese by accepting non-USDollar payments for oil shipments, then the Petro-Dollar is dead and buried. The rise of the Nat Gas Coop run by Gazprom is in progress, its gas pipelines to strangle the OPEC and its bastard Petro-Dollar child. The entire USDollar foundation with the USTreasury Bond bank reserve structure is at risk is collapsing, as consequence to the desperate adventure and criminal activity conducted in Ukraine. - Silver Doctors
The reason that these actions have the potential to cause the end of the dollar and of the U.S. controlling the reserve currency system, is that once a single country of note begins to reject the dollar, and ship back their currency reserves to the U.S., a floodgate will open that could trigger $16 trillion worth of currency rushing back to American shores, collapsing theie entire monetary and economic system in a day.
Despite these sanctions, Russia has several cards up their sleeve they can play that can make life very difficult for both EU countries, and the U.S. itself. Europe relies heavily upon Russian natural gas and oil to function and heat the homes of their populations, and in the midst of winter, even a temporary halt of energy flow will be deadly, just as it was in 2009.
For the U.S., our debt based economic system relies primarily upon other nations accepting our Treasury bonds for goods and services imported to our shores. Additionally, the 1970's petro-dollar agreement is the only thing supporting the dollar's hegemony as the global reserve currency, and a growing partnership between Russia, China, and nations like Iran have become fully prepared at a moment's notice to forcefully end that agreement, and bring colossal damage to the West.
America, like the previous empires of Great Britain and Rome, never realized when their power to force other nations to cede to their wills has ended. And the calamity that occurred yesterday, when Congress and the President blindly pushed through economic sanctions on Russia over their occupation of the Crimean peninsula, is looking more and more like America's Waterloo moment.