With Russia concluding three major oil agreements over the past two weeks which will allow nations like China, India, and Iran to buy and sell oil in currencies other than the dollar, the Obama Administration on April 4 responded with a threat of more economic sanctions on Russia if Vladimir Putin doesn't back down from these arrangements, and stop his attacks on the reserve currency and Petro-Dollar.
From the Obama Administration:
*U.S. HAS WARNED RUSSIA, IRAN AGAINST POSSIBLE OIL BARTER DEAL
*U.S. SAYS ANY SUCH DEAL WOULD TRIGGER SANCTIONS
*U.S. HAS CONVEYED CONCERNS TO IRANIAN GOVT THROUGH ALL CHANNELS - Zerohedge
Since the fallout in Syria back in September of last year, the U.S. has seen an acceleration by both Russia and China in taking the necessary steps to wean nations off of the dollar and onto a basket of currencies which will eventually evolve into a gold trade note system. And as Dr. Jim Willie reported several weeks ago, the debacle in Ukraine may have been America's Waterloo moment for the dollar.
Beginning in late March, Russia embarked on a new energy policy that explicitly attacks the foundation of the dollar, and seeks to isolate the U.S. just as they once isolated the former Soviet Union and collapsed the Ruble back in 1989. First, Russia signed a $260 billion oil agreement with China, allowing the Asian superpower to purchase petroleum using the Yuan and bypass the reserve currency. A week later, Putin landed a new agreement with India which with the China accords, will facilitate Russia de-leveraging over 40% of the world's population from dollar hegemony.
Finally, in what appears to be the last straw with Washington, Putin signed a new agreement through which Russia will trade oil for goods to the amount of $20 billion. This act is a direct threat to America's military, political, and economic power as it steals an OPEC nation from the Petro-Dollar agreement, and shows defiance to the U.S. in opposition to their desire for economic sanctions to coerce a nuclear deal from the Middle Eastern nation.
Two years ago, both Russia and China would never have dreamed of challenging the U.S. in geo-political events on such a large scale. But over the past six months, each nation has successfully made the global superpower back down from their aggression in at least four known hot spots, and through this, the U.S. has lost much respect from the global community. And with today's announcement of more 'sanctions' against Russia if they do not back down from their attacks on the Petro-Dollar and U.S. hegemony over the reserve currency, it appears even more that the U.S. is very weak, and has little willpower to stand up against a growing isolation being waged on them by members of the Eastern economic bloc.