Many people understand that the U.S. dollar and the U.S. economy in general, have maintained its power in the world because of its “reserve currency” status. This means that the world essentially trades in U.S. dollars, and anywhere in the world where the dollar is presented as currency, it is accepted with no questions asked. This stature has contributed greatly no doubt, to the idea that U.S. is a wealthy nation and as long as we maintain this reserve currency status we can’t go broke. Unfortunately, most people just don’t realize how fragile this makes us as a nation because they don’t understand where the reserve currency status came from. The sad truth is that once you understand what has really occurred with our money you will realize that the world we have been living in has all been based on lies. Lies built upon lies actually, and sadly, when things have spun this far out of control, and a house has been built on a shaky foundation, there is only one place for it to go, and that is down.
To further explain the status of "worlds reserve currency" we have to understand that this term is really explaining the "petrodollar." This means that all trading in oil across the world is done in U.S. dollars, and if a nation doesn't have a supply of U.S. dollars to purchase oil, they must first purchase, U.S. dollars. As you can imagine, this makes some nations angry, and it could be argued that much of the Mideast turmoil revolves around this fact. During the Iraqi war for example, it was rumored that Saddam switched from selling oil in dollars to euros, this would have had a devastating effect on the U.S. economy, and because the general public remains relatively ignorant of this fact, another excuse had to be given for the war. If this is information you may have not been privy too you better hold on to your seat, there is more.
According to Callum Newman of The Daily Reckoning, the U.S. government has been pulling some serious wool over the eyes of the American people. The power of the U.S. currency and its status as the "petrodollar" has all been a facade because its been created by Saudi Arabia. The Arab nation, in exchange for protection from Americas military muscle has controlled the sale of oil and the strength of the U.S. economy by pricing the oil it sells in dollars. Further more, it is claimed by James Rickards, in his book "The Currency Wars," that the Saudis are now viewing President Obama as someone who is prompting up Iranian power and allowing them to further their nuclear weapons program. This threatens the status of this cozy relationship that has existed for fifty years. If it collapses, and the Saudis no longer wish to play ball, this shaky house of cards is going to collapse.
Does anyone really see the significance of this? It means we have all been living a lie; a lie our whole society has been deceived by. When conservatives argue for capitalism they are arguing for something that hasn't existed since this arrangement was made, at least when describing the term in its original definition. Our whole nation is teetering on the brink of a collapse and we have Americans who hate one another based on the false premises of two political parties that are engaged in keeping this lie a secret from us. People are becoming very rich while we are being conditioned to hate each other in order to hide the truth.
Our economy depends on the world viewing our dollar as the "worlds reserve currency" folks, if it were to ever collapse and lose that stature our whole world would change in an instant. That's how fragile we really are.