• Big oil deal threatens stability of U.S. dollar.
By Victor Thorn —
The New World Order’s nightmare may be just beginning.
On April 24th, the Russian government “organized a special meeting dedicated to finding a solution for getting rid of the United States dollar in [their] export operations. Top level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.”
If that wasn’t enough to cause a Rothschild banker to choke on his Beluga caviar, on May 21, Russia’s nationalist Prime Minister Vladimir Putin and Chinese President Xi Jinping signed a landmark 30-year gas deal worth $400 billion. The Associated Press reported that the U.S. government tried at the last minute to sabotage the agreement, but American officials were ignored by both the Russians and the Chinese.
Russian First Deputy Prime Minister Igor Shuvalov and Deputy Finance Minister Alexey Moiseev, who chaired these conferences, discussed the use of “currency switch executive orders” that would provide legal mechanisms to conduct transactions using Russian rubles or Chinese yuans.
The currencies are crucial to this, since Putin visited Beijing on May 20 to negotiate gas and oil contracts that didn’t involve U.S. dollars.
It should also be noted that another key player receptive to this currency shift is Iran.
On May 15 this reporter spoke with Michael S. Coffman, Ph.D. to get a better idea of what would happen if the U.S. dollar lost its status as the world’s reserve currency. Coffman is the CEO of the nonprofit Sovereignty International, which promotes smaller government, and the author of the book Plundered: How Progressive Ideology is Destroying America.
When asked to discuss the consequences of the U.S. dollar being dumped, Coffman said: “In four words, it would be devastating. BRICS countries [Brazil, Russia, India, China and South Africa] are dead serious about attacking the U.S. dollar and taking it out of circulation. In fact, the Chinese are buying as much gold as possible to make their yuan the world reserve currency.”
Speaking directly to the nuts-and-bolts ramifications, Coffman explained: “If the U.S. dollar comes under attack and more countries use rubles or the yuan, the U.S. will be flooded with trillions of dollars returning to our country with no place to go. We’ll see inflation or even hyperinflation.”
Coffman continued: “Rising inflation naturally leads to skyrocketing interest rates. This means the $415 billion we currently spend for interest payments on our national debt could more than double to over a trillion dollars per year.”
When asked what this means in practical terms, Coffman replied: “We’d have to eliminate deficit spending, which is what got us into this predicament in the first place. Doing so would cripple our country, especially programs such as welfare and food stamps. How would people totally dependent on the federal government survive? There would be riots in the streets.”
According to Coffman, the scenario gets much worse. “Why would a truck driver bring food into urban areas like New York, Los Angeles or D.C.? Not only would hyperinflation reduce payments to farmers, but from a safety perspective, they’re not going to make deliveries and sacrifice their lives. The wealthy would be able to escape from these urban areas, but everyone else is trapped. You’d see massive riots and revolt. These people would tear things apart just to get something to eat. If the dollar suddenly collapsed, potentially 70% to 80% of people in metro areas could die of starvation.”
The dollar’s demise would also impact senior citizens, added Coffman.
“The U.S. currently sits on $130 trillion in unfunded mandates, much of it owed to Social Security and pensions,” he said. “Hyperinflation would reduce the value of money to such an extent that the elderly couldn’t pay for anything with their Social Security checks. It would be devastating to the average person. There’d be disruptions we can’t even conceive of. The Great Depression would be nothing compared to what would happen.”
The root problem, as Coffman sees it, is evident. “The banking cartel is pulling the world economy’s strings, and Barack Obama is doing everything 180 degrees opposite of what he should be doing to help this country. As a community organizer, he’s been taught to tear down what already exists, and then build it anew. If you read Saul Alinsky’s book Rules for Radicals, Obama is following his recipe to a tee.”
Victor Thorn is a hard-hitting researcher, journalist and author of over 50 books.