On March 17, commodities adviser Jim Sinclair spoke in an interview with Greg Hunter of USA Watchdog on gold, the markets, and ongoing events taking place between the U.S. and Russia over Ukraine. During the 30 minute interview, Sinclair laid out a chilling scenario where Russia has positioned themselves to be one move away from collapsing the U.S. economy, and that one wrong move by President Obama could set the entire scenario in motion.
Jim Sinclair: To sanction Russia is to forget that Russia supplies Europe with its gas supplies. I honestly believe sanctioning Russia is the same as shooting yourself in the foot.
Greg Hunter: So Russia could not only say hey, we want gold for our payment (oil), but they could say, hey… we want you to pay us in rubles.
JS: Or pay us in anything. Also, it makes energy cheaper. Why would anyone want to pay in dollars if they can pay in their own currency?
GH: Once Russia started doing that, would there be any coming back from it? (For the dollar) Wouldn’t that be the beginning of the end for the Petro-Dollar?
JS: Russia has the capacity, the inclination of course, to do just one single thing… accept payment for energy in any currency you wish to give. – USA Watchdog
Since the U.S. tied the dollar to oil, the future of America’s monetary system and economy was reliant upon all global oil producers following the Petro-Dollar agreement, which from 1974 to the present has been backed by our economic and military power. But as Russia rose from the ashes of the former Soviet Union, and grew into becoming the world’s largest oil producing nation, the U.S. could no longer enforce the Petro-Dollar through economic and military threats since Russia is their equal when you consider their alliances with China and other BRICs nations.
In a global environment where perceptions are reversed, and the United States is now being seen by the world as the ‘Evil Empire’, Russia is using America’s own Petro-Dollar system against them to grow in power and bring the U.S. to the brink of economic collapse. And whether it is Russia or the U.S. itself that pulls the trigger, the future is inevitably rushing towards an end of dollar hegemony. The only question that remains is whether the U.S. has another plan ready to fill the gap, just as they did when they left the gold standard and replaced it with the oil standard forty plus years ago.
Full article: Jim Sinclair: Russia is one move away from collapsing U.S. economy (Examiner)