Post Tagged with: "inflation"

Petrodollar is a House of Cards

Petrodollar is a House of Cards

As part of the resolution to the 1973 oil shock, the petrodollar was born when Richard Nixon convinced Saudi Arabia to only accept dollars for payment of oil in return for protecting their oil fields and a guaranteed return on investments in U.S. treasuries. How long will the rest of the world will accept a now near-zero return on money held in treasuries — in short, a U.S. fueled inflation — just to prop up a monetary system pieced together by Richard Nixon and Henry Kissinger 40 years ago?

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