Mighty US Petrodollar?
Yesterday’s article raised a few eyebrows so lets look a little deeper. China has just overtaken the US as the largest user of oil in the world. The USD reserve status is founded on its role as the petro dollar – with all oil trade done in USD. Of late they have upset the Saudi’s, China, Russia, and India and not great mates with Iran and Iraq either. China is continually doing new settlement exchange deals with the likes of EU, Russia, UK, and Singapore in Renminbi/Yuan not USD. Yesterday China and Russia signed a massive gas deal. Russia is also a massive producer of oil and lately really really don’t like the US and their sanctions. China has been the world’s biggest consumer of gold and Russia continues to grow its very substantial reserves. When you consider all this and the graph we posted previously again below, it certainly makes you wonder… and maybe glad you own gold and silver…tick tock tick tock…