So, Thursday I made a blog post that explained how Gaddafi wanted to create a new gold-backed currency for oil trade -- the Dinar. This would have obviously had some serious consequences for the US, which would have had ended our ability to print money to buy oil with and instead required us to purchase oil with gold (which we don't have that much of, all things considered). I then went on to explain (or rather, link to a video that explained) the petro-dollar system, and alluded to the fact that, once enough countries backed out of the petro-dollar system, we'd finally see the total collapse of the US currency.
Well, it appears that Japan, China, and South Korea have established their own bi-lateral trade agreements, similar to those that China and Russia established with each other just a short while ago.
Asian trio to study dollar alternative: report
Remember what I said about quietly backing away to get to the elevator?
But it's not just them... India and Iran want out too!
Oh, but wait, there's more!
China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings
So much for quietly backing away... that more like an outright sprint! And in addition to this being, among other things, not a great show of faith in the US by the Chinese, this almost guarentees that we'll be seeing new waves of Quantitative Easing... With China selling, not buying, American debt, we have no choice but to print the money that we need directly (I.E. Quantitative Easing). This, of course, leads to the graph of the money supply looking like this:
Expect to see another 90 degree jump in just a few months.
Lets climb a little higher before we jump to our deaths, shall we?
Seriously people, this is -not- good news. The US economy is beyond fucked, and the dam that is holding it all together just got a few more leaks. As we continue to loose our footing as the global super power, I can only imagine what will happen. I don't know everything, but I have a hunch that America won't go down without a fight.