[UAE Palm Island][source]
The US dollar is fast losing out its reserve currency status with China aggressively replacing the dollar with the Yuan as a currency for bi-lateral trade. The latest is an agreement signed between the China and the United Arab Emirates (UAE), which will use the Yuan for oil trade.
To explain this situation [rise of the petrodollar] properly, we have to start in 1973. That’s when President Nixon asked King Faisal of Saudi Arabia to accept only US dollars as payment for oil and to invest any excess profits in US Treasury bonds, notes, and bills. In exchange, Nixon pledged to protect Saudi Arabian oil fields from the Soviet Union and other interested nations, such as Iran and Iraq.
2012 might end up being most famous as the year in which the world defected from the US dollar as the global currency of choice.
According to this video, that goes hand in hand with the previous article, the dollar will collapse when the petro-dollar system will collapse. Likely 2012 or a little later.
Discussion of the merits of this video in this [forum thread].
Through the new North Stream and South Stream pipeline systems, Russia is clearly redrawing the energy map of Europe… energy is the lever for Russia’s return to the world stage and for checkmating Washington’s NATO encirclement strategy… On November 7 the first of two pipelines for Nord Stream, the huge Russian-German gas pipeline project, began delivery of gas. A 1224 km pipeline delivers gas from the Siberian Yuzhno-Russkoye field to Lubmin/Germany. Total cost: more than 12 billion $. After completion of the second pipeline by the end of 2012, 55 billion cubic meters of Russian gas a year, almost ten percent the entire EU annual gas consumption, or roughly one third the entire current gas consumption of China. The EU is going for natural gas energy big time and Moscow intends to be a major, if not the major beneficiary of that push. Nord Stream will deliver to Germany, the United Kingdom, Denmark, the Netherlands, Belgium, France and the Czech Republic. Read more…