The U.S. leaving Afghanistan is in the news today. Many may wonder why the US is in that region in the first place? Its because of the petrodollar system:
all oil bought and sold in the world must be transacted in US dollars.
For example, if Jamaica wants to buy oil for their country, they must use US dollars. If Bolivia, Uruguay, Japan, Chad, or any other country want to buy oil, they MUST do it in using American dollars.
Here’s where it could get interesting:
Leaving Afghanistan could cause the region to destabilize, signaling the beginning of the end of the petrodollar system.
Why is this a big deal? Because petrodollars keep the US dollar in demand all over the world. See my thoughts here:
Think about it, what products does the US export to other nations? What do we SELL to other nations? Go to Walmart and all the products are made in China. the clothes on your back, shoes on your feet are all made in other countries.
Yeah, we sell cars and trucks, but guess where the majority of the PARTS for those vehicles come from? Not here…
The US NEEDS petrodollars to survive and function. If we lose petrodollars, the DEMAND for the US dollar will FALL around the world, and so will its PURCHASING POWER.
If you think inflation is getting bad now, wait until the petrodollar system is abolished.
This is another reason people are buying gold, silver and crypto. They are trying to get AWAY from the dollar because it could lose its purchasing power in the near future.
Now PERSONALLY, I think this is ALL tied into the virus, global shutdowns and the most important, the RUSH to create a central bank digital currency.
A central bank digital currency (CBDC) uses an electronic record or digital token to represent the virtual form of a fiat currency of a particular nation (or region). A CBDC is centralized; it is issued and regulated by the competent monetary authority of the country.Courtesy of Investopedia
The world is changing right before our eyes, and people aren’t paying attention. Instead, they are arguing about who is vaxxed and who isn’t.
This is why it’s important to understand money matters and the HISTORY of money.
If you understand HOW money works, you can follow the news, read between the lines and know how to protect yourself AND your wealth and purchasing power.
More than ever, we must learn how to protect ourselves financially. One way is by learning how to create multiple streams of income and passive income. Register for my online course on passive income today: Tired of the 9-5? How to Retire Early With Passive Income. Available on Udemy.