SATISH SHARMA - not just Rotigraphy.: The petrodollar is the last structural support. Once it goes, the rest of the system follows.

https://x.com/apocalypseos/status/2088760486431228319

Alex Krainer (@NakedHedgie
) identifies the single remaining mechanism that still holds the Western empire together. While debts explode and European banks sit on even thinner ice than American ones, the only glue left is the petrodollar. Russia and China understand this. Iran is now in a position to strike it directly.

“The only way this whole empire is being held together, the only glue that holds it together is in fact the petrodollar. And I think that this is very obvious to the Russians and to the Chinese. And so I think that destroying the petrodollar has to be an important objective in the resistance against the empire.  

Now, I don’t think that the Russians or the Chinese are inclined to make very aggressive moves to deliberately crash the petrodollar because they don’t have to. It’s going to implode anyway.  

It’s important to understand for our viewers that most of the US dollars in circulation today, an estimated 60%, circulate outside of the United States. So it’s not just a US American financial problem; it’s the whole world. And so many countries hold their reserve assets in US dollars. Many countries have their pension funds invested in US dollar assets. So a collapse of the petrodollar and the US dollar could end up being the same event.  

I don’t know that the Trump administration is going to manage to insulate their domestic dollar against the dollar circulating outside of the United States. And there’s something between 20 and 30 trillion dollars of US-denominated assets owned by foreigners. And so destabilizing the dollar deliberately would risk consequences that would be detrimental to many nations around the world. It will exacerbate food price inflation, which would be very devastating to many ‘Global South’ countries.  

So it’s important to build alternatives to give countries time to prepare for the adjustment and to let the dollar unravel under its own momentum.  

But Iran has a different incentive in this whole thing. And I think the Iranians are now perfectly in position to strike at the petrodollar by conditioning passage through the Strait of Hormuz: the ship can pass if the cargo was paid in Chinese yuan or Russian rubles or Indian rupee or whatever it be and not in US dollars. So that’s already exacerbating the pressure on the US dollar, and the Chinese and the Russians don’t have to take any aggressive active measures against that.”

The petrodollar is the last structural support. Once it goes, the rest of the system follows.