Gold News: Could China Kill The Petrodollar? [VIDEO]

 

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One of the common themes in current world economics is the decline of the US petrodollar. For those who’ve been sleeping under a rock since the 70’s, the US made agreements with the Middle East — way back when — to have all oil trading done in US Dollars.  This created a huge demand for US Dollars around the world, driving the USD to world domination.

In a nutshell, of course.  History teaches us that no world conqueror reigns forever, and it looks like the clock is ticking for the petrodollar. China already trades in Chinese Yuan (CNY) with several other countries, with the promise that the CNY is backed by gold. While China has a large stockpile of gold – officially the sixth largest in the world – the amount they claim isn’t really enough to unseat the USD as the world’s top currency.

But they certainly have enough gold to back up their international trading.  The question is Do they actually have more than they claim?  And can they “weaponize” it, to use a pop media term?

Today we feature a video interview with Alasdair Macleod, head of research for GoldMoney.com, who gives his view on how the balance is evolving.

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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