Dollar/paper X Yuan/gold

Dollar/paper currency, yuan/gold and silver. It sounds like a funk song lyric, but it's not. These are signs of significant economic changes in the historical struggle for world power.

When we look at a hundred-dollar bill—which is nothing more than a simple piece of paper—we know that it has become so valuable because it was originally backed by gold.

There was a time when anyone could go to the bank with a dollar bill in hand and ask for the equivalent in gold or silver. This was the case until 1971.

From then on, the US abandoned the model and had to seek another guarantee to prevent its currency from becoming worthless paper.

So what did they do? Former President Nixon went to meet with the King of Saudi Arabia and told him: your country and its allies in OPEC (Organization of the Petroleum Exporting Countries) have all the oil in the world; we have power and strength and we offer you protection in exchange for OPEC selling its oil only accepting payment in dollars.

As it was clearly implied that saying yes was Saudi Arabia's only option, they accepted, and thus began the process of creating the petrodollar in 1974.

Since the entire world needs oil – now known as black gold – and this is the only way to trade oil, the value of the dollar was no longer guaranteed by gold but by oil.

The US is the only country in the world that can print as many dollar bills as it wants. Billions, trillions, which continue to have value because it's the only currency in the world used to trade oil.

Those who first dared to challenge this US-imposed system suffered disastrous consequences.

Gaddafi, the former president of Libya, had the idea of ​​selling oil and natural gas to Europe and accepting payment in euros, and everyone knows the story.

In October 2011, he was brutally murdered along with his son after a French plane bombed vehicles carrying the Libyan leader and his entourage of 60 people.

Iraq followed the same path, and the whole world witnessed the war that ensued, with its terrorists, paid by the US, destroying cities and industries, and even driving out Brazilian construction companies that had been working in the country for years. Furthermore, with American help, former president Saddam Hussein was deposed, imprisoned, and hanged.

The anti-American movement challenging the use of the dollar in international transactions also occurred in Brazil during the military government of Ernesto Geisel, who confronted the US and conducted negotiations with Mexico using a monetary equalization based on reciprocal credit between the Brazilian and Mexican currencies.

Currently, however, the global geopolitical situation is changing rapidly, and it's no wonder Trump is so nervous.

Several countries are joining forces to bring down the petrodollar, and some of them are powerful.

China is currently the biggest problem for the US. It has made it very clear that it will start trading oil in its currency, the yuan, and has already begun negotiations in this regard with Russia, Iran, Iraq, Venezuela, Turkey, African oil-producing countries, and even OPEC countries.

In 2012, Iran began selling oil in yuan, and in 2017, Venezuela began pricing its oil in the Chinese currency.

The US cannot do what it did in Iraq and Libya. Nor what it tried to do in Syria. Both China and Russia have nuclear weapons. They are superpowers.

While Trump threatens Russia with sanctions, China offers the country to buy its oil, paying in yuan, with the guarantee that Russia can exchange every yuan it holds for its equivalent in gold on the Shanghai Golden Exchange.

Russia accepted this and is even today, according to blogotv.ru, the world's largest buyer of gold.

China offered the same conditions to all other countries that agree to negotiate with them and receive payment in yuan. And China is buying everything: oil (with a consumption of 4,2 billion barrels per day), natural gas, gold, copper.

Furthermore, Moscow and Beijing negotiated at the end of October a three-year extension of a ruble-yuan swap agreement worth the equivalent of $25 billion to increase the use of their national currencies in trade between the two countries.

When China joined the World Trade Association in 2000, the Chinese middle class comprised 5% of the population; today it is almost 35%.

China is growing at this level, and do you know the Chinese secret? The currency is based on gold; it's not just a piece of paper like in the US.

The death of the petrodollar will be the death of the American economy. The US Federal Reserve—which is private, not governmental—will no longer be able to print so many dollar bills because this paper, no longer backed by gold or oil, will have no value whatsoever.

What will the global repercussions be? Once the petrodollar dies, the US will lose its status as the world's largest economy. That this will happen is certain; it's only a matter of time.

It is noticeable that the dollar is becoming increasingly weaker also due to the growth of Bitcoin, a virtual currency based on a mathematical calculation that only exists in the world of cybernetics. Previously, one Bitcoin was equivalent to cents of a dollar; today, it takes almost $5 to buy one Bitcoin.

In 2014, a Kuwaiti company proposed trading oil with bitcoins, arguing that this would generate faster, cheaper, and more efficient transactions.

This means that, in real terms, the dollar is depreciating and is likely to disappear at any moment. International financial advisors recommend against investing in dollars, but rather in gold, silver, or even bitcoins.

The real backing of the dollar today is no longer economic in nature, but rather the backing of the nuclear missile: it is the military threat that makes countries submit to this scandalous monetary fraud of the paper dollar.