Earlier I posted a blog article about the death of the American Dollar and the alliance between China, Russia and Iran to build an alternative for this global currency. The American Federal government is depended on foreign investors to finance the ongoing deficits. What will happen when they stop financing the deficits? What will happen when the bond auctions are no longer being attended by those institutional investors?
Let’s have a look at Iran. This oil-producing country is kicked out of the international financial scheme. The country has no access to the American Swift system. But the country is the only country left in the world where we can explore and drill for cheap oil. Kick in the sand and you get the oil erupting out of it.
The Iranian economy is mainly depending on the export of oil and gass. Natural resources the country has and China needs oil and gas. Turkey is also a key trading partner. They are not paying for the natural resources in American Dollars. They pay in gold.
Secretary of state Mike Pompeo said the American sanctions against Iran where intended to crush the Iranian economy.
The only reason the United States is capable doing this due to the fact that the American Dollar is the world reserve currency. Off course they only partner in this with the close allies the USA has. This are Saudi Arabia and Israel.