This post originally appeared on April 6, 2023
DKI has covered the decline of the petrodollar more than a dozen times in the last year. Most notably, I gave an hour-long lecture at the Institute for World Politics explaining how the anti-Russian sanctions were not hurting the Russians; but rather, destroying the value of the dollar as the world’s reserve currency.
We’ve commented on the growing relationship between Saudi Arabia and China.
We’ve expressed concern about the inconsistent and counterproductive US energy policy.
Of greatest importance, DKI has partnered with Alex Macris to cover the topic in detail. Alex wrote Running on Empty which is the best work I’ve ever seen explaining the creation and inevitable decline of the petrodollar. DKI hosted Part I of Running on Empty and Alex was kind enough to invite me to write a final chapter explaining how to protect your portfolio from the coming carnage.
If you’re a DKI subscriber, and want a free copy of Running on Empty, just email me at IR@DeepKnowledgeInvesting.com and we’ll send you a link for a complimentary download.
While Alex and DKI were early on this topic (Alex in fantastic detail), it seems that others are starting to focus on the petrodollar and producing excellent work coming to the same conclusion: The petrodollar is among the walking-dead.
Nick Giambruno is a great writer and thinker, and we’ve hosted his work previously in a guest post on the DKI blog. He wrote on the topic this week.
Here’s Alex again with a comprehensive listing of the wounds already delivered to the petrodollar system in a post titled “The System is Down”.
A BRICS (Brazil, Russia, India, China, and Saudi Arabia) potential competitor to the dollar as the world’s reserve currency has been a subject of great debate. Smart people keep telling me this isn’t realistic, but I’ve noticed they rarely offer any reasons besides the lack of trust the world has in Russia and China.
That may be true, but the growing BRICS coalition will contain almost half the world’s population and a quarter of its GDP. More importantly, the hypothetical currency would be backed by commodities like gold and oil vs the dollar which is backed by “faith and credit”. Zero Hedge has an excellent article out on the topic today.
None of this is good for the United States, but our goal at Deep Knowledge Investing is to help our subscribers make money regardless of whether we think global events are good or bad. Our Current Recommendations are specific, and contain ample protection for the decline of the petrodollar and is available to subscribers.
If you have questions about this subject or report, I’m reachable at IR@DeepKnowledgeInvesting.com.
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