Thursday, 23 May 2013 22:15
The concept of the petrodollar has proven to be not only dysfunctional, but unsustainable as a whole. The Petrodollar's grasp has been challenged throughout the world in recent decades and has thus lead to political attacks and even war. American inflation will continue to grow because of its two pronged debt expansion weighed down by both an over extended military along with the multi-trillion dollar Wall Street bailout, which continues on. This massive amount of easing will lead to further downward pressure on the dollar. Indeed, the current US inflation has been masked, however asset prices continue to rise against the dollar- as even the housing market has begun to rebound-- with heavily capitalized banks looking for places to park their bloated dollar reserves.
The best place for money continues to remain in hard assets such as gold, silver, oil and agriculture.