S1E1 of NYPN. Why the Qatar brouhaha is a big deal and financial foundations are starting to shake.

Not Your Parents News.

The evolving Qatar brouhaha has potential to shake the financial foundations of the world.

MSM is reporting that this little dust up is due to Saudi's claim that Qatar is sponsoring terrorism. That is "fake news".

Saudi Arabia and Qatar are both supporters of terrorism, in the same way McDonalds and Burger King both serve mostly unhealthy junk as food. The Saudis and Qatar are two side of the same coin.

Sponsoring terrorism isn't the real issue in the Qatar dust up.

What is really going on?

Iran started to settle oil payments with China in yuan in 2012. Instead of US petrodollars.

Russia started to settle oil payments with China in yuan in 2015. Instead of US petrodollars.

India and Iran started to settle oil payments in rupees in 2016. Instead of US petrodollars.

https://www.infowars.com/iran-india-dump-petrodollar-settle-oil-payments-in-rupees/

Qatar and UAE have also been settling many types of direct payment accounts with China and Hong Kong for several years.

China has been working for more than a decade to spread the use of yuan around the world. China's "One Belt One Road" initiative is aimed at re-establishing the silk road trading routes of old, connecting the middle East to the far East as tight trading partners.

Qatar has recently threatened to further increase their trading reliance on yuan. They are planning to start settling all oil payments with China in yuan as the next step in tighter financial integration with China.

This will align Qatar (Sunnis) with Iran (Shias) and with the Chinese and Russians, and against the rest of the Sunni Arab coalition in the region.

This is a big deal for the Saudi Arabia Sunni coalition.

If Qatar "defects" and aligns its oil payment settlements with Iran using Chinese yuan, the Sunni coalition in the mid East has started to splinter and could evaporate.

https://www.rt.com/op-edge/391853-qatar-riyadh-plan-backfires/

This will be a big deal for the US.

World settlement of oil payments in US petrodollars was already under stress. Defectors from the US petrodollar already include Iran (2012), Russia (2015) and India (2016). We could be close to the tipping point. One more defector could be the end of the US petrodollar era.

And that will cause massive realignments of world financial systems. There will be big winners and big losers.

As the world reserve currency, there was an almost endless demand for US dollars. This demand let the US Federal Reserve choose to print dollars out of nothing, that could be exchanged for products and services world-wide, to the great benefit of the US and all US citizens. This excess printing of US dollars has not had many immediate negative financial ramifications, particularly in a low interest rate environment. World reserve currency status allowed the US to spend $600 Billion per year on the military. This probably can't continue in an alternative financial future.

But the federal debt has exploded to almost $20 Trillion dollars in the last fifteen years, under the recent Democratic and Republican administrations.

That bill is going to come due. Likely very soon.

Likely just as the US petrodollar loses its position as the world reserve currency which will make the debt repayments bite a bit harder.

This story can't have any good outcome for the value of the US dollar or any other fiat currencies.

You made it this far in the read? Thanks for listening.

Advice time.

Diversify, diversify, diversify !!! away from fiat currencies.

If possible, move 30% to 50% of your net worth out of the US dollar and out of other fiat currencies. Find other stores of value.

Put some in bitcoin, ethereum, altcoins, etc. Put some in precious metals. Hold some physical gold, physical silver, physical platinum, etc. Put some into hard assets without leverage and no debt. Buy land, buy fine art if you have the expertise, etc.