Petrodollar System Flirts With Collapse… What It Means for Gold, Oil, and the Dollar, by Nick Giambruno

If the petrodollar standard falls, so goes the American empire. From Nick Giambruno at


It’s been rightly said that “he who holds the gold makes the rules.”

After World War 2, the US had the largest gold reserves in the world, by far. Along with winning the war, this let the US reconstruct the global monetary system around the dollar.

The new system, created at the Bretton Woods Conference in 1944, tied the currencies of virtually every country in the world to the US dollar through a fixed exchange rate. It also tied the US dollar to gold at a fixed rate of $35 per ounce.

The dollar was said to be “as good as gold.”

The Bretton Woods system made the US dollar the world’s premier reserve currency. It forced other countries to store dollars for international trade or to exchange with the US government for gold.

However, it was doomed to fail.

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2 responses to “Petrodollar System Flirts With Collapse… What It Means for Gold, Oil, and the Dollar, by Nick Giambruno

  1. Zoltan Pozsar has received a lot of attention on ZeroHedge this year. What do readers of Straight Line Logic think of Pozsar’s take on current events in his most recent interview linked here?


    • If I get a chance I’ll listen to the video, but I’m hesitant based on his written work that I’ve read on Zero Hedge. He makes some good points and occasionally interesting analyses, but he needs an editor in the worst way. He could say what he has to say with about 30 percent of the verbiage. He reminds me of Nassim Nicholas Taleb that way. I don’t think either one is nearly as profound as they’re sometimes made out to be.


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