Is the almighty 'petrodollar' in real trouble?

credit: TheRookieCynic

This may signal the beginning of the death knell for the all-mighty 'petrodollar.' It seems that Saudi Arabia-the largest oil exporter in the Middle East has teamed up with China-the second largest consumer of oil in the world are building a huge new oil refinery and the hapless media here in the U.S. are too blissfully ignorant to notice and report on it.

At a time like this now when the U.S. is actually losing refining capacity, this is potentially huge news. Now, once people understand the petrodollar system in which all oil transactions by the OPEC nations are in dollars, "it becomes much easier to understand why our politicians treat Saudi leaders with kid gloves" and wouldn`t do anything to jeopardize the status quo. When you look back on when the petrodollar system was instilled, it was essentially a "brilliant political and economic move" that forced the world’s oil money to flow through the US Federal Reserve - creating a bottom-less pit demand for both US dollars and US debt. 

So if you`re wondering whats the big deal if the whole petrodollar system collapses, well first, your money won`t be worth the paper it`s printed on. Just try to think when the people in Europe during WW2 were during bushels of their currency for fire could happen to us. Prices of goods and service would soar astronomically, and if you think the price of gasoline is high, wait till the dollar 'hits the fan,' we`ll be reminiscing and begging for the prices we pay now. And nobody would be willing to buy our debt, so our government will be insolvent and eventually lead to economic collapse. Let`s pray to Almighty God that day never comes and politicians realize the economic realities and difficulties that lay ahead, and pray we are all informed and prepared for the coming days.

(source) Please read: 
Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery (3/23/12; The Economic Collapse)