Venezuela Has Officially Abandoned The Petrodollar – Does This Make War With Venezuela More Likely?

by | Sep 15, 2017 | Headline News | 51 comments

Do you LOVE America?


    This report was originally published by Michael Snyder at The Economic Collapse


    Venezuela is the 11th largest oil producing country in the entire world, and it has just announced that it is going to stop using the petrodollar. Most Americans don’t even know what the petrodollar is, but for those of you that do understand what I am talking about, this should send a chill up your spine. The petrodollar is one of the key pillars of the global financial system, and it allows us to live a far higher standard of living than we actually deserve. The dominance of the petrodollar has been very jealously guarded by our government in the past, and that is why many are now concerned that this move by Venezuela could potentially lead us to war.

    I don’t know why this isn’t headline news all over the country, but it should be. One of the few major media outlets that is reporting on this is the Wall Street Journal

    The government of this oil-rich but struggling country, looking for ways to circumvent U.S. sanctions, is telling oil traders that it will no longer receive or send payments in dollars, people familiar with the new policy have told The Wall Street Journal.

    Before we go any further, we should discuss what we mean by the “petrodollar” for those that are not familiar with the concept. The following comes from an excellent article by Christopher Doran

    In a nutshell, any country that wants to purchase oil from an oil producing country has to do so in U.S. dollars. This is a long standing agreement within all oil exporting nations, aka OPEC, the Organization of Petroleum Exporting Countries. The UK for example, cannot simply buy oil from Saudi Arabia by exchanging British pounds. Instead, the UK must exchange its pounds for U.S. dollars. The major exception at present is, of course, Iran.

    This means that every country in the world that imports oil—which is the vast majority of the world’s nations—has to have immense quantities of dollars in reserve.

    As will be explained below, the fact that virtually everyone around the world has to use our currency to buy oil is a massive advantage for us. Venezuela knows this, and so in response to new sanctions being imposed upon them, they are hitting us where it hurts

    Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.

    The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner.

    The new payment policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., said Friday, “To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar.”

    If more nations start to follow suit, it would be absolutely disastrous for the United States.

    In other articles, I have detailed why the petrodollar is so incredibly important to our economy and our financial system.  The following is an extended excerpt from one of those previous articles

    So why is the petrodollar so important?

    Well, it creates a tremendous amount of demand for the U.S. dollar all over the globe.  Since everyone has needed it to trade with one another, that has created an endless global appetite for the currency.  That has kept the value of the dollar artificially high, and it has enabled us to import trillions of dollars of super cheap products from other countries.  If other nations stopped using the dollar to trade with one another, the value of the dollar would plummet dramatically and we would have to pay much, much more for the trinkets that we buy at the dollar store and Wal-Mart.

    In addition, since the U.S. dollar is essentially the de facto global currency, this has also increased demand for our debt.  Major exporting nations such as China and Saudi Arabia end up with giant piles of our dollars.  Instead of just letting them sit there and do nothing, those nations often reinvest their dollars into securities that can rapidly be changed back into dollars if needed.  One of the most popular ways to do this has been to invest those dollars in U.S. Treasuries.  This has driven down interest rates on U.S. debt over the years and has enabled the U.S. government to borrow trillions upon trillions of dollars for next to nothing.

    But if the rest of the world starts moving away from the U.S. dollar, all of this could change.

    History has shown that when the status of the petrodollar is threatened, the U.S. is swift to take action.

    And it is very interesting to note that President Trump will be meeting with Latin American leaders next week, and the main topic for discussion will be “the Venezuela crisis”

    U.S. President Donald Trump has invited three Latin American leaders to dine with him next week in New York as he seeks to address the Venezuela crisis and build bridges with the region after an acrimonious start with neighbor Mexico.

    The political and economic turmoil in Venezuela, source of 10 percent of the oil consumed by the United States, will almost certainly top the agenda when he receives the center-right presidents of Peru, Colombia and Brazil at Trump Tower on Monday evening, diplomats said.

    Could this latest move by Venezuela be enough to potentially spark a military conflict?

    The guys over at Zero Hedge seem to think so…

    Having threatened China today with exclusion from SWIFT, we suspect Washington is rapidly running out of any great ally to sustain the petrodollar-driven hegemony (and implicitly its war machine). Cue the calls for a Venezuelan invasion in 3…2..1…!

    It would be absolutely no surprise at all if John McCain and Lindsey Graham start appearing on the major news networks calling for war with Venezuela, but hopefully President Trump will not listen to such nonsense.

    No matter how important the petrodollar is, there is absolutely no reason to go to war to protect it.

    And if war talk does begin, the American people need to make their voices heard very, very loudly. We have been in useless wars before, and we certainly do not need another one.

    GetPreparedNow-MichaelSnyderBarbaraFixMichael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.

    Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream

    If you want to know what is coming and what you can do to prepare, read his latest book [amazon text=Get Prepared Now!: Why A Great Crisis Is Coming & How You Can Survive It&asin=150522599X].


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      1. this rhetorical question requires an answer? PFFT!

        • I would like to know why have the obama phones not been deactivated? Why are illegals still collecting TAXPAYER funded benefits? We have enough lazy asses as it is milking the system. Honestly, we wouldn’t need a wall if da gubmint did its damn job. One day I wake up and think it’s starting to look like things are changing for the better, the next day it looks like it’s going to shit on a downhill freight train without any brakes. But everyday, I wake up and go to work so some lazy crackhead, junkie, pill poppin, baby factory doesn’t have to cuz day don’t wants to.
          Sorry folks, its Friday, I just got my pay stub and saw how much I paid in. I feel better now.

          • YUUUUP!

            • do bears crap berries and fur

          • Social Security is insolvent in 5 years. Just wanted to share the good news.

      2. off topic….Not only are the dreamers (invaders) going to stay…..but YOU are going to pay for them all with entitlements. I.e, free college, subsidized housing, free Medicaid, etc….If Trump was legitimate, he would have insisted that ALL funding & entitlements for the DACA crowd would be eliminated, in exchange for legal status (not citizenship). AND, the parents of all the DACA children that are 18 years old are deported.
        Instead you got Shumer & Palozi stating in so many words “we told the president they are staying, and there will NOT be a wall”……..I rest my case. You have all been Screwed again by this group of traitors. It is getting close to a bloody 2nd American revolution, or this country is finished. UNDERSTAND.!!!!!

        • And WTF is really going on with the Donald? It seems to me that those 2 mutts aka Shumer and that ugly dog (Palozi) from CA just bent the Donald over and tore that ass up like Bubba Lufer from Pelican Bay. This country is just destined to fail, there is no saving it and they don’t seem to want it saved…

          • Mrs. Oldgoat and I were talking just last night about how it seems that we went to sleep a while back and we are simply having a really bad dream. I mean, how is what we see going on in this world, reality? The politicians that refuse to change anything are doing so, because if things changed,how could one continue to have millions of dollars, a 4 or 5 million dollar hoe or two, and continue to live on that government paycheck they get. The only way to change this is to vote ALL of them out of office. The sooner, the better.

      3. Russia has agreed to sell oil to China in exchange for Yuan. Perhaps Venezuela will follow suit? Once the monopoly on oil is destroyed next will be minerals and ores. then commodites grains and food. The jxx stranglehold will be destroyed. The fiat created out of thin air digital petro dollar will no longer we desired or wanted as payment for anything. Those guys like Sorx’s and many wealthy eletes will be holding billions of digital dollars that will not purchase diddly squat. Im tickled that I just might live long enough to see it all come tumbling down. Maybe China will tell The USA warmongers hand’s off Venezuela like they have with North Korea. Its unbelievable that China and Russia are the nations preventing wars!

        • Beware what you ask for. If the Petro Dollar ends so goes the US economy. The economic reverberations will be catastrophic for all.

          • When they dump their last US treasury bill, over one billion people will be gloating.
            i.e. ” You work for us now, round eye! “

            • As US dollars are removed as a reserve currency those remaining dollars lose value. If it happens relatively swiftly nations holding US T Bills sell a devaluing currency.

            • As US dollars are removed as a reserve currency those remaining dollars lose value. If it happens relatively swiftly nations holding US T Bills sell a devaluing currency.

        • That is why the US is all Gung Ho for a war with North Korea.

          North Korea is sitting on a massive amount of highly desirable Minerals (Rare Earth) that the US needs badly. (Around $4 Trillion)

          There is no way China is going to allow the US to take control of North Korea and get access to these Minerals.

          Time to break out the Popcorn.

      4. Saddam Hussein and Libya’s Qaddafi, both came out publicly saying the same, no more dollars for their oil, shortly before U.S. attacked and overthrew them. Iran in years past, whenever they’d say similar, within weeks stories would come out from everywhere for why Iran was suddenly a much more grave threat to world peace.

        IMO, most of what we’ve done militarily and alliance-wise in that part of the world was primarily to save, for a little while longer, the reserve currency of the world, the Petro-Dollar. BTW, Kissinger had given blessing to OPEC formation, as long as they’d require all members to only trade their oil in dollars. This has been going on a long time.

        Whether there’s enough regime life even left in Venezuela, and/or enough of their oil/dollar trade worth worrying about, to bother invading or effecting regime change, I don’t know, but it certainly would not be the first time.

        • Shane, they don’t even have troops to send to Korea to deal with Porky. They damn sure don’t have any troops to send to Venezuela and that country is a helluva lot bigger than NK. We’re bankrupt and over-extended. Can’t afford wars for the globalists anymore.

          • Agree, just making point, when we do war, it’s often not for reasons given public. Also, we might try something covert in Ven, without troops, to dethrone current regime.

      5. Is war more likely? Yes. We’re doomed!

        • Just imagine what we could do with a peace dividend right about now. Let’s see, 9 trillion dollars in spending unaccounted for by the Pentagon. Be a nice wall at least, maybe a future thrown in to boot.

      6. Best advice would be watch extreamly closely to every thing dow gold backed china currency and threat of war. We will have a very short window of opportunity to utilize cash on hand to purchase as much as you can food,supplies ect keeping in mind that a boxes of instant potatoes or powder milk,cases of chef boyardee ravioli ,toilet paper gas, will have extream value cus i dont know about you but I dont think i can eat an oz of silver nor would i trade a can of spegetti o’s for an oz of silver. If you dont already have enough ammo you better get to hussalin.

        • You can’t eat paper dollars or your last 401K statement either.

          If AFTER you’d already gotten all your preps squared away FIRST, if you still have a lot of dollars or paper investments, 401k’s, etc., remaining, that’s when it might be prudent to diversify out of solely only holding paper wealth by also acquiring some silver and/or gold.

          First things first. Preps, then barter goods, then diversify remaining wealth so not left with only paper.

          Also, while you can say you won’t ever accept gold/silver in trade for anything, and that’s fine, you can’t make another not to demand it of you if they so choose. You are out of luck then if they have something you need/want like medical drugs, fuel, or bribing an official to get a pass, or to the front of a long line to only doctor or dentist for your sick kid. They might already have all the spaghetti o’s they’d ever need.

          Being fully prepared means also having stocked up some of what others might want, too, even if not a fan of it for personal use, like booze, cigs and silver/gold.

        • you got no business HAVIN’ gold, unless you got ALL other bases covered….and if THAT is your list, you aint nowhere NEAR “covered” yet. c’mon now, i bet you can come up with a better list than that…….

      7. Panama 2.0: Venezuela would be an easy win. Most of the military hates the government and so do most of the people. Maduro will end up in the same jail cell as Noriega.

        The prize? Oodles of oil that would be a boost to the US economy. If the dollar goes down, the US can sell that oil for whatever is the new cool currency: the Yuan, the Ruble, the Euro etc. It is a win-win (and lots of hot Venezuelan booty thrown in for good measure).

        • Yes frank however there is something that is new. China and Russia are teamed up. Trump fucking around With North Korea trying to steal North Koreas valuable Minerals and ores for his wealthy Elete Jxx friend’s had awakened the sleeping Giant. Stick a fork in The Petro Dollar its done.

        • Frank Thoughts

          The oil in Venezuela is pocket change. Maintaining the US dollar’s demand, hence purchasing power is the end all to be all. They will fight WWIII to maintain it if necessary.

      8. 1. Venezuela is run by idiots
        2. Venezuelan Heavy, Sour Crude is some of the lowest grade on the planet.
        3. With oil so cheap, nobody wants it except at a big discount.
        Ergo, the proper response is:

        4. Sit back, point at them and laugh.

        • heck go to venezuela for vacation. you can get a hotel room, three good meals, a fishing charter, and a whore for $20 US

        • Stuart

          I agree with your economic assessment of Venezuela. This is a 180 degree shift in the oil industry of 2006. Because of the shortage of sweet light crude and therefore its high price many of the refineries that could only run it closed and have been dismantled. The sour crude refineries were the money makers. Now, post economic decline, fracking and horizontal drilling there is an abundance of sweet crude and the sour crude has become far less valuable. Balken crude (very sweet and light) was experimentally run in the heavy sour crude refineries and far too much became vapor C3 and on. They blend it with the sour crude now for refining. In the end due to mechanical changes in the industry some sour crude is needed.

        • Stuart

          I agree with your economic assessment of Venezuela. This is a 180 degree shift in the oil industry of 2006. Because of the shortage of sweet light crude and therefore its high price many of the refineries that could only run it closed and have been dismantled. The sour crude refineries were the money makers. Now, post economic decline, fracking and horizontal drilling there is an abundance of sweet crude and the sour crude has become far less valuable. Balken crude (very sweet and light) was experimentally run in the heavy sour crude refineries and far too much became vapor C3 and on. They blend it with the sour crude now for refining. In the end due to mechanical changes in the industry some sour crude is needed.

      9. FT, let Venezuela solve their own problems. We don’t have money or troops to send down there. We don’t even have enough money to help the victims of both hurricanes. Put a fork in us; we’re done.

        • The Deplorable Braveheart

          ” let Venezuela solve their own problems.”

          This isn’t about solving Venezuela’s problems as the US is helping to create them. The US didn’t “solve” Iraq’s problems but made it worse for the population. The US didn’t solve Libya’s problems taking the nation from the highest standard of living in Africa to a Somalia like existence. The goal is to destroy functioning governments that have resources so that they are in no position to negotiate price, what currency, where we put a military base to help protect them from the forces that the CIA supports covertly to overthrow them. Its like the mafia’s protection racket, “Nice country you have here, would’t want anything to happen to it would you”?

          Don’t look for any morality in any of this. The benevolent excuses are ostensible.

      10. Look at the 2025 Deagel projections for the United States population, military spending and other things. This “think tank” expects major stuff to happen. They don’t really seem
        to elaborate on what or when. When you look at the numbers, it appears we will have lost
        much standing in the world. Like, the bottom fell out.

        • I have never seen a link to the “projections” posted here. It has taken me a while to actually find them.

          Here’s the link:

          ht tp://

          • damn, who are they, and yes, bad shit’s gonna happen between now and then…yikes!

          • US down 270 million people, all western countries down 1/3 to 2/3rds in population including Israel. Russia and China no change in population levels for the 2025 projection. Looks like an economic collapse or a first strike, probably both, and you can’t say Uncle Sam hasn’t begged for it. It is telling that a purveyor of military hardware has this as its forecast. I wonder if the vampire squids forecast correlates. Makes sense, the middle class won’t be needing their wealth…might as well take it now.

      11. “Regime change” in Venezuela is all over the internet.

        ht tp://

        ht tp://

      12. do camels have a hump

        • a domedairy has one hump a Bacturin has two humps.

        • Do camels hump?

          Is that what you meant?

          • How much wood could a woodchuck chuck if he had to chuck wood?

      13. Well, Venezuela may have very well sealed their own fate. The characters behind the curtain will NOT like anyone toying around with their money, i.e. the Petro Dollar, etc.
        I can only think that one of these “situations going on around the world will really pop-off and the bombs will be a raining down on top of someones head and soon at that.

      14. Does This Make War With Venezuela More Likely?

        Answer: Does the Pope sh*t in the woods?!?!

      15. Venezuela ships crude oil to Corpus Christi, to its refinery there. Some transportation fuels are then shipped back to Venezuela. Some are sold to US firms.

        Venezuela’s failure was foreordained when Chavez rose to power. Socialism fails. Always. Pointless for any warlike effort against Venezuela. Stupid for the CIA to do more than try to keep potential non-socialist leaders alive and waiting.

        The Chinese are buying less of the Venezuelan oil than in the past because of its low quality.

        Venezuela’s efforts against the petro-dollar are chump change. The combined efforts of Russia and China are of serious importance, and there’s not one damned thing that the Beltway Bandits can do about it.

      16. History repeats itself

      17. Venezuela has more than oil. That land could be made very productive. It could grow more food then the USA currently does. cattle and other livestock there graze year round. No need to put up hay for winter feed.

        • One of their biggest exports is major league baseball players.

      18. Here a war there a war everywhere a war. Fiat money the warmonger cats meow. About to set a record on how many wars can be waged at once? American troops obsolete with drone advancements in air power? Safe to say current oil prices are gouging because all outlets are stuck at the same price. I have not heard anything about the current price per barrel. The Gulf of Mexico is polluted with oil still pouring out, shh no big deal. Whatever happened to gas price wars?

      19. Has any country that tried to abandon the federal reserve note not been destroyed? That’s why Jesus whiped the money changers? And he was destroyed to show us.

      20. The socialist supporters in Venezuela are sufficient in numbers to keep Maduro in power. That’s changing. Maduro keeps blaming the United States. We are no doubt doing all we can to bring down Maduro. When the time is right, things will change. The sane Venezuelans will take control but it’ll cost them. We’ve got more than enough problems domestically.

      21. Maduro is telling the Venezuelan people to hunt rabbits for food. This is the latest instance of being out of touch with the people. They’re eating their neighbors’ pets, for cryine out loud!

      22. There is strength in numbers. Possibly enough countries have gotten on board to give the US the middle petrodollar finger that even with a divide and conquer strategy, US is overwhelmed. If enough countries bad together, the US’s bullying days will be over.

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