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9 Mar, 2020 23:14

Oil price war will expedite the end of petrodollar & rise of Chinese-Russian currency– RT’s Max Keiser

Oil price war will expedite the end of petrodollar & rise of Chinese-Russian currency– RT’s Max Keiser

The US shale market is to bear the brunt of the raging oil price war that has sent Dow Jones and crude prices down, and Saudi Arabia will fare no better. Meanwhile, Russia has got the best hand in the game, Max Keiser believes.

There are several causes for the slump in oil prices, and the dispute between Moscow and the Riyadh-led OPEC and a coronavirus outbreak is not an exhaustive list, the host of RT’s Keiser Report believes.

We are also witnessing a “part two” of the 2008 crisis with the credit bubble blowing up again – something that was only waiting to happen, per Keiser. “If you just give the same bad guys a bigger credit line to do the same bad things, that’ll result in the same bad outcome.”

Whatever the reasons behind the oil market meltdown, Russia is in a better position to handle it. As opposed to the US shale oil, Russia’s is much cheaper to extract, and it doesn't have a massive debt to deal with, unlike Saudi Arabia.

Turns out, Russia’s got the best hand in the geopolitical oil game

The US, on the contrary, is in “really bad position” in this high-stakes game, with American shale oil stocks already taking a hit, and Keiser predicting this "will be a complete evisceration of the American shale industry. It’s going to need a massive bail-out, a massive money printing."

The US dollar is going “to suffer greatly” during the crisis that will ultimately spell an end to it being the strongest and most-trusted global currency.

Today is the end of the petrodollar. We are going to see the rise of the ruble-dollar or the Chinese-Russian oil-based dollar.

The era of the US holding the world's reserve currency is "finished," Keiser said, adding that the hyper-inflated US stock market should also gear up for a shock. Dow could trade down to as low as 8,000 when the earnings emerge to reflect the actual performance of the companies.

Also on rt.com The winners & losers of the Saudi-Russia oil price war

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