The coarseness of the epithet for cowardice used by an anonymous Obama administration official to describe Israeli Prime Minister Benjamin Netanyahu has seized the attention of Jerusalem and Washington. The snipe, reported by The Atlantic’s Jeffrey Goldberg, is seen by analysts as emblematic of deteriorating Obama-Netanyahu relations at a time of great political and diplomatic uncertainty.
Two years ago, in hushed tones at first, then ever louder, the financial world began discussing that which shall never be discussed in polite company - the end of the system that according to many has framed and facilitated the US Dollar's reserve currency status: the Petrodollar, or the world in which oil export countries would recycle the dollars they received in exchange for their oil exports, by purchasing more USD-denominated assets, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assetsand printed US currency) loop.
As Reuters reports, for the first time in almost two decades, energy-exporting countries are set to pull their "petrodollars" out of world markets this year,citing a study by BNP Paribas (more details below). Basically, the Petrodollar, long serving as the US leverage to encourage and facilitate USD recycling, and a steady reinvestment in US-denominated assets by the Oil exporting nations, and thus a means to steadily increase the nominal price of all USD-priced assets, just drove itself into irrelevance.