Cold Fusion, Oil and the US Dollar

In the last few articles, an attempt has been made on this site to explore some real world scenarios that may be taking place behind the scenes in regards to cold fusion and how government and otherwise influential entities, like corporations and the military, may be responding to the increasing body of evidence that cold fusion/LENR has not been debunked and in fact its existence is supported by an ever growing amount of evidence, and being confirmed by a wider and wider group of scientists and researchers.  If you have not read Tom Baccei’s previous articles that explore such scenarios, they can be found here and here.  These have been attempts to explain why in spite of the growing evidence (actually undeniable if one takes the time to review the evidence contained on this site and elsewhere, especially, the defining moment where the reality of this technology becomes apparent to the masses continues to be elusive.  NASA’s January 12 LENR video was very nearly the push that was needed to take this subject out of the shadows.  It actually succeeded but only for a very brief time.  Below are two charts related to LENR searches on Google.  The first chart plots Google searches for the term LENR from 2004 to the present.  The second chart plots Google searches for the term NASA LENR from 2004 to the present.

Google Searches for “LENR”

Google Searches for “NASA LENR”

As one can see, searches for both terms spiked around the time of the NASA video, then subsequently plummeted after a statement released by NASA’s Joseph Zawodny the following day in which he feverishly backpedaled in attempt to distance both himself and NASA from years of research and public statements, the bulk of which can be found here.  Yet, as disappointing as this backpedaling from NASA was, it is not the first time that this has happened.  It is not the first time some great announcement or event surrounding cold fusion has been made or expected, only to ultimately disappear in a cloud of WTF.  The first of course was the now infamous announcement of Pons and Fleischmann in 1989, but in the past year alone there have been several such events.  These included Andrea Rossi’s anti-climatic October 28 e-Cat “test”, which was made private at the proverbial “last minute,” the actual last minute cancellation of Dr. Brian Ahern’s public LENR presentation in December, and the public proclamations of Dr. George Miley in October that his LENR device was approaching commercialization, followed by the disbanding of his research group just two months later.  There was also the revelation that the LENR research of the US Navy’s Space and Naval Warfare Systems Command (SPAWAR) was being discontinued right around this same time.

Mr. Baccei has outlined possible reasons and scenarios for these apparent cold fusion mirages. He has explored the idea that advent of cold fusion may well produce a level of instability that the ultra-rich and powerful find uncomfortable, to say the least.  He has also touched on the possible role the military may reasonably play in keeping this technology “quiet,”  at least in the short term.

I would now like to touch on another possible reason for the cold fusion disappearing act.  This reason involves the relationship of the US dollar to oil.  It has often be speculated that cold fusion, or any technology that competes to supply the world’s energy needs, would be opposed by Big Oil.  I really don’t think that is speculation; on the contrary, I think that is fairly obvious that Big Oil would not welcome cold fusion with open arms.  I think one would have to be extraordinarily naïve to think otherwise.  However, that is not particular issue I have in mind.  The relationship of the US dollar and oil goes way beyond what is obvious.

To explain, let me provide an historical background.  Up until the early 1970s the currency of the United States was backed by gold, accordingly to the Bretton Woods  agreement of the 1940s.  The system created by this agreement was an attempt to standardize and stabilize currencies around the world for the sake of international trade, rebuilding of nations following World War II and to prevent some of the circumstances that had resulted in the Great Depression.  Under this international agreement, the value of the US dollar was linked to the value of gold.  In turn, the value of other international currencies were linked to the dollar accordingly to agreed upon exchange rates.  While this system had its critics even at its inception, it did prove to be of great utility to help stabilize the world economy after the calamity of The Great Depression and the Second War War.

In the early 1970s, this arrangement began to become problematic for the United States.   It was mired in a long and costly war in Vietnam, the national debt was increasing at an alarming rate, and unemployment and inflation were on the rise.  Other nations that were part of the Bretton Woods agreement began to become concerned about the health of the US economy and many began to ask that loaned monies be repaid in the form gold, which the US was obligated to accommodate according to the agreement.  As a result, US gold reserves were rapidly diminishing.  In response to this, in August of 1971 President Richard Nixon and his advisors  decided to implement a variety of economic policies that would subsequently become known as the Nixon Shock.  It was so named because the plan was devised and implemented by a small number of men in the executive branch of the US government without the knowledge of the US Congress, business leaders, the American people or any of its allies, and included a decree that the US would no longer honor its obligation to repay its debts in gold accordingly to terms of the Bretton Woods. Obviously, this radical plan came as a shock to the rest of the world when it was actually announced.  Some familiar with the proceedings of the inner circle of the Nixon White House reported that it actually took longer to decide when to announce this new plan to the world than it did to devise the plan itself, as it architects knew that it would be unsettling to the world at large.  While other nations had already broken the Bretton Woods agreement out of concern for the US’s ability to repay its debts, the sudden withdrawal of the US from this agreement as the principal party basically made the agreement null and void.

As a result of the abandonment of Bretton Woods, all currencies became fiat currencies, based in essence on nothing more than the written promises of the issuing government.  The value of many international currencies remained intertwined through a complex system of exchange rates, as before, but now the base of these exchange rates was based on something much less definite then the price of gold.  It needs to be pointed out that the price of gold at that time was not as volatile as it is today and had remained relatively stable over a long period of time. A rise in the price of gold from $35/ounce to $40/ounce (roughly 15%) had caused some in the Nixon Administration to panic but this rise had come after a long period of stability in the price of gold and a rise of 15% is small in comparison the volatility of today’s gold market.

It was shortly after the Nixon Shock that the value of the US dollar became intimately linked with oil.  With the US currency no longer fixed to something tangible, like the price of gold, and the Bretton Woods agreement now in shambles, the dollar needed something of value to make it competitive with the currencies of other nations who had much better economic fundamentals in terms of inflation, employment, debt, etc., and with which the dollar now had to compete with on the open market.  As a result, in 1973 President Nixon reached an agreement with Saudi Arabia whereby that nation would only accept US dollars as payment for oil.  The Saudis also agreed to invest any excess profits in US Treasury bonds, notes, and bills, the instruments by which the US Government finances its debt.  In exchange, the US agreed to protect the Saudi oil fields from hostile entities including the then Soviet Union.  By 1975 all of the members of OPEC had agreed to sell their oil only in US dollars.  So in essence, by the mid-1970s the US had gone from backing the dollar with gold to backing it with “black gold“ or oil. This agreement with the Saudis and subsequently with all of OPEC made the dollar the reserve currency for oil.  As a result every oil-importing nation now had to have US dollars in order to buy oil.  This made the dollar a valuable commodity in and of itself.

This arrangement remains in effect to this day, despite the fact that US not only continues to carry a large debt load but now that debt is the highest it has been in history.  How big is the US debt load?  I really cannot explain it adequately in detail in the confines of this blog but the illustration below explains it in the simplest terms possible.

In other words, if the US Government were a person or family, it would seriously be looking at claiming bankruptcy about now.  In fact, it would have no choice…save for the role of its currency in the trade of the world’s most valuable commodity, oil.  By the same token, if oil were to suddenly lose its importance in the scheme of world trade, then its value would drop precipitously and the value of the US dollar would follow. Almost all value the US dollar holds would be lost and, like Cinderella at midnight, it would turn into a pumpkin.

So, in light of the above, one can see that if cold fusion were ever proven to be true beyond all doubt to the masses, it may have serious consequences for the financial system of the United States, and perhaps much of the industrialized world.  The US by virtue of its monetary policy may have well painted itself into a corner.  Given the dollars intimate relationship with oil, they may not be able to widely implement cold fusion technology, or any revolutionary energy technology, even if were desirous to do so on a variety of other levels.

Yet, there are some important factors to point here.  Oil is not the only commodity in the world for which the US dollar is held as the reserve currency.  The US serves this purpose for a wide range of products and commodities; however, oil is still the most important commodity for which the dollar holds this status and it holds this status largely because it remains the exclusive currency for oil trade.  So,  if oil were to become less important in view of the advent of a new energy technology like cold fusion, a drop in the value of  US dollar may not be immediate, although it may ultimately be inevitable.

There has been increasing dissatisfaction from many corners of the globe over recent years over the dollars status as a reserve currency, especially amongst the so-called BRIC nations (Brazil, Russia, India and China), with these emerging economic powers feeling increasingly uneasy about the dollars lofty status, especially in view of  its enormous public debt.  This means that the undercurrent to move away from the US dollar has already begun and the United States already had to start considering the prospect that the dollar may eventually lose its value as a reserve currency.  There have been low-level meetings amongst the BRIC powers to discuss alternatives to the dollar in regards to world trade generally and the trade in oil specifically.  However, so far the United States has been able to keep this attempt to move away from the dollar largely at bay through a combination of diplomacy and its more unpleasant cousin, i.e. threats of retaliation in the form of economic trade, etc.  How long the US will be able to keep the dollar’s detractors at bay remains to be seen and, as a US citizen, HOPEFULLY US leaders have begun to devise a strategy to meet this challenge…preferably a plan that does not involve a unilateral economic “shock.”

So far only two oil exporting nations have openly defied the “dollars only for oil system,” those being Iraq and Iran.  The US invaded Iraq in 2003 and is rattling the sword against Iran as this article is being written.  It has long been argued that the Iraq War and the impending war with Iran are about oil and the “weapons of mass destruction pretense” is an overblown one.  This may well be true and, if it is, the real issue regarding oil is more about its value in propping up the US dollar and the real “weapon of mass destruction” is attempting to lead the world away from the dollar as the oil reserve currency.  Iraq certainly had no trouble exchanging its oil directly for food, medical supplies and other commodities with a variety of nations, including those of the EU, in the years prior to the US invasion.  Right now Iran is negotiating similar arrangements with two of the BRIC nations, India and China, the two most populous nations on the planet and two nations whose economies and energy demands are expanding rapidly.

I think that it is also important to point here that both India and China have an interest in cold fusion research.  India has long been actively researching cold fusion since its first announcement in 1989.  Dr. George Miley, who I mentioned at the beginning of this article, is associated with a prominent Chinese university and holds a similar position at that institution  as he does at the University of Illinois.  One has to wonder that if he cannot finding funding and support for his cold fusion cell in the United States, if the Chinese might be willing to step in.  Perhaps that already has occurred. Professor Xing Zhong Li of China’s Tsinghua University is a member of the Cold Fusion Energy, Inc. consortium with  Dr. Miley and is reportedly building a prototype cold fusion reaction at that institution.  I wonder if he and Dr. Miley have at least had the opportunity to compare notes?

The bottom line here is that in view of the US dollar’s relationship with oil, it may be matter of practical economic policy to not let the e-Cat (or any other LENR device) out of the bag, at least just yet.  If this allowed to happen, it may just wipe away the value of the sole source of stability that remains for US currency, oil.  The Obama Administration’s recently announced push for clean and renewable energy technologies may be a signal that at least some in the US are seriously considering moving away from oil both as an energy source and a commodity on which it bases its currency, although the latter may prove more problematic than the former considering the debt load the US carries.  Without oil the US has very little to pin the value of its currency to.

It will be interesting in the coming days to see how the US, and the world, responds to the continuing and developing cold fusion saga.  I wonder if the results of Defkalion independent testing will indeed make it to public view, or if indeed such independent testing will even ever take place.  I am also curious to see how the story plays out in regards to the NANOR cold fusion device recently demonstrated at MIT by Dr. Mitchell Swartz, and the reaction to the cold fusion paper just published by MIT professor Dr. Peter Hagelstein (click here to view).  And, as always, it will be interesting to see what twists and turns lie ahead for commercialization of the e-Cat.

Although I have attempted to sound a cautionary tone with this article, it is still hard  to  imagine how the opposition to this technology can ultimately prevail, short of a natural disaster of Biblical proportions or the advent of World War III, in view of the number of people who are working to bring cold fusion to the world.  However, I am beginning to come to the sobering realization that if and when this technology is finally able to break through, it very well not be in the United States.  The US is at the epicenter of the old paradigm and rarely in human history has a new one emerged in the midst of the old. There are simply too many established powers and entrenched interests, too may obstacles to overcome.  Of course I hope I am wrong but hundreds of centuries of recorded human history tell me that I likely will not be.  This technology will probably take hold first in one of the BRIC nations or somewhere in the Third World.

Stay tuned…


Update 02/09/2012:  Below are links to a couple of videos that explain the Petrodollar system in more detail.  Please remember, rarely is a singular source 100% accurate, so do your own independent research to verify pertinent information.


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42 Responses to Cold Fusion, Oil and the US Dollar

  1. Anony Mole says:

    Ben, additional ammunition for your argument.

    The shift from the dollar as reserve appears in place and accelerating.

    • Ben says:

      Thanks for the link Mole. The article certainly does reiterate many of the points I made in the above article, especially these two paragraphs:

      For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar’s valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for US Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon.

      The dominance of the dollar gave the United States incredible power and influence around the world… but the times they are a-changing. As the world’s emerging economies gain ever more prominence, the US is losing hold of its position as the world’s superpower. Many on the long list of nations that dislike America are pondering ways to reduce American influence in their affairs. Ditching the dollar is a very good start.

      No doubt this bad news for most Americans, especially since very few have any idea of what implications the loss of the dollar’s reserve status will have on them or the country as a whole. But, on the bright side, perhaps new energy technologies will finally have room to breathe and be given fair play. If other currencies are widely adopted for trade in oil, then any concerns about the devaluation in oil and its effect on the dollar will go by the wayside and the US can abandon its decades support for that commodity. If the transition from oil to new energy technologies is made smoothly (which of course is a big IF), the economic saving and boost provided by technologies by LENR made be able to mitigate some ill effects of loss of the dollar’s reserve status. Time will tell.

  2. Pingback: Cold Fusion, Oil and the US Dollar | E-cat Live

  3. Anony Mole says:

    It would appear that the replacement of the U.S. dollar as reserve has already commenced. Apparently, due to the trade embargo against Iran, India has decided to use gold to buy oil from that country. (Search – it appears to be real) In addition Iran, due the fact that their banks are unable to perform transaction in EUR or USD, they are resorting to trading in gold and oil to purchase such staples as wheat. ( Wouldn’t it be ironic to find that the U.S. has been the source of its own demise.

  4. Omega Z says:

    I disagree. The Dollar connection to Oil is primarily used to Pull money from the United States & other developed Countries to shift wealth to the poorer & developing countries. Wealth Re-Distribution.

    Poor Countries with 50% of the people having little or no means of providing a living & as much as 80% of everything they earn gong to feed themselves is a hotbed for unrest & recruiting militias & terrorist elements.

    There are a few dozen extremely wealthy people in the world who collaborate in this Wealth transfer effort & their influence extends right into the powers of Government . Their intent is that by eliminating this poverty in the world will lead to a more peaceful & cooperative World Society. Although I understand their reasoning & intent, I don’t necessarily agree with their approach. I’m sure there’s a better way.

    The Dollar as the world reserve Isn’t based on any one Factor. The 2 primary factors would be-
    The U.S. is 1 of the most Stable Countries in the World even thou we constantly bicker amongst ourselves constantly.
    We account for 25% of the entire world GDP even thou we have only 5% of the Worlds population.
    This makes the U.S. the richest Country in the World even with our massive debt.

    LENR development will not change these facts. We will still be the 800# Gorilla in the room. No one can Ignore 25% of the World market.
    Countries trade in other currencies everyday. The Dollar is used primarily for the Big bucks exchange where they may be holding reserves for awhile.. They know it will still be legal tender months, even years down the road even with our Debt. Besides. If the U.S. goes down, the rest of the World is going to suffer equally even if they survive a crash. It’s our sheer market size. Doesn’t matter what the World reserve currency is even if it were a stand alone currency with no specific connection. It would still fall back on the Stability of the Head Gorilla. Thou China could become that Gorilla in time, the rest of the world don’t trust them enough. That’s why it hasn’t happened as of yet.

    The Development of LENR would be a boon to the U.S.. Eliminating Oil Imports alone would save a Half Trillion Dollars being transferred outside the Country with the prospect of many production plants being brought back to the States because of cost reductions. That’s a half Trillion plus that would create jobs in the States per year. That’s a Reduction is welfare costs as these people would be working & paying taxes instead of collecting them to live. Less deficit & Debt over time. Eliminated completely eventually.

    • James Pelsor says:

      I question at least two of your premises:
      1. That the transfer of wealth to oil rich countries is meant to transfer US Dollars to poorer countries.
      2. That those companies, or countries who amass oil wealth are benevolent philanthropists.
      In addition China’s recent decision to stop buying US debt is due to the flood of dollars on the world market resulting in its loss of value against a number of other currencies.
      The value of the dollar continues to decline precipitously simply because we continue to print so much. The current sleight of hand of the US government ‘buying’ its own debt to keep interest costs low in the US is simply unsustainable. We may be the current best choice as the ‘reserve’ currency of the world, but that is undergoing a sea change. I have no idea if the Yuan will replace the dollar anytime soon on the world market, but it wouldn’t surprise me if it was sooner rather than later.
      And in my estimation, cheap energy will not reduce the demand for hydrocarbons as they are the integral building block of numerous materials used around the world, I believe we will continue to see explosive demand for those materials if our economy wasn’t experiencing a transfer and concentration of wealth into a very select group while the vast majority of US citizens continue to undergo a rapid decline in their standard of living…

  5. I remember well in 1991, I stayed a few days with a doctor in Japan. He showed me the engine in his car: WOW… It looked like a tiny UFO, and the car was fresh of a production line.
    He explained that it had 16 cylinders, rotary, run on 20% of the gas of a normal vehicle and only 20% of the heat!


    Secret agreement with the Japanese government no doubt – “This does not leave Japan, guys – or else”
    You see this a lot in Japan – ever seen a pachinko machine in another country? No! but there’s about 50,000,000 of them over there.

    Remember the electric cars in the US – 1980’s, Great cars without fault, thousands of happy consumers – 100% were RECALLED and destroyed.

    In 10 years there may be a few little hives of hobbyists around the globe using the Ecat, that have copied online designs or bought one of the first batch sold before the ‘Powers to Be’ get wind and pull them off the market.

    They will threaten the hell out of Rossi, have him committed as a loony (or worse – you know – official suicide from 200 meters), recall all products claiming them to be highly dangerous. They will then be scanning the internet to round up all supporters. + The usual multi million media campaign to discredit the idea + Big payments to scientists, doctors and congressmen to discredit the Ecat. (They will be doing this already)

    Unfortunately Rossi has gone to the wrong country.
    Unless by some crazy scheme he can beat them at their own game in the US??

    • AstralProjectee says:

      I think the E-cat in is probably the real deal, but I don’t ascribe to the idea that the powers that be will murder or threaten Rossi or anything too dramatic. I think evolution and fate is on the side of Rossi and super cheap energy.


    • Roger Bird says:

      Wikipedia: “Pachinko is a mechanical game originating in Japan and is used as both a form of recreational arcade game and much more frequently as a gambling device, filling a niche comparable to that of the slot machine in Western gambling.” Conrad, you must get a grip on your anxiety and stop projecting it onto the external world. I suggest Rasa Sadhana, EFT, yoga postures, meditation, improving your diet, cardio exercise, light pranayama, mudras, and probably other anxiety reducing practices. Pachinko machines have not made an impact in our country not because greedy meanie heads are suppressing it; pachinko machines do not have a presence in the USA because they are ridiculous gambling devices and we like our slot machines and video poker (my favorite) much better. Get a grip.

    • C H says:

      I see one large difference between the 90’s electric car and the ecat – we now have the internet and several unemployeed physics/chemistry grad students (currently working as waiters and busy-people no doubt!). If this technology were ever allowed to see the light of day (assuming it is real that is) it would never go dark. What grad student wouldn’t build one to save on electrical costs, his neighbour with the new kid will want one for the same reason, his retired grandparents on social assistance will want one, he can save money by selling home made demo units to “remote sites” for mining companies(etc…), cabins for other wealthier students, etc…

      I fail to see how we put this POTENTIAL genie back in the bottle. Remember the barter system – you can pay hungry grad students in HOMEMADE DINNERS for HOMEMADE ECATS (hereto called HEHE excahnges!) and be completely safe from patent violation fines as no “currency of trade” was conducted.

      • Yea. I hope your right C H.
        I was going to say, the internet might save us from loosing this good Technology.
        + Always leave good comments about Ecat, to cancel out the guy’s who are going to discredit itin every way possible.
        + Download the good stuff to hard file, as one day it might dissapear from online.

        Some thing toscare you

  6. Tom Krieg says:

    Record profits for our subitized domestic oil companies. Hopefully, LENR will make a dent in this rape of the American pocketbook.

    My gosh!

    • Roger Bird says:

      I am not hopeful about LANR because some people have this envy-grudge against rich people or the oil companies or even big government. I am hopeful about LANR because it will help human beings, humanity, animals, plants, the environment, and my pocket book.

  7. We are living in an age where technological breakthroughs are a lot less important than what Angelina Jolie wears in public.

    Excellent article.

  8. James Pelsor says:

    I think you Blog is right on in many ways.
    Actually the demonizing of Iraq, Iran, Libya and Brazil by our government and press seems to correlate quite nicely with those countries efforts to disassociate the price of oil from the dollar. The saber rattling over Iran and the Gulf of Hormuz is also incredibly effective in helping to keep a floor on the price of oil. This helps to effectively contribute to the concentration of ‘money’ in fewer and fewer hands. Ultimate success in the world of the corporate super rich who have no better way to define ‘winning’ The trickle down theory can only succeed if the dollar is pumped out, or created by the billions – The catastrophic collapse of the oil based dollar and US needs only to have the Fed stop priming pump or OPEC decide to base the price of oil in another currency. (Neither is likely to happen in my opinion)
    In any case, as the theoretical basis for LENR becomes better understood and a basis for lower cost alternative energy develops, big oil will be further subsidized through ever increasing depreciation schedules, subsidies and simple tax breaks to ease the transition. The transition itself may indeed be abrupt in India, or China, but legislation, legalisms, licensing and permitting will slow the proliferation in the Western economies so that the transition can be absorbed while many companies reposition themselves.
    I think the governmental structure within the US has become so controlled by E Street corporate representatives that the individual citizen can, at best, hope to lose a little less in their standard of living than if we remained a fully oil based economy. The more optimistic hope is that there will be a leveling for all of mankind and a better/more equal sharing of the opportunity to be warm, eat well, and find some joy in life.

  9. Sandy says:

    The dissolution of the U.S. dollar’s link to oil will not destroy the international exchange value of the dollar. The United States covertly recovered thousands of tons of hidden Japanese gold after World War II. When the United States decides to publicly declare that gold there will be enough of it to provide a foundation for the trillions of paper dollars that have been issued by the Federal Reserve Banks.

    Listen to

  10. Anony Mole says:

    I commend your effort to explain the unexplainable. Something does seem amiss here but rational beings must assume that there is no conspiracy and that the world and the people who run it, work it, suffer in it are just slow. Things take time and being outsiders we tend to think that this lack of progress is due to underlying intentional obstructionism. When in fact it’s probably just society moving at its own sluggish pace.

    That said, your link between the dollar and crude oil is valid, but I believe upside down. Although yes the USD is a reserve currency the fact is, that the dollar in inversely related to such commodities as crude oil. If crude oil and the dollar were in fact correlated we would not see a relationships like this:

    I would have to figure that the reduction in price in crude oil would have the opposite affect that you allude to. The markets have continually shown that the price of oil has an inverted affect on economies such as the United States. Oil goes up, productivity and prosperity goes down. When oil drops, the world (generally) heaves a sigh of relief. I say generally as countries like Saudi Arabia, Russia, Venezuela, Iran, Nigeria, etc. who’s economies rely heavily on oil exports, suffer when the price of oil drops.

    The true failure of the U.S. dollar will be at the hands of the Federal Reserve and the institutional banking firms that run Congress. The demise of crude oil at the hands of LENR will actually boost the dollar, allowing business to flourish, interest rates to lift, savings to actually start saving again, and the dollar to return to its place as a unit of worth and not of derision.

    This is a waiting game. And I admit, I tire of it.

    • Ben says:

      The dollar will have no worth if it is based on nothing more than the promises of a broke government. Right now the dollar maintains a value far outside the economic fundamentals that underlie it primarily because it is the reserve currency for oil, one of the most in-demand commodities on the planet. If oil is no longer a desired resource, the dollar will no longer be a desired currency. It is really not that complicated.

      • Anony Mole says:

        No doubt the government is broke, or rather we are as we’re the poor blokes what gave the reins to the ID 10 Ts in Congress. All fiat monies are merely promises made by governments. Promises that governments will stands behind their currencies. Empty promises, ponzi schemes really. Just don’t slide back the curtain.
        So if the dollar collapses when oil drops to $10 bucks a barrel what commodity is holding up the Euro? Or the Canadian Dollar? The Brazilian real, the yuan, the yen, the rand, the rupee? At least the U.S. dollar has oil to represent its true worth. What do these others have? How can they possibly exist without a reserve fundamental beneath them? All these currencies have value purely be cause people think they do. Same goes for the U.S. dollar.

      • Anony Mole says:

        Reading up on “Reserve Currency” – if the dollar were to lose it’s place as the world’s reserve currency, then I can see the dollar collapsing thereby triggering world economic collapse. So in this I can see your scenario unfolding. But if the U.S. dollar remains the reserve, and oil plunges, I can envision only economic benefit. The charts shown in the preceding comment show that oil can triple in price, or lose 3/4s of its value and yet the dollar just chugs along, mirroring oils vacillations in a restrained manner.

        • Ben says:

          It is encouraging that you took the time to research the matter a bit further to see where I am coming from. My contention here is that if the value of oil in the scheme of things were to decline significantly, the utility of the dollar as it relates to oil’s reserve currency would diminish in a similar, although perhaps not exact, fashion.

          As i pointed out in the article, there are already moves afoot internationally to replace the dollar as a reserve currency across the board, for all commodities, and I can only imagine that those efforts would intensify if the anchor product for the dollar’s status as a reserve currency were to be made largely irrelevant.

          The whole issue has little to do the actual price oil and almost everything to do with the importance of oil. The dollar remains an important currency because oil is important. Once oil loses this status, the dollars status will decline as well.

          Again, the dollar’s problem is due in large part to the tremendous amount of debt the underlies it . Much of this debt is caused by the financing one of the world’s largest and most expansive militaries, and an endless stream of wars in the last 60 years, and the last 10 years in particular. Many a prosperous nation has been ruined by over-emphasis on military expansion and excessive expenditure on its military apparatus. I would encourage all to read President Dwight D. Eisenhower’s farewell address from 1961 and his warnings about the dangers of the military-industrial complex. Tom Baccei refers to it as the military/financial complex and I think in today’s world that is a more accurate description. Basically the same thing, although perhaps more insidious.

        • Anony Mole says:

          I suppose that due to the dollars reserve currency status I can understand and appreciate your argument. I would like to add though that there is the matter of the velocity of events that would probably negate your argument. Oil will continue for a decade at least to be a primary fuel after the advent of LENR. And will continue for many decades to be a core commodity in chemical and materials manufacturing. Therefore the demise of crude oil will never actually happen. And the velocity of events required to justify your scenario can’t possibly come to pass. Oil will retain value for many years thereby maintaining the dollars position as reserve. Realistically, the world moves so slowly that oil will continue to be the energy foundation of the first world for years to come, regardless of what LENR may eventually offer us. I agree that there is some risk in having the dollar lose its status as reserve. The euro was a candidate, but no longer. The yuan? Doubtful. Gold perhaps, if climatic, economic and political turmoil continue as they seem to be doing. I can entertain your premise and found it intriguing but think that other major factors will be the primary players against or for the adoption of LENR.

        • Ben says:

          I think the collapse of the dollar, or at the very least a significant devaluation, is imminent regardless of the advent of LENR. Given that, if we had any leaders with vision, it would be wise to integrate LENR, or at least announce that such plans are imminent, at the same time the dollar makes its inevitable swoon. Rossi’s announced plan to start cranking e-Cats in bunches anywhere from the next 6 months to a year might coincide nicely with such a scenario. He keeps changing the planned launch date of the home units and it may be a matter of him trying to synchronize with political and foreseen economic considerations as much as anything. Of course, that is all highly speculative.

      • Sandy says:

        Ben, the United States will eventually admit that it has more than 30,000 tons of gold. On that day, it will resume redeeming dollars in gold. The U.S. government will not allow the international exchange value of the dollar to crash.

        The Looting of Asia; Chalmers Johnson

        • Ben says:

          Thank you for this info Sandy. I had never heard of this. The subject is interesting indeed and I thank you for bringing it to everyone’s attention. However, after researching it just a little bit, I can see that Yamashita’s gold is as controversial a subject as cold fusion and documentation of it is less robust by orders of magnitude.

          The sudden appearance of this treasure all in one place to pay off the US debt would no doubt make all worrisome scenarios about the dollar and the economy null and void. Unfortunately, I do not have too much confidence that this wealth would be used for such a purpose, if indeed the reports of its existence are accurate.

        • Roger Bird says:

          Sandy, 30,000 tons of gold is “only” roughly $107 billion. That is not enough to do it. At least 10 times more would be needed to back up all of the currencies in the world.

        • Sandy says:

          Roger, 30,000 tons of gold will be sufficient to back the Federal Reserve Notes in circulation if the U.S. Government announces that it will redeem those Notes at a ratio of one ounce of gold for $10,000. At that ratio, the U.S. dollar would be the second strongest currency in the world, behind the Swiss franc.

          The spot price of gold is currently about $1,735 per ounce. So gold at $10,000 per ounce would constitute a significant (and painful) devaluation of the dollar. On the bright side, if that devaluation sank the dollar to about 40 on the U.S. Dollar Index then that would bring the U.S./China trade balance to a sustainable equilibrium. That kind of equilibrium will be reached soon, one way or the other, because China has stopped buying U.S. Treasury debt and the Federal Reserve System cannot continue buying all of that debt itself. A world-wide currency revaluation is going to happen sometime soon; probably right after the coming U.S. presidential election.

  11. Brad Arnold says:

    I am a believer in occum’s razor, where the simplest explaination is the best. The reason people tend not to believe that LENR is real and commercializable, is because it hasn’t been successfully commercialized yet. The oil dollar is besides the point, but may be an important issue in terms of integrating a highly destabilizing energy technology into our economy.

    My theory is easy tested: just wait until Defkalion has gotten successful feedback from independent testers: I predict that won’t do it. On the other hand, wait until the LENR devices are mass produced and sold on the open market: I predict that will do it. A lot of people are from Missouri (i.e. they won’t believe it until they see it).

  12. kwhilborn says:

    We know LENR is going to change the world, but has the world noticed?


    We are living in an age where technological breakthroughs are a lot less important than what Angelina Jolie wears in public.

    If a Disaster such as major earthquakes hit a country it could destabilize the economy, but LENR is so slow in reaching acceptance/care that the only people who will look sharply at it are the strong money movers and shakers. It is not surprising to see Forbes magazine (A Magazine for the elite rich) as one of the earliest to cover the ecat stories. This is the type of news the elite rich need in order to invest their billions wisely.

    Don’t be alarmed if you do not see the fortunes of the worlds billionaires drop once oil becomes an obsolete commodity. I am sure the financial jugglers are eyeing this with care.

    (NOTE: I also find the all bold lettering a bit hard on the eyes.)

    I am looking at it like this. When would the financial markets go crazy? When its profiled again on 60 minutes? When someone has an ecat in their home? When an independant scientist verifies ecats are real?

    What is the event that will cause sudden worldwide acceptance?

    It is for the general lack of interest in technology that I think this science will not destabilize any economies right away. The only people who will lose their shirts will be average middle income investors. Anybody investing in oil or green technologies other than LENR at this time is foolish even if only to err on the side of caution.

    • Tom Krieg says:

      Maybe, flying under the radar without any notice will allow the technology to come to the market without major resistance.

      • Roger Bird says:

        Tom Krieg, I agree. I wish people would stop suggesting that we contact our elected representatives and other government people and the major news media. To hell with them. Let them figure it out long after it is too late. We already have Forbes ready to jump on it.

  13. Tom Krieg says:

    Yup, your postulations are credible in my eyes, however, it may be difficult to stop the inevitability of the advancements in this field even for any government. The challenge may well be “what is the next world wide standard” if energy falls from its’ lofty perch. I submit that this time we try to influence the market into thinking it is something we have plenty of or, something we have a distinct advantage.


    We have a lot of coal but so does everyone else. darn.
    We have a lot of food. Darn, cheap power will prevent starvation and scarcity of food stuff.
    We have a lot of fresh water. That does not work either. The cheap power will make a lot of fresh water from the ocean.
    Space, surely we might be able to rocket around somewhere and get something to sell… Nope that won’t work. We are not that far ahead of our competition.

    Fiddle faddle, there must be something. Anybody got any ideas, or should we just have a war?

    Has to be something.

  14. Pingback: Cold Fusion, Oil and the US Dollar | e-Cat Site

  15. Roger Bird says:

    This is just more paranoid *****. NASA and Joe Z. did not backpedal. They clarified. Their work did not prove that Rossi was for real. That’s all.

    • Ben says:

      They back-pedaled faster than a defensive back in the Super Bowl. Nobody here said NASA or Zawodny statements were proof of anything other than their very real interest in the technology. I think you have the wrong site.

      You don’t have to agree with anything written here but if you post you need to keep the discourse civil or your posts will end up in the circular file.

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