Will Russia help American solar installation companies grow exponentially?
With the inevitable fall of the petrodollar, there can only be one answer - YES!
The United States (USD) have been considered a safe haven for investors and banks since the implementation of using oil as a standard for the dollar instead of gold.
Oil is the world's main source of energy, therefore a critical commodity.
Russia recently negotiated terms with China to trade oil/gas using RMB/RUB completely bypassing the USD. China is said to start purchasing oil from Saudi Arabia using RMB in 2015.
Without a "petrodollar", the USD will continue to lose value over time making it more expensive to buy oil. This would lead to much higher energy prices in the USA.
The solution:
1) The USA needs to focus its energy production on local resources including: coal/natural gas/solar/wind. AND
2) Keystone pipeline.
My opinion:
I speculate that in the not-to-distant future the US will be forced to return to its original gold standard. This will revert the 50 year trend of devaluation, and begin strengthening the American currency. (Evidence that the US is accumulating as much gold as possible can be seen in current politics. Rumors have it that Ukrainian central bank gold reserves have been sent to the US for "safekeeping". (Not to mention Libya's reserves held tightly by Gaddafi...)
With all countries in the world (except for Algeria perhaps) having billions of USD in debt, paying it off will prove to be much more difficult.
With the USD high, China will remain an excellent outsourcing area for manufacturing.
Since China is the world's largest solar panel and wind manufacturer, purchasing its products will be considerably cheaper. This in turn will help propel US adoption of renewable energy.
Thoughts?
