It’s revered. It’s hated. It reigns supreme. 

It’s the dollar.

The dollar’s enjoyed more power and prestige than any other currency in history.

But few people know just how it got on its perch… and even fewer recognize how fragile this perch really is.

Today, we’ll ask one question: 

Can one man kill the dollar?

The answer might shock you. 

Before we go there, let’s start from the beginning…

Where the Dollar Gets its Power

In the past, the US dollar used to get its power from GOLD. 

In 1934, President Roosevelt signed the Gold Reserve Act, taking the US off of the gold standard. This bill made it illegal for the public to possess most forms of gold.

People were required to exchange their gold for $20 per ounce, which the government then raised the price of gold to $35 per ounce. 

In 1971, Nixon took the dollar off of the international gold standard.

There were plenty of excuses to do this, but the main reason was that the United States would have been forced to ship most of its gold reserves out of the country.

Two years later, the dollar became linked to something even more valuable: oil. 

The Petro-Dollar

In 1973, the Yom Kippur War was fought between Israel and a group of Arab nations.

Israel was victorious, and the Arab nations began punishing countries that supported Israel. 

At this time, Saudi Arabia was the leader of OPEC -- the Organization of Petroleum Exporting Countries. The Saudis decided to put an embargo on any nation that supported Israel.

This included…

Canada. The UK. The Netherlands. Japan. The United States.

Global oil prices skyrocketed by 300%.

This was a sign of how much power oil-producing countries held over the world, and how quickly the world can change with one decision.

The United States, with no other option, began its discussions with Saudi Arabia.

In a secret deal, the Saudis received a guarantee that the U.S. would give them protection and sell them weapons. In return, the Saudis agreed to conduct all oil trades in the dollar. 

After that, all other oil exporting countries followed. 

The petro-dollar was born, which had the effect of stabilizing oil prices. It also had the effect of dragging the U.S. into endless war.

Every country that challenged the petrodollar -- Iraq, Libya, and Syria, for example -- in short order became in dire need of democracy.

Here’s The Thing. 

Today, the fate of the oil markets -- and the petrodollar -- could rest in the hands of one man.

The House of Saud, which rules over Saudi Arabia, is one of the most powerful families in the world. 

They have a net worth of about $1.4 trillion. That’s 16 times more than the net worth of the British royal family.

Mohammed Bin Salman Al Saud, also known as MBS, is the crown prince of Saudi Arabia. Although he’s not technically king, MBS is often called the “uncrowned king” because he rules in the place of his father, King Salman. 

He also controls the nation’s money. He controls the Saudi’s wealth fund. He controls the nation’s oil. He controls everything. 

If MBS wants to change how Saudi Arabia does business with the world, he can do so virtually overnight.

Now, consider this…

China is the second-largest user of oil on the planet, and it has, for the past few decades, been forced to buy oil using the United States dollar.

It doesn’t want to use dollars to buy oil. Being forced to buy oil in dollars means giving power to your main rival.

In March, news broke that the House of Saud was considering accepting the yuan for oil. 

Recall, the dollar’s power comes from oil.

China purchases a whopping 25% of Saudi Arabia’s oil exports. That would be like taking away 25% of the dollar’s power in one fell swoop. 

If this happens, it would devalue the U.S. dollar, diminishing its power on the world stage. 

Interestingly, the yuan jumped in value immediately after the news.

History reveals that oil-exporting nations follow in Saudi Arabia’s footsteps. This could start a domino effect. 

This is a major potential vector of attack for the U.S. dollar. One that you should be prepared for.

But it’s not the only danger. 

While some are worried about the fall of the dollar’s prominence on the world stage…

Other experts are worried about what comes NEXT. 

In other words…

You shouldn’t worry about the dollar, they say. You should worry about what’s going to REPLACE it. 

And it’s probably worse than you think…

Click here to see the latest predictions.

Until tomorrow,

Chris Campbell
For Altucher Confidential