A chain of events leading to sudden political and economic upheaval in America is conceivable and not entirely out of the question. Poor US monetary policies of ZIRP and various QEs, our political weakness at home and in the world, and the alienation of our traditional allies like Saudi Arabia could have a sharp and sudden impact to this country. Idiots like John Kerry and Barack Obama will never see it coming. An even larger explanation of the coming devastation lies here.
Well before the recent public "deal" with Iran's Rouhani, Obama was already removing the highly effective sanctions which forced Iran to the bargaining table in the first place. See my blog on this topic. This is appeasement in every sense. It is very likely that Obama's "reset" with Iran will end in disaster just like his entirely discredited Russian "Reset." In fact, he is reminiscent of Neville Chamberlain's appeasement of Hitler in the 1930s. Liberals like Obama, who are immune to facts and reality, are dangerous and their policies lead to failure if not war. They never see the truth to the "peace through strength" well-proven by Ronald Reagan.
Obama, who has stumbled and equivocated for years has helped to create a perception of a US power vacuum in the world. I say it's intentional as Obama is an enemy of our country (like the other US black "leaders"). Putin (and China and Iran) have been filling this vacuum. Saudi Arabia is in shock at the parade of incompetence since it's been a long-time ally of the US. That alliance is responsible for establishment of the Petrodollar.
By playing "nice" with the murderous Iranians in an effort to have a (any) foreign policy "victory," Obama has thoroughly annoyed our allies of Saudi Arabia, Israel, and many others. But it's the Saudi's that could unleash real disorder for the US if ignored.
The Saudi's hate the Iranians and have watched the Iranians (and Russian) interests advancing in the region due to the incoherent and mindless American administration.
Could it be that the intentional aiding and abetting of our enemy Iran, and the loss of another long-standing alliance with Saudi Arabia, combined with the US policies of money printing and dollar debasement, might lead to a dollar (and economic) crisis for the US and world? It's possible if not probable.
The potential chain of events might start with Saudi's willingness to accept other currencies for oil payments rather than just dollars. Accepting all currencies for payment, rather than solely dollars, is hardly a radical concept. (In fact, it would be normal except for the Saudi's leadership.) Iran, China and Russia are already making deals for oil bypassing the US dollar in an effort to displace and diminish US power. If Saudi made a change, Iraq would quickly follow suit since they are increasingly aligning themselves with Iran (thanks to the US power vacuum). Egypt is hardly sympathetic with the US these days too. Libya could jump on the bandwagon too. China would renew calls for a new reserve currency again at that moment.
The breaking of the petrodollar's status is a nuclear war without the nukes. If Saudi makes such a move and it will be followed by other oil exporters in the region, the demand for the dollar could fall significantly. Demand for treasury notes and bonds would also drop (due to less petrodollar recycling) leading to a fall of the dollar and/or possibly rising US interest rates. Confidence is a delicate thing. Loss of US dollar reserve status would be a huge blow for the US and cause a test of our ability to run huge trade budget deficits forever.
The economic and political decline of America could become apparent literally overnight. Suddenly, US citizens might wake up one morning and find themselves significantly poorer vis-a-vis the rest of the world due to a decline in the dollar. They can't say that they weren't warned. Ron Paul, for one, has warned of this possibility for many years now, although he couldn't have predicted the chain of events. The US might be compared to a frog sitting in a pot of water on a stove and suddenly finding itself cooked.