Saudi Arabia is considering accepting the Yuan for Chinese oil sales. That is very bad news for the US and the petrodollar.
The weakening of the US dollar as the world’s reserve currency increases costs for everything that we import.
The inflation we have seen will be nothing in comparison to what will come.
It was all predicted. Biden ignored warnings.
The global financial system is based on the petrodollar. It propped up the dollar’s reserve status.
Oil producers sell their product to the US and the rest of the world for dollars. It then recycles the proceeds in dollar-denominated assets while investing in dollar-denominated markets.
It explicitly props up the USD as the world reserve currency, and in the process backstops the standing of the US as the world’s undisputed financial superpower.
It’s what allowed the Federal Reserve to print money – Quantitative Easing.
All that is coming to an end and we will become a lot poorer overnight.
Joe Biden is oblivious to what is going on and his advisers are hard-left.
The Wall Street Journal reports that “Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan.” It could cripple not only the petrodollar’s dominance of the global petroleum market. It is a move aimed squarely at the heart of the US financial system which has taken advantage of the dollar’s reserve status by printing as many dollars as needed to fund government spending for the past decade.
The Journal states that the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom.
The Saudis are angry over the U.S.’s lack of support for their intervention in the Yemen civil war, and over the Biden administration’s attempt to strike a deal with Iran over its nuclear program. Saudi officials have said they were shocked by the precipitous U.S. withdrawal from Afghanistan last year.
Donald Trump would never have done something that stupid.
China buys more than 25% of the oil that Saudi Arabia exports, and if priced in yuan, those sales would boost the standing of China’s currency, and set the Chinese currency on a path to becoming a global petroyuan reserve currency.
The US is heading for a quick downfall.
Beijing is now actively and aggressively pushing to dethrone the dollar as a global reserve currency.
It’s a different kind of war and it will change our way of life.
This is what 81 million people allegedly voted for.