Posted on 08/30/2021 8:02:49 AM PDT by Perseverando
Snip:
Yellen also warned that not raising the debt limit would injure the economy in July. This issue was not addressed in the $5 trillion of spending pushed through last week. Newsweek reported in July:
Treasury Secretary Janet Yellen warned members of Congress on Friday that if the debt ceiling is not raised, it will risk “irreparable harm to the U.S. economy and the livelihoods of all Americans,” according to the Daily Caller.
In a letter to House Speaker Nancy Pelosi, Yellen expressed that she did not know how long the Treasury Department could keep the United States from defaulting on its obligations, which could result in catastrophic economic consequences. The debt ceiling will expire August 1.
“In recent years Congress has addressed the debt limit through regular order, with broad bipartisan support,” Yellen writes. “I respectfully urge Congress to protect the full faith and credit of the United States by acting as soon as possible.”
With all these risks and issues, the Biden/Obama Administration did not ensure that the debt limit was addressed in these massive bills, nor did they appear to be concerned with countries like Russia and Saudi Arabia deciding not to transact in the US dollar anymore.
For the last 50 years, the petrodollar was in place. Big oil made its transactions in USD. Then a couple of days ago, Russia and Saudi Arabia signed an agreement that likely went beyond the military and defense cooperation it claims. The agreement likely removes the two countries from their relationship with the dollar.
Met with Russian Defense Minister Sergey Shoygu to explore ways to strengthen the military and defense cooperation between our two countries. We discussed our common endeavor to preserve stability and security in the region, and reviewed shared challenges facing our countries. pic.twitter.com/T7lVdITZPt
(Excerpt) Read more at thegatewaypundit.com ...
The article is a little sloppy.
The petro dollar concept was a quid pro quo.
The Saudis will only accept dollars for their oil.
In exchange the US provides for their security.
Has the US abandoned Saudi security officially?—or are the Saudis just hedging their bets so they have the option to void the agreement.
It sounds like it is the latter.
The Saudis cannot defend themselves, so they need an absolute guarantor of their security.
Ambiguity over who has that responsibility could be a fatal error on their part.
Here's a 6 minute video at the end of the article that GP has included to further shore up the justification for the headline:
Not Clickbait Petro Dollar died Russia / Saudi Arabia sign historic deal Got Gold, Silver & Bitcoin?
What can I say? Stupid self defeating title for the video, but I found the video very interesting!
Well, I’ve been saying for years that when the Petro Dollar falls that so too will the ability to “sovereignty” spend money into existence. When no one abroad actually needs your fiat currency for anything you’re just a step away from no one wanting it.
Of course expect the spendthrift so-called “progressives” to blame people who actually made useful things in the course of their lives for any woes and not their useless, unproductive and counterproductive elites as they double down on stupidity.
The governing elites will certainly continue to eat first even if no one else is eating.
China just made a 25 year, $500 Billion oil deal with Saudi Arabia and I believe it was in China’s currency, not the US Doallar
The Saudis better formalize their security agreements, or the Royal Family could lose their heads...
“Way To Go Joe!” and his elite buddies in CONgress seem unaware there is rampant inflation going on. Then again, when someone else if footing the bills, why worry? Right? Bueller? Bueller?
China and Russia are both net exporters, so they aren’t buying much oil from each other, so this is mostly symbolic.
I think both Saudi and Russia are recognizing that US shale oil production will not be the swing factor it once was.
The GP headline is misleading and politically charged - but we CAN say for certain that the OPEC cartel is now strengthened, and Saudi and Russia both intend to make sure the oil price goes higher and stays higher.
Washington DC, the American left and the deep state have lived high on the fiat US dollar, overspending and leveraging America's long-built stability and economic strength.
Destruction of the US dollar as the major world-reserve currency means bankruptcy of the nanny state, particularly at local levels like IL, CA, NJ, etc...
And while that's a good thing, the Left is in ascendency in the USA, so they will double-down on socialism and state power as things get worse. They could make it extremely ugly.
But precious metals!
Lead and brass...
“The agreement likely removes the two countries from their relationship with the dollar.”
Making crap up. Bad journalism.
I fear the greedy politicians have pulled one too many $trillion out of their a$$. When the USD is no longer the world reserve currency it won’t be worth the paper it’s printed on. Buckle up, folks.
NO MORE AID TO SAUDI.
Effers are on their own now...
With cancer ,there has to be poisonous and painful treatment to get rid of it...Dem party is the cancer,we may have to go through excruciating pain to get rid of them.......Hopefully all the suffering will be worth it......
US government will need to shift to backing more criminal activities such as drugs arm and human trafficking because they are largely still transacted in dollars.
DEA is the major criminal organization managing drug trade.
What’s the point of having a debt ceiling if all you are going to do is increase it all the time?
Just eliminate the ‘ceiling’ and have an unfettered spending free for all and lets get this over with.
OPEC has tried to keep oil price stable in Europe -- its largest nearby market -- in order to remain competitive with Russian oil. This has gone on for over 15 years. When the Euro-to-USD rate changed, the pricing was done in USD and would fluctuate, but the Euro price would be stable.
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