Wall Street Daily
Published Mon, May 30, 2016-Tim Maverick, Senior Correspondent
There are, perhaps, fewer more important– or more delicate – relationships between countries than the one between the United States and Saudi Arabia.
The very reason the U.S. dollar is the world’s reserve currency dates back to a deal struck in 1971 between Secretary of State Henry Kissinger and the Saudis, during which the petrodollar was brought into existence.
The U.S. promised to always protect the House of Saud – militarily. In exchange, the Saudis would only accept dollars for their oil. Under Saudi pressure, all of OPEC soon followed suit.
This meant every nation on the planet needed dollars if they wanted oil.
Currently, however, this crucial relationship is arguably at its least stable since the birth of the petrodollar.
This discontent was blatantly obvious during President Obama’s recent visit to Saudi Arabia.
Despite tradition dictating that government leaders show their respect for visiting foreign diplomats – with the U.S. President being the most revered in the world – Obama was not greeted at the airport by Saudi Arabia’s King Salman.
” Obama was not greeted at the airport by Saudi Arabia’s King Salman.”
The Saudi what’s his name King may not like 0 but he likes military equipments and 0 likes payment for them. It’s a business deal, obviously.