Posted on 04/02/2023 3:28:15 PM PDT by Its All Over Except ...
During a three-day state visit, Chinese President Xi Jinping held friendly talks with Russian President Vladimir Putin in a show of unity, as both countries increasingly seek to position themselves as leaders of what they call a “multipolar world order,” one that challenges U.S.-centric alliances and agreements.
Among those agreements is the petrodollar, which has been in place for over 50 years.
In case you’re wondering, “petrodollars” are not a real currency. They’re simply dollars being used to trade oil. Early in the 1970s, the U.S. government provided economic aid to Saudi Arabia, its chief oil-producing rival, in exchange for assurances that Riyadh would price its crude exports exclusively in the U.S. dollar. In 1975, other members of the Organization of Petroleum Exporting Countries (OPEC) followed suit, and the petrodollar was born.
This had the immediate effect of strengthening the U.S. dollar. Since countries around the world had to have dollars on hand in order to buy oil (and other key commodities such as gold, also priced in dollars), the greenback became the world’s reserve currency, a status formerly enjoyed by the British pound, French franc and Dutch guilder.
All things must come to an end, however. We may be witnessing the end of the petrodollar as more and more countries, including China and Russia, are agreeing to make settlements in currencies other than the U.S. dollar.
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(Excerpt) Read more at nasdaq.com ...
Jaio Bai Deng: “I did this! And I pissed off Saudi Arabia too and into the arms of BRICS.”
Imagine if Saudi Arabia demanded US customers pay Chinese Yuan for the oil they buy?
That would be quite a middle finger to Pedo Joe.
Oh well, offshore good paying jobs for decades to China for their cheap labor, an economic juggernaut is made, and now to this.
Trump tried to bring the jobs back, and did alot of them, but the globalists would have none of it.
Diaper Boy had done everything he can to cripple America. He is EVIL to the core.
So what happens to all those billions and billions of dollars that aren’t needed over there?
I suppose they come over here, and push interest rates to the moon. I’m not smart enough to know exactly, other than it can’t be anything good.
Sorry, deals between nations will exist using non-dollar currencies, but the majority of the world doesn’t trust the currencies of other nations. Too much manipulation of the value of the currency involved.
ESPECIALLY the Yuan.
Yeah, say what you will about the dollar but it’s the least smelly shirt in the laundry.
Just like I said above:
Trump tried to bring the jobs back, and did alot of them, but the globalists would have none of it.
If he doesn’t win in 2024 it may be irreversible.
Over the last two decades, the United States dollar has lost 12 percentage points of market share falling from 71% to 59%, according to the International Monetary Fund.
The India-based Megh Updates platform, one of the world’s largest online informational platforms in terms of views, has stated that BRICS countries have officially overtaken G7 in share of world PPP GDP, and that this trend can be expected to continue.
The BRICS is also expanding – Bangladesh, Egypt and the UAE have all just joined the BRICS New Development Bank, with numerous other countries poised to do the same.
The current BRICS five now contribute 31.5% of global GDP, while the G7 share has fallen to 30%. The BRICS is expected to contribute over 50% of global GDP by 2030...
It’s about to accelerate.
Gold, silver, platinum, oil, lithium, rare-earth minerals- backed BRICS currency may weather the storm if anything can.
This article misses the most important aspect of the petro dollar: The Saudis would take those dollars and buy treasuries. THAT is what kept the dollar the king of the hill.
Have these countries started buying China or Russia bonds?
Zee News
Check List Of Countries Agreed To Trade In INR
3/17/23
“List of countries allowed to trade in Indian rupees
- United Kingdom
- Malaysia
- Russia
- Singapore
- New Zealand
- Sri Lanka
- Myanmar
- Botswana
- Israel
- Fiji
- Oman
- Germany
- Kenya
- Guyana
- Mauritius
- Seychelles
- Tanzania
- Uganda
So there will be a Petroyuan allowed for Saudi oil, the tuan looks like will it increase its share globally, as will the rupee, and the ruble appears will do the same
The Saudis hold billions upon billions of U.S. dollars and there is no upside for them in devaluing or crashing the dollar.
They certainly are not going to convert their dollars to yuans.
"Speaking of gold, you’re invited to join me March 29 for a webcast entitled “Is Now the Time to Switch to a Different Gold ETF?” To get the full details and save your seat, just email me...
I especially like the urgency of the threat.
"U.S. dollar remains the world’s top reserve currency for now, though its share of global central banks’ official holdings has slipped in the past 20 years, from 72% in 2001 to just under 60% today. By contrast, the yuan’s share of official holdings has more than doubled since 2016. The Chinese currency accounted for about 2.8% of reserves as of September 2022.
It's especially scary next to the chart showing yuan reserves held around the world have actually dropped recently.
I think there could be some changes in the dollar's role as the reserve currency but it won't be replaced by the yuan as long as China is governed by the CCP.
“… y, a status formerly enjoyed by the British pound, French franc and Dutch guilder.”
These were all backed by gold. The US dollar was, but then abandoned the gold standard. Currencies are now only worth the goods they will buy. China might be able to get 2nd and 3rd world countries to accept yuan because they make cheap basic stuff. Trade in high tech will only be in euros, pounds, and dollars(plus a few others). The yuan or ruble or any of the other BRICS currencies will always be second-tier money, good enough for a cheap cell phone, but not a good one.
But the purchase of oil, exclusively with the dollar, with Saudi Arabia meant countries went ahead and used the dollar to a greater extent than would have occurred, starting in the 70’s; that will change.
You deflecting to personally attacking him someone undoes what was written?
Prove him wrong.
The US buck usage is down to 59% worldwide from 72% a short few years ago.
The strong dollar is really harming other countries economies along with the realization that the administration has now weaponized the US buck. The de-dollarization has been ongoing since 2011 or thereabouts. It is swiftly increasing as more countries are looking to disengage.
This is a problem that is growing. It isn’t going to go away and the more the US tries to use force, (and stupidity as evidenced by Biden toward the Saudis) the more the problem will grow.
China has been making huge inroads in diplomacy. The BRIC countries are cognizent of America’s weaknesses abroad and certainly, at home. The divisiveness is playing the citizens against each other.
George W Bush did a great deal for African countries. Biden is giving billions for climate change and healthcare, but in whose pockets the money lands, who knows.
Much of US money and policy is squandered along with good will which is sorely lacking toward the US at this point.
I certainly do not want the US to lose its primacy. However, the harder the US grasps, the more power slips through the fist. This is a behemouth lashing out. It will not end well.
What we do know is the dollar isn’t backed by gold, but BRICS currency would be backed by gold, silver, platinum, oil, lithium, and rare-earth metals as has been proposed by BRICS.
People need to wake up and say no to the neoconnery and neoliberalism angering and alienating more and more countries, driving them away.
There has to be an end to all US neocon and neoliberal foreign policy for starters to turn things around.
It's Xiden's job to "Manage The Decline."
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