Posted on 06/12/2024 7:02:26 AM PDT by delta7
The financial world is bracing for a significant upheaval following Saudi Arabia's decision not to renew its 50-year petro-dollar deal with the United States, which expired on Sunday, 9 June, 2024.
The lapsed security agreement - signed by the United States and Saudi Arabia on 8 June 1974 - establishes two joint commissions, one on economic co-operation and the other on Saudi Arabia's military needs, and was said to have heralded an era of increasingly close co-operation between the two countries.
American officials at the time expressed optimism that the deal would motivate Saudi Arabia to ramp up its oil production. They also envisioned it as a blueprint for fostering economic collaboration between Washington and other Arab countries.
The crucial decision to not renew the contract enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars. Additionally, the potential use of digital currencies like Bitcoin may also be considered.
This latest development signifies a major shift away from the petrodollar system established in 1972, when the US decoupled its currency from gold, and is anticipated to hasten the global shift away from the US dollar.
Cross-border CBDC transactions
In a more recent move, Saudi Arabia has announced its involvement in Project mBridge, a project which explores a multi-central bank digital currency (CBDC) platform shared among participating central banks and commercial banks. It is built on distributed ledger technology (DLT) to enable instant cross-border payments settlements, and foreign-exchange transactions.
The project has more than 26 observing members including the South African Reserve Bank, which was greenlighted as a member this month.
The better known observing members of mBridge are those of the Bank of Israel, Bank of Namibia, Bank of France, Central Bank of Bahrain, Central Bank of Egypt, Central Bank of Jordan, European Central Bank, the International Monetary Fund, the Federal Reserve Bank of New York, the Reserve Bank of Australia, and the World Bank.
In tandem, the project steering committee has created a bespoke governance and legal framework, including a rulebook, tailored to match the platform's unique decentralised nature.
Evolution of Project mBridge
Project mBridge is the result of extensive collaboration starting in 2021 between the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People's Bank of China and the Hong Kong Monetary Authority.
In 2022, a pilot with real-value transactions was conducted. Since then, the mBridge project team has been exploring whether the prototype platform could evolve to become a Minimum Viable Product (MVP) – a stage now reached.
As it enters the MVP stage, Project mBridge is now inviting private-sector firms to propose new solutions and use cases that could help develop the platform and showcase all its potential.
Death of the Petro Dollar is now accomplished….fifty years of hegemony and reserve currency status destroyed in less than two years.
That’s what happens with Sanctions and Weaponization of the USD. War Cheerleaders, how’s Joe’s Ukie war working out for you? If you don’t know the significance of this event, go back to sleep.
All eyes on the ever expanding Brics, something our corrupted MSM speaks little of….gotta keep the mushrooms in the dark.
I believe the next Summit is in October, they will announce the new Brics members, Gold backed currency, etc…stay tuned, it will be historic.
Thanks Joe!
Perhaps our country is brain dead and voters elected the president that best represents them. Biden is an unmitigated disaster.
The brain dead pervert does nothing...this is the workings of the Coup group...we all know who they are
If they’re switching, it’s at the behest of the same people who created the “petrodollar” to begin with.
Here is where being completely energy independent.We can tell the Saudi’s,”You and anyone else can take your OIL and give yourself an ENEMA with it”!
Project mBridge? Started in 2021? Hmmmm. A CBDC?
The better known observing members of mBridge are those of the Bank of Israel, Bank of Namibia, Bank of France, Central Bank of Bahrain, Central Bank of Egypt, Central Bank of Jordan, European Central Bank, the International Monetary Fund, the Federal Reserve Bank of New York, the Reserve Bank of Australia, and the World Bank.
Need i go down this rabbit hole?
Next Brics Summit : October 2024. How much you all want to bet our corrupted MSM will give it little coverage? I had to pull hen’s teethe just to get their last meetings transcription a few months ago.
https://interfax.com/newsroom/top-stories/93857/
MOSCOW. Aug 23 (Interfax) - Plans have been made to hold the next BRICS summit in Kazan in October 2024, Russian President Vladimir Putin said.
“We plan to hold a BRICS summit in Kazan in October 2024. We will agree on the exact dates with our colleagues through diplomatic channels,” Putin said at the BRICS summit on Wednesday. The speech was made online.
Events will also be held in the well-established BRICS+ format, Putin said.
In total, during its chairmanship of BRICS, Russia is planning to hold around 200 political, economic and public events in more than ten cities, he said.
Putin proposed that BRICS set up a permanent transport commission to promote the development of logistics and transport corridors, including the North-South project.
“With the consent of our partners, Russia could work on this idea while chairing BRICS in 2024,” Putin said.
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Do realize the West’s G7 now has fewer members than Brics…..senile Joe’s water girl Yellen is reported to be in a state of epileptic shock…..the decline of the US hegemony is a hard pill to swallow, especially when done from within.
Why does the West keep committing suicide?
We can tell the Saudi’s,”You and anyone else can take your OIL and give yourself an ENEMA with it”
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Fine and dandy, but that will not regain the USD status. Even Trump can not undo this historic event.
For those not realizing the significance of the Petro Dollar loss, you will as it unwinds….my guess ( and a few other financial greats) is the US starts going into default around 2027, our Fed will use what little is left in their toolbox.
In fact, the Supreme Court just ruled our corrupted government can now start paying our .gov agencies from the Federal Reserve- not from our Treasury….think about that….they know it’s coming.
This is not just a risk to the US economy, it's a recipe for a world wide melt down of the post WWII financial system.
They’ll Be back ,LOL
This is not just a risk to the US economy, it’s a recipe for a world wide melt down of the post WWII financial system.
Just what the Democrats want. What did you think “Build Back Better” really meant?
“Why does the West keep committing suicide?”
Imaginary guilt - colonialists, racissts, exploiters of mother earth, privileged, equity, etc.
Whites are guilting themselves into extinction.
See my tag line.
Kiss your Social Security goodby.
Many financial “ greats” call it the “ Great Reset “. It will usher in the US plan to go cashless.
Isn’t that exactly what the Beast wants?
Worldwide economic meltdown bringing in a change in leadership?
Except the new boss, will not be the same as the old boss.
Biblical
Bitcoin technology has existed for 30 years.
DLT is like VISA posting every transaction in the world, in real time, on a universally available Microsoft Excel website.
Unfortunately, the US Dollar value of Bitcoin fluctuates about 5% (or more) every week.
That means Bitcoin is currently untenable as an international currency.
In the mean time, the value of the US Dollar (USD) against a basket of foreign currencies has been $100-$113 for 24 consecutive months.
$100 equals USD neutrality. Above $100 indicates USD strength. USD price as I write this - $103.9
Some day, Bitcoin may be an international currency.
But, not today.
USD price history...
This idea has no economic intelligence.
It will not affect the value of the dollar. The Fed and the Treasury will just adjust the amount of dollars in circulation in the world to the point that the demand for dollars remains sufficient for their target dollar value. Meanwhile the Saudis will start taking in less secure currencies with less assurance of their value if held in the Saudi’s reserves. As those currencies values fluctuate inconsistently the Saudis may regret their move.
This is not just a risk to the US economy, it’s a recipe for a world wide melt down of the post WWII financial system.
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No, it will melt down the Western financial systems. The Brics are planning for the event. Basing their currencies on Gold and commodities, hard assets the world needs- not paper.
The stunning fact is Turkey wants to join, if so, are they kicked out of NATO? In either case, NATO is toast, the EU toast ( World Central Banks Gold holdings just surpassed Euro holdings- another significant historic event).
I fault our corrupted US MSM in not reporting significant events, lies and omissions. Most Americans have no idea what is transforming.
Prepare accordingly.
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