Posted on 06/13/2024 2:33:42 PM PDT by cuz1961
The financial markets are bracing for disruption now that Saudi Arabia decided not to renew its 50-year petrodollar partnership with the United States, MSN reported.
This opens the door for Saudi Arabia to sell oil and other goods — instead of exclusively in the U.S. dollar — in multiple other currencies, including the Chinese renminbi, and in euros, yen, and digital currencies such as bitcoin.
(Excerpt) Read more at newsmax.com ...
Maybe rename us dollars to bidenbucks in honor of his idiocy excellency.
Trump and the Saudis are very close, .he. .will get them back on board next year
To quote FJB, this is a big ******* deal.
—”The CBDC is built on a distributed ledger technology for instant cross-border payment settlements and foreign exchange transactions.”
And they can store it in a nice safe storage at Mt Gox!
What could go wrong?
The Saudis will do what's in their best interest.
If Trump is allowed to assume office, he will be a lame duck, hemmed in by the Deep State. What kind of deal or benefit could Trump offer the Saudis?
Expired June 9. Apparently Biden team either didn’t know or didn’t care. No effort to renegotiate or renew.
Quit so ptb could retrench.
There is more us currency overseas than there is in the USA. With the demise of th Dollar as the world’s reserve currency, much of the will flood back home. Dicey days ahead for Washington and the US.
I’d like to know who will trust Chinese. Russian, or European currency.
Didn’t we go to war with Iraq because they began selling oil for Euros?
How many billions of our taxpayer money did we spend protecting these people? While the Bush’s were giving them blowjobs.
Here is how I see the impact to Saudi Arabia and the USA will be with the former exiting the Petrodollar deal.
FOR SAUDI ARABIA:
Diversification: Saudi Arabia can now sell oil in various currencies, reducing its reliance on the U.S. dollar and potentially gaining some leverage in the global oil market.
Stronger Ties with New Partners: This move could strengthen economic and political ties with countries like China and other members of the BRICS bloc, who are looking to challenge U.S. dominance.
Short-term market volatility and uncertainty for oil producers.
The U.S. has been a major and reliable buyer of Saudi oil for decades. Finding new buyers who can consistently purchase oil in non-dollar currencies might be challenging.
FOR THE USA:
Weakening Dollar: A decline in demand for U.S. dollars for oil purchases could weaken the dollar’s value as the world’s reserve currency. This could lead to higher interest rates and make it more expensive for the U.S. government to borrow money.
Loss of Influence: The petrodollar system gave the U.S. significant economic and political leverage on the global stage. A shift away from this system could weaken U.S. influence.
US Military presence in the region: The petrodollar agreement wasn’t just an economic pact; it also symbolized a close security partnership between the US and Saudi Arabia. The US provided military protection for Saudi Arabia, and in return, Saudi Arabia ensured oil sales were conducted in dollars, bolstering the US dollar’s global dominance.
If Saudi Arabia diversifies away from the petrodollar and strengthens ties with other countries, particularly those that might challenge US dominance, the strategic importance of the US-Saudi relationship could diminish. This could lead the US to re-evaluate its military presence in the region.
Agree, but he will bring the Saudis back to a pm-backed new dollar
Well, starting with Obama, the Democrats have done everything in their power to replace Suni dominance (Saudi Arabia) with Shia (Iran) including the purposeful destruction of the Western energy industry.
Drill, Baby, Drill
Drive the price of oil to $25/barrel
there is a reason president trump is encourage people to invest in ‘american’ bitcoins in one of his truth social post.
Account #21214 not rolling over...
Where it will be used to buy property in the USA.
Look forward to your new Foreign Landlord.
I suspect Monied Foreign Landlords will get along well with other Foreign Nationals in the US.
Look for many new laws expressing those common Foreign interests which are Foreign to Legacy Americans.
I know I look forward to the environmentally sustainable Lithium mine in my front yard.
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