That is my question and why I am skeptical of an apocalypse as described by the author. I find it difficult to believe the strength of the dollar is all predicated on Saudi oil.
But a collapse of our currency would surely cause the price of gold to rise. I still think SA has much more to lose by failed relations with the US
“I find it difficult to believe the strength of the dollar is all predicated on Saudi oil.”
And other oil producing Gulf States as well - Kuwait, Bahrain, Qatar and UAE.
It is also supported by being the currency of choice in the drug trade - the narco-dollar.
There is an artificially created global demand for US dollars that allows us to run up 20 trillion dollars in debt without consequences. more than that, this arrangement allows us to tax the entire planet by forcing other countries to hold large stockpiles of US dollars and then continually devaluing those dollars. This is the status quo.
Agreed.
The Saudi role declines precisely because the US is pumping more oil and appears to be making Saudi oil increasingly insignificant.
So if oil control shifts from Saudis to the US, how does that weaken the petrodollar? The article doesn’t explain that. It isn’t as if Saudi oil is being replaced by Venezuelan oil or Iranian oil.