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US facing economic disaster following lapse of ‘petrodollar’ agreement with Saudi Arabia

The expiration of the petrodollar agreement between the United States and Saudi Arabia on June 9 marks a significant shift in global finance, with Saudi Arabia deciding not to renew the deal.

The development will likely weaken the US dollar’s role as the world’s primary reserve currency and threatens America’s global economic dominance. The 50-year-old agreement, established in 1974, had been a cornerstone of US economic strategy, linking global oil transactions to the US dollar in exchange for military support and security guarantees to Saudi Arabia.

The end of the petrodollar system allows Saudi Arabia to trade oil and other goods in various currencies, including the Chinese RMB, Euros, Yen, and Yuan, leading to a significant reduction in demand for US dollars and US Treasury securities.

This move is also likely to increase borrowing costs for the US government and contribute to inflationary pressures causing economic instability. The geopolitical ramifications are also significant, potentially realigning Saudi Arabia’s alliances away from the US and diminishing American influence in the Middle East and global energy markets.

The petrodollar system has also meant that countries accumulating large dollar reserves often invested them in US Treasury securities, providing significant capital inflows into the US. A shift away from the dollar in oil transactions could lead to reduced demand for US Treasuries, leading to increased borrowing costs for the US government.

Saudi Arabia’s decision signals a realignment of its geopolitical alliances, moving closer to China, Russia, or other major powers. This could diminish US influence in the Middle East and complicate US foreign policy in the region.

The agreement’s dissolution could also lead to greater volatility in oil markets as transactions may start occurring in various currencies, making it more challenging for the US to influence oil prices.

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  1. This is the only reason why they want everyone driving EVs. It’s got nothing to do with climate change or fossil fuels. It’s about getting people off using petrol because the petrodollar is going to be worth less than toilet paper soon

    • Except, consider where electricity comes from? Power stations. What powers a power station? Coal, oil, gas or nuclear. Therefore, you EV is effectively still powered by hydrocarbons, although indirectly.
      The drive to EV’s is to do with CONTROL so that one day you attempt to start your vehicle and a message says, “I’m sorry Mark, you do not have enough social credit score and your vaccine certificate is not up to date, so we cannot allow you to drive today. Have a nice day!”

      When you “suck up to” the state and do what the (democratic) dictator tells you, then you can drive and leave your 15-minute city and visit your family.

  2. Gloating.
    Chocking the US vulture financially. A taste of their own medicine ( laugh).
    I hope the rest of the world has a long memory and treat them as pariah.
    They will have to learn at last to earn a living through working and respect others cultures and countries. And not untill now through wars and theft of other countries assets.. Done as well through their banking, a tool to steal ” legally” their own people and reduce foreign government to beggars.
    The best news in years

  3. The die is cast. Nothing can now save the US from total economic and social collapse, it’s just a matter of when. The Yankee cucks like NZ and Australia will go down with it. Why would Trump want to become president when the shitshow is about to happen? They will blame it all on him. Yet sometimes I think he had a chance the first time to change history but did not destroy the Swamp like he said he would. Something big is going to happen. A lethal worldwide health crisis, trumps assassination or world war 3

  4. If trump is assassinated, it is civil war in the USA right away.
    I read one astrologue who is worried about planets configurations in July during republican event.
    It is not about prediction though

  5. Good job. The US has been a plague on the world stage, along with its pet stooge, the UK. Sadly the clowns ruining this country, will doggedly back both, placing us on the same downward economic and social, trajectory.

    Time to head to the airport.


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