The economic sanctions that have actually been enforced upon Russia have triggered immense damage, however a loss of the petrodollar would be absolutely devastating for the U.S. economy. Because making a contract with the Nixon administration in 1974, the Saudis have actually traded oil specifically for U.S. dollars. Today, around 80 percent of all oil produced in the whole world is traded for dollars, and the “petrodollar” has turned into one of the fundamental pillars of the existing global financial system. The majority of Americans do not understand this, but even more dollars are in fact utilized outside of the United States than inside the United States, and having the reserve currency of the world is an enormous benefit for us. As much as this point, there has actually been a pressing need for U.S. dollars all over the planet, and that has allowed us to enjoy a standard of living that is way above what we really should have.
Sadly, all of that could be about to change. As I have stated often times over the previous year, Joe Biden is surrounded by the worst diplomacy team in U.S. history, which is actually saying something.
Thanks to this catastrophically bad diplomacy team, our relations with both Saudi Arabia and China have actually greatly degraded, and this has resulted in them establishing closer relations with one another. In fact, the Wall Street Journal is reporting that it appears like the Saudis could soon begin pricing the oil that it offers to China in Chinese currency…
The U.S. dollar may be on its way out as the worldwide reserve currency.
Saudi Arabia is actively participating in negotiations with Chinese officials to cost oil sales to China in yuan instead of the U.S. dollar, the Wall Street Journal reported.
If the two nations choose to conduct business utilizing the Chinese yuan instead of the U.S. dollar, this might indicate trouble for America’s dominance as the international financial hegemon.
This would be an incredible blow to the U.S., and the Saudis know it.
So maybe Biden ought to not have called Saudi Arabia a “pariah”, and maybe his foreign policy team should not have angered the Saudis several times over the previous 12 months.
On the other hand, the Chinese still understand the art of diplomacy, and they are apparently using “everything you could potentially envision” for the Saudis to make this move …
“The characteristics have significantly changed. The U.S. relationship with the Saudis has actually changed, China is the world’s biggest unrefined importer and they are using many rewarding rewards to the kingdom,” said a Saudi official familiar with the talks.
“China has been offering everything you could possibly think of to the kingdom,” the official said.
In retrospect, we now understand the reason MBS wasn’t taking Biden’s call.
At one time, the Chinese might have hesitated to threaten U.S. interests so freely, but not any longer.
As I talked about a few days ago, U.S. relations with China are quickly falling apart. One of the factors for this is since of how highly lined up China has actually ended up being with Russia…
National Security Consultant Jake Sullivan explained during talks with his Chinese counterpart on Monday that the U.S. has “deep issues about China’s positioning with Russia at this time.”
He was direct about “the potential ramifications and repercussions of specific actions,” a senior administration official stated.
Sullivan ought to definitely have “deep concerns”, since he is among the essential figures that has helped to create this mess.
After what he has actually pulled over the years, there is no way that he must ever be hired for another government job under any situations.
However rather, he is the national security consultant to the president of the United States.
What on the planet was Biden believing when he picked him?
Sullivan is deeply done not like all over the globe, and it definitely isn’t an accident that he was placed on the list of U.S. officials that the Russians approved on Tuesday…
- United States President Joe Biden
- Secretary of State Antony Blinken
- Defense Secretary Lloyd Austin
- Chairman of the Joint Chiefs of Staff Gen. Mark Milley
- National security consultant Jacob Sullivan
- CIA Director William Burns
- White Home press secretary Jen Psaki
- Daleep Singh, Biden’s deputy nationwide security consultant for international economics
- United States Agency for International Advancement Administrator Samantha Power
- President Biden’s kid Hunter Biden
- Former Secretary of State Hillary Clinton
- Deputy Treasury Secretary Wally Adeyemo
- Reta Jo Lewis, president and chairman of the board of directors of the Export-Import Bank
Eventually, this was just a symbolic move by the Russians.
Those sanctions won’t actually hurt anybody on that list.
However, another move that Vladimir Putin made this week will absolutely cause a little bit of pain for the western world …
On Monday, Russian President Vladimir Putin signed a law that will allow Russian airline companies to take control of numerous the Western-built airplanes rented from international companies, Russian news company TASS reported, per The Wall Street Journal.
The jets will be added to the nation’s airplane register and be released on domestic routes, according to Reuters. The news begins the heels of the island of Bermuda withdrawing the airworthiness certificates for over 700 leased airplane in Russia, which went into effect Saturday night.
Western powers and the Russians both continue to intensify the economic war that has now started, which is a very unsafe video game.
However in the long-term, what the Chinese and the Saudis are up to might have far graver implications.
Currency is the number one thing that the U.S. exports, and if the remainder of the world decides it doesn’t require our currency any longer we will remain in actually big problem.
Whatever would change. If you think that inflation is bad now, simply wait up until that happens.
Previous administrations comprehended the importance of the petrodollar, and they were frequently going to go to excellent lengths to protect it.
Regrettably, now Biden and his team of nitwits supervises, and whatever that they touch seems to get messed up.
*** It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperbackand for the Kindleon Amazon. ***
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