A key to the United States’ global wealth and power has been the fact that the world has been operating on the petrodollar – but it appears that could change any minute now for the first time in half a century.
The petrodollar system means that oil producers of the world sell their products to other countries exclusively in exchange for dollars – dollars which eventually get invested into dollar backed assets and generate massive wealth for America.
Now, Saudi Arabia has announced their intention to accept the Chinese Yuan as a payment currency which could destroy the U.S. dollars status as the global reserve currency and destroy our entire economic system.
This could mean the downfall of America as we know it – and the end of its reign as the world’s greatest superpower.
According to the Wall Street Journal, “Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan,” a move meant to drive a stake into the heart of the US financial system which is particularly vulnerable after having spent quite some time printing money at will to fund reckless government overspending.
While rumors of Saudi Arabia entertaining yuan-priced oil contracts have existed for years – the Saudi’s are reportedly more serious than ever as they have lost faith in American promises to keep them secure and are no longer even responding to failed leader President Joe Biden.
Key reasons for Saudi Arabia’s discontent with the U.S. include Biden’s decision to attempt to restart a deal with Iran over its nuclear program along with the debacle that was the Afghanistan withdrawal.
Beijing is now actively and aggressively pushing to dethrone the dollar as a global reserve currency and if they land a deal with the Saudis, things could get very bad, very fast.