It was just recently announced that Saudi Arabia is looking to replace the US dollar currency for oil sales and turn to the Chinese Yaun. With oil prices at an all-time high and relations with China at a downturn, this will place western countries especially the United States at a precarious position.
The history and depth of the US’ relationship with Saudi Arabia is under discussed. Most don’t realize how tight the relationship between our respective oligarchs is and the history of how it came to be.
During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations. Arab OPEC members also extended the embargo to other countries that supported Israel. The embargo banned petroleum exports to the targeted nations and introduced cuts in oil production.
The Oil Embargo strained the U.S. economy that had grown increasingly dependent on foreign oil. The efforts of President Richard M. Nixon to end the embargo signaled a shift in the global financial balance of power to oil-producing countries and created foreign policy challenges emanating from long-term dependence on foreign oil.
The Nixon Shock was announced in 1971, and was fully in place by 1973 – the same year as the OPEC Embargo. No longer was the US Dollar backed by gold. Gone was the gold standard as US printing presses started pumping worthless fiat into circulation.
The Embargo also accelerated relationship with OPEC nations which continued to this day. This is a major factor in the immoral foreign policies of the United States in the last 40+ years and perhaps the most foundational relationship underlying the Petrodollar-US fiat reserve currency status.
To prevent future embargoes and oil shortages the US joined forces with Saudi Arabia and supported them militarily & facilitated the modernization of their country and infrastructure which was undertaken by US multinationals with CIA ties to the big war machines such as Rand Corp.
To solidify the fiat dollar as the de facto world reserve currency, in tandem with Saudi Arabia’s influence, it was agreed upon that all Oil contracts worldwide would be settled in USD. This mandated that countries buy US bonds and hold USD in order to buy energy to power their economy.
However, the advantage of being the global reserve currency cannot be understated. It’s let us run up a “mathematically impossible to pay back” national debt. It’s exceedingly enriched the ruling class, the politicians, the oligarchs and generally those closest to the spigot of the fiat. Since COVID-19 the US national debt is now over 27 Trillion dollars. “You did it Joe!”
Even if China, Saudi and others don’t dump their US debt holdings, not buying more USD will make it impossible for the US to sustain its current deficit spending. The USD will be worthless.
Even if you take into account Bitcoin and its inevitable conquering of the current order, there are serious cracks forming in the existing petrodollar financial order we’ve grown accustomed to. The US is finished!
In 2018 China introduced oil contracts in Chinese Yuan.
And now they are buying discounted Russian oil using the Chinese Yuan.
And other governments are also looking into making deals with the Saudis.
It looks like the Saudi bromance with the United States is over. Is Saudi Arabia about to align with China and Russia against the West? The future for the PetroDollar is ambiguous.
And India has also entered the game.
In 2020, Iran dropped the USD for the Chinese Yuan.
Now with the US-Iranian nuclear arms deal going astray over US sanctions on Russia over Ukraine, Iran is not seeking a nuclear arms deal with Russia.
The Chinese Yuan is at the precipice of becoming an alternative Global Reserve Currency. The world’s attention is now turning to the new global superpowers of the BRICS Nations (Brazil, Russia, India, China, South Africa). You see, every nation who voted against Russian sanction at the UN or those that abstained are all on board; dictator despot nations now hold all the playing cards. Welcome to your NWO!
So which major American families was it that formed the foundational business and dynastic ties with the ruling families of Saudi Arabia? The Bush’s of course.
Fun fact: on 9/11, Osama Bin Laden’s brother was at a Carlyle Group conference in DC shmoozing with George H W Bush that morning. When all flights were grounded in the aftermath of the tragedy, somehow the Bin Laden family members were able to jet on home.
In the wake of the trauma of 9/11, the government convinced its citizens that it was good idea to invade two countries that had nothing to do with the attack. In fact, most people haven’t internalized that 15 of the 19 hijackers were from Saudi Arabia. 0 Iraqis, 0 Afghans.
9/11 was exploited to intervene in the Middle East to solidify US & Saudi interests in the region. Some estimates claim that ONE MILLION Iraqis were killed as a result of our intervention. Please pause & consider that number.
Do you know what date this photo was taken or the mission that was accomplished? The communist holiday “May Day” on May 1, 2003.“Mission Accomplished” was about returning Iraq to the USD Petrodollar because they ditched it for the Euro at the time. Wonder what will happen now with the Yuan?
These wars were senseless. They created the instability and chaos that created ISIS, led to a disastrous intervention in Libya, cost many American lives & set into motion the refugee crisis in Europe. (Guess how many refugees Saudi Arabia welcomed into their country? Precisely 0)
Syria had been the last remaining target for some time. The US neocons were pushing the narrative for US Intervention and the military establishment wont stop. And Ukraine is but a starting point to a crisis they have created.
Here is a video of 4-Star US General Wesley Clark describing, days after 9/11, how we planned to invade 7 countries:
These politicians are never “humanitarians”. Their tears are fake; their moral concern for the children abroad is completely manufactured; their cries to your emotion are artificial and solely agenda driven. If you’ve never read Major General Smedley Butler’s timeless proclamation, I encourage you to read this short text:
It’s symbolically and operationally important that the petrodollar world order came into being alongside each other. “It is no coincidence that the century of total war coincided with the century of central banking.” ― Ron Paul, “End the Fed”
Most people are surprised to learn that there was no Federal Income Tax in the US until 1913; the same year that the unconstitutional Federal Reserve was born and took and took control of the most important aspect of any economy: Control of the money supply. And the soon to be worthless money supply as the power balance shifts from western countries to the east. This is your NWO; dictators, tyrants and despots. The West is done!