The biggest news of the day ignored by Indian media or they don't understand - PEtRO DOLLAR
🇸🇦🇺🇸 Saudi Arabia ditches US dollar and will NOT renew the 50 year 'petro-dollar' agreement with the United States.
Saudi Arabia will now sell oil in multiple currencies, including the Chinese RMB, Euros, Yen, INR, and Yuan, instead of exclusively in US dollars.
Henry Kissinger in 1974 had brokered a 50 yr deal with Saudi that oil trade would be dominated by USD. Saudi was indirectly blackmailed by USA to sign this agreement, promising in return support against Iran & other Radical nations. Pls note that US Dollar then had lost its credibility after Nixon "temporarily" suspended the Gold Standard in August 1971. By making USD a Petrodollar, US could make it Global Reserve Currency allowing it raise indiscriminate debts to Peddle its economic growth.
Now....it neither has Gold Standard nor it is PetroDollar anymore, which will make it highly vulnerable making debts very costly & it won't even be able to print USD indiscriminately, as it has been doing till date.
US economy to be in grave danger in coming days. The cracks have started developing.
The significance of Saudi Arabia not renewing the petro dollar agreement is multifaceted and has implications for both global economic and geopolitical dynamics. Here's a breakdown of why this is important:
1. Impact on the U.S. Dollar: The petrodollar system, which was established in the 1970s, has been a significant factor in maintaining the U.S. dollar as the world's reserve currency. Under this system, Saudi Arabia and other oil-producing countries agreed to sell their oil in U.S. dollars, which increased global demand for the dollar. With the agreement not being renewed, there could be a decrease in global demand for the U.S. dollar, potentially weakening its value.
2. Geopolitical Realignment: The petrodollar agreement was not just an economic arrangement but also a geopolitical one. It was part of a broader alliance between the U.S. and Saudi Arabia, which included military and political support from the U.S. to Saudi Arabia. The decision not to renew the agreement could signal a shift in Saudi Arabia's geopolitical alignments, possibly moving closer to other global powers like China, India and Russia, who have been advocating for a shift away from the U.S. dollar in international trade.
3. Economic Impact : For the U.S., the end of the petrodollar agreement could lead to higher oil prices and inflation. Since oil is priced in dollars, a weaker dollar would make oil more expensive. This could lead to higher costs for businesses and consumers, potentially slowing down economic growth.
4. Financial Market Impact : The U.S. financial markets, which have benefited from the global demand for U.S. dollars and U.S. debt, could be negatively impacted. If there's less demand for U.S. dollars, there could be less demand for U.S. government bonds, which are a key part of the global financial system.
5. Shift in Global Power Dynamics : The petrodollar agreement was a key part of the U.S.'s economic and geopolitical power. Its end could signal a shift in global power dynamics, with other countries and currencies potentially gaining more influence. The deep state has used Petro Dollar to fund regime change, unrest and Terr0rlsm across world
6. Opportunity for Other Currencies : With the petrodollar agreement ending, there could be an opportunity for other currencies, like the Chinese yuan, INR or the Russian ruble, to gain more prominence in global oil trade. This could accelerate the ongoing trend of de-dollarization in global trade.
In summary, the end of the petrodollar agreement is a significant event with potential economic, geopolitical, and financial market implications. It could lead to a weaker U.S. dollar, higher oil prices, and a shift in global power dynamics. A weak US means rise of other countries and the most important today which is rising power is INDIA. This means over next 10-25 years the RadicaI lsIam will fall apart which was funded by petrodollar
Dr GP
The biggest news of the day ignored by Indian media or they don't understand - PEtRO DOLLAR
🇸🇦🇺🇸 Saudi Arabia ditches US dollar and will NOT renew the 50 year 'petro-dollar' agreement with the United States.
Saudi Arabia will now sell oil in multiple currencies, including the Chinese RMB, Euros, Yen, INR, and Yuan, instead of exclusively in US dollars.
Henry Kissinger in 1974 had brokered a 50 yr deal with Saudi that oil trade would be dominated by USD. Saudi was indirectly blackmailed by USA to sign this agreement, promising in return support against Iran & other Radical nations. Pls note that US Dollar then had lost its credibility after Nixon "temporarily" suspended the Gold Standard in August 1971. By making USD a Petrodollar, US could make it Global Reserve Currency allowing it raise indiscriminate debts to Peddle its economic growth.
Now....it neither has Gold Standard nor it is PetroDollar anymore, which will make it highly vulnerable making debts very costly & it won't even be able to print USD indiscriminately, as it has been doing till date.
US economy to be in grave danger in coming days. The cracks have started developing.
The significance of Saudi Arabia not renewing the petro dollar agreement is multifaceted and has implications for both global economic and geopolitical dynamics. Here's a breakdown of why this is important:
1. Impact on the U.S. Dollar: The petrodollar system, which was established in the 1970s, has been a significant factor in maintaining the U.S. dollar as the world's reserve currency. Under this system, Saudi Arabia and other oil-producing countries agreed to sell their oil in U.S. dollars, which increased global demand for the dollar. With the agreement not being renewed, there could be a decrease in global demand for the U.S. dollar, potentially weakening its value.
2. Geopolitical Realignment: The petrodollar agreement was not just an economic arrangement but also a geopolitical one. It was part of a broader alliance between the U.S. and Saudi Arabia, which included military and political support from the U.S. to Saudi Arabia. The decision not to renew the agreement could signal a shift in Saudi Arabia's geopolitical alignments, possibly moving closer to other global powers like China, India and Russia, who have been advocating for a shift away from the U.S. dollar in international trade.
3. Economic Impact : For the U.S., the end of the petrodollar agreement could lead to higher oil prices and inflation. Since oil is priced in dollars, a weaker dollar would make oil more expensive. This could lead to higher costs for businesses and consumers, potentially slowing down economic growth.
4. Financial Market Impact : The U.S. financial markets, which have benefited from the global demand for U.S. dollars and U.S. debt, could be negatively impacted. If there's less demand for U.S. dollars, there could be less demand for U.S. government bonds, which are a key part of the global financial system.
5. Shift in Global Power Dynamics : The petrodollar agreement was a key part of the U.S.'s economic and geopolitical power. Its end could signal a shift in global power dynamics, with other countries and currencies potentially gaining more influence. The deep state has used Petro Dollar to fund regime change, unrest and Terr0rlsm across world
6. Opportunity for Other Currencies : With the petrodollar agreement ending, there could be an opportunity for other currencies, like the Chinese yuan, INR or the Russian ruble, to gain more prominence in global oil trade. This could accelerate the ongoing trend of de-dollarization in global trade.
In summary, the end of the petrodollar agreement is a significant event with potential economic, geopolitical, and financial market implications. It could lead to a weaker U.S. dollar, higher oil prices, and a shift in global power dynamics. A weak US means rise of other countries and the most important today which is rising power is INDIA. This means over next 10-25 years the RadicaI lsIam will fall apart which was funded by petrodollar
Dr GP
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