Faced with the growing probability that the US Congress will move
against OPEC in general, and Saudi Arabia in particular, by authorizing
the Justice Department to take antitrust action, the Saudis are threatening an even bigger move, killing the petrodollar outright.
The petrodollar is a major underpinning of the global economy, and one
which has kept the US in a comfortable position with the Saudis. It
refers to the Saudis only accepting payment for oil in US dollars.
Having a currency monopoly on such a huge part of the oil trade is a big
part of why the US dollar has remained strong for decades despite large
US government debt and aggressive growth of the money supply. If the
Saudis end this, it will be a major impact on the global financial
system, and particularly the global currency market.
Saudis are calling it the “nuclear option,” predicting the US economy
would fall apart if they took this step. It’s not clear that would be
the case, but it clearly would be a problem for the US, and one the
Saudis are betting will scare the US away from taking action.
This would bring massive inflation back home and anyone holding on to the dollar.
Then U..S would immediately propose to bring democracy to Saudis and free them from a dictatorship.
I’ve read that a lot but the petrodollar does not have a large impact. And i can find people arguing against it https://foreignpolicy.com/2009/10/07/debunking-the-dumping-the-dollar-conspiracy/
Maybe it matters if everyone believes that petrodollars are so essential. Maybe that would have some significant effect.
Remember the OTHER ‘nuclear option’: That the US government may now be helping the Saudis acquire the ingredients for nuclear weapons. US policy has given this regime so many brutal and dangerous ways to coerce and dominate everyone for decades.
As I wrote yesterday, the Saudi’s do not need a nuclear arsenal because they have a far more deadly weapon.
If they’re suicidal.
The Saudis are calling it the “nuclear option” but it will probably end up being just a “conventional weapons option”. By us.
OMG! The Saudi’s can kill all the Yemeni children they want and do chop-jobs on journalists they don’t like, but touch the almighty dollar? Regime change, coming right up, folks!
The “petrodollar” is a myth. There was a time in the ’70s and ’80s it was an accurate description, but this is 2019. The financial market is rigged by computer programming now. The Fed and its cooperatives can simply program outcomes.
Someone in the CIA is retrieving the “Saudis did 9/11” file. It’s right there between “San Tome did 9/11” and “Senegal did 9/11″….
What a marvellous idea. it is the US dollar which is causing so much of the sanctions damage to other countries.
All the more reason to invest in the Blockchain.