Lately, it seems each day brings a new crisis threatening the value of our currency.
In fact, just recently, Brazil announced it was considering moving away from the US dollar. According to FOX Business:
“The deal will enable China and Brazil to carry out trade and financial transactions directly, rather than first converting their currencies to the U.S. dollar.”
This could spell disaster for millions of Americans, as you’ll soon see:
To make matters worse, this news comes just weeks after Saudi Arabia said it was open to accepting other currencies in exchange for its oil.
It’s no secret that the dollar is rapidly losing its status in the world’s monetary system.
The dollar’s continued weakening as a result of the Fed’s mismanagement of the economy and our decline on the world stage, largely a result of the current administration’s abysmal policies at home and abroad, are threatening the dollar’s dominance in the international petroleum market.
In fact, just a few weeks ago, the dollar received its biggest blow in this area when it surfaced that Saudi Arabia was in talks with China about possibly switching from the US dollars to the Chinese Yuan.
As if it weren’t bad enough that so many of our policy makers and corporations are beholden to China, we now have to worry about the Chinese dominating in this arena as well.
While it’s true that the Saudis have been considering switching from the dollar for years now, the Biden administration’s incompetence in foreign affairs, namely their lack of support in Yemen and their inability to curtail Iran’s nuclear production, threatens Saudi Arabia’s security directly:
“The Saudis are angry over the U.S.’s lack of support for their intervention in the Yemen civil war, and over the Biden administration’s attempt to strike a deal with Iran over its nuclear program.” — WSJ
All of this, which would be enough to make even the Carter administration cringe, has all but forced the Saudis into Beijing’s arms:
While there are some experts who believe that Saudi Arabia may be bluffing, growing tensions between the current administration and Riyadh suggest otherwise.
The loss of Brazil is one thing, but losing Saudi Arabia could prove catastrophic to the US dollar, which has seen a steady weakening under Treasury Secretary, Janet Yellen.
If the Saudis end up joining Brazil and leaving the dollar in favor of the Yuan, could it cause a chain reaction? Could other OPEC nations follow Saudi Arabia and Venezuela’s (Venezuela officially switched to the Yuan in 2017) lead?
And it’s also likely that the Biden administration will have no answer for any of this.
In fact, one wonders how long they’ll be able to divert attention from serious economic and stability issues with their woke agenda, obsession with Ukraine and ongoing persecution of President Trump.
At this rate, it seems unlikely that the administration will be able to appease Saudi Arabia, considering it’s been unable as of yet to make any concessions as Saudi security concerns grow.
What would all this mean for the dollar… and potentially YOU?
Well, the shift of major oil exporters like Saudi Arabia and Brazil away from the petrodollar – along with the banking meltdown and outright warfare with Russia – would likely spell disaster for the US economy, making 2008 look like a hiccup.
“If the Saudis trade in currencies other than the dollar, this would signal a shift away from the dollar as the dominant currency in global oil payments. Or measured another way, this would signal the end of the so-called petrodollar.”— Mises Institute
While Saudi Arabia’s move away from the US petrodollar could be avoided by a competent administration, it’s unlikely that we’ll see anything that resembles the sort of diplomacy and support that would be required to assuage Riyadh’s concerns with the current administration.
Under “normal” circumstances, the dollar would probably be strong enough to survive a Saudi exit.
However, considering all the other issues surrounding the dollar that could lead to its implosion — like inflation, loss of trust, and banks crashing — what we’re witnessing may be a house of cards in which Saudi Arabia’s adoption of the Yuan is the final piece that could bring down the entire thing.
So now we as a nation need to ask ourselves: could this possibly be the end of America?