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Will The End of The Petrodollar Spell The End of The US Empire?
Once upon a time, the U.S. currency was as good as gold until 1933, when FDR changed the dollar's future.
Fast forward forty years, President Nixon reached a deal with the Saudi Kingdom after severing the last link between the dollar and gold. The US would provide weaponry to the Saudi kingdom as part of its assistance.
The Saudis would execute all oil deals in dollars in exchange. The Saudis also agreed to use their surplus funds to buy US Treasury bonds. The ensuing “petrodollar” is a significant reason why the dollar has retained its role as an international reserve currency.
All of the above spells disasters, monetarily speaking.
The de-dollarization of the U.S. currency
Also, this year, China and Brazil agreed to conduct future trade between the two countries in their respective currencies rather than dollars. In addition, Brazil’s President Lula da Silva has urged more countries to forsake the dollar.
This de-dollarization movement is partly fueled by dissatisfaction with America’s foreign policy, particularly the US government’s increased use of economic sanctions. The removal of the dollar as the world reserve currency makes it easier for countries to ignore these…
