Watch Out US Dollar! China and Saudi Are Building a New World Without You

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On Dec 9th 2022 the Kingdom of Saudi Arabia will host the first annual China-Arab Summit in Riyadh, Saudi Arabia. China’s President Xi Jinping will be in attendance and the Chinese delegation is expected to sign dozens of agreements and memoranda of understanding with Gulf nations and other Arab states covering energy, security and investments.

Considering that Saudi Arabia is formally considering joining the BRICS alliance (an alliance that features some of the world’s largest oil consuming nations China, Russia, India, and Brazil) the new China-Arab Summit could become a major event that changes the future of the US dollar.

Since 1974, the US has been the beneficiary of the most lucrative business deal ever created in world history. This is of course when Saudi Arabia agreed to export oil exclusively in USD which gave birth to the Petrodollar and allowed the US to maintain it’s dollar hegemony for decades to come.

But times are changing and in the past 20 years China has replaced the US as the largest trading partner for the majority of the world. In addition, more countries around the world are growing tired of how the US government can weaponize the US dollar and impose sanctions at any time against any country in the world.

It’s an unfair advantage and the best example that explains how this advantage works is the country of Venezuela. Venezuela’s oil fields have been sanctioned for years by the US government but as the US Saudi relationship begins to experience difficulties, America is looking for oil in other regions.

In a shocking twist of events, the US government announced Chevron would be granted a license to pump oil in the Venezuela. Of course there is one major requirement and that is all oil pumped from Venezuela must be exported exclusively back to the US! Incredible how the US can just open and close sanctions whenever it suits the interests of the US government.

Many countries around the world are becoming frustrated with the US dollar hegemony and as a result our global financial system is becoming more fragmented. Moving forward it’s understandable more countries around the world will want to have more choices and the BRICS alliance is going to be providing that choice by offering a mixed basket of currencies that will be once again backed by the gold standard (something the US dollar had for many years until 1971).

Within 3 years all BRICS nations will have a Central Bank Digital Currency and can trade bilaterally without the need of the US dollar. What is going to happen to the future of our world and the US dollar. Let’s break it down further with this week’s YouTube video.

Cyrus