Death of Petrodollar is a Biden legacy

[Brian4Liberty]

Death of Petrodollar is a Biden legacy
by Melkulangara Bhadrakumar | Jun 14, 2024

The Deep State should have been alert five years ago when Candidate Joe Biden announced that he, if elected as president, was determined to make the Saudi rulers “pay the price, and make them in fact the pariah that they are.”

Biden was blunt to the point of being brutal about the Saudi royal family, saying there was “very little social redeeming value in the present government in Saudi Arabia” under King Salman’s rule.
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Today, all that is history. But unlike the Bourbons, the Saudi royals never forget or forgive. They also have infinite patience and their own concept of time and space. And last Sunday, June 9, they struck.

In great royal style, last Sunday, Riyadh simply let the 50-year-old petrodollar agreement between the US and Saudi Arabia to expire.

To recap, the term “petrodollar” refers to the US dollar’s pivotal role as the currency used for crude oil transactions on the world market per the US-Saudi deal dating back to 1974 shortly after the US went off the gold standard.
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Since then, the global demand for dollars to purchase oil has helped to keep the currency strong, not only made imports relatively cheap for American consumers but in systemic terms, the influx of foreign capital into US Treasury bonds supported low interest rates and a robust bond market.
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Crucially, the petrodollar’s expiration could weaken the US dollar and, by extension, the US financial markets. If oil were to be priced in a currency other than the dollar, it could lead to a decline in global demand for the greenback, which, in turn, could result in higher inflation, higher interest rates, and a weaker bond market in the US.
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More: https://ronpaulinstitute.org/death-of-petrodollar-is-a-biden-legacy/

 

[vita3]

Saudi's foreign policy is tough to play. Can't forget their murderous roles in 911

Maybe we are working more with Qatar now?

Their oil power is the real deal

 

[pmbug]

The schism in USA-KSA relations began with Obama. The neocons had W following the ME policy that KSA wanted - dismantling Saddam's regime in Iraq and Iran/Syria on tap. Obama refused to give Iran the Iraq treatment and KSA started threatening to abandon the petrodollar in 2013 - soon after Obama won his second term:

https://www.pmbug.com/threads/tin-f...d-the-total-perspective-vortex.75/post-104041

 

[Madison320]

Death of Petrodollar is a Biden legacy
by Melkulangara Bhadrakumar | Jun 14, 2024

I think the true cause of the death of the dollar is the out of control government spending and the printing presses going full blast to finance the spending. It doesn't matter what deals you make, nobody is going to want to hold a currency that is being rapidly debased.

And you can blame all the presidents in at least the last 50 years for that.