GAME OVER! Egypt Joins Saudi Arabia China & Russia In Collapsing The US Economy? End Petrodollar

GAME OVER! Saudi Arabia & China's NEW Partnership With Egypt & Russia Will Collapse The US Economy

So is the collapse 100% certain? Perhaps not completely or imminently, but relations between the US and Saudi Arabia have visibly soured in recent years at the same time as the world’s largest oil exporter has demonstrated a distinct warming to China; Over one-quarter of Saudi oil exports were snapped up by China in 2020, while state oil behemoth Saudi Aramco also recently concluded a $10-billion deal with Chinese petroleum companies. And with reports suggesting that oil transactions between the two countries could well be priced in yuan in the near future, this would dramatically raise the Chinese currency’s global profile and severely dent the petrodollar’s worldwide dominance.

With China extending billions of dollars of investment funding to Saudi Arabia this year and relations between President Xi Jinping and Crown Prince Mohammed bin Salman on the rise, therefore, things could develop rather quickly in favour of the East. “The dynamics have dramatically changed. The US relationship with the Saudis has changed. China is the world’s biggest crude importer, and they are offering many lucrative incentives to the kingdom,” a Saudi official said in March. “China has been offering everything you could possibly imagine to the kingdom.” And while some analysts believe a wholesale shift onto yuan pricing is unlikely, others believe that a partial shift would enable payments to Chinese contractors currently involved in mega projects within the kingdom.
Other than the petrodollar, the US has also historically propped up its currency by issuing government debt to other nations, which has helped to finance its budget deficit. During the 2008 global financial crisis, China came to the US’ rescue by purchasing enormous quantities of US Treasury bills. Indeed, by 2010, China held more than $1 trillion in US Treasuries, and between 2008 and 2013, its foreign-exchange reserves, and US debt-instruments holdings, expanded by a mammoth $2 trillion.

Even developing nations are getting in on the act in clear acts of defiance against the dollar empire. Egypt, for example, has suffered greatly under the weight of borrowing as it seeks to stabilize its economy and prop up the value of the Egyptian pound. Indeed, the country’s sovereign debt has roughly quadrupled in the last 10 years as it has repeatedly sought financial support from US-led development institutions such as the IMF. But the cost of servicing this dollar-denominated debt has seriously dented Egyptians’ living standards amidst a deteriorating global economic landscape.

Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan, a move that could cripple not only the petrodollar’s dominance of the global petroleum market - something which Zoltan Pozsar predicted in his last note - and mark another shift by the world’s top crude exporter toward Asia, but also a move aimed squarely at the heart of the US financial system which has taken advantage of the dollar's reserve status by printing as many dollars as needed to fund government spending for the past decade.

If Saudi Arabia joins BRICS, it would be a promotion to the Middle East countries to strengthen their ties with BRICS countries and weaken the intervention and influence of the US in the area. The oil for security framework between Saudi Arabia and the US needs to be adjusted in light of the evolving international situation

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00:00 - 02:35 De-Dollarization & Petrodollar
02:35 - 5:00 Why Russia Wants De-Dollarization
5:00 - 9:04 China & Saudi Arabia Petroyuan
9:04 - 11:51 Egypt Joining De-Dollarization Plan
11:51 - 12:24 End Of US Dollar?

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