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The End of the Petrodollar is Upon Us #177759
03/16/2022 02:06 PM
03/16/2022 02:06 PM
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ConSigCor Online content OP
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In 14 months, The Democrats have managed to destroy the US Economy. If Saudi Arabia goes through with accepting payment for oil in Yuan, The US economy is TOAST.

LINK: https://www.wsj.com/articles/saudi-ar...



"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: The End of the Petrodollar is Upon Us [Re: ConSigCor] #177760
03/16/2022 02:11 PM
03/16/2022 02:11 PM
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Huskerpatriot Offline
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I had heard about 10-15 years ago that THIS was a final sign that the American dominated period of world history was nearing its end. After this happens… it will be impossible for us to hide the inflation that cones from rampant printing of money/unrestricted spending. It’s just a matter of time till we face inflation and talks of default like Argentina.


"Government at its best is a necessary evil, and at its worst, an intolerable one."
 Thomas Paine (from "Common Sense" 1776)
Re: The End of the Petrodollar is Upon Us [Re: ConSigCor] #177761
03/16/2022 02:31 PM
03/16/2022 02:31 PM
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Tulsa
airforce Online content
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It'll be funny when Saudi Arabia goes to the Yuan - and discovers the Chinese economy is just as bad as ours.

Now, if Saudi Arabia decides to go to gold, platinum, and silver...

Onward and upward,
airforce

Re: The End of the Petrodollar is Upon Us [Re: ConSigCor] #177797
03/20/2022 12:46 PM
03/20/2022 12:46 PM
Joined: Oct 2001
Posts: 19,231
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ConSigCor Online content OP
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A 059 Btn 16 FF MSC


"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: The End of the Petrodollar is Upon Us [Re: ConSigCor] #177800
03/20/2022 01:30 PM
03/20/2022 01:30 PM
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ConSigCor Online content OP
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Saudi Walks Away
Its ever man (and country) for itself


Sam Faddis
Mar 18


Since the Second World War Saudi Arabia has been an ally of the United States. There have been highs and lows in the relationship, but the connection has remained strong nonetheless, and particularly since the fall of the Shah in 1979, Saudi Arabia has been part of America’s efforts to stabilize the volatile and dangerous Middle East.

Perhaps no more.

Multiple press outlets have reported recently that the leader of Saudi Arabia Muhammed bin Salman has refused to take calls from Biden. Salman has stated publicly that he is completely unconcerned about his relationship with Biden or Biden’s opinion of him. For the ruler of a nation which so highly values preserving face and outward appearances to engage in such open disrespect of an American President is literally unprecedented. These are public demonstrations of a serious rupture in relations.

Saudi Arabia’s actions on the world stage show just how seriously we should look at the current situation.

Saudi Arabia and China are in talks intended to launch yuan-denominated oil contracts. The entire basis of the current U.S.- centric world economic order is built on the foundation of the use of the American dollar as the world’s reserve currency. Contracts are written and bills are paid in “greenbacks.” We can ship our factories overseas and gut our industrial base and somehow stay on top because, in the end, everyone needs our currency. Oil contracts have been priced exclusively in dollars since 1974 when the Nixon administration struck a deal with the Saudis.

The U.S. dollar is used in about 40% of global trade and nearly 80% of all global cross-border transactions. Most commodities and other goods are traded in U.S. dollars. Investors need to hold dollars to trade in goods and services.

When that changes everything changes and not for the better from our standpoint. A world without the petrodollar would tank demand for US treasuries, which given the rate at which the Fed has been buying them up over the last few years, could be catastrophic. The U.S. government runs on credit. We don’t come close to actually balancing the budget and have not for many years. When no one needs our Treasury bonds anymore, and we actually have to pay our bills the party is over.

Even if the U.S. government can still borrow money when the dollar loses its status as the world’s reserve currency the cost of borrowing money will go through the roof. That means less borrowing, which brings us back to the same place. The government has less money. Bills come due. Programs can’t be funded. The Air Force can’t fly its jets. The Navy can’t replace its ships. The Department of State can’t fund programs abroad.

Americans will be impoverished. The United States will be weaker.

Even as Saudi Arabia takes the first tentative steps toward ending the dollar’s run as the world’s reserve currency, the Kingdom is branching out in another unwelcome direction. Saudi Arabia recently confirmed the establishment of a nuclear energy holding company that will aid in the development of nuclear facilities in the Kingdom. Publicly the Saudi government maintains that the purpose of this company will be to develop the country’s atomic energy industry. The company will also apparently develop Saudi talent in the field of atomic energy, according to a statement made to the IAEA.

Unless you have been in a coma for your entire life you are probably aware that Saudi Arabia is effectively awash in oil and natural gas. In fact, contrary to the endless predictions of “peak oil” by energy alarmists, Saudi Arabia actually discovers even greater reserves of fossil fuels all the time.

It is pretty clear then that Saudi Arabia has no real need to develop nuclear energy. Pouring vast sums of money into building reactors, when you literally cannot drill wells fast enough to access all the oil and gas you are already standing on would be a massive waste of time and investment. The claim that this new company will focus on the peaceful uses of nuclear technology is a cover story. Saudi Arabia is setting up an entity which will allow it to begin to develop a nuclear weapons capability.

The Iranians have played this game for decades. They have claimed that all of their work on nuclear weapons has really been related to nuclear energy and medical isotopes. That most of the things the Iranians have been caught doing have no application whatsoever to peaceful uses of nuclear technology has not mattered. Much of the world has bought the lie and entertained the fiction.

The Saudis have seen the handwriting on the wall. They know Joe Biden is about to end sanctions on Iran and allow the mad ayatollahs in Tehran to continue their quest for an atomic bomb. The Saudi government will not allow itself to exist in a world where the Shia in Iran have the bomb and the Kingdom does not. The Saudis are taking matters into their own hands.

Many in America work overtime every day to deny the magnitude of the damage Biden is doing to American national security. They pretend it is not happening. They rationalize even the most catastrophic decisions.

The rest of the world is not fooled. Our allies see what is happening. They are watching Joe and his mandarins take a wrecking ball to the very foundations of our power and our security.

The Saudis have absorbed all this. They are not going to tie their national security to that of a nation whose chief executive appears determined to destroy the nation he is supposed to govern.

It is every man for himself, and the Saudis are doing what they must. They are walking away.


"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: The End of the Petrodollar is Upon Us [Re: ConSigCor] #177801
03/20/2022 04:04 PM
03/20/2022 04:04 PM
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Tulsa
airforce Online content
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It's almost as if Biden, in a rare moment of clarity, saw the poll numbers. The Biden administration will resume oil leasing on federal land.

Quote
The Biden administration said Friday it would resume plans for oil and gas drilling on federal lands after a federal appeals court granted a White House request to allow the administration to use a revamped metric for calculating the potential cost to society of greenhouse gas emissions.

“With this ruling, the Department continues its planning for responsible oil and gas development on America’s public lands and waters,” Interior Department spokeswoman Melissa Schwartz said in an email. “Calculating the social cost of greenhouse gas emissions provides important information that has been part of the foundation of the work the Interior Department has undertaken over the past year.”

The Interior Department last month said the permits and leases to drill on public lands would be delayed after a Louisiana-based federal district judge blocked federal agencies from using the administration’s “social cost of carbon,” which was the subject of a 2021 executive order directing federal agencies weighing environmental permitting and regulatory decisions to consider a metric for estimating the societal costs from carbon dioxide associated with those moves.

A federal appeals court in New Orleans on Wednesday granted the White House’s request to temporarily let federal agencies use Biden’s new cost-benefit analysis rules, which ultimately aim to slow climate change by making activities that emit greenhouse gases sharply more expensive.

A group of 10 energy-producing states, with the support of a raft of industry trade groups, claimed in their legal challenge that Biden’s formulas would cost the U.S. economy “hundreds of billions or trillions of dollars” and “may be the most significant regulatory encroachment upon individual liberty and state sovereignty in American history.”

[b]The Interior Department said it continues to move forward with reforms to address “the significant shortcomings” in the nation’s onshore and offshore oil and gas programs.

“Specifically, the Department is committed to ensuring its programs account for climate impacts, provide a fair return to taxpayers, discourage speculation, hold operators responsible for remediation, and more fully include communities, Tribal, state and local governments in decision-making,” the agency said.


They can spin it however they want, but this is a huge reversal for the administration. If they say this has nothing to do with poll numbers, they're lying. Again.

Onward and upward,
airforce

Re: The End of the Petrodollar is Upon Us [Re: ConSigCor] #177871
03/29/2022 04:13 PM
03/29/2022 04:13 PM
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Tulsa
airforce Online content
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Here's why Saudi Arabia won't abandon the dollar for the yuan. Too long to post here in it's entirety, but here's the takeaway:

Quote
Any commodity producer that accepts the yuan instead of the US dollar must know that capital controls and price fixing are very important threats, and there is no real indication that the People's Bank of China is going to change any of those.

The reality is that the yuan has all the negative elements of fiat currencies—massive printing, lack of real support, central bank incentive to erode purchasing power—and none of the benefits of the dollar, the euro, and the pound—the free-floating pricing, legal and investor security, and an open financial system.

Saudi Arabia might use some yuan in its oil exports, but the reality is that no fiat currency with capital controls is a real alternative to other fiat currencies and that the advent of central bank digital currencies makes this difference more significant. Central bank digital currencies are surveillance disguised as money, and the risks of massive printing, erosion of purchasing power, and control of transactions are much larger than under traditional currencies.

Saudi Arabia could flee to gold or cryptocurrencies to escape the money-printing machine. But it will hardly replace a heavily printed but open and secure fiat currency, the US dollar, with a closed and less secure one.


Onward and upward,
airforce


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