Saudi Arabia ends 50-Year Petrodollar deal with US [Post Updated #65]

[KingKhanWC]

Use this thread to add news regarding the petrodollar.

Saudi Arabia interested in joining BRICS group, South Africa president says

Saudi Arabia has expressed interest in joining the BRICS economic group which includes Brazil, Russia, India, China and South Africa, South African President, Cyril Ramaphosa, said yesterday.

Ramaphosa, who has just returned from an official visit to Riyadh, said Saudi Crown Prince, Mohammed Bin Salman Al Saud, had expressed the kingdom's desire to be part of BRICS.

"They are not the only country [seeking membership in BRICS]," local radio station ABC reported Ramaphosa saying.

The South African president said his country will chair the BRICS summit in 2023, adding that during the summit the issue of expanding the group will be considered.

The bloc is considered to have the fastest economic growth in the world, where the BRICS countries contribute about 25 per cent of the world's total output, and occupy about 26 per cent of the world's land.

https://www.middleeastmonitor.com/2...ning-brics-group-south-africa-president-says/

Saudi Arabia will drop the dollar and end the petrodollar era.. via the BRICS portal By Investing.com

https://news.trenddetail.com/middleeast/194264.html

This is the biggest news, issue in the world. Bigger than Covid, bigger than Cost of Living, Bigger than the War in Ukraine.

When the Petrdollar collapses the world will be a different place. Sadly Europe and US will suffer a huge economic collapse but in the long term the world will be a more fairer place to live.

 

[Sidilicious]

Please explain economically, even if Saudi doesn't make its payment in dollars, how the dollar will stop being the currency of trade? Especially do point out what % of trade will move from $ to local currencies?

 

[Technics 1210]

Saudis wanting to join BRICS+ group headed by Russia is the biggest slap in the face of Amreeka.

The Petrodollar is on a downward spiral, and if Saudis start selling oil to BRICS+ group in non USD currency, the downward spiral will only accelerate leaving the Amreeka with 3 main options:

- Allow the USD to lose reserve currency status.
- Raise rates to maintain USD strength.
- Engage in another phoney war.

No doubt about it, Putin is a genius.

 

[sweep_shot]

Yup.

I think we are on the verge of post-petrodollar era.

I wonder if this will result in a major global war. I hope not.

 

[SalimBhai]

Please explain economically, even if Saudi doesn't make its payment in dollars, how the dollar will stop being the currency of trade? Especially do point out what % of trade will move from $ to local currencies?

King Khan: Please give some feedback on the question asked. I am curious to know what exact figures would be also.

 

[shortbread]

Simple minds..... only if life was so easy!

 

[KingKhanWC]

Please explain economically, even if Saudi doesn't make its payment in dollars, how the dollar will stop being the currency of trade? Especially do point out what % of trade will move from $ to local currencies?

Its not just the Saudis. US $ is the world reserve currency , has been since King Faisal of Saudi agreed to Kissingers plan to sell OIL IN US $ only. This means nations needs to have $ in order to buy oil. The main reason the $ is the best , has been the most valuable currency to hold. This in turn allowed the US to just print $ in large amounts. Its a win win for the US.

Since Russia invaded Ukraine to liberate the Russian speaking people, the sanctions have caused issues for many nations. Now the plan is to end the $ as the world reserve currency and replace it with a basket of reserve currencies. Once this takes place, the balance of economic power will shift like an iceberg.

 

[Robert]

Use this thread to add news regarding the petrodollar.

When the Petrdollar collapses the world will be a different place. Sadly Europe and US will suffer a huge economic collapse but in the long term the world will be a more fairer place to live.

I’m not following you. USA imports relatively little oil from Saudi Arabia. It imports four times as much from Canada.

Oil’s going the way of the dodo anyway.

 

[ElRaja]

i swear the petrodollar has been collapsing since i was a teenager, fwiw whilst there is some merit to the petrodollar argument, it is far too simplistic to assume that is the only driving force behind dollar demand if u understand the dynamics of international trade and finance.

the last few years have shown that the dollar is entrenched in the system far beyond oil, its the defacto settlement currency of the majority of global trade, the defacto global reserve and the only challengers that come near it, the euro, is an ally currency that has no interest in destabilising the dollar.

the dollar will be the global reserve until someone has the will and means to change that, at the moment no one can even come close. so regardless of the state of the "petrodollar", i think the usd being too strong is a bigger problem for the US, rather than being too weak.

 

[JaDed]

Brazil and Argentina working towards common currency, pretty silly from Brazil to do this though.. makes sense from Argentinian side..

Both countries don’t have it in them to make this a success.

 

[sweep_shot]

Brazil and Argentina working towards common currency, pretty silly from Brazil to do this though.. makes sense from Argentinian side..

Both countries don’t have it in them to make this a success.

Why silly? Better to break free from the current PetroDollar domination.

 

[ElRaja]

Brazil and Argentina working towards common currency, pretty silly from Brazil to do this though.. makes sense from Argentinian side..

Both countries don’t have it in them to make this a success.

one of the dumbest ideas ive heard of, makes no sense for brazil to do this.

 

[Technics 1210]

one of the dumbest ideas ive heard of, makes no sense for brazil to do this.

Why?

So that the USD can continue to hold weaker currencies hostage to higher USD hikes?

 

[Technics 1210]

Why silly? Better to break free from the current PetroDollar domination.

The intelligent know what happens when nations that try to break away from the USD stranglehold - Iraq, Libya, Argentina, Venezuela, and of course Russia - to name but a few. Oh look, WAR!

Most people do not understand what the Petrodollar represents and why it is vital to ensure Amreekan global dominance.

 

[JaDed]

Why silly? Better to break free from the current PetroDollar domination.

Argentina is one of the worst economic models in the world.. to combine currency with them would be bonkers for actually an upcoming and somewhat economically stable Brazil.

 

[ElRaja]

Why?

So that the USD can continue to hold weaker currencies hostage to higher USD hikes?

because the Argentines are some of the least fiscally responsible people in the world. given the disparity in size and economy of both countries you will have a currency either controlled by Brazilians which would mean Argentina having to surrender sovereignty over their currency and budgets, or some form of equivalent rule which would mean a fiscally irresponsible Argentina which is 3.5x smaller than Brazils economy has a vastly disproportionate influence over the currency.

having done a bit more research however i think i understand a bit what really is going on, Brazil wants to create a trade currency to the peso based on credit provided by Brazilian banks that is provided to Argentina guaranteed by hard assets. given Argentina's history of feckless fiscal management this looks like a rather calculated long shot on Brazil's part to gain control of Argentina's food and energy assets.

 

[JaDed]

because the Argentines are some of the least fiscally responsible people in the world. given the disparity in size and economy of both countries you will have a currency either controlled by Brazilians which would mean Argentina having to surrender sovereignty over their currency and budgets, or some form of equivalent rule which would mean a fiscally irresponsible Argentina which is 3.5x smaller than Brazils economy has a vastly disproportionate influence over the currency.

having done a bit more research however i think i understand a bit what really is going on, Brazil wants to create a trade currency to the peso based on credit provided by Brazilian banks that is provided to Argentina guaranteed by hard assets. given Argentina's history of feckless fiscal management this looks like a rather calculated long shot on Brazil's part to gain control of Argentina's food and energy assets.

So it’s like Euro for Germans, I doubt it would work like that.. considering the revolution savy Latin America.

 

[ElRaja]

So it’s like Euro for Germans, I doubt it would work like that.. considering the revolution savy Latin America.

in terms of german backing of the euro yes, but in practice i think it would only be for trade settlement, not for the average person to use, or to settle trades with international parties.

 

[Champ_Pal]

The real countdown should be the end of the dependence on Arab Gasoline. US Dollar still reigns. No other country has a stronger and stable currency than US Dollar.

 

[SalimBhai]

Nothing Lasts forever. Empires come and go. But for the Moment the US dollar is here to stay .

 

[KingKhanWC]

I’m not following you. USA imports relatively little oil from Saudi Arabia. It imports four times as much from Canada.

Oil’s going the way of the dodo anyway.

Its not about imports, US has the most oil but not enough for its own domestic consumption , reason why it imports.

The issue is of the US dollar being the global world currency. It has been since Kissinger made a deal with King Fasal to sell oil only in $. Thus other nations need $ to buy oil, which evolved into most resources and goods being bought/sold in $. This allows the US to print $ for fun esp since other nations buy their debt.

Things have changed, the likes of China are reducing their owning of US debt. CHina has reduced its debt/bonds by a large % and will continue to do so. Meanwhile for the first time Russia and China are MOSTLY trading in local currencies and not $. Others nations are also joining them by trading in their own currencies. The key is Saudi and OPEC, once they officially state oil can be sold in any currency ,the petrodollar will collapse. People on here are confused with the petrodollar the $. The $ itself may or maynot collapse but will be one of the new global currencies without having dominace.

US is over $31 trillioon in debt. Its not if but when they default others will make stronger moves to move away from the $. The US is a declining empire, its time as the global superpower is coming to and end, perhaps by 2030 imo.

Politics
U.S. hits debt limit, prompting "extraordinary measures" to avoid default

https://www.cbsnews.com/news/debt-limit-us-possible-default-countdown-treasury-department/

 

[shortbread]

Its not about imports, US has the most oil but not enough for its own domestic consumption , reason why it imports.
/[/url]

No the US produces surplus crude and is becoming Europe's biggest energy supplier. The reason it imports crude is because most US refineries cannot proceed domestic sweet crude. Biden govt. was busy choking banks and financial institutions from investing in domestic oil and gas, so new refinery capacity wasn't being built.

 

[shortbread]

Come August this year there could be a recession, but we'd visit this thread to find that the world has not collapsed!

For the dollar to be replaced or a viable rival to exist one has to find an alternative first. The top 10 economies in the world control nearly 70% of global wealth, the remaining 180 odd fight over the remaining 30%.

For the second biggest economy/rival China to have a dollar equivalent trade prowess for the yuan it needs at least a few allies in the top 10, right now it's nada. Another alternative that's the BRICS currency isn't happening anytime soon.

The dollar influence will weaken overtime but more of a slow puncture over the coming decades.

 

[KingKhanWC]

Come August this year there could be a recession, but we'd visit this thread to find that the world has not collapsed!

For the dollar to be replaced or a viable rival to exist one has to find an alternative first. The top 10 economies in the world control nearly 70% of global wealth, the remaining 180 odd fight over the remaining 30%.

For the second biggest economy/rival China to have a dollar equivalent trade prowess for the yuan it needs at least a few allies in the top 10, right now it's nada. Another alternative that's the BRICS currency isn't happening anytime soon.

The dollar influence will weaken overtime but more of a slow puncture over the coming decades.

Youre confused, nobody is suggesting the world will collapse lol.

The petrodollar will no longer be the worlds reserve currency, it will be replaced by a basket of reserve currencies. BRICS have confirmed they are on their way to brining out their own currency to trade in, instead of the US $. Saudi have also said they are considering selling oil in other currencies. Once this takes place the US will lose its economic dominance. Its common knowledge now.

 

[shortbread]

Youre confused, nobody is suggesting the world will collapse lol.

The petrodollar will no longer be the worlds reserve currency, it will be replaced by a basket of reserve currencies. BRICS have confirmed they are on their way to brining out their own currency to trade in, instead of the US $. Saudi have also said they are considering selling oil in other currencies. Once this takes place the US will lose its economic dominance. Its common knowledge now.

BRICS will not bring a currency union, not when the Russia-Ukraine war continues. But this is only my opinion. If it does happen it will hold more relevance than the euro and really threaten the dollar. But it's unlikely to happen, there isn't enough trust between BRICS countries.

A global currency basket will never happen, that's a fact. The world will argue for two decades as to what currencies will make up this basket and in what ratios.

 

[KingKhanWC]

BRICS will not bring a currency union, not when the Russia-Ukraine war continues. But this is only my opinion. If it does happen it will hold more relevance than the euro and really threaten the dollar. But it's unlikely to happen, there isn't enough trust between BRICS countries.

A global currency basket will never happen, that's a fact. The world will argue for two decades as to what currencies will make up this basket and in what ratios.

They could simply not use $ to trade and use their own curriencies.

Latest

Brazil & China Sign Agreement To Drop US Dollar And Use RMB Yuan – Real In Bilateral Trade

https://www.silkroadbriefing.com/ne...lar-and-use-rmb-yuan-real-in-bilateral-trade/

https://www.silkroadbriefing.com/ne...lar-and-use-rmb-yuan-real-in-bilateral-trade/

https://www.timesnownews.com/busine...ttle-trade-payments-in-rupee-article-99187766

 

[JaDed]

https://m.economictimes.com/news/ec...rade-in-indian-rupee/articleshow/99164812.cms

Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in Indian Rupee (INR).

 

[JaDed]

Interesting times ahead, can US come together to figure out a solution or will they keep kneeling to anti-capitalist forces within the country.

 

[JaDed]

Trust in US dollar is still more than any of the BRICS nation’s currencies/govnt due to transparency but the use of it as a weapon is what has enhanced this situation.

US euro Jpy are still far ahead of yuan eventhough world trade of China is so high.

 

[KingKhanWC]

Interesting times ahead, can US come together to figure out a solution or will they keep kneeling to anti-capitalist forces within the country.

There is little solution, the only thing which is keeping the $ strong is no other curriences can match it atm but the US $ has been declining recently as news is coming through.

BRICS Group Works On A New Form Of Currency

"Transition to settlements in national currencies is the first step," Alexander Babakov said.

State Duma Deputy Chairman Alexander Babakov said Thursday that ideas on creating a new form of currency will be presented at the organization's upcoming summit in South Africa.

On the sidelines of the Business Forum of the Russian-Indian Strategic Partnership for Development and Growth, Babakov said that work is underway on the creation of a new form of currency.

"The transition to settlements in national currencies is the first step. The next is to facilitate the circulation of digital currency or any other fundamentally new form of currency in the near future," the deputy chairman said.

The official did not rule out the possibility of the formation of a single BRICS currency that will be secured by gold along with other products such as rare earth elements or soil.

https://www.telesurenglish.net/news/BRICS-Group-Works-On-A-New-Form-Of-Currency-20230330-0021.html

 

[JaDed]

There is little solution, the only thing which is keeping the $ strong is no other curriences can match it atm but the US $ has been declining recently as news is coming through.



https://www.telesurenglish.net/news/BRICS-Group-Works-On-A-New-Form-Of-Currency-20230330-0021.html

Actually there are enough reasons for US to ditch this as well where they are asking to end the dominance , the reason any other country is not taking this burden is a highlighted below, even the workers in US many don’t benefit from it being dominant one.
,

https://carnegieendowment.org/chinafinancialmarkets/86878

“Among other things, this means that it is not the United States as a whole that benefits from the global dominance of the U.S. dollar but rather certain constituencies within the United States that do, in contrast to other constituencies that pay the price for the dominance of the U.S. dollar. The beneficiaries include two major, politically powerful groups: Wall Street and the foreign affairs and defense establishments. By contrast, it is American workers, farmers, producers, and small businesses that pay what amounts to a significant economic cost.“

 

[JaDed]

The alternate to $ has to be based on trust, India and China don't trust each other and geopolitical issues make it a problem as well.

India atleast has some sort of transparency on monetary policy since 1991, China has bigger issues there.

But it’s definitely possible, it remains to be seen if Russia can end differences between India-China because India just tasted $ freedom when it bought Russian oil and i can’t blame the government for going down that path considering the whopping that Adani got lol.

 

[shortbread]

They could simply not use $ to trade and use their own curriencies.

Latest



https://www.silkroadbriefing.com/ne...lar-and-use-rmb-yuan-real-in-bilateral-trade/



https://www.timesnownews.com/busine...ttle-trade-payments-in-rupee-article-99187766

It's not as simple as that @ KingKhanWC, had that been the case we would be living in a fairer world. The big question is what fills the deficit? If nation A & B had an near equal trade balance then this is fine, but say B buys a lot more from A than it exports in return, where does the deficit 'A' currency come from? So B needs a tradeable asset that is reliable to fill the gap, this is what the dollar does. The operative word here is 'reliability'. Of late successive US governments have undermined this by using lazy policy decision like economic sanctions, but the default fall-back the world over is the USD.

Folk keep saying that China buys oil in renminbi, ignoring the fact that oil futures is entirely made up of dollar trade. Anywhere between 6-8 billion barrels are held in futures trade made up mostly of dollars. Next to no one holds this in renminbi.

Leave all that aside, if one is asked in what alternate currency will one accept their salary/payment apart from the default sterling, what would most people accept, it would be USD. No one would risk holding renmnbi, rupee whatever etc...

To make a dent the world needs a universal currency which at least the top 2-3 economies in the global top 10 participating and a financial system to back it up. The biggest predicament the renminbi faces is that China has no real allies of economic significance. The biggest ally it has is Russia that is outside the 10 and falling.

 

[KingKhanWC]

It's not as simple as that @ KingKhanWC, had that been the case we would be living in a fairer world. The big question is what fills the deficit? If nation A & B had an near equal trade balance then this is fine, but say B buys a lot more from A than it exports in return, where does the deficit 'A' currency come from? So B needs a tradeable asset that is reliable to fill the gap, this is what the dollar does. The operative word here is 'reliability'. Of late successive US governments have undermined this by using lazy policy decision like economic sanctions, but the default fall-back the world over is the USD.

Folk keep saying that China buys oil in renminbi, ignoring the fact that oil futures is entirely made up of dollar trade. Anywhere between 6-8 billion barrels are held in futures trade made up mostly of dollars. Next to no one holds this in renminbi.

Leave all that aside, if one is asked in what alternate currency will one accept their salary/payment apart from the default sterling, what would most people accept, it would be USD. No one would risk holding renmnbi, rupee whatever etc...

To make a dent the world needs a universal currency which at least the top 2-3 economies in the global top 10 participating and a financial system to back it up. The biggest predicament the renminbi faces is that China has no real allies of economic significance. The biggest ally it has is Russia that is outside the 10 and falling.

I understand what you are saying.

There will be more than 2-3 economies, it will be nearly half the planet which will no longer trade in US $. The plans are in progress as we speak. People outside only want $ because its used in trade esp oil. IF OPEC decide the $ is no longer the only currency to buy oil , it will automatically drop in value. The Yanks are worried, which is good enough for me.

What U.S. officials fear now is that Saudi Arabia could announce it will no longer price oil exclusively in dollars. Any abandonment of the petro-dollar would formally signal the end of the dollar’s status as world reserve currency.

The consequences of such a development would be “catastrophic.” That’s according to Monica Crowley, who served as assistant to the U.S. Treasury Secretary under President Donald Trump.

Monica Crowley: It's really hard to overstate exactly how catastrophic the abandonment of the U.S. dollar would be as the world's global reserve currency. Look, since the end of World War II, the dollar has been the safe place to go, and it's been backed up by a couple of things. It originally was backed up by gold, but President Nixon took us off the Gold Standard, so there's no hard asset backing up the dollar anymore for the last 50 years, but also it's been backed up by the strength and economic power of the United States and the fact that oil has always been traded in dollars. If that were to end, that would mean the end of the U.S. dollar. If Saudi Arabia decides to join with America's enemies here and start trading oil in different currencies, that is going to undermine the entire global economic system. And here at home, you know what it's going to mean for us? It's going to mean raging inflation, so much worse than anything we have ever experienced.

https://www.fxstreet.com/analysis/n...-of-losing-petrodollar-privilege-202303311933

I would invest in the digital renminbi, which will be imo the most used currency in the next decade.

 

[Technics 1210]

I understand what you are saying.

There will be more than 2-3 economies, it will be nearly half the planet which will no longer trade in US $. The plans are in progress as we speak. People outside only want $ because its used in trade esp oil. IF OPEC decide the $ is no longer the only currency to buy oil , it will automatically drop in value. The Yanks are worried, which is good enough for me.

And this is the key point, the fact nations are now willing, and are, trading in other currencies signifies a shift in thinking and trends.

Saudis and UAE are already offering oil in non-USD currencies - this was unthinkable even a few years ago.

USA thought they could bully Russia into economic submission, but their bully boy tactics has backfired royally. Even an alternative to SWIFT is now in use!

It took decades for Amreeka to push the USD into worldwide domination, so change will not be overnight, but it is happening right now, and as you have said, Amreeka is now worried.

 

[KingKhanWC]

And this is the key point, the fact nations are now willing, and are, trading in other currencies signifies a shift in thinking and trends.

Saudis and UAE are already offering oil in non-USD currencies - this was unthinkable even a few years ago.

USA thought they could bully Russia into economic submission, but their bully boy tactics has backfired royally. Even an alternative to SWIFT is now in use!

It took decades for Amreeka to push the USD into worldwide domination, so change will not be overnight, but it is happening right now, and as you have said, Amreeka is now worried.

What makes it worse for the Yanks is they are over 30 trillion in debt. China and other used to buy US debt because of the $ and petrodollar. Recent years they have been reducing their holdings by over 30%. As you say it will take time but this trend will continue. It would have also hurt China a lot but now China has more billionaires than US, never before in history has this occurred. Meaning China can sell its own goods to its own people to soften the blow to them.

 

[bones]

Great insight on the situation. Highly recommend you watch.

https://www.youtube.com/live/6lBkpVSN22g?feature=share

 

[KingKhanWC]

China will soon only trade in their own currency.

Interest rates are holding the dollar value up.

If at the same time interest rates are cut and OPEC announce oil will be no longer solely traded in USD, its over.

 

[KingKhanWC]

Dollar Decoupled: Donald Trump warns US currency 'crashing, will no longer be the world standard'Dollar is “crashing” and “will soon no longer be the world standard,” said former US President Donald Trump, accusing his successor Joe Biden of destroying the country.

During his first public address since being arraigned, 76-year-old Trump said: “Our currency is crashing and will soon no longer be the world standard, which will be our greatest defeat frankly, in 200 years. There will be no defeat like that will take us away from being even a great power.”

https://www.firstpost.com/world/dol...no-longer-be-the-world-standard-12410392.html

 

[Technics 1210]

China will soon only trade in their own currency.

Interest rates are holding the dollar value up.

If at the same time interest rates are cut and OPEC announce oil will be no longer solely traded in USD, its over.

Saudis played a blinder on the weekend by cutting production, forcing the price of oil to rocket, which is a headache for Amreeka as high energy costs are contributing to inflation.

Amreeka has 2 options, raise rates, which will hurt their economy and send millions into bankruptcy, or create more mickey mouse Dollars through QE.

The game is up, the USD is now on the decline, and for Amreeka, there isn't a country left to go to war with to prop up the USD!

 

[KingKhanWC]

Saudis played a blinder on the weekend by cutting production, forcing the price of oil to rocket, which is a headache for Amreeka as high energy costs are contributing to inflation.

Amreeka has 2 options, raise rates, which will hurt their economy and send millions into bankruptcy, or create more mickey mouse Dollars through QE.

The game is up, the USD is now on the decline, and for Amreeka, there isn't a country left to go to war with to prop up the USD!

Saudi's are doing it slowly but surely. Imo they have been told by China and Russia to allow them to get rid of their $ holdings/bonds and when the time is right ....booom!

Most of the world is now against the Yanks.

Malaysia's Prime Minister, Anwar Ibrahim, believes there is no need for his country to rely on the US dollar.

There is no reason for a country like Malaysia to continue to depend on the US dollar in attracting investments into the country, said Prime Minister Anwar Ibrahim today.

He said negotiations between Malaysia and other countries should use the currencies of both countries.

https://www.malaysiakini.com/news/661054

 

[Technics 1210]

Saudi's are doing it slowly but surely. Imo they have been told by China and Russia to allow them to get rid of their $ holdings/bonds and when the time is right ....booom!

Most of the world is now against the Yanks.



https://www.malaysiakini.com/news/661054

Yup, the realisation that the West is in debt and sinking has started to hit home. It is clear as daylight the next economic superpower will be in the East and Saudis like many countries, are looking to prosper by building relationships with the East.

History will look back at the Russia Ukraine war as the moment Western influence started to tumble.

 

[KingKhanWC]

Yup, the realisation that the West is in debt and sinking has started to hit home. It is clear as daylight the next economic superpower will be in the East and Saudis like many countries, are looking to prosper by building relationships with the East.

History will look back at the Russia Ukraine war as the moment Western influence started to tumble.

Its mainly Putin, the chap is like a grandmaster chess player. Western leaders fooling their people calling him crazy etc was nothing but a denial of what is to come and its coming thick and fast now.

Putin wrote off $20 billion in debt to African nations, he knows attack and destruction doesn't win any hearts and minds but to treat people with fairly and help them to prosper. The Europeans are frankly the most stupid people , blindly following the Yanks when they have little to nothing in terms of natural resources. There may come a time Europe goes back to the dark ages(not literally) as compared to what they have now. Remember Europeans were bathing once year , while Muslims were washing the streets of Baghdad with rose water. Europeans only grew due to war and aggression, those days are over with missile tech.

 

[MenInG]

The Russian rouble has fallen to its lowest value for a year, since shortly after Russia invaded Ukraine.

The currency slid to 82 roubles against the US dollar on Friday morning on the Moscow Stock Exchange (MOEX).

Russia has been hit with massive economic sanctions since it began an offensive in Ukraine in February 2022.

Earlier this year, Russia said its economy had shrunk by 2.1% in 2022, far less than the 15% fall that had been predicted.

The rouble also slid by 2% to 90.06 against the euro on Friday morning.

Traders said the fall was linked to several factors, including lower oil prices in March cutting Russian revenue, and the sale of Western businesses in Russia in the wake of the invasion.

The rouble's value has not slumped to this level since April 2022, though it was even lower in the immediate aftermath of the invasion, when it fell to 113 roubles per US dollar. The currency stabilised in July to reach 50 roubles - but it has weakened again since then.

President Vladimir Putin had insisted the economy was standing strong against economic sanctions, but last week he admitted that the penalties could have a negative effect on Russia.

Russia's Finance Minister Anton Siluanov said the latest fall was linked to changes to imports and exports to the country.

He added that the exchange rate fluctuated with "the conditions of changing foreign economic conditions".

Asked if people in the country should be concerned, he said the rouble was likely to strengthen thanks to the continued sales of Russian energy on the global market.

Late last year, Western countries imposed a price cap on Russian oil, a huge source of income for the country. It was one of many sanctions imposed by nations supporting Ukraine.

But despite these punishments, the Russian economy has shrunk far less than predicted, and commentators have been surprised at its resilience.

While energy imports to Europe fell sharply in 2022, buyers in China, India and elsewhere stepped in to fill the void. And when hundreds of Western companies withdrew from Russia in protest of the invasion, local entrepreneurs picked up the slack.

Russia has said it is adapting its economy as a result of the sanctions, and that it hopes to have completed this process by 2024.

BBC

 

[KingKhanWC]

The Russian rouble has fallen to its lowest value for a year, since shortly after Russia invaded Ukraine.

The currency slid to 82 roubles against the US dollar on Friday morning on the Moscow Stock Exchange (MOEX).

Russia has been hit with massive economic sanctions since it began an offensive in Ukraine in February 2022.

Earlier this year, Russia said its economy had shrunk by 2.1% in 2022, far less than the 15% fall that had been predicted.

The rouble also slid by 2% to 90.06 against the euro on Friday morning.

Traders said the fall was linked to several factors, including lower oil prices in March cutting Russian revenue, and the sale of Western businesses in Russia in the wake of the invasion.

The rouble's value has not slumped to this level since April 2022, though it was even lower in the immediate aftermath of the invasion, when it fell to 113 roubles per US dollar. The currency stabilised in July to reach 50 roubles - but it has weakened again since then.

President Vladimir Putin had insisted the economy was standing strong against economic sanctions, but last week he admitted that the penalties could have a negative effect on Russia.

Russia's Finance Minister Anton Siluanov said the latest fall was linked to changes to imports and exports to the country.

He added that the exchange rate fluctuated with "the conditions of changing foreign economic conditions".

Asked if people in the country should be concerned, he said the rouble was likely to strengthen thanks to the continued sales of Russian energy on the global market.

Late last year, Western countries imposed a price cap on Russian oil, a huge source of income for the country. It was one of many sanctions imposed by nations supporting Ukraine.

But despite these punishments, the Russian economy has shrunk far less than predicted, and commentators have been surprised at its resilience.

While energy imports to Europe fell sharply in 2022, buyers in China, India and elsewhere stepped in to fill the void. And when hundreds of Western companies withdrew from Russia in protest of the invasion, local entrepreneurs picked up the slack.

Russia has said it is adapting its economy as a result of the sanctions, and that it hopes to have completed this process by 2024.

BBC

This has nothing to do with the decline and future ending of the petrodollar.

Its also a poor BBC article which is being disingenuous. Ruble is 81.55 to 1 USD, not much different to before the conflict with Ukraine.

 

[SalimBhai]

The ruble falls to its lowest in a year as sanctions crush the Russian economy
Foreign firms continue to leave the country despite Putin's efforts to stop them.

 

[JaDed]

The countries that benefit from this are China, India, Brazil, Russia.

I don’t see many other benefiting unless they are export oriented and commodity importers.

 

[KingKhanWC]

The countries that benefit from this are China, India, Brazil, Russia.

I don’t see many other benefiting unless they are export oriented and commodity importers.

Africa will, South East Asia will , South America will. Plenty will.

One of the main reasons these areas want to trade in local or other currencies is the US can then no longer seize their $'s and other assets.

 

[JaDed]

Africa will, South East Asia will , South America will. Plenty will.

One of the main reasons these areas want to trade in local or other currencies is the US can then no longer seize their $'s and other assets.

That’s only one of the reasons, It has benefited India massively eventhough their assets are in no danger..

Look at what happened to South Asian currencies except India due to being able to trade in alternate easier currencies for India and still maintaining forex reserves but India China Brazil Malaysia can take such decisions..and can do that due to having their own defense security(without Western Interference) and stable financial systems.

Thats why western $/Euro/GBP/JPY or another common currency gives stability overall to other world countries that are not really stable..but still inflows of FDI is assured…

 

[daytrader]

Pentagon leaks: US seeks to mend ties after claims Washington spied on key allies
US defence secretary speaks to South Korean counterpart in wake of leak suggesting US was spying on Seoul’s internal discussions on arms sales

The US is attempting to mend fences with key allies, after leaked Pentagon documents claimed that Washington had been spying on friendly nations, including South Korea and Israel.

The US secretary of defence, Lloyd Austin, spoke to his South Korean counterpart on Tuesday, as officials in Seoul denied the possibility that the president’s office could have been the source of leaks over South Korean arms sales to the US.

The disclosure of the highly classified material represents Washington’s worst national security breach in many years and included details about Ukraine’s lack of ammunition and US intelligence collection methods used against Russia.

The unverified documents, including some apparently based on internal discussions among top South Korean security officials, claimed that Seoul was concerned that artillery shells bound for the US could eventually find their way to Ukraine.

The possibility that South Korean weapons could be used by Ukraine would be deeply problematic for the president, Yoon Suk Yeol, as it would violate the country’s longstanding policy – supported by a majority of voters – of not exporting weapons to countries at war.

On Tuesday, however, officials attempted to play down the significance of the Pentagon documents, whose authenticity has not been independently confirmed. Yoon’s office said an initial investigation had concluded that there was “little chance” that internal discussions had been intercepted by US intelligence officials, the Yonhap news agency said.

Kim Tae-hyo, South Korea’s deputy national security adviser, claimed that the information reportedly gleaned from internal discussions was “untrue” and had been “altered”.

“The two countries have the same assessment – that much of the information disclosed is altered,” Kim told reporters as he left for Washington ahead of Yoon’s visit to the US at the end of the month.

The undated document in question said that South Korea had agreed to sell artillery shells to help the US replenish its stockpiles, insisting that the “end user” should be the US. But it added that senior South Korean officials were worried that Washington would divert the shells to Ukraine.

...
https://www.theguardian.com/us-news...s-after-claims-washington-spied-on-key-allies

 

[KingKhanWC]

USD as the world’s reserve currency is facing a ‘stunning collapse’, warns Jane of Eurizon SLJ Capital

“The dollar faces a surprising decline in its market share as a reserve currency in 2022, possibly due to its muscular use of sanctions,” Jane wrote. “The extraordinary actions taken by the US and its allies against Russia have shocked large reserve-holding countries, most of them from the Global South.”

According to Jane’s calculations, the greenback’s share of official global reserve currencies is set to drop from 73% in 2001 to about 55% in 2021. And in 2022, it drops to 47% of total global reserves.

https://biz.crast.net/usd-as-the-wo...g-collapse-warns-jane-of-eurizon-slj-capital/

Game changed so much in just 12 months!

 

[KingKhanWC]

On a three-day trip to China last week, Brazil’s President Luiz Inácio Lula da Silva met with his counterpart, President Xi Jinping, and signed 15 trade and partnership agreements with Brazil’s largest trading partner. While in China, Lula also criticized the dominance of the U.S. dollar in the world’s economy.

Lula arrived in Shanghai on Tuesday, where he attended the inauguration ceremony of former President Dilma Rousseff as president of the New Development Bank of the BRICS, the trading bloc made up of Brazil, China, Russia, India and South Africa. At the event, Lula criticized the traditional financing model of international financial institutions, which uses the dollar to the detriment of other currencies.

“For the first time, a development bank with global reach was established without the participation of developed countries in its initial phase. Free, therefore, from the shackles and conditionalities imposed by traditional institutions on emerging economies. Plus, with the possibility of financing projects in local currency,” he said.

The president also criticized the International Monetary Fund (IMF), which he accused of “asphyxiating” Argentina. For him, banks must have “patience” and keep the word tolerance in mind when renewing their financing agreements.

“No government can work with a knife at the throat because of its debts,” he said.

https://brazilreports.com/brazils-l...iticizes-u-s-dollars-dominance-globally/4565/

 

[Technics 1210]

https://biz.crast.net/usd-as-the-wo...g-collapse-warns-jane-of-eurizon-slj-capital/

Game changed so much in just 12 months!

Indeed, and there's more to come!

Sleepy Joe is responsible for accelerating the demise of the USD.

Amreeka has no other country to go to war with, oh, accept Russia amd China, and we know that ain't happening for love nor money.

The global bullies are in a corner.

Gold and Silver doing well!

Yippee!

 

[KingKhanWC]

Indeed, and there's more to come!

Sleepy Joe is responsible for accelerating the demise of the USD.

Amreeka has no other country to go to war with, oh, accept Russia amd China, and we know that ain't happening for love nor money.

The global bullies are in a corner.

Gold and Silver doing well!

Yippee!

A senile old fella, who can hardly walk or talk thought he could punish Russia with sanctions. Instead he sped up the downfall of the $ reserve currency like nobody imagined. The sanctions will go down in US history as the ultimate shooting yourself in the cowboy boots.

Meanwhile(should be for the other thread ...)

Russian inflation drops below 3%

The figure is lower than the government’s target for this year

Annualized inflation in Russia has continued to slow, dropping to a rate of 2.82% for the week of April 11-17, according to data from the Ministry of Economic Development.

The figure for the previous week reported by the central bank stood at 3.15% year-on-year.

https://thepressunited.com/updates/russian-inflation-drops-below-3/

Russian Diamonds also another good investment.

 

[Technics 1210]

A senile old fella, who can hardly walk or talk thought he could punish Russia with sanctions. Instead he sped up the downfall of the $ reserve currency like nobody imagined. The sanctions will go down in US history as the ultimate shooting yourself in the cowboy boots.

Meanwhile(should be for the other thread ...)



https://thepressunited.com/updates/russian-inflation-drops-below-3/

Russian Diamonds also another good investment.

No doubt Russia has beaten the Amreekans at their own game.

The news is relevant to this thread because it is the sanctions against Russia that have accelerated the demise of the USD!

Bechara Biden, thought sanctions would work but instead of towing the international community, they've shown Amreeka the finger and have decided the USD is not worth Amreekan alliance.

The fact Amreeka seized Russian assets and banned Russia from using SWIFT, has sent a lightbulb warning to every other nation - it could be you next.

Zabardast backfire!

 

[KingKhanWC]

No doubt Russia has beaten the Amreekans at their own game.

The news is relevant to this thread because it is the sanctions against Russia that have accelerated the demise of the USD!

Bechara Biden, thought sanctions would work but instead of towing the international community, they've shown Amreeka the finger and have decided the USD is not worth Amreekan alliance.

The fact Amreeka seized Russian assets and banned Russia from using SWIFT, has sent a lightbulb warning to every other nation - it could be you next.

Zabardast backfire!

Banning swift was very idiotic. Did they think the world would just suffer, go hungry and not fight back.

By 2025, if not sooner, US $ will no longer by worlds reverse currency imo.

 

[daytrader]

US may default on June 1 without debt ceiling hike; Biden, McCarthy to meet

U.S. President Joe Biden on Monday summoned the four top congressional leaders to the White House next week after the Treasury warned the government could run short of cash to pay its bills by June.

Treasury Secretary Janet Yellen said in a letter to Congress that the agency will be unlikely to meet all U.S. government payment obligations "potentially as early as June 1" without action by Congress.

The estimate raised the risk that the United States is headed for an unprecedented default that would shake the global economy, adding new urgency to political calculations in Washington, where Democrats and Republicans were girding for a months-long standoff.

Biden called Republican House Speaker Kevin McCarthy in Jerusalem, where he is on a diplomatic trip, to invite him to a May 9 White House meeting. The two leaders haven't sat down to discuss the issue since February.

Biden also extended invitations to House Democratic leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Republican leader Mitch McConnell. McConnell, whose fall in March sidelined him for weeks, said he and Biden had a "good conversation" today, adding: "I'm sure we'll be speaking again."

...
https://www.reuters.com/markets/us/...-without-debt-limit-hike-treasury-2023-05-01/

 

[KingKhanWC]

Nearly $32 trillion in debt but still need to raise the ceiling.

Of course they will agree to raise it, get more in debt but when it explodes , it will change America forever.

But you never know with the Yanks, I wouldnt be keeping too many US $.

 

[daytrader]

Is Congress playing a high stakes game of political chicken?

This is a critical week for negotiations on raising the debt ceiling, as the US may default as soon as 1 June if the limit is not raised by Congress before then.

On Tuesday, Joe Biden and the House and Senate leaders of both parties will meet in the White House to discuss this impending economic crisis of their own making.

As early as next month, the US government could reach the legal cap on the national debt. This means that the federal treasury will be unable to borrow additional funds. It will exhaust the money it has to spend on everything from existing debt payments to government salaries and retirement payments to the elderly.

Congress could vote to raise the debt limit at any point, but Republicans in the legislature only want to do so if they can extract policy concessions from Mr Biden and the Democrats. The president and his allies, however, have so far refused to engage in what they consider to be a negotiation conducted under the threat of economic ruin.

The meeting itself is already somewhat of a concession for Mr Biden, as he had up until now rejected discussing Republican proposals. Before this, he had insisted that spending and policy negotiations be conducted separately from the debt-limit situation.

This sets up a high-stakes encounter that is fraught with peril, the greatest of which is the potential that the US will actually hit its debt limit and cause a global economic catastrophe. Short of that, however, there are other risks - and rewards - for both sides. Here's a look at them.

...
https://www.bbc.com/news/world-us-canada-65505687

 

[daytrader]

Quad summit cancelled after debt ceiling crisis forces president to cut short Asia tour
Leaders of Japan, India, US and Australia will instead meet on sidelines of the G7 in Hiroshima this weekend

Anthony Albanese has confirmed the Sydney Quad meeting will not go ahead, after US president Joe Biden pulled out of his Australian visit to deal with domestic issues.

Early Wednesday morning Albanese was still hopeful the meeting with the leaders of India and Japan could proceed with a senior representative from the US, but hours later confirmed the event was off.

Instead, the Quad nations are expected to have a sideline meeting at the G7 summit in Hiroshima this weekend, with all four leaders still attending.

While a meeting is yet to be locked in for the Japan summit, Albanese said it was “appropriate that we talk”.

“The Quad is an important body and we want to make sure that it occurs at leadership level and we’ll be having that discussion over the weekend,” he said.

Biden’s visit to Australia, with a historic stop to Papua New Guinea having been confirmed in recent weeks, had been long anticipated and would have included an address to the parliament.

...
https://www.theguardian.com/world/2...-cancelled-joe-biden-calls-off-australia-trip

 

[daytrader]

China takes next step in currency globalization

China’s gradual internationalisation of its currency will shift to its next leg on Monday when about two dozen Chinese companies start trading in Yuan in Hong Kong’s stock market.

Hong Kong stocks such as Alibaba and Tencent are among the 24 stocks which will be priced and traded in both yuan and the Hong Kong dollar under the Dual Counter Model on the Hong Kong stock exchange (HKEX) from Monday.

The scheme is targeting overseas investors with yuan holdings initially, but will later include mainland investors via the Hong Kong-China Stock Connect link-up later. Offshore yuan deposits in Hong Kong alone are estimated at some 833 billion yuan ($117 billion).

Fund managers say the step reflects Beijing’s desire to expand the use of yuan outside China and provide another avenue for yuan-denominated investment, thus reducing the risk of capital outflows chasing higher yielding currencies such as the U.S. dollar.

“China is pushing yuan internationalisation to avert geopolitical risks and reduce reliance on the dollar, and for that purpose, you need wider use of the Chinese currency,” said Ding Wenjie, strategist of Global Capital Investment at China Asset Management Co (ChinaAMC).

Ding said the scheme is a major milestone and expects the model to be expanded in future, beyond stocks to bonds and even alternative assets, boosting overseas asset pools denominated in yuan .

The initiative comes amid a steady stream of bilateral yuan-denominated deals China has struck with trading partners, from Chinese oil purchases in the Middle East, to commodities trade with partners from Brazil to Russia. Beijing has retained close ties with Moscow despite the invasion of Ukraine.

The U.S. dollar remains the dominant global currency, accounting for 42% of global payments. The yuan’s share is just 2.29%, but is up from 1.95% two years ago.

A significant breakthrough in China’s efforts to promote use of the yuan came this month, when Pakistan paid for its first government-to-government import of discounted Russian crude oil in yuan.

“When a currency is internationalised, it’s not only used in trade, physical goods, or services. It also has to be parked in investment vehicles,” said Dong Chen, Head of Asia Macroeconomic Research at Pictet Wealth Management.

For foreign investors with yuan holdings, “buying shares in Hong Kong without really going into mainland China will be a much, much easier way to park your holdings of this currency,” he said.

...
https://arynews.tv/china-next-step-yuan-globalization/

 

[KingKhanWC]

Indeed, and there's more to come!

Sleepy Joe is responsible for accelerating the demise of the USD.

Amreeka has no other country to go to war with, oh, accept Russia amd China, and we know that ain't happening for love nor money.

The global bullies are in a corner.
I’ll
Gold and Silver doing well!

Yippee!

Gold now record high this year , currently $2,338.02 per Troy ounce. 2016 it was hovering around $1000 .

There’s still time for people to invest & also secure themselves against any monetary/banking collapse .

 

[Technics 1210]

Gold now record high this year , currently $2,338.02 per Troy ounce. 2016 it was hovering around $1000 .

There’s still time for people to invest & also secure themselves against any monetary/banking collapse .

Yo bro!

Absolutely! The reality is that now the Russia, Chinese, and India are lapping up all the PMs they can. These governments have lost trust in the USD after their assets were frozen in the West. Big mistake, as there is no stopping Gold and Silver now.

Key thing to remember is that the rise in price has very little to do with interest rates. 15 year high rates, and Gold at record highs. That is not how the bankers had planned it.

I am buying more and more. Have topped up on Palladium and Platinum too.

 

[KingKhanWC]

Yo bro!

Absolutely! The reality is that now the Russia, Chinese, and India are lapping up all the PMs they can. These governments have lost trust in the USD after their assets were frozen in the West. Big mistake, as there is no stopping Gold and Silver now.

Key thing to remember is that the rise in price has very little to do with interest rates. 15 year high rates, and Gold at record highs. That is not how the bankers had planned it.

I am buying more and more. Have topped up on Palladium and Platinum too.

We mentioned the rise of gold years ago on here & many dismissed this . It could reach $3000 in 24 months if conditions continue.

The Chinese are hoarding hard assets esp rare & important minerals . Recently they have bought all the natural pearls , the market has virtually halted !

keep an eye on silver too . For those who can’t afford to invest gold, silver is a great alternative. When gold reaches over 3k this will take off & % increase will mr huge!

 

[FearlessRoar]

Saudi Arabia Ends 50-Year Petrodollar Deal with US: Why Is It A Big News?​

In a significant geopolitical shift, Saudi Arabia has decided to terminate its 50-year-old petrodollar agreement with the United States. According to media reports, the deal, signed on June 8, 1974, expired on June 9 and the Middle East country has now decided not to renew it.

It marks a historic turn in the economic and diplomatic relations between the two nations, which have long been anchored by their oil-for-dollars pact.

The term ‘petrodollar’ denotes the use of the US dollar as the currency for global crude oil transactions. The petrodollar system came about in the aftermath of the US going off the gold standard.

What is the Latest Issue?

Saudi Arabia has decided not to renew its long-standing agreement with the United States, under which the Kingdom would sell its oil exclusively in US dollars. This arrangement, known as the petrodollar system, has been a cornerstone of the global oil market and the US dollar’s dominance in international trade. The deal set up joint commissions for economic cooperation and Saudi Arabia’s military needs.

What Was the Deal and When Was It Signed?

The petrodollar system was established following an agreement on June 8, 1974, during a series of negotiations between the US government, led by President Richard Nixon and Secretary of State Henry Kissinger, and the Saudi royal family.

The deal was simple: in exchange for guaranteeing the security of the Saudi regime and providing military aid, Saudi Arabia agreed to price its oil exports exclusively in US dollars. This agreement ensured a steady demand for the US dollar, as other countries needed dollars to purchase oil, effectively reinforcing the dollar’s status as the world’s primary reserve currency.

What Was The Significance of the Petrodollar Deal?
The petrodollar system has been significant for several reasons:

US Dollar Dominance: The agreement cemented the US dollar’s position as the world’s dominant currency, facilitating international trade and allowing the US to exert significant influence over the global financial system.

Economic Stability: The steady demand for the US dollar helped maintain its value and provided the US with the unique ability to run large trade deficits without facing immediate economic repercussions.

Geopolitical Influence: The deal secured a strategic alliance between the US and Saudi Arabia, ensuring American influence in the Middle East, a region critical for its oil resources.

Financial Markets: The petrodollar recycling mechanism allowed oil-exporting countries to invest their surplus dollars in US assets, thereby supporting American financial markets and government debt.

Impact of Not Renewing the Deal

The decision by Saudi Arabia to end the petrodollar agreement is poised to have far-reaching consequences:

Global Currency Realignment: The end of the petrodollar system may lead to a decrease in global demand for the US dollar. Other currencies, such as the Euro, the Chinese Yuan, or even cryptocurrencies, could become more prominent in international trade, potentially diminishing the dollar’s hegemony. Saudi Arabia has become a participant in Project mBridge, a joint initiative aimed at developing a digital currency platform for use by central banks and commercial banks.

Volatility In Exchange Rates: A reduction in demand for the dollar could lead to greater volatility in exchange rates and financial markets. This might affect countries heavily reliant on dollar-denominated trade and debt.

US May Face Financial Challenges: The US may face challenges in financing its deficits and maintaining its economic dominance without the constant influx of petrodollars. This could result in higher interest rates and a reevaluation of fiscal policies.

Geopolitical Realignment: The termination of the deal could lead to a realignment of global alliances. Saudi Arabia might seek to strengthen ties with other major powers such as China or Russia, thereby altering the geopolitical landscape of the Middle East and beyond.

Oil Market Dynamics: Oil-exporting countries might start accepting multiple currencies for their oil, leading to a more diversified and potentially more complex oil market. This could impact global oil prices and trading practices.

Saudi Arabia Ends 50-Year Petrodollar Deal with US: Why Is It A Big News? - News18

Discover the implications of Saudi Arabia ending its 50-year petrodollar agreement with the US. Explore the potential impacts on global currency realignment, economic stability, and geopolitical relations.

www.news18.com

 

[KingKhanWC]

This was coming .

America will not be the same power it has been for decades.

 

[JaDed]

As Paul Krugman has said this is best thing for American middleclass.

Also not many noticed but this news is being spread by Indian media and not mainstream mostly for a legit reason as such an official deal never existed but an understanding did.

I hope India doesn’t mess too much with Uncle sam, I’m sure they are returning the favor due to one sided reporting on Indian elections favouring the dullard Raga.

 

[KingKhanWC]

@Technics 1210

Gold hits another all time high of $2718 per troy ounce right now!

 

[Technics 1210]

@Technics 1210

Gold hits another all time high of $2718 per troy ounce right now!

My neck is hurting after watching the price of gold rocket this year!

Silver doing incredibly well too!

Anyone who thinks the death of the dollar isn't possible should scramble for worthless paper while kings trust God's money!

 

[The Bald Eagle]

Yes it's inevitable

My neck is hurting after watching the price of gold rocket this year!

Silver doing incredibly well too!

Anyone who thinks the death of the dollar isn't possible should scramble for worthless paper while kings trust God's money!