Once again, we find the progressive communist democrats and their RINO (Republicans In Name Only) cohorts fighting to destroy America’s energy dependence with a false argument.
They argue that America must keep purchasing foreign energy and keep pumping artificially-created dollars into the world’s energy market to preserve the dominance of the U.S. Dollar as the reserve currency of the world.
They point to the creation of the Communist China-created petroyuan as a boogieman. Claiming that China and Russia will cobble a coalition to trade oil in petroyuan rather than petrodollars, thus creating a new world reserve currency.
And the question they never seem to ask is which foreign oligarchs and elites would rather bank their personal funds in China or Russia, or, if given the opportunity, in the United States?
The petrodollar versus the petroyuan…
In 1944, forty-four allied nations executed the Bretton Woods Agreement to make the U.S. dollar the world’s official reserve currency. The entire global petroleum system is based on the United States dollar as the reserve currency used for international energy transactions.
Without these so-called petrodollars, central banks would not need to keep large amounts of American dollars, usually in the form of treasury securities, on hand to settle energy debts.
So the globalist narrative goes, without foreign sources to purchase U.S. treasury securities, the United States can no longer print worthless fiat currency, and our nation spins into a significant recession.
But is it true, or are we being whipsawed into supporting the national interests of other nations?
There is but one overriding goal for the Saudis: preserve the sovereignty of Saudi Arabia and the continuing rule of the Saudi Royal Family. Unfortunately, the Obama/Biden regime has proven, beyond a shadow of a doubt, that their word cannot be trusted and that longstanding agreements with allies and friends are subject to modification to meet the demand of domestic politics. So there should be little surprise that our friends and allies are now hedging their bets. Knowing they can no longer rely on America, they seek rapprochement -- reestablishing cordial relations with those nations whose national interests are diametrically opposite those of the United States.
Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales -- Talks between Riyadh and Beijing have accelerated as the Saudi unhappiness grows with Washington
Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan, people familiar with the matter said, a move that would dent the U.S. dollar’s dominance of the global petroleum market and mark another shift by the world’s top crude exporter toward Asia.
The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, the people said.
The Saudis are angry over the U.S.’s lack of support for their intervention in the Yemen civil war, and over the Biden administration’s attempt to strike a deal with Iran over its nuclear program. Saudi officials have said they were shocked by the precipitous U.S. withdrawal from Afghanistan last year.
China buys more than 25% of the oil that Saudi Arabia exports. If priced in yuan, those sales would boost the standing of China’s currency. The Saudis are also considering including yuan-denominated futures contracts, known as the petroyuan, in the pricing model of Saudi Arabian Oil Co. , known as Aramco. <Source: Wall Street Journal>
It appears that the Saudis are attempting to capitalize on the mental incapacity of President Biden and his corrupt, incompetent, and feckless administration led by America-hating Obama acolytes. They are delusional if they believe China or Russia will protect them from a nuclear Iran.
The dominance of the U.S. Dollar as the world’s reserve currency is based mainly on the size, strength, and stability of the U.S. economy and the dominant influence of U.S. financial markets. Despite our precarious fiscal condition, compromised by massive deficit spending, multi-trillions of dollars in national debt, and the seemingly endless printing of U.S. dollars, purchasing U.S. Treasury securities remain the safest way for foreign nations to store their capital reserves.
The U.S. Dollar, backed by the full faith and credit of the United States – the implicit trust and confidence that the United States can pay its debts -- will continue to make the U.S. dollar the most redeemable currency for transacting the world’s commerce.
Those who govern America must stand strong and avoid being whipsawed by our enemies into taking actions that benefit hostile foreign forces like Communist China and Russia. Both economic paper tigers shored up by bravado and nuclear weaponry.
We are so screwed when our leadership is braindead and acting against our nation in favor of our enemies. Will the pussies in the Biden Administration cave?
“Nullius in verba.”-- take nobody's word for it!
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS
"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius
“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell
“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar
“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS