End of the petro dollar.

[std7mag]

Has any of the "mainstream media" yet reported about Saudi Arabia putting an end to the US dollar as the only money of use to buy oil?

I've only seen 3 places ( that most people probably don't go to) that have done reports on it.

Dana Loesch ( I think that's the spelling) had a good interview with Carol Roth about it.

 

[popeyoung12]

Yes, chicoms trying to control oil. Goodluck. Next mini Bernie will make bitcoin the world currency. Lmfao.

 

[Dsnow9]

I don’t consume mainstream media but heard about them not renewing the agreement the other day. That could be very bad!

 

[manitou1]

The country in which their currency is used for petroleum trade is the country that will possess the wealth.

It's all in "The Plan".

 

[homers]

Cut countries from SWIFT payment system when the US or the EU don’t agree with your politics, then steal “profits” of frozen accounts. Actions like this get lots of countries attention. BRICS getting traction. This will be another nail in the financial coffin of the US.

 

[Beignet]

No one is covering it because it’s fake news.

Did the 24hr and 4chan suspend your accounts or something?

https://www.marketwatch.com/amp/story/reports-of-the-petrodollar-systems-demise-are-fake-news-heres-why-4e712804

 

[SAJ-99]

Has any of the "mainstream media" yet reported about Saudi Arabia putting an end to the US dollar as the only money of use to buy oil?

I've only seen 3 places ( that most people probably don't go to) that have done reports on it.

Dana Loesch ( I think that's the spelling) had a good interview with Carol Roth about it.

The news was a 50yr agreement between the US and Saudi Arabia to settle oil transactions in US dollars expired and has not been renewed, as of yet. Transactions continue to settle in US dollars. Per the article linked about, there was no agreement. I’m not sure what existed.

 

[BigHornRam]

Interesting segment on 60 minutes.

Investigators for 9/11 families examine video taken by man with ties to Saudi intelligence referencing a "plan"

A video unsealed in federal court this week raises new questions about Saudi Arabia's connection to the deadly 9/11 terror attacks.

www.cbsnews.com

 

[ismith]

The news was a 50yr agreement between the US and Saudi Arabia to settle oil transactions in US dollars expired and has not been renewed, as of yet. Transactions continue to settle in US dollars. Per the article linked about, there was no agreement. I’m not sure what existed.

“No official agreement”.

 

[Bluffgruff]

One time 20 years ago, there was a fake news story about Britney Spears and Justin Timberlake dying in a car wreck. It made the mainstream media cautious about checking into stories before publishing them.

Britney and Justin Not Dead After All

abcnews.go.com

Wait, mainstream media DID check that story and found out it was fake, and didn't get caught looking like idiots propagating a false rumor.

Fringe media doesn't get clicks and views by verifying stories. News starts somewhere, but it isn't a conspiracy when mainstream media doesn't cover something, it's usually because it wasn't news.

 

[BigHornRam]

No one is covering it because it’s fake news.

Did the 24hr and 4chan suspend your accounts or something?

https://www.marketwatch.com/amp/story/reports-of-the-petrodollar-systems-demise-are-fake-news-heres-why-4e712804

This part buried in your article is what this is all about.

"Perhaps the closest thing to a petrodollar deal was a secret agreement between the U.S. and Saudi Arabia reached in late 1974, which promised military aid and equipment in exchange for the Kingdom investing billions of dollars of its oil-sale proceeds in U.S. Treasurys, Donovan said. The existence of this agreement wasn’t revealed until 2016, when Bloomberg News filed a Freedom of Information Act request with the National Archives.

Bloomberg’s reporting also led to the Treasury Department breaking out figures on Saudi Treasury ownership for the first time, revealing that the Kingdom was among the largest creditors to the U.S. — although Bloomberg’s sources reportedly said the official figures likely underestimated the Kingdom’s total dollar reserves."

Saudi Kingdom getting cold feet over owning U. S. Treasurys is what this is all about. No fake news there if you are paying any attention.

 

[Bluffgruff]

This part buried in your article is what this is all about.

"Perhaps the closest thing to a petrodollar deal was a secret agreement between the U.S. and Saudi Arabia reached in late 1974, which promised military aid and equipment in exchange for the Kingdom investing billions of dollars of its oil-sale proceeds in U.S. Treasurys, Donovan said. The existence of this agreement wasn’t revealed until 2016, when Bloomberg News filed a Freedom of Information Act request with the National Archives.

Bloomberg’s reporting also led to the Treasury Department breaking out figures on Saudi Treasury ownership for the first time, revealing that the Kingdom was among the largest creditors to the U.S. — although Bloomberg’s sources reportedly said the official figures likely underestimated the Kingdom’s total dollar reserves."

Saudi Kingdom getting cold feet over owning U. S. Treasurys is what this is all about. No fake news there if you are paying any attention.

A kernel of truth in every conspiracy theory to give a hint of "truthiness" does not make the conspiracy true.

 

[BigHornRam]

A kernel of truth in every conspiracy theory to give a hint of "truthiness" does not make the conspiracy true.

No. The article spent 90% of it's time calling it a conspiracy theory, then spilled the beans in 2 paragraphs long after it's intended audience stopped reading their "journalism".

How about the latest information dump on 60 minutes? Coincidence or sending a message to the Saudis?

 

[Bluffgruff]

The 60 minutes article you posted wasn't what I was talking about.

I don't see the dots to connect between the Saudis owning US treasuries and a credible news outlet releasing the information 60 minutes did.

The Saudis have done some really stupid and violent things, like murdering a journalist for writing about them doing stupid and violent things, but the monetary policy is a different beast.

The petrodollar myth that two typically far right catering personalities are marketing to a thirsty audience is a bunch of half truths and recycling of older clickbait pieces since at least the late 2000s. So this has been done before.

I'm not even the slightest bit convinced that this is something that deserves any more of my brain power.

 

[Beignet]

Saudi Kingdom getting cold feet over owning U. S. Treasurys is what this is all about. No fake news there if you are paying any attention.

The Saudi Sovereign Wealth Fund is kind of smaller ‘taters as far as US creditors go. I’d be more concerned if the European Lowlanders or Swiss started getting cold feet.

The Saudis held a high of ~$128b as of 01/24. Not sure what was secret about their SWF holding US treasuries; it was a subject we covered in master’s level international political economy class I took in 2011, before Bloomberg filed a FOIA.

Here are the top US creditors as of 3/24.

 

[BigHornRam]

The Saudi Sovereign Wealth Fund is kind of smaller ‘taters as far as US creditors go. I’d be more concerned if the European Lowlanders or Swiss started getting cold feet.

The Saudis held a high of ~$128b as of 01/24. Not sure what was secret about their SWF holding US treasuries; it was a subject we covered in master’s level international political economy class I took in 2011, before Bloomberg filed a FOIA.

Here are the top US creditors as of 3/24.

China, Japan, and Taiwan concern me more. Right now the Saudi thugs are trying to decide which team to play for. The 60 minute story tells me we are running out of leverage.

 

[morley.tyler]

For all of the other Fiat Currencies, which is the replacement?
Euro? Please... When Germany uses the same currency as Latvia, Portugal, and Italy, it's not globally stable. Am I the only one who remembers when the PIGS and how the Euro nearly collapsed?
Chinese Yuan? C'mon. Demographic catastrophe and Communism alone should answer this question, but if you need a little more info, their currency manipulation pushes them out of contention.
Japanese Yen- OK, they've only lost 25% of its value in the past 2 years.

Crypto... yeah.

Thus, the US Greenback remains the global currency. I may be wrong, but I'm open to discussion.

 

[SAJ-99]

Saudi Kingdom getting cold feet over owning U. S. Treasurys is what this is all about. No fake news there if you are paying any attention.

You keep saying this, but it isn't true. The reality is that in 1974 US used to import about 13% of its oil from SA (and the number looked like it was going higher). Today that percentage is about 7%. China and Japan are the largest customers of SA oil. So SA will and should naturally hold some reserves in those currencies as well. There is news about transactions settling in Yuan, but that isn't all that important. Oil trades settle in yen and Aussie dollar and everything else all the time. If SA wants that currency, it can keep it. If it doesn't, it can convert it to something else.

The key to explaining why your position is BS, along with all the other "X currency replacing the USD" is that changing the global economic system isn't that easy. The Yuan is soft pegged to the USD. The Saudi Riyadh is HARD PEGGED to the USD. It's hard to not want to own USD assets AND keep your currency pegged to it. Trade and currency stability explains 99% of what is driving currency reserves. If the Crown Prince wants to destabilize the SA economy (and thereby destabilize its social order) he can de-peg from the USD. The US view right now is "go ahead. I dare you". If we need their oil in the future, maybe that changes. Most countries have slowly moved away from the USD system because when the US doesn't like their dictator killing citizens, the US can implement sanctions that typically involve cutting them out of the USD system. Rumor is they are driving gold prices higher.

I'm not saying replacement as reserve won't happen eventually, just that it won't be fast. The pound used to be the global reserve currency for 100yrs before the USD took over. A reserve currency needs to be stable. The economist of major economies already created an alternative to the USD that is an aggregate of the world's major currencies. It's the SDR (Special drawing rights). I'll add a link. The problem is no one uses it. Even if it is a good idea, change is hard.

SDR Valuation

 

[Beignet]

China, Japan, and Taiwan concern me more. Right now the Saudi thugs are trying to decide which team to play for. The 60 minute story tells me we are running out of leverage.

Why concerns about Japan? I’d consider them to be stalwart, reliable allies.

Taiwan seems like a better option than mainland China. Our ability to openly play both sides, to me, speaks to the durability of US global hegemony.

As for the Saudis: I was a “Middle East Policy Guy” in a prior life and have never been a fan of them nor US willingness to kowtow to their government. I’ll avoid going into detail of historical errors and misguidance in US diplomatic and economic alliances with awful governments, but our relations with them deserve a high place on that list. It seems kind of shameful that they’ve had influence over US policy in the region for so long.

 

[BigHornRam]

Why concerns about Japan? I’d consider them to be stalwart, reliable allies.

Taiwan seems like a better option than mainland China. Our ability to openly play both sides, to me, speaks to the durability of US global hegemony.

As for the Saudis: I was a “Middle East Policy Guy” in a prior life and have never been a fan of them nor US willingness to kowtow to their government. I’ll avoid going into detail of historical errors and misguidance in US diplomatic and economic alliances with awful governments, but our relations with them deserve a high place on that list. It seems kind of shameful that they’ve had influence over US policy in the region for so long.

If China decides to move on Taiwan or Japan, who is stopping them?