Huge! Dems Did It! They Destroyed the Petrodollar Agreement

The 50-year-old petrodollar agreement between the U.S. and Saudi Arabia was allowed to expire.

The term “petrodollar” refers to the U.S. dollar’s role as the currency used for crude oil transactions on the world market.

This arrangement has its roots in the 1970s when the United States and Saudi Arabia struck a deal shortly after the U.S. went off the gold standard that would go on to have far-reaching consequences for the global economy.

Few agreements in the history of global finance have wielded as many benefits for the U.S. economy as the petrodollar pact.

THE END OF EVERYTHING BEGINS

The agreement reached in 1973 arranged for Saudi Arabia to price its oil exports exclusively in U.S. dollars and invest its surplus oil revenues and U.S. Treasury bonds. The US, in turn, provided military support and protection.

This arrangement meant that oil was dominated by the US dollar alone. This arrangement elevated the US dollar to the world’s reserve currency, keeping our currency strong. The influx of foreign capital into U.S. Treasury bonds has supported lower interest rates and a robust bond market.

The dollar’s strength was the reason for our high standard of living.

This is a very significant challenge to our dollar as Joe Biden is destroying our economy and as our enemies are forming their own currency exchange.

Oil priced in a currency other than the dollar will lead to a decline in global demand for the dollar. This could result in higher inflation, higher interest rates, and a weaker bond market in the United States.

The timing is terrible. This is a shift in global power dynamics. Emerging economies can now challenge the US, and we have economic illiterates in power. Thank the Biden regime and Democrats for this.

When we used this over and over as a weapon, we drove them away. BRICS is about to go global and the petroyuan just got a huge boost.

There is a price to be paid for voting for a figurehead and having no one accountable in the government.

At the same time all this is going on, the government is spending wildly, and destroying the foundation of our energy sector.

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