re: Saudi Arabia's petro-dollar exit: A global finance paradigm shift

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The dollar endgame begins.

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It doesn’t end, we remind those who owns the world

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I'm not sure this will work out well for the Saudi's if they do anything that really starts to hurt the U.S. and the dollar.

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This won't work out well for the US and a handful of Western countries, but the rest of the world will chug along either without a care for our fate or actively rooting for our self-implosion.

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Well done obiden well done.

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This is the result of every admin that ran up the debt. Obama and Biden the only ones that fit that description? Wake up.

What would happen if US based companies opted to begin paying their employees in another currency?

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Confidence in the US Navy protecting shipping lanes is a joke right now.

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Soon the Patriot will be in charge!!

Wow, it appears clearly, in that chart, the Federal Reserve did indeed destroy the dollar.

OK, demand payment in yuan.....or ruble which is currently tanking

The USA will start taking drastic measures. Expect the CIA to really start targeting BRICS countries now.

MbS loves dollars and needs them no matter how he gets them. Give him yuan....he quickly converts to the dollar. He isn't holding them. I can assure you of that. He's modernizing his country and dollars are better for that than anything else out there. Plus he's reliant across the board on the US to guarantee oil shipments across the globe....even the Chinese and Indians would rather dollars being paid to them.

Right after reading this post, I went over to 321gold.com as it's a good economic doom porn aggregator. This is the second link.

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TEOTWAWKI
And I feel fine

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On the 6th of June 1974, the Watergate scandal was in full bloom, the global economy was in the crapper, and I was anxiously awaiting my 13th birthday to become a full-fledged teenager. President Nixon had instituted a national 55mph speed limit, which essentially pissed off everyone who lived west of the Mississippi River. Japan was the China of the day and the Vietnam war was nearing the end of its decade-long stranglehold on Merkin culture.

At that moment, Prince Fahd ibn Abdel Aziz and US Secretary of State Henry Kissinger were sitting down to change the world and create an empire. The Petrodollar Pact, among other things, forced the world to buy oil and gas in US dollars, and created Saudi Aramco, the single most powerful energy company ever.

At the same time, Nixon had ended the Bretton Woods agreement and closed the gold window at the Federal Reserve Bank, thus severing US currency from its Constitutional link to precious metals. This event tied the dollar’s value to energy instead of gold and allowed the dollar to be inflated to unimaginable levels as a debt instrument.

Suddenly, the world desperately needed dollars to buy energy for economic growth, and the US had the power to hand out “aid” and loans — through the IMF created by Bretton Woods — which meant the politicians could go on an economic binge unlike anything seen before, and the inflationary consequences could be exported and amortized over the entire planet.

Fifty years later, the US has $34 trillion in public debt, not to mention the untold trillions in global private debt (namely the Eurodollar) denominated in dollars and tied intricately to US control over energy and the means to pay for it.

And it all ended on Monday.

With the US dollar no longer tied to gold and no longer needed to buy energy, Congress no longer controls global economic growth. Who will buy US Treasuries if they don’t need dollars to buy energy? How will the US be able to sanction its opposition if it cannot hold the dollar up as coercion and incentive? How will Wall Street dominate global finance if the dollar imperative is lost?

The most destructive part is what will happen when nations begin to sell off US Treasuries to diversify their foreign currency reserves and promote their own currencies on a suddenly-level playing field?

The net effect will likely be that the US will no longer be able to export its inflation, and the domestic economy will inflate like a massive balloon, as the politicians scramble to avoid anything sharp. Government spending will perforce come to an inglorious halt, as Congress’ ability to borrow funds dries up. Social safety nets will crater and the country’s socio-economic free ride of the past half century will abruptly end.

On the global stage, US Treasuries will become nearly worthless, and private debt will simply roll over into alternative currencies, such as yuan, rupee and Swiss franc. There will be some amount of turmoil as everyone scrambles to re-denominate contracts and loan agreements, but it will stabilize relatively quickly, especially with the introduction of the BRICS’ new blockchain payment system that circumvents the SWIFT system that has dominated global banking and trade since the introduction of the Petrodollar.

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LINK