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Mar 16 2022

World Begins to Move Away From Dollar

When people of Joe Biden’s caliber took over Rhodesia (now Zimbabwe) and Venezuela, the resulting looting spree produced hyperinflation that reduced the currency to virtual worthlessness, so that money literally was not worth the paper it was printed on. The inflation Biden has presided over is bad but not that bad yet, because the US dollar is the world’s reserve currency. The ongoing spending blowout by Democrats — financed largely through inflation — comes at the expense not only of Americans, but of the whole world. But this arrangement will not last forever, because the rest of the world does not like being looted by our corrupt and insatiably greedy politicians.

Saudi Arabia has had enough:

Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan … 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.

Reckless spending is not the only factor debasing the value of American currency. Democrats’ inept foreign policy also plays a role:

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.

The pro-terrorist rhetoric from prominent congresswoman Ilhan Omar of the Committee on Foreign Affairs probably doesn’t help.

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.

ChiComs’ gain is Americans’ pain, as this comes at our expense. But as Kamala Harris reminds us, many Americans asked for this.

The majority of global oil sales—around 80%—are done in dollars, and the Saudis have traded oil exclusively in dollars since 1974, in a deal with the Nixon administration that included security guarantees for the kingdom.

What is a security guarantee from the USA worth after Biden’s debacle in Afghanistan?

The Saudi move could chip away at the supremacy of the U.S. dollar in the international financial system, which Washington has relied on for decades to print Treasury bills it uses to finance its budget deficit.

Ham-fisted attempts to punish Russia over Ukraine are not helping:

Ali Shihabi, who … ran a pro-Saudi think tank in Washington, said the kingdom can’t ignore China’s desire to pay for oil imports in its own currency, particularly after the U.S. and EU blocked the Russian central bank from selling foreign currencies in its reserves stockpile.

Speaking of Russia,

Russia, many of whose banks have been cut off from the Swift financial network, is exploring opening alternative payment channels with India…

India and Russia are also exploring the possibility of using China’s yuan as a reference currency to value the rupee-ruble trade mechanism…

The rupee-ruble trade is a payment mechanism that can allow Indian exporters to be paid in rupees instead of standard global currencies such as the dollar…

Says Dmitry Solodov, a spokesperson for the Russian embassy in India,

“[T]here is an ongoing natural tendency, which is aimed to decrease the level of dollar-denominated transactions. This tendency is relevant not only to Russia or India but to many other countries too.”

Attempts to marginalize Russia may have the effect of marginalizing the dollar.

Barack Obama used to promise to make America “more like the rest of the world” — i.e., just another country, with no advantages over the rest of them. Biden has followed up on this promise.

On tips from Occam’s Stubble and Gringoman.


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One Response to “World Begins to Move Away From Dollar”

  1. […] to the wanton irresponsibility of our moonbat rulers, the dollar will not be the world’s reserve currency for long. Soon hyperinflation will set it, initiating the total […]


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