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Saudi Arabia Likely to Start Using Yuan for Oil Trade: End of Petrodollar?

MG is a keen political observer and commentator who has a ringside seat to the turbulent years of the present political scenario

saudi-arabia-likely-to-start-using-yuan-for-oil-trade-end-of-petrodollar

Introduction

Momentous events are taking place in the world. There are some Americans who have lost sight of the fact that American hegemony over the world is under threat. They are so much engrossed in shouting comments like Putin is a killer, Putin is a murderer that they are losing sight of the fact that the world is losing patience with America, in particular the massive landmass of Asia.

There are some voices in America as well and one of them is Rep. Madison Cawthorn. He called Ukrainian President Volodymyr Zelensky a "thug" and the Ukrainian government "evil". (https://timesnewsnetwork.com/news/usa/cawthorn-calls-zelensky-a-thug-and-ukrainian-government-incredibly-evil/)

With the United States under Biden going soft on China and perhaps having already made some understanding on Taiwan, the Asian nations had to take stock of reality. The reality is that America is losing its hegemony over the world and that too just after 75 years of the end of World War II.

The nadir of American prestige was reached recently when Joe Biden wished to make a telephone call to the de facto ruler of Saudi Arabia Mohammed Salman bin Saud and the UAE leader. Despite repeated attempts by Biden, both the leaders refused to come online and speak to Joe Biden. His calls were not attended to. In living memory, nobody can recollect such an insult being meted to an American president.(https://www.middleeasteye.net/news/saudi-arabia-uae-leaders-mbs-mbz-reject-call-biden)

Saudi Arabia has also decided that it will not continue trading petrodollars and we'll switch to Yuan the Chinese currency. This is likely to be a massive blow to America

saudi-arabia-likely-to-start-using-yuan-for-oil-trade-end-of-petrodollar

Petrodollar

What is the petrodollar? I will give a very rudimentary idea about it to the readers on this site. In 1974, an agreement was made between America and Saudi Arabia where it was decided that all payments of oil from Saudi Arabia and the Middle East would be in dollars; in other words, the currency of trade would be the dollar.

The agreement further specified that any profits which will be accruing from this trade would be invested in the United States government bonds and other instruments in the United States. In return, America agreed to provide security cover for Saudi Arabia.

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However, the Middle Eastern leadership realized that the Americans cannot be relied upon, especially after their ignoramus retreat from Afghanistan, when they left the Afghan people to their fate. The world also noted that the Americans have provoked the conflict in Ukraine to try and keep American hegemony alive all over the world, but the sad part is that the way Joe Biden went about all this was extremely unprofessional. Many got a feeling, he didn't have a clue how to react to a situation. Many countries in Southeast Asia and the Middle East realized that the American promise to defend these nations is extremely hollow and they have to make an accommodation with the rising power of China.

The Saudi leadership under Mohammed bin Salman has almost decided that henceforth they will not be using the dollar as the currency for oil trade and their massive exports to China will be in Yuan, the Chinese currency.

This is a blow to America and I wonder who can take the blame for it other than Joe Biden?



saudi-arabia-likely-to-start-using-yuan-for-oil-trade-end-of-petrodollar

Eclipse of America under Biden

So long as Donald Trump was president, he had the knack of keeping nations under check and both Russia and China were amenable. He also engineered the Abraham accord that bought peace between the Arabs and Israel. He should've got a Nobel peace prize but I understand many in America lobbied with the Norwegian Parliament to deny him this honor.

Biden took over the presidency without a clue what to do, except for the one-point agenda to try and denigrate Donald Trump. He was clueless on Taiwan and Ukraine and played into the hands of his advisers who provoked the conflict with Russia. When the chips were down he failed to come to the help of Ukraine militarily and the result is that Ukraine is destroyed. The world has watched and even Taiwan now knows that in a physical assault by China in another year or two, when they have the capability to launch a seaborne invasion, their days are numbered because Biden will again be sitting before the hearth warming his hands.

I'm afraid I have to use a little strong language to convey to my American readers the amount of anguish in Southeast Asia at the antics of Biden. American readers must accept that there is a lot of support for Russia in Asia and the Middle East and nobody's happy at the way Joe Biden went about needling Russia and holding a lollipop to Yellenskyy and egging him on to take on Russia.

I remember the words of Sir Winston Churchill, who had said after the battle of Stalingrad that this is the beginning of the end of the third reach. I feel very sad that I have to write something like this about the United States. Their action in Ukraine irrespective of whatever happens to Russia is the beginning of the end of their hegemony over the world. It's all very sad but perhaps that is the will of Lord Krishna. The Petrodollar's demise is part of this process.

© 2022 MG Singh emge

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