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What part will your country play in World War III?

By Larry Romanoff

The true origins of the two World Wars have been deleted from all our history books and replaced with mythology. Neither War was started (or desired) by Germany, but both at the instigation of a group of European Zionist Jews with the stated intent of the total destruction of Germany. The documentation is overwhelming and the evidence undeniable. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

That history is being repeated today in a mass grooming of the Western world’s people (especially Americans) in preparation for World War IIIwhich I believe is now imminent

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Friday, June 14, 2024

U.S.-Saudi Petrodollar Pact Ends after 50 Years

  


U.S.-Saudi Petrodollar Pact Ends after 50 Years

June 11, 2024 — 11:01 am EDT

Written by Paul Hoffman for TipRanks ->

 

The 50-year-old petrodollar agreement between the U.S. and Saudi Arabia was just 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. In the history of global finance, few agreements have wielded as many benefits as the petrodollar pact did for the U.S. economy.

A Boon to U.S. Bonds

The petrodollar agreement, formalized after the 1973 oil crisis, stipulated that Saudi Arabia would price its oil exports exclusively in U.S. dollars and invest its surplus oil revenues in U.S. Treasury bonds. In return, the U.S. provided military support and protection to the kingdom. This arrangement was a win-win situation for both; the U.S. gained a stable source of oil and a captive market for its debt, while Saudi Arabia secured its economic and overall security. 

Status as the Reserve Currency

Oil being denominated in U.S. dollars alone has significance beyond the categories of oil and finance. By mandating that oil be sold in U.S. dollars (DXY), the agreement elevated the dollar’s status as the world’s reserve currency. This, in turn, has profoundly impacted the U.S. economy. The global demand for dollars to purchase oil has helped to keep the currency strong, making imports relatively cheap for American consumers. Additionally, the influx of foreign capital into U.S. Treasury bonds has supported low interest rates and a robust bond market. 

In his recent book, Bonfire of the Sanities (December 2023), bestselling author and investment manager David Wright argues the strength of the dollar is a key factor behind America’s high standard of living. Wright declares that the reason why people in the U.S. enjoy “as high of a standard of living as we do is because the dollar is strong.” Wright then explains this strength is partly because of faith in our economy “and because energy can’t be bought without U.S. dollars.”

Potential to Disrupt the Global Financial Order

However, the petrodollar’s dominance may be facing its most significant challenge yet. The agreement between the U.S. and Saudi Arabia expired on June 9, 2024. This expiration has far-reaching implications, as it has the potential to disrupt the global financial order. 

The shifting power dynamics in the oil market are a critical factor in this development. The rise of alternative energy sources, such as renewables and natural gas, has reduced the world’s reliance on oil. Furthermore, the emergence of new oil-producing nations, such as Brazil and Canada, has challenged the traditional dominance of the Middle East. 

U.S. Dollar’s Future

The petrodollar’s expiration could weaken the U.S. dollar and, by extension, the U.S. financial markets. If oil were to be priced in a currency other than the dollar, it could lead to a decline in global demand for the greenback. This, in turn, could result in higher inflation, higher interest rates, and a weaker bond market in the United States. 

Key Takeaway – A Significant Shift in Global Power Dynamics

The expiration of the petrodollar agreement represents a significant shift in global power dynamics. It highlights the growing influence of emerging economies and the changing energy landscape. While the full implications of this shift remain to be seen, investors should at least be aware that on a macro level, the global financial order is entering a new era. The U.S. dollar’s dominance is no longer guaranteed.

The Canadian ETF Market, Retail and Institutional Usage of ETFs, Liquidity, Execution, and TradingThe Canadian ETF Market, Retail and Institutional Usage of ETFs, Liquidity, Execution, and Trading


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/us-saudi-petrodollar-pact-ends-after-50-years

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Arriving in China

Ver a imagem de origem


APPEAL TO THE LEADERS OF THE NINE NUCLEAR WEAPONS’ STATES

(China, France, India, Israel, North Korea, Pakistan, Russia, the United Kingdom and the United States)

中文 DEUTSCH ENGLISH FRANÇAIS ITALIAN PORTUGUESE RUSSIAN SPANISH ROMÂNA





contributing author

to Cynthia McKinney's new COVID-19 anthology

'When China Sneezes'

When China Sneezes: From the Coronavirus Lockdown to the Global Politico-Economic Crisis

MOON OF SHANGHAI

MOON OF SHANGHAI
Click image

vp 2007

manlio

President of Russia Vladimir Putin:

Address to the Nation

Address to the Nation.


J Bacque

vp


The President of Russia delivered the Address to the Federal Assembly. The ceremony took place at the Manezh Central Exhibition Hall.


January 15, 2020

Joint news conference following a Normandy format summit

https://tributetoapresident.blogspot.com/2019/12/joint-news-conference-following.html

Joint news conference following the Normandy format summit.

Manlio

PISA BOOK FESTIVAL

convegno 2019

do the maths