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Halls of Shrewd'm / US Policy❤
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Author: Dope1   😊 😞
Number: of 48481 
Subject: The petrodollar is no more
Date: 06/13/2024 5:58 PM
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The 50 year old agreement between the US and Saudi Arabia, which stipulated that SA sets the price of its oil in US dollars, is no more:

https://www.nasdaq.com/articles/us-saudi-petrodoll...

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.

What were those consequences?

*The US dollar became the world's reserve currency
*US bonds became very attractive

...and many more. One of the fringe bennies was us having the ability to deficit spend without any consequences and US inflation could be exported.

Buckle up.
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