The State of the Dollar
OBIDEN DID THAT!
The weakened dollar makes imports more expensive, fueling already high inflation rates. The U.S. Federal Reserve raises interest rates aggressively to combat inflation, but this has little effect, even as domestic businesses need help finding the dollars to pay for materials and keep workers on.
Bidenomics has weakened the dollar, which, more than anything, has led to some countries trying to de-dollarize, meaning the US would not be used as the reserve currency in the future. This would make the US instantly poor. However, some experts say it’s not likely to happen for a decade or more.
The US has a very weakened economy under Joe Biden and his handlers, Obama, Clinton, and Soros staff.
In addition to open borders, high taxes, regulations, and interest rates, the world is de-dollarizing because they don’t trust us after repeatedly weaponizing the dollar.
Currently, the US is still necessary for trade, but the movement to de-dollarization is real.
Bloomberg reported that China sold a record $53.3 billion worth of Treasury and agency bonds in the first quarter. The country previously unloaded US debt to prop up its yuan, which has again grown weak against a rallying dollar. It is also piling up gold.
Rich countries are buying gold.
What happens if foreign countries all abandon the dollar:
Losing Saudi Arabia’s trade in dollars would be a problem for the US.
The Saudi Arabia Agreement
According to Russia, Saudi Arabia did not renew a 50-year agreement to trade security from the US in exchange for the US using oil dollars because there was never a written agreement.
RT said there never was an agreement. Is that true?
RT reported that the expiration of a 50-year ‘petrodollar’ treaty between the US and Saudi Arabia is a fiction.
“The spurious reports appear to have originated in India or in the murky tangle of websites aimed at crypto investors. There was an official agreement between the US and Saudi Arabia signed in June of 1974, and another secret one was reached later that year, according to which the Saudis were promised military aid in exchange for recycling their oil proceeds into US Treasuries.
The deal whereby Riyadh would sell its oil in dollars was informal, and there was no expiration date. The petrodollar system, as we have come to know largely, grew organically.
“However, this fiction points to an underlying truth: the petrodollar has entered a long twilight from which there will be no return. No other economic arrangement has done more to ensure American preeminence over the last half-century.
Yet, in its essence, it represented an implicit oil backing to the dollar that would be maintained. To borrow an idea originally expressed by financial analyst Luke Gromen, it is ultimately America’s inability and unwillingness to maintain this backing that is gradually dooming the system.”
