When Trump says repeatedly, "There is no global currency," and when he tells the Saudis they must pay for their own defense, he is really telling the world the Petrodollar system is going away. Since 1975, the Petrodollar has been the primary factor conveying value to the US dollar overseas. It is the reason countries around the world use US dollars for international trade, even when the US is not involved. And to obtain enough dollars to buy OPEC oil, those countries are forced to sell America a lot of cheap stuff. It’s a form of enslavement. And the only reason the Saudis, or any other OPEC nations (Iran and Venezuela the exceptions), price their oil in dollars is that as part of that agreement, the US pledges to protect those nations from foreign aggressors. But if, as Trump has publicly urged now many times, the Saudis and other OPEC nations eventually protect themselves, they won't need US dollars except for what they buy from America.
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Trump on a Fed Warpath
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When Trump says repeatedly, "There is no global currency," and when he tells the Saudis they must pay for their own defense, he is really telling the world the Petrodollar system is going away. Since 1975, the Petrodollar has been the primary factor conveying value to the US dollar overseas. It is the reason countries around the world use US dollars for international trade, even when the US is not involved. And to obtain enough dollars to buy OPEC oil, those countries are forced to sell America a lot of cheap stuff. It’s a form of enslavement. And the only reason the Saudis, or any other OPEC nations (Iran and Venezuela the exceptions), price their oil in dollars is that as part of that agreement, the US pledges to protect those nations from foreign aggressors. But if, as Trump has publicly urged now many times, the Saudis and other OPEC nations eventually protect themselves, they won't need US dollars except for what they buy from America.