So, we're no longer Saudi Arabia's biggest customer -- China is. And on top of that, we're crushing Saudi profit margins with 50% lower oil prices. "Saudi Arabia is hurting as much as Russia," said Saudi Prince Alwaleed bin Talal recently . He continued, "Now, we don't show it because of our big reserves. But I'll tell you: Saudi Arabia and Russia are now in bed together, because both are being hurt by the USA."
This isn't coming from a crackpot conspiracy theorist or someone in the US State Department. It's coming directly from a Saudi billionaire. He's cluing us in on what's really going on, which is that for the first time ever, the Saudis are considering striking back at the US by cutting off their "special petrodollar relationship" with America.
Remember, the Saudis had agreed to stick
to the petrodollar arrangement only if the US continued buying up their oil. If we don't keep buying it, they have no
reason to honor that petrodollar arrangement and agreement. And, as we've seen, they will most probably not
be honoring it much longer. And if not, that's
going to have huge implications for every man, woman and child in the United
States. Why? Because they will no longer be buying up
billions of dollars worth of US Treasury bonds, i.e. they will no longer be loaning our country
billions each year, for our wars and the extravagant life styles of those of us who are so privileged.
Saudi Arabia's 1.3 Billion New Friends
As the world's premier importer, it's China that now has the Saudis' full attention. It's like 1973 all over again. Except this time, instead of dealing with Kissinger and Nixon, the Saudis are plotting out the future of global economics in sync with their new pals in East Asia. Chinese officials are holding discreet meetings with Saudi Arabian officials as we speak. All the indications are that Saudi Arabia, China and Russia will soon launch the petrodollar-crushing "oil weapon" referenced earlier -- one that ends not just the US dollar's monopoly on all oil trade, but also ends the role of the US dollar as the world's reserve currency.
There's a new regime in Saudi Arabia -- one that doesn't have the ties to the US that existed under the late King Abdullah, who died in January. The new ruler, King Salman, is a man who transformed Riyadh from a desert wasteland into a sprawling city in his years as governor. This guy is ambitious. Strong-willed. And not afraid of the United States. And the Saudi people know that it's time for major policy changes.
That's why Saudi Arabia's new king will soon announce his decision to join forces with China and Russia, as well as Venezuela, Brazil and others, to begin trading oil outside of, and therefore independent of, the US dollar. The trading will be based on the Chinese petro-yuan instead of the US petrodollar, effectively ending the petrodollar's five-decade reign.
Traditional US enemies like Russia, China, Iran and Venezuela have been pushing for this change for years. But only now (with King Abdullah's death and America's transformation from Saudi Arabia's biggest customer to its biggest competitor) have Saudi Arabia and OPEC come on board.
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