Well, what do you know?
This is interesting because for years I’ve heard that the US dollar might be in a bit of trouble…. Hmm https://t.co/Gme6rMiFA5
— Shemar anglin †(@S_AnglinIV) March 15, 2022
“The Saudis are angry…over the Biden administration’s attempt to strike a deal with Iran…were shocked by the precipitous U.S. withdrawal from Afghanistan.”
You did it Joe.
However, the financial geniuses at Bloomberg claim this is no biggie.
Saudi Switch to Yuan Seen as Symbolic, Not True Threat to Dollar – Bloomberg https://t.co/nbL9bk94E0
— Matthew Levitt (@Levitt_Matt) March 16, 2022
I don’t even understand what do they mean by “symbolic”, yet they claim the Saudis are only intending to send a political message to the US.
The current narrative is that the Saudi currency is pegged to the USD, so collapsing the US dollar (the petrodollar) is not a good idea. However, this is not how fiat currency works, i.e. if the Saudis will trade their oil for Yuan, they can easily peg their currency to the Yuan.
The thing is, the value of a given fiat currency is based on the productivity of the respective nation, except from the US dollar, which has special status, i.e. it’s the world reserve currency since almost all commodities are traded in USD (including oil via OPEC) and it’s backed by the US military.
Also, it’s worth noting that India is also working at  making non-dollar oil trades with Russia in the wake of US sanctions, and most probably these trades will be made in yuan. All global trade between countries not controlled by the US will be made in yuan.
If the gulf states decide to go all with China, it’s over for the US dollar hegemony.
I believe this is the first stage of grief, denial respectively; 4 more stages to go, Bloomberg.
PS: Bloomberg is the mouthpiece of Wall Street/ City of London/ Federal Reserve, fyi.