by onlooker » Sun 12 Nov 2017, 19:12:11
The demise of the US petrodollar is a matter of economics than of politics.
Russia is now the biggest supplier of oil to China and is a serious strategic threat to Saudi Arabia.
It's a matter of time before the Saudis starts to sell its oil to China in Yuan as well. They need China's patronage both as a buyer of oil and a way out of their one horse cart i.e. their total dependency on oil as a revenue source. The Chinese are creating industrial zones in SA and bringing in hundreds of billions of dollars in investments.
The Saudi prince was recently with President Putin to discuss buying Russian weapons including the S-400! The Saudis have to prepare for US belligerence once they decide to trade their oil in Yuan!
Once the Saudi starts selling in Yuan, so would all the gulf states if they want to survive as well. The petrodollar would end but not the US dollar. It would be considerably weaken but would remain a world currency together with a few more.
It's in the interest of the Chinese that the US economy do not deteriorate too dramatically! Nor is it for the world economy at large! Thus this Chinese offer for the US to join in the BRI projects and Chinese investments in the US. The Americans are resisting this but they know that without Chinese money and massive technological processes, they would not survive well with a great US dollar devaluation. Also, the US has industries that can benefit greatly from the BRI!
Both President Putin and Xi know this and are managing the oil and gas business together very well. The Saudis are looking to them to help them out. The key is protecting the Saudis while killing the petrodollar!
The US dollar cannot be rapidly devalued or the petrodollar killed overnight. It poses a grave danger to the world's economy and to Russia(who is still selling oil in USD and have US big dollar reserves) and China(holding 1.3 trillion USD reserves)! Wishing for it to happen, is sheer ignorance of economics.
This is the reason why both China and Russia, with wise and knowledgeable leaders, are managing this well. The US dollar has to be devalued over time!
This is one very important reason why the Russian-China's strategic alliance is critical for long term world peace and economic development. Anyone telling you that the US is in charge is ignorant of current world geostrategic development!
Militarily, the US can do nothing significant except indulge in subversive little wars! Once the petrodollar is gone, they can no longer afford their military spending!
"We are mortal beings doomed to die