It’s Over: Saudi Arabia Just Broke The US Dollar

MediumApr 5, 2023Read original

The first lesson you learn in economics is there are always tradeoffs.

For instance, if your country announces it’s

it will force oil-producing countries to scramble in search of new alternative revenue streams.

Enter Saudi Arabia: they are breaking ties with the U.S. dollar and

the China-led Shanghai Cooperation Organization, a massive trade bloc that trades in yuan.

Here’s the score if you aren’t keeping track:

As their Crown Prince Mohammed Bin Salman recently

associates last year, “[we] are no longer interested in pleasing the United States.”

This is the biggest story of the year.

Yes. Of course.

The free ride of the dollar is over. The world can’t sustain it.

Since 1933, the U.S. dollar has lost

of its domestic purchasing power. It doesn’t help that almosthalfof global trade is based on this volatile gumshoes system.

It’s led to events like the British pound flash crashing against the dollar and now fucking the UK economy beyond repair:

But it wasn’tjust Biden; the entire U.S. financial system — that led to the crashes of 2008, 2020, and 2023 — was ignored by both parties.

Americans think in quarter-long windows and take military and economic supremacy for granted. Countries like Saudi Arabia, India, China, and Russia are looking at the long-term picture, figuring out ways to reduce their reliance on U.S. dollars.

Was it self-sabotage or hubris that got America to its current state?

I don’t know, mate. But we’ve squandered our advantage, and now?

BRICS is a geo-economic alliance whose members are

(and

). The five countries represent nearly three billion people and are some of the fastest-growing economies on the planet.

Saudi Arabia is leading the OPEC countries away from the U.S. $ for oil trade settlement, starting with U.S. adversaries

.

Nearly every country in BRICS plays a part: China, the world’s most populous country, is providing the

international Yuan as an alternative to the US $. India, the world’s 2nd most populous country, trades with Russia and China in their own currencies.

Brazil, the most populous Latin American country with the largest economy, is moving away from the U.S. $ for trade settlement.

Right now, people are protesting Trump outside my window in the Lower Eastside in New York. I swear this

bullshit is the perfect WWE plotline to distract us from the actual fight going on.

By being arealcountry.

Crazy idea, huh?

U.S. patriotism was supported by 70% of Americans in 1998, and now it’s

; having children was at

, now 30%; community involvement once at 68% and now 27%.

It makes sense.

What happened after 1998? Iraq, the Bushes, the internet, the 2008 housing crisis, trillions of dollars of debt, Afghanistan lost, election stealing calls made by both parties, and a

of Americans who now don’t trust the government post-Covid.

Not to mention BRICS nations have more GDP than the whole G7 combined.

tbqh — yeah, look that one up — the Western decline is so plainly obvious and personally felt by everyone living in America and Europe that I wonder how young you would have to be not to notice it.

(What I think is a good metric is asking any ordinary person if they feel that their country will be better or worse in 10 years' time)

America will pay a harsh penalty for tolerating fools in Washington, DC.

It’s why I believe getting out of this mess starts withignoringthe

. Imagine if people stopped fighting over politics for a month and read a book on financial literacy… or any book? Or learned how their local government structure worked and how to hold it accountable.

It’s something I’ve learned in my meditation practice.

To always maintain sight of the long-term. That’s what Saudi Arabia has done and why it’s made such a splash in world geopolitics.

The U.S. government wants to retain its global hegemony.

BRICS countries want to eliminate that to mind their own business and trade without dollars.

If you learned anything let it be that there are tradeoffs — especially to things you believe to be 100% morally valid:

Even Mexico is

in BRICS. I’m starting to think South America hates us (like 90% of the rest of the world!).

Maybe because we’ve been

SA for hundreds of years? IDK

It will take a Herculean effort to turn this ship around.

But it starts with me; it starts with you. That’s all I got.

Ever since I was a child it was my dream to become a financial advisor. Unfortunately, it never came true. Therefore, I am not a financial advisor; you should do your own research and not just listen to random people on the internet. Nothing contained in this publication should be construed as investment advice.