The petrodollar is the stick that the American Empire has long used to keep its subject states in line. But our rulers’ recent bumbling in Eastern Europe, Asia, and the Middle East has prompted China to ramp up plans for a workaround.
Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan, people familiar with the matter said, a move that would dent the U.S. dollar’s dominance of the global petroleum market and mark another shift by the world’s top crude exporter toward Asia.
The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, the people said.
The Saudis are angry over the U.S.’s lack of support for their intervention in the Yemen civil war, and over the Biden administration’s attempt to strike a deal with Iran over its nuclear program. Saudi officials have said they were shocked by the precipitous U.S. withdrawal from Afghanistan last year.
China buys more than 25% of the oil that Saudi Arabia exports. If priced in yuan, those sales would boost the standing of China’s currency. The Saudis are also considering including yuan-denominated futures contracts, known as the petroyuan, in the pricing model of Saudi Arabian Oil Co. , known as Aramco.
Some are trying to downplay this development, citing the yuan’s inability to replace the petrodollar. But they’re missing the bigger picture. Especially in light of current geopolitical trends.
President Vladimir Putin has unveiled new Russian oil and gas deals with China worth an estimated $117.5bn, promising to ramp up Russia’s Far East exports at a time of heightened tension with European customers over the Ukraine crisis.
Russia, already Beijing’s third-largest gas supplier, has been strengthening ties with China, the world’s biggest energy consumer, reducing its dependence on its traditional European energy customers.
It’s also worth noting that China is dragging its feet regarding American demands to sanction Russia. The Chinese also helped break the news of US bioweapon labs in the Ukraine.
So, we have Russia strengthening ties with China while Saudi Arabia signals increased willingness to sell oil in yuan. It’s hard not to see a pattern emerging.
That pattern continues to take shape as India, once a staunch supporter of US policy, has not only declined to follow sanctions against Russia but is now considering the purchase of Russian oil.
We are seeing the consolidation of an Asian trade alliance, which the US regime’s hamfisted foreign policy could push into a full-blown parallel economy.
Banishing individual dissidents from the economy is our feminized elite’s favorite means of enforcing their edicts. They are finding it far more difficult to put nations that won’t toe the line in economic time out.
It’s a sign that the global American Empire our founders dreaded and no real American wanted is on its last legs. Dissidents should welcome that sign.
It’s also a good time to point out once again that events are unfolding just as I foresaw in my hit military thriller.
For a vision of the post-future, read it now:
