Two years into Joe Biden’s second word as a senator of the United States, the consists deal with Saudi Arabia was signed in 1974. It ended this year, a half- centuries after, during Biden’s first name as U. S. president.
Among all the news reports that issue, some ranking higher than this. It’s bigger than President Trump and Hunter Biden’s views, bigger than employment information and inflation figures, and perhaps even bigger than the southwestern border problems. The United States ‘ status as the world’s hapless power is overthrown by the consists.
Yet it is rarely mentioned.
Until last week, the consists was America’s hegemony of the world market. It established the fuel industry as a truly British industry that other countries only a partook. American titans like Charles Pratt and Henry Flagler and the great John D. Rockefeller did n’t invent oil refining in the same way Henry Ford did in the car but rather invented the automobile industry, which sold cars to the masses. They invented the oil business, which brought petroleum products to the people. The oil market is American, and it is because Americans set the standard for other countries like Venezuela and the Middle East.
Fuel, as a global commodity, is British, completely absolutely British, and as such is traded nationally in U. S. money, as it should be. Until today.
Here’s an example of how to interpret the money of petrol trades: You want to buy things while on holiday in a foreign country. The owner tells you in English, because everyone seems to talk English, it costs NNN pesos, euros, Canadian, accessories. But if you have$ 20 cash, it’s a deal. It saves you a financial transition. Even better, it is. Both you and the owner benefit from it. In a small way, it is a “win” for America as the American dollars replaces the local money. In that small,$ 20 purchase, buying a item for baby from a road vendor, America won.
That happened with crude that was consumed every day in the tens of billions.
Although the number has declined in the past 20 times, still more than half of the country’s supply money is in U. S. money. Since oil is essential to everyone, the consists has been a stabilizing dollar for the world. Every country has had to change its currency to the U. S. money, making it the de facto global money.
Owing to Joe Biden, it’s all gone.
Our national debt stands at$ 35 trillion,$ 9 trillion of which was added in the past three years. Overall, inflation is 19 % higher than it was when Biden took office. The whole Biden administration has prioritized punishing the crude sector. If America, the world’s largest oil manufacturer is constantly trying to end the oil business, then why would another oil- producing nations use our dollars?
It is logical Saudi Arabia, the world’s second- largest oil producer, looks at the American dollar with increasing doubt. Saudi Arabia is blatantly criticized for their increasingly hostile attitude toward the American president. Biden pleaded for justice for the journalist Jamal Khashoggi’s death in 2018 while campaigning for president in 2020. Two years later, with oil pushing$ 120 a barrel and U. S. inflation at 9 percent, Biden went groveling to Saudi Arabia, fist- bumping an unsmiling Prince Bin Salman, asking the kingdom to increase oil production. He refused.
Saudi Arabia has the resources and domestic policy necessary to surpass the United States in the global oil market. The kingdom will now exchange its oil for money in its own system. India and China, two of the world’s largest oil importers, will now convert their domestic currency into Saudi riyals, leaving America out of the transaction.
The failure is a rehashed version of Biden’s disastrous withdrawal from Afghanistan, where decades of work were lost and quickly destroyed due to incompetence and stupidity with no evidence of the investment, effort, or labor. Gone.
TINA, a moniker for stock market growth, is used by Wall Streeters to describe the country’s weak economy. There is no alternative. Investors have to put their money somewhere, so they might as well buy stocks, and that action, despite not having any pro- stock market intentions, did in fact boost pro- market. The same can be said of the petrodollar. There is no alternative. If you wanted oil, and everyone needs oil, you bought the dollar, and that action, despite not having any pro- dollar intentions, did in fact boost the dollar.
Countries were forced by the petrodollar to interact with America and thus engage in American values of free markets and the rule of law. The petrodollar completely eliminated bribery and theft on a global scale, a practice that is prevalent with other commodities. Retailers label coffee as” fair trade” and diamonds as “ethical” to indicate their production did not violate human rights. Because oil was traded in dollars, no one was required to identify it as such.
The equivalent of 540 Chinese yuan, 7 217 Russian rubles, or 300 Saudi riyal oil is 80 dollars. And neither is the dollar as a global commodity.
What will replace the petrodollar as a global, commodities- based currency? Likely the Chinese yuan. The Biden administration’s radical push to “go green” has only strengthened China, as my organization, Power The Future, documented in a congressional report. House Democrats called me names when I testified before the House Ways and Means Committee on this specific subject, but I did n’t want to go into detail. I can guarantee you Rep. Bill Pascrell, D- N. J., an 87- year- old bitter partisan who wagged his finger at me over “mean tweets” rather than discuss his trillions in spending to buy Chinese wind and solar, has no idea the petrodollar ended. I can assure you that his office’s pointless staff wo n’t comment on the situation.
In order to avoid a “you know, the thing” in terms of” climate change existential crisis,” Biden wants to forgo the oil industry and switch to the Chinese green industry. It will only take a few years before America is poisoned by Chinese fentanyl, the way that Americans are poisoned by it, and China requests that we exchange our currency for theirs in exchange for ongoing purchases. As America built the Saudi and Russian oil industries, we are now building the Chinese green industry.
This is coming from the same people who will claim that” America First” is a form of hate speech.
Anyone who has followed Joe Biden’s past three or four years at the helm should not come as a surprise when the price of the petrodollar falls. America’s sovereignty is compromised at the southern border. Pro-Hamas and rabid antisemitism are corroborating American values on campuses and in our streets. A politicized DOJ and FBI bastardize the rule of law in America. The American dollar is diluted. The petrodollar’s demise is yet another set of dominoes to fall.
Some things are reversible. A Trump victory in November can reverse many, if not all, Joe Biden’s disastrous policies on fossil fuel development. A GOP House can stop the transfer of trillions to Communist China for expensive, inefficient, intermittent wind and solar. But the petrodollar is gone forever, and with it, America’s role in the world is diminished. Saudi influence and Saudi values will start to increase, which will only make the situation a little worse.
Power The Future, a national nonprofit organization that fights for American energy jobs, is the founder and executive director of Daniel Turner. Contact him at daniel@powerthefuture .com and follow him on Twitter @DanielTurnerPTF.
