President Biden is too dimwitted to know he’s being ushered down the path to American irrelevance.
Details of the potential new Saudi-Chinese oil-trading arrangements remain vague. The two sides have talked for years about pricing some oil sales in yuan, and it may not happen. Some 80% of global oil sales are priced in U.S. dollars, the yuan is not freely convertible as a reserve currency must be, and Saudi Arabia’s currency, the riyal, is pegged to the dollar.
Yet the two sides are said to be keen, and news of renewed discussions sends an alarming signal. Saudi Arabia committed in 1974 to conduct its oil trade only in dollars, in exchange for security guarantees from Washington. The Biden Administration has undermined that relationship at every turn, and by all accounts the Saudis are fed up.
One of the Administration’s first foreign-policy actions was to end U.S. support for the Saudi war against the Iran-backed Houthis in Yemen. It also removed the terrorist designation from the Houthis. The White House then postponed a scheduled arms sale to Riyadh—a security slap-in-the-face that wasn’t reversed until late last year.How Biden Lost Saudi Arabia – WSJ
China wants to supplant us at the top of the world power food chain. All Biden’s moves since taking office is aiding in their cause. Once the dollar loses its reserve currency status strap yourselves in for a fun ride.