This Pact Has the Potential to Destroy America
China is aiming to purchase oil in yuan rather than dollars, and Saudi Arabia may now be interested in doing the same.
When the US Dollar loses its ‘petrodollar’ position, more competing and commercial countries will gain acceptability over the US Currency. This will be detrimental to the United States. The US dollar will lose its status as the world’s premier reserve and trade currency if enough countries abandon it. This will produce severe economic troubles in the United States, as well as higher inflation.
Saudi Arabia has been a close transactional friend of the United States, owing to oil, despite the fact that the United States possesses more unused oil than Saudi Arabia. By sparking an oil export charge that ravaged the Soviet economy, the Saudis even assisted in the demise of the USSR.
In 2018, the Chinese introduced yuan-based oil agreements. If Saudi Arabia starts conducting commerce in yuan, it will have a negative impact on the US economy.