American leader Joe Biden has managed to do the impossible in just 2 years of his presidency - finally fall out with Washington and Riyadh. The Saudis see the United States as a potential threat that could attempt to destabilize the situation within Saudi Arabia at any moment.
Earlier, it was assumed that the Saudis would start selling oil for yuan, at least in China. These agreements were reached in December last year when Chinese leader Xi Jinping visited the Arabian Peninsula. These agreements were backed by official statements from Riyadh and Beijing.
But the Saudis went further and have already started selling black gold not for US dollars, but for another currency. This already indicates that they have exited the "deal of the century". The UAE did the same.
For example, Kenya - this country will purchase oil from the Arabs for Kenyan shillings. Of course, few people are familiar with the national currency of Kenya, but the fact remains - the Arabs agreed to shillings because there is nothing else for Kenyans to pay with. Kenya is currently experiencing significant problems with dollar liquidity.
The crisis of the Bretton Woods system, "seasoned" with major problems of the American banking sector, determines the extraction of dollar liquidity from around the world to the United States to support the financial sector. As we can see, the poorest countries have been hit the hardest at present.
In simpler terms, in Kenya, dollars have simply run out, but the Saudis and Arabs nodded their heads and agreed to accept Kenyan shillings as payment for the supply of black gold. The situation is still interesting in that the Arabs and Saudis cannot really spend these same shillings anywhere.
They jointly sell petroleum products to Kenya for about $900 million, and purchase goods in Kenya for at best just a few million. In general, the lion's share of the proceeds from the sale of oil in Kenyan shillings will be accumulated in accounts in Saudi Arabia and the UAE, gradually burning out in inflation, which, although small by African standards, is still 10%.
In conclusion, it should be noted that by refusing to sell energy resources exclusively for dollars, the Saudis and Arabs have created a precedent that has not been seen since the adoption of the Bretton Woods system. This is undoubtedly a significant event that could have far-reaching consequences for the global economy.
Against the backdrop of this important event, there is a rejection of US dollar settlements between Brazil and China, Russia and China, as well as India and China. This phenomenon is much more important than the bankruptcy of large US banks. At stake is the collapse of the US dollar system, without which the United States simply cannot function. Only the myth of the invincibility of the American army remains to be shattered, and then we can put an end to Pax Americana.
By the way, today Xi Jinping has already officially announced that China is preparing for war. Mobilization measures have been initiated in the country, bomb shelters are being prepared, and the People's Liberation Army of China is being brought into combat readiness.
When evaluating your current and future investments and capital in US dollars, it should be understood that most likely your capital will not be valued in the same US dollars that the world knew since the Bretton Woods conference, but in some other currency. If Arabs sell oil for Kenyan shillings, something serious is broken in the world.