The geo-political landscape is undergoing rapid transformations, and the so-called great reset may be unfolding whether we are aware of it or not. We are witnessing the formation of new alliances, conflicts escalating, and soon enough, the dollar's hegemonic status will no longer be as dominant as it once was.
It's not going away entirely, but it will likely become a simple exchange currency, similar to the EURO, and this is a natural progression. Throughout history, we have seen various currencies circulating. At one point, the GBP played the role the dollar currently holds, and in the future, there might be a digital currency taking its place.
We'll have to wait and see. Recently, I came across an intriguing clip on Twitter claiming that the dollar's decline is imminent, and Saudi Arabia may play a significant role in this process. According to the narrator, the US signed a contract with Saudi Arabia approximately 70 years ago, offering military protection in exchange for the Saudis trading oil in USD.
This contract is reportedly due on June 9th, 2024 - that's just three days away. If you've been paying attention to global developments over the past couple of years and the rise of BRICS, it's clear that the dollar's days as the "petrodollar" are numbered.
Saudi Arabia uses the dollar for various businesses beyond oil exports, but if they decide to abandon the dollar for this purpose, we can expect the DXY to plummet and risk-on assets to soar. Bitcoin could see a significant surge if this scenario materializes.
The question now is, what currency will the Saudis use for their oil in international trade if they indeed give up on the petrodollar? In my opinion, they might opt for rupees, rubles, or Chinese yuans, as these currencies belong to some of the world's strongest economies, and Russia, China, India, and Saudi Arabia are all BRICS members.
The dollar has been heavily weaponized over the past few decades, and it was predictable that certain international players would attempt to diminish its power.
If you recall, BlackRock CEO Larry Fink recently referred to crypto (not just Bitcoin) as a flight to safety. Why would he do this just months before the contract between the US and Saudi Arabia expires? Our digital assets may soon be worth more than many can imagine.
Again, I don't believe the dollar will disappear entirely anytime soon. America remains a powerful country in many ways, but the tides are turning, and it's up to us to leverage this change to our advantage.
Thanks for your attention,
Adrian