Saudi Arabia Just Dropped the Petrodollar Deal That Had Been in Effect For 50 Years

There was a major news story - or what should have been a major news story - which occurred in recent days. You would be excused if you have no idea what I am talking about. I didn't know about it prior to this weekend, before I ran into this video below.  It is not so much accurate to suggest that this is an underreported news story as much as it is a story that's been pretty much ignored, at least in the West, and particularly in the United States.

Saudi Arabia has dropped the petrodollar as the currency being used for exchange of crude oil transactions.

What exactly does this mean? 

Well, this ends what was considered a landmark deal dating back to June 8, 1974, and which helped to cement the dominance of the American dollar since. It meant that the US dollar was used for exchange of crude oil exports. 

Now, that is over. It actually ended on June 9th of this year.

A lot of people are reacting, possibly overreacting, claiming that this is the end of the dominance of the U.S. dollar, and will lead to the collapse of the United States as a superpower. That feels to me a bit premature, and more of a kneejerk reaction than actual, accurate predicting or forecasting of the future political and economic climate.

Still, it is worth noting, because this was newsworthy. Also, the fact that it was not reported here in the United States by any of the major news media feels telling. 

Below is a link to an article on this story by India Today, as well as a video by Lee Camp. Go ahead and take a look and come to your own conclusions as to how significant a story this is.

US-Saudi petrodollar deal ends after 50 years: What are petrodollars? by: Koustav Das, Jun 17, 2024:

The US-Saudi Arabia petrodollar deal has ended after 50 years. 

The Prime Minister highlighted that switching to renewable energy and electric vehicles would lead to a cleaner environment and savings of “billions of dollars” on petroleum imports. Petrodollars are not a currency but US dollars exchanged for crude oil exports. 

https://www.indiatoday.in/business/story/us-saudi-arabia-petrodollar-deal-history-significance-what-is-it-2553088-2024-06-14

BREAKING: Saudi Arabia Ends The Deal!!