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Economy
Saudis Consider Joining BRICS - Impact on Dollar as World Reserve Currentcy
2022-07-03
[ConservativeTreehouse] It is very curious timing in this article from Newsweek, containing massive geopolitical implications, using identified Saudi Arabia sources, would come in advance of Joe Biden’s visit to the Kingdom of Saudi Arabia.

Is this strategic geopolitical pressure from Saudi leader Mohamed Bin Salman (MbS) ahead of the meeting with Biden; or is this a genuine possibility that looms as likely? If the former, then Joe Biden is being geopolitically slow roasted by Saudi Arabia for his previous disparagements and ideological hypocrisy in his visit. If it is the latter, well, then the tectonic plates of international trade, banking and economics are about to shift directly under our American feet.

We have been closely monitoring the signs of a global cleaving around the energy sector taking place. Essentially, western governments’ following the “Build Back Better” climate change agenda which stops using coal, oil and gas to power their economic engine, while the rest of the growing economic world continues using the more efficient and traditional forms of energy to power their economies.

This article from Newsweek is exactly about this dynamic with Saudi Arabia now potentially joining the BRICS team.

NEWSWEEK – Finland and Sweden’s green light to join NATO is set to bring about the U.S.-led Western military alliance’s largest expansion in decades. Meanwhile, the G7, consisting of NATO states and fellow U.S. ally Japan, has adopted a tougher line against Russia and China.

In the East, however, security and economy-focused blocs led by Beijing and Moscow are looking to take on new members of their own, including Iran and Saudi Arabia, two influential Middle Eastern rivals whose interest in shoring up cooperation on this new front could have a significant impact on global geopolitical balance.

The two bodies in question are the Shanghai Cooperation Organization (SCO) and BRICS. The former was established in 2001 as a six-member political, economic and military coalition including China, Russia and the Central Asian states of Kazakhstan, Kyrgyzstan and Tajikistan before recruiting South Asian nemeses India and Pakistan in 2017, while the latter is a grouping of emerging economic powers originally consisting of Brazil, Russia, India and China (BRIC) upon its inception 2006, and including South Africa in 2010.

Here is the money quote:

[…] “China’s invitation to the Kingdom of Saudi Arabia to join the ‘BRICS’ confirms that the Kingdom has a major role in building the new world and became an important and essential player in global trade and economics,” Mohammed al-Hamed, president of the Saudi Elite group in Riyadh, told Newsweek. “Saudi Arabia’s Vision 2030 is moving forward at a confident and global pace in all fields and sectors.”

[…] “This accession, if Saudi joins it, will balance the world economic system, especially since the Kingdom of Saudi Arabia is the largest exporter of oil in the world, and it’s in the G20,” Hamed said. “If it happens, this will support any economic movement and development in the world trade and economy, and record remarkable progress in social and economic aspects as Saudi Arabia should have partnerships with every country in the world.” (read more)

That would essentially be the end of the petrodollar, and -in even more consequential terms- the end of the United States ability to use the weight of the international trade currency to manipulate foreign government. The global economic system would have an alternative. The fracturing of the world, created as an outcome of energy development, would be guaranteed.
Posted by:NoMoreBS

#3  An interesting possibility of joining BRIC's, but it will not solve Saudi's biggest long term problem.....
Posted by: OspasDhahran   2022-07-03 14:14  

#2  It would be nice if we could articulate what our national and international priorities are--whether they are economic, political, ideological, etc.--and then plan and act accordingly. I know that is too much to ask, especially when we experience such whiplash every 4 years or so. But a boy can dream.
Posted by: Tom   2022-07-03 13:24  

#1  More importantly, the end of the petrodollar would mean the end of US wars abroad. We destroyed Libya and Iraq in part because they began accepting other currencies for oil instead of dollars. Libya wanted a gold-backed dinar for all of Africa to trade with. Nope, can't have that! A war that brought back the return of literal human slave markets was the answer, and it worked very well. The dinar is a threat no more.
Posted by: Albemarle Snerert7268   2022-07-03 12:24  

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