INSANE! How China, Russia, Iran And Saudi Arabia Are CRUSHING The US & UK Economy | This Is Huge
#china #petrodollar #economy
China is increasing its diplomatic and economic involvement in the Middle East, while the United States has decreased its presence there.
In fact, China has maintained strong relations with Iran while also striking significant deals with old US friends like Saudi Arabia.
And just recently, China has revealed its insane PETROYUAN partnership with the Middle East that is set to destroy the US economy and the petrodollar.
If You Like This Video; Like, Share, Comment And Subscribe. This Means A lot To Us!
Thanks For Watching Our Video; INSANE! How China, Russia, Iran And Saudi Arabia Are CRUSHING The US & UK Economy | This Is Huge
Oil exports to China were raised this month by several countries, including Saudi Arabia, the United Arab Emirates, and others. As a result, Russia has been able to increase its foothold in the market it invaded in Ukraine.
Middle Eastern oil exporters pumped about 4 million barrels of petroleum daily to China in October. And since not all tankers have disclosed their ultimate destinations, the total may be amended upwards.
Russia is likewise in a rush this year to find new destinations outside Europe to sell its petroleum. And because it invaded Ukraine, the European Union's 27 member states have decided to prohibit any maritime trade with the country.
Luckily, the country has a friend, China.
Now, according to customs figures, China's total crude imports from Russia have increased by roughly 20% since April.
So far, data for October tanker movements indicates a rate of roughly 38 million barrels per day. And it's an increase of almost 491,000 barrels per day compared to September.
After the Organization of the Petroleum Exporting Countries and its partners promised to reduce oil output, oil prices increased modestly.
And as sanctions from the West increased the pressure on the OPEC+ coalition, Russia, a key member of the alliance, increased exports from its far east.
In addition, it has begun transporting Arctic oil to China via the Northern Sea Route.
It's no secret that China has surpassed the United States as Saudi Arabia's largest oil customer in recent years. And according to estimates, Saudi Arabia exported $95.7 billion of oil in 2020.
The United States imported just $6.59 billion from China, while Chinese imports totaled $24.7 billion.
According to reports, Chinese investment in Saudi Arabia under the Belt and Road Initiative reached $43.47 billion in 2021.
Now, the Saudi government has decided to begin investing in Chinese firms. In fact, the agreement between Aramco and Chinese oil firms is worth $10 billion.
Moreover, discussions about the petroyuan oil trade have made the news.
As it stands, no other market can compete with the breadth and liquidity of the $13.4 trillion Eurodollar Market or the $25 trillion US Treasury Market. However, things may alter in the not-so-distant future.
The dollar has recently gained due to rising interest rates. Because of this, import costs in developing nations have skyrocketed, contributing to the global debt crisis.
Now, at the very least, this might cause a rethinking of the world's reliance on the US dollar, making China's trade partners more open to dealing in yuan.
THREAT TO US DOLLAR DOMINANCE
This adds another layer of danger to the situation the United States dollar is in.
Now, the story begins in 1944 when Europe is at its most dangerous point during World War II. In response to these concerns, 44 nations established the Bretton Woods System during a meeting in New Hampshire.
The arrangement required all nations to peg their currencies to the US dollar while also linking the value of the currency to gold.
They reasoned that stabilizing on a gold standard would stabilize the economy.
Fortunately, the US now has a firm grip over international commerce thanks to the terms of that agreement. However, the United States experienced a gold shortage in the early 1970s, and that system eventually failed.
The swelling and weakening of the petrodollar
After that, countries worldwide quickly lost faith in the US dollar, tumbling its value.
Midway through the 1970s, then-President Richard Nixon agreed with the Organization of the Petroleum Exporting Countries to conduct all oil commerce in dollars in exchange for OPEC's help in the military arena.
The result was the emergence of the petrodollar and a fourfold increase in oil prices. Since then, the US dollar has enjoyed unparalleled status as the world's primary reserve currency.
In addition, the dollar's strength in the global oil trade was bolstered by agreements with Saudi Arabia and the rest of the Middle East.
The dollar's dominance in the oil and gas futures market has helped solidify America's role as a world leader.
More Details In The Video
![](https://i.ytimg.com/vi/HrJDnj_fArA/maxresdefault.jpg)