THE REASON AMERICANS ALWAYS BACK THE SAUDIS by Anonymous Oil is traded in US dol

THE REASON AMERICANS ALWAYS BACK THE SAUDIS
by Anonymous

Oil is traded in US dollars primarily as a handshake and security contract between Saudi Arabia and USA since the 1970’s. World Trade of oil in US dollars keeps US dollar strong and inflation low in USA, what Americans can buy for a US dollar.

The countries holding most of the gas in the world are thinly populated countries like Qatar and Saudi Arabia, their rulers need US blessings to survive. Since the petrol producers demand payments in US dollars ( In reality they do not have that much need for US dollars), all other countries from Africa to Asia have need for US dollars to pay for oil.

So US issues trillions of dollars of debt in US treasuries which results in lot of currency in the market that should drive inflation in USA. But these oil producers suck up US treasury debt keeping US dollar the king. Other countries chase US dollar again keeping demand for US dollar high.

Imagine if world oil trade moved away from US dollar, you will have trillions of dollars who nobody suddenly needs. USA has a policy to keep demand for US dollar high in the world. This helps Americans live in low inflation and almost zero interest environment. It’s been this monetary system for a long time. Only one that can fix it is not even USA, it is GCC (Gulf Cooperation Council). It will take long time for another currency to take place of USD.