What has gone wrong with the petrodollar system

The main purpose of this article is a literacy post to introduce the background. Before the abolition of the gold standard, for world trade, the dollar was gold. Because the US had the largest gold reserves at the time, using the dollar for international trade settlements was the preferred option. after Nixon abolished the gold standard in 71, there was a time when countries around the world no longer wanted to accept the dollar with the expectation of devaluation. This had a considerable impact on the dollar hegemony and in order to stabilise it, the DS at the time joined forces with Saudi Arabia to create a petrodollar system. This was done as follows:

Hegemony 1, as the Saudis at the time had pricing power with cheap oil and huge production. (Reference to the first oil crisis) The US and Saudi Arabia reached an agreement that all oil must be traded in dollars and the world had to listen to the Saudis, otherwise the Saudis would have been angry...

Bully clause 2, the Saudis export more dollars of oil to buy US debt so that the US can finance the government budget deficit. (Two birds with one stone)

Bully clause 3, ensure that oil prices are within an acceptable range for the US to prevent another oil embargo. (This injustice...)

Who doesn't use oil, and who doesn't use oil needs to use dollars. So the world has dutifully adopted the US dollar as its main reserve currency again. But at the same time, to ensure confidence in the purchasing power of the dollar, it is necessary to suppress the price of oil for a long time, so why is the oil-producing Middle East always so eventful? (You get the idea)... This is the core power of the US empire. During this time there were a number of people who didn't know any better and wanted to challenge the hegemony of the dollar (like Gaddafi) and we all know how that ended.

So the day we lost the gold standard, the US was doomed to survive by exporting force to control vital resources .... And that model had to rely on infinitely increasing debt issuance, had to bring in big government, and was destined to grow to trigger the crisis we have today...

But what has changed?

1, as Russia and other countries increase their energy production, Saudi Arabia's share is declining.

2, it just so happens that Russia, Iran, and Venezuela are another bunch of people who are perennially beaten by the US. Together they are producing 40% of the oil.

3, there are sellers are not convinced enough, there must be buyers, and as a result, China appeared.

4, sellers and buyers are there, just a fuse, when the Russia-Ukraine war broke out, the Russian dollar was directly withheld. The other countries took a look, "Is there still a king's law?

So, now the oil producing countries have 2 options on their hands.

1, continue the petrodollar

2, the Shanghai International Energy Exchange to understand? RMB trading, next door is the Shanghai Precious Metals Exchange, profits can be exchanged for gold and shipped back home, a one-stop service...

(That's why China used this to get Saudi Arabia and Iran to shake hands)

The Biden administration is more concerned with what's in their trousers. So after 50 years of the petrodollar, there's a real change on the horizon. Do you see the context?

Nowadays, the world is full of uncertainty and we should make a full preparation for this unless we do not want to survive in this chaotic world.

Good luck! My fellow!