This week Saudi Arabia ended the 50 year agreement with the U.S. to only use the U.S. dollar in buying and selling in the world markets. The Saudis will accept any currency when selling their oil to the nations. This is a very serious blow to the U.S. dollar. Other nations were formerly required to exchange their currency into dollars to be involved in world trade by buying U.S. bonds. The purchasing of these bonds was how the U.S. financed its debt. This system was developed in 1974 and made the dollar, the worlds reserve currency, even stronger. This move by Saudi Arabia seriously threatens the ability of the U.S. to meet its debt obligations. The dollars formerly used will now be in excess in the world and nations that hold them will no longer need to and all those dollars will come flooding back to the U.S. possibly creating hyperinflation. This development is part of the alliance known as BRICS efforts to end dollar dominance in the world. The U.S. has weaponized the dollar by not allowing nations that did not do what the U.S. wanted not to have access to dollars to participate in world trade thus causing great harm to that nation. This is one reason why the BRICS was formed in 2006 and since then has grown in membership. If the U.S. was to lose reserve currency status it would perhaps send it into a depression far worse than the 1930's . I strongly advise everyone to keep a very close eye on this developing situation as your personal finances could be affected.
