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When the US decoupled the dollar from the gold standard in 1971 the currency kept its value because the Saudis agreed to accept that oil contracts would be payable in US Dollars. Saudi oil reserves had effectively replaced gold as the dollar standard. But now Joe Biden has blown up this sacred deal between the US and Saudi Arabia when he decided to re-open negotiations with Iran. And not just that! When Russia invaded Ukraine, Biden effectively weaponized the dollar.


The BRICS countries — Brazil, India and South Africa, Russia and China— recently met to discuss the idea of an alternative reserve currency to replace the dollar. It’s not new, but the idea is getting wings as the US is seen to exploit its position by debasing the dollar. Saudi Arabia recently pondered the possibility of accepting payments for oil, not in petrodollars, but in Chinese yuan. The Saudis are also unhappy with the Fed inflating the value of the currency.

The West may feel virtuous at present for punishing Russia for its intervention in Ukraine with economic and monetary war fare, but such actions are a two edged sword and do have consequences no one of these geniuses seems to have thought of. Till now, the sanctions against Russia have hit the sanctioners more than the sanctioned.

More over, a second, alternative power bloc is emerging in opposition to the liberal West that comprises more than half the planet’s inhabitants. The power bloc is made up of nations that are often economically emerging, but are not always led by democratic Governments (though some are). But the most notable characteristic is that these countries are not hung up on liberal democrat moral demands to adhere to values that they themselves are increasingly violating.

Putin in a speech recently lambasted the US’s monopolar world view and attacked liberal democrat universalism (video). Russia too has allies, the rogues’ gallery of Iran, China, Venezuela, North Korea, Cuba and the traditionally non aligned countries like the BRICS.

And then there are a slew of nations deeply dissatisfied with its treatment by the Biden regime like Saudi Arabia, and you got an impressive block of malcontents. Add to that the Eurasia Union members Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova and Uzbekistan and a super block is emerging in opposition to the West’s global hegemony.

Choking Russia off of the West’s banking system SWIFT and the failed attempt to destroy the ruble has had an an effect! The arrogance combined with intellectual feebleness and emotional incontinency prevailing in the liberal democrat West has already led to what they fear most: the collapse of the post World War 2 multilateral “rules based system”. The world is changing before our very eyes.

External reading:

Previously in Geopolitics on PomoNews

Previously in Economic Crisis