The Ramifications of the Expiring USA-Saudi 50-Year Oil Agreement

🚨 The dollar's demise is no longer a distant threat but an imminent reality.

We recently posted on our social media channels that, in a recent interview, President Trump stated, “Our country is going to hell and we're not going to be the big boy. We have power, but it's waning. In fact, it's waning in terms of our currency. And I'm not just talking about the value of our currency, I'm talking about our currency being used throughout the world." He went on to say that losing the U.S. dollar’s reserve currency status for the world is "bigger than losing any war."

As soon as we posted this, the nasty and immature comments started rolling in, like this gem:

Honestly, it's embarrassing that someone can't make a point without cursing every other word. It's a sad reflection on our education system, churning out people like this. Yes, we believe in loving one another—that's EXACTLY why we're sharing this information. This isn't fear-mongering; it's reality. Like it or not, here's one of the main reasons we're bringing this to your attention…

On June 9, 2024, a dark chapter in global economics began as the 50-year agreement between the USA and Saudi Arabia, which enforced the trading of oil exclusively in US dollars, expired.

This agreement, born from secretive and self-serving deals in the 1970s, has been the backbone of the petrodollar system, artificially propping up the US dollar’s dominance. With its expiration, a chain reaction is set to dismantle this façade, revealing the US economy's fragility and accelerating the dollar's demise.

The end of this agreement means Saudi Arabia and other oil-rich nations can now trade oil in any currency they choose. This seismic shift obliterates the petrodollar system, which has propped up the US economy for decades, forcing countries to hoard US dollars just to buy oil, inflating the dollar's value.

It’s been a sweet deal for the US, allowing it to run massive trade deficits and print money like it’s going out of style—all while offloading inflation and economic instability onto the rest of the world. But now, the jig is up. With the freedom to trade in euros, yuan, or any currency they fancy, oil-rich nations will gleefully ditch the dollar. Don’t think this will happen? Think again! Saudi Arabia has explicitly stated that they will no longer trade oil in US dollars.

The end of the petrodollar isn’t just an economic adjustment; it’s a grand expose of the fragility and overextension of America’s financial house of cards. The once-mighty greenback will start to look more like Monopoly money as countries diversify their reserves and trade balances, steering clear of the sinking ship that is the US dollar.

Picture this: the world finally unshackles itself from the dollar’s artificial grip, and suddenly, the emperor has no clothes. The dollar, long bloated by forced global demand, will weaken faster than you can say "quantitative easing." Everyday goods and services—yes, those simple pleasures like groceries, gas, and healthcare—will skyrocket in price, becoming luxuries the average American can no longer afford. Imagine paying a small fortune for a loaf of bread or a tank of gas while your wages remain stagnant, if not outright worthless.

This economic apocalypse could easily plunge the nation into chaos. The same elites who orchestrated this petrodollar scam will be safely ensconced in their fortified mansions, watching as Main Street USA crumbles. Social unrest? You bet. With inflation spiraling out of control, the cost of living will outstrip wages, leading to widespread poverty and desperation.

The Federal Reserve, printing money like there's no tomorrow, will be caught in its own web of deceit, and as central banks dump their dollar reserves, prepare for the financial equivalent of an earthquake. The petrodollar's demise will set off a chain reaction that makes the 2008 financial crisis look like a minor hiccup.

The dollar's demise will catalyze a seismic shift in global power, a dramatic reordering of the world’s economic hierarchy. With its meticulously crafted long-term plans, China will swoop in, ready to position the yuan as the new kingpin of global trade. No longer content with playing second fiddle, China will use this moment to assert its dominance, spreading its influence through the Belt and Road Initiative and cementing trade agreements that sideline the dollar.

Meanwhile, with its collective economic muscle, the Eurozone will take this opportunity to elevate the euro as a major player on the world stage. Freed from the dollar’s shadow, European nations will consolidate their power, creating a fortress of economic stability that rivals anything the US could muster in its heyday. The euro will become the go-to currency for international transactions, further marginalizing the dollar and accelerating America’s decline.

As the dollar crumbles, US financial markets will transform into a chaotic circus of volatility and panic. Investors, those so-called 'sophisticated' financial wizards, will suddenly realize the sinking ship they're on and abandon US assets faster than rats fleeing a burning building. With the impending collapse casting a long, dark shadow, they'll scramble for the exits, dumping stocks and bonds like yesterday's garbage.

Where will they seek refuge? In anything that doesn’t have “Made in USA” stamped on it. More stable currencies like the euro or yen will become their new best friends, as will gold and silver, those ancient relics that never seem to lose their luster.

This mass exodus will destabilize US financial markets, turning Wall Street into a roller coaster of fear and uncertainty. The Dow Jones, Nasdaq, and S&P 500 will swing wildly, their value plummeting as investor confidence evaporates. Blue-chip stocks? Reduced to penny stock status. Government bonds? As appealing as a used lottery ticket. The once-reliable pillars of American finance will become symbols of economic despair.

The ripple effects will spread far beyond Wall Street. Retirement accounts will shrink, wiping out the savings of countless Americans who thought their golden years were secure. Already teetering on the edge, businesses will face bankruptcy as credit dries up and consumer spending nosedives. The economic stability that was once taken for granted will dissolve into a nightmare of uncertainty and fear.

Remember Weimar Germany, where people needed wheelbarrows of cash just to buy a loaf of bread? Well, buckle up, because history may repeat itself, American-style.

And what about the federal budget? Well, forget about funding essential services like healthcare, education, and infrastructure. Those will be relegated to the chopping block as the government scrambles to scrape together enough pennies to pay off its creditors. Social Security? Medicare? They’ll be on the chopping block, too, sacrificed on the altar of fiscal austerity. Meanwhile, the national debt will continue ballooning to astronomical heights, creating a financial black hole that swallows everything in its path.

In summary, the expiration of the USA-Saudi oil agreement could hasten the dollar's decline and severely impact the US economy. This could lead to hyperinflation, worsen existing debt problems, and send financial markets into turmoil. The dollar's demise is no longer a distant threat but an imminent reality.

Now is the time to secure your financial future by moving at least some of your retirement savings into gold and silver. These precious metals have stood the test of time, maintaining their value even when currencies fail. Unlike paper money, which can be printed endlessly, gold and silver are finite resources, making them a reliable store of value in times of economic uncertainty.

Protect your hard-earned savings from the looming financial storm by diversifying into gold and silver, the ultimate safe havens in a volatile world. Act now to preserve your wealth and ensure a stable, secure retirement.

 Editor’s Note: This article is written to express one possible scenario.