Isn’t it funny how the media keeps us endlessly updated on wokeness, green energy, and Biden’s stellar health? It’s like we’re living in a 24/7 infomercial. They bombard us with health tips, beauty tips, food tips, and dating tips as if we’re all just one perfectly groomed, well-fed, romantically successful society. Want to know how to trim your eyebrows or identify a dog breed from a mile away? They’ve got you covered. And don’t even get me started on the endless debates about the latest AI marvels that promise to revolutionize our lives.
But in this whirlwind of eyebrow-trimming tutorials and smartphone debates, they somehow manage to miss the really big stuff. Important global shifts seem to slip right under their radar. It’s almost like the media’s attention span is shorter than a goldfish’s, focusing on the flashy and trivial while the monumental changes go unnoticed. So, while we’re all becoming eyebrow experts, some genuinely world-changing news gets barely a mention. But you have us!
Every country has historically relied on converting its currency to the U.S. dollar, cementing it as the world’s go-to currency. But thanks to Joe Biden, that era is ending.
The petrodollar system, established with Saudi Arabia in 1974, just two years after Biden first took office as a senator, has now come to a close during his presidency. This is a monumental shift, arguably more significant than any current political or economic headlines. The end of the petrodollar marks the end of America’s reign as the sole global superpower.
Yet, this news barely makes a blip in the media.
For decades, the petrodollar underpinned America’s dominance in the global economy, particularly in the oil industry. Much like how Henry Ford didn’t invent the car but revolutionized the automobile industry, American giants like Charles Pratt and John D. Rockefeller didn’t invent oil refining—they created the oil industry that brought petrochemical products to the masses. The oil sector, heavily American, dominated globally and was traded exclusively in U.S. dollars—until now.
Imagine you’re on vacation and want to buy a souvenir. The vendor tells you the price in the local currency but offers a discount if you pay in U.S. dollars. This small win for you and the vendor also signifies a small victory for America. Multiply this by billions, and you have the petrodollar’s influence.
Despite a decline over the past two decades, more than half of the world’s reserves remain in U.S. dollars. The petrodollar has been a stabilizing force globally because every country needs oil and, thus, dollars. But Biden’s policies have disrupted this balance. With the U.S. national debt soaring to $35 trillion and inflation up 19% since Biden took office, his administration’s stance on the oil industry has pushed other oil-producing nations to seek alternatives.
Saudi Arabia, the world’s second-largest oil producer, is losing faith in the American dollar and Biden’s leadership. During his campaign, Biden labeled Saudi Crown Prince Bin Salman as a “pariah” over journalist Jamal Khashoggi’s death. Later, facing high oil prices and inflation, Biden sought Saudi help to boost oil production, only to be rebuffed.
Saudi Arabia is now set to trade its oil in its own currency. Major importers like India and China will convert their currencies to Saudi riyals, sidelining the U.S. dollar. This shift is akin to the chaotic Afghanistan withdrawal—years of effort undone swiftly due to poor decisions.
Wall Street has a saying, “There is no alternative” (TINA), driving stock investments despite weak economies. Similarly, the petrodollar was seen as the only option for oil trade, inadvertently boosting the dollar. The petrodollar required nations to engage with American economic principles, reducing corruption on a global scale. Unlike other commodities, oil didn’t need “ethical” labeling because it was traded in U.S. dollars.
Now, the petrodollar’s replacement is likely the Chinese yuan. Biden’s green energy push has inadvertently empowered China. As outlined in a report by my organization, Power the Future, and during my testimony before Congress, this shift benefits China significantly. House Democrats, however, chose to ignore these points, focusing instead on partisan criticisms.
Biden aims to replace the oil industry with Chinese green energy, leading America into a dependency on Chinese technology similar to the opioid crisis driven by Chinese fentanyl. As the U.S. once built the Saudi and Russian oil industries, we are now paving the way for China’s dominance in green energy.
The end of the petrodollar reflects broader issues under Biden’s administration: compromised borders, rising antisemitism, politicized law enforcement, and a diluted dollar. While some of Biden’s policies might be reversible with a change in leadership, the petrodollar’s demise is a permanent blow to America’s global influence. Saudi Arabia’s rise will bring new challenges, and the world will feel the difference.