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For some time, many have been warning that the Green Back will be dropped as the world reserve currency. From academics to analysts, to social media personalities, all have agreed about this. As to when it will happen is anyone’s guess. For the more conservative, this might come mid-century. Others say it will come much sooner. I must say that prior to 2020, I was among the former group. I was of the view that the replacement of the Green Back would be a slow protracted process.
Even during the Trump years, I was not so hasty as to start reciting its obsequies. After all, it was not like there was another currency waiting in the wings to take over. Sure, there was the Yuan, but China, based on what I could surmise, was in for the long haul, that is, it was biding its time for when it could overtake the US as the world power.
However, when The Wall Street Journal published an article on March 15, 2022, that Saudi Arabia was considering accepting Yuan instead of US dollars for Chinese Oil Sales, I began to wonder if the latter position wasn’t more accurate. It is said that the Saudis, particularly, MBS have been unhappy with the Biden administration. It was even rumored that the Saudis and even the Emiratis were refusing Biden’s calls.
It is also rumored that the Saudis are accusing the US of not supporting “their intervention in the Yemen civil war.” They are also said to be angry over the current administration’s “attempt to strike a deal with Iran over its nuclear program.” For those who are not aware. The Saudis and the Iranians are diabolical enemies. The Saudis have accused them of supporting the Houtis in the war in Yemen. This is a war the Saudis seem to be losing.
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The US from withdrawal from Afghanistan does not bode well for its image either. Videos of Afghans falling from airplanes in midair are still fresh in many people’s minds. The pullout was nothing short of an unmitigated disaster. Perhaps the same will happen to the Saudis in Yemen. The only difference, however, is that the Saudis and the Yemenis are neighbors. The Saudis are located in a rather hostile part of the globe. The US on the other hand is thousands of kilometers away and hence has that protection that distance provides.
Add to that, the ongoing conflict in Ukraine. The west, headed by the US, has pretty much told the Ukrainians that they are on their own. Sure, there is the propaganda war being waged by the western media and the sanctions and the UN resolutions. But beyond that the Americans show no sign of getting involved in that fight.
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Were I a Saudi, I would assume that the same treatment will be meted out to me in the not so distant future. And, like any country with their interest at heart, it seems like distancing oneself from the US is the sensible move to make. For while it is unlikely that the US will suspend arms sales to the kingdom, a strong Iran would mean a more compromised Saudi Arabia. Plus, the Yemenis will return for their pound of flesh. And so, the Saudis seem to be securing the Chinese as an ally in case they wake on morning to learn that they have been ‘Afghanistaned’.
Disclaimer: I do not claim ownership of the images in this post.
