Saudi Arabia's Game Changing Decision Just Shocked the World
Saudi Arabia's GAME CHANGING Decision JUST SHOCKED The World | Leaves The US In Turmoil!
Tech Revolution: 4-17-2023
Did you know that some countries are trying to break away from using the US dollar and instead use their own currencies for trade?
This trend has been going on for a few years and is gaining popularity. Even Brazil and Japan, who are close friends with the US, have recently decided to try it by increasing their currency trade with each other.
This move can help them strengthen their relationship and reduce their dependence on the dollar. And experts say it’s a sign of the changing times in our multi-polar world.
And now, Saudi Arabia has just made a big step to break free from the US dollar, which shows its in the game for a new world order!
First of all, the US has a special position where its currency is the world's reserve currency. This means it can apply sanctions to any country worldwide and cause major economic harm. Julius Sen, from the London School of Economics and Political Science, explains that using the dollar system as a weapon can be very harmful. And due to political conflicts and financial problems, many governments are trying to decrease their dependence on the US dollar.
For example, Iran has been cut off from the international money transfer system SWIFT due to its nuclear project but has found other ways to trade. Meanwhile, Russia and China have used the Ukraine conflict to boost bilateral trade using their currencies.
They have convinced at least 20 countries to follow suit and trade in their currencies. China's yuan has even surpassed the dollar in trading volume in Russia.
Now, the US often imposes unilateral embargoes and threatens other nations to follow suit, making it the top country for imposing sanctions. Moreover, many nations choose to "de-dollarise" to protect their economies from further damage.
The global debt stands at $235 trillion, and the numbers continue to skyrocket. So, Saudi Arabia's leaders said "yes" to joining the Shanghai Cooperation Organization or SCO on April 6. This means that Saudi Arabia and China are getting even closer.
It's also another step toward closer ties between the BRICS countries.
These countries are becoming more friendly because of what happened in Ukraine a year ago when Russia went in and took some territories. Now, the SCO brings together countries from Eurasia and Asia for political and security purposes.
It's a group where Russia and China can work together without being influenced by Western organizations. Countries like Russia, China, Central Asia, and India are part of this group.
The US even wanted to join as an observer in the early 2000s but was turned down in 2005.
China helped Iran and Saudi Arabia make up after a seven-year disagreement. It was a big success for China's diplomacy, but America wasn't happy about it. They thought it wasn't safe, but Saudi Arabia disagreed.
Before that, America relied on Saudi Arabia for oil. But now that America can make its own oil, the relationship between the two countries has gotten worse. Saudi Arabia didn't care about the US's complaints when OPEC+ decided to decrease oil production by over 1 million barrels per day to boost prices.
The US wanted the production to increase to lower prices, but Saudi Arabia ignored it. Some experts think the decision to cut production was made to help Russia, who's also part of OPEC+, by letting them earn more from their oil exports.
Saudi Arabia is aware of the SCO, a group not aligned with any country, which is gaining more prominence because of the BRICS bloc. Russia recently became the head of the EAEU, a group of trade allies from the former Soviet Union. Russia plans to upgrade this club into an organization of economic integration and wants to include more countries from Southeast Asia.
Moreover, China is making efforts to build strong relationships with its neighbors in Eurasia. This is part of their foreign policy called "tianxia" or "All Under Heaven," which prioritizes creating mutually beneficial connections.
As relations with the West become more strained, both China and Eurasia have started focusing on each other more. China is especially interested in creating a land route that connects Asia to Europe. This way, they won't have to rely on maritime transportation, which could be disrupted by the US Navy.