It’s Over: Saudi Arabia Just Broke The US Dollar
Crown prince is no longer interested in “pleasing” the U.S.
Published in
5 min readApr 5, 2023
The first lesson you learn in economics is there are always tradeoffs.
For instance, if your country announces it’s banning gas by 2035 it will force oil-producing countries to scramble in search of new alternative revenue streams.
Enter Saudi Arabia: they are breaking ties with the U.S. dollar and joining the China-led Shanghai Cooperation Organization, a massive trade bloc that trades in yuan.
Here’s the score if you aren’t keeping track:
- Crafting connections with China, a superpower rival to the U.S. ✅
- Creating a new financial system away from the dollar ✅
As their Crown Prince Mohammed Bin Salman recently told associates last year, “[we] are no longer interested in pleasing the United States.”
This is the biggest story of the year.
Was losing U.S. hegemony part of his plan?
Yes. Of course.
