As the world’s leading currency, the U.S. dollar is at the heart of global trade and finance. However, recent years have seen America’s desperate attempts to save the dollar faltering, with multiple failed attempts leaving the currency at risk. In this article, we’ll delve into the reasons behind these attempts and explore what they signify for the future of the dollar.
Failed Attempt: America’s Desperate Bid to Save the Dollar
Introduction
In the face of the global economic crisis, the US has launched a desperate attempt to save the dollar but has failed, as Saudi Arabia has turned away from the West and towards Asia. The dollar has been the world’s dominant currency for decades, but the future looks uncertain amid de-dollarization and a global shift in trade and economic power. In this article, we will explore why the US failed to restore relations with Saudi Arabia and what that means for the dollar’s future.
America’s Scramble to Riyadh to Normalize Relations Did Not Work
The US has been trying to restore relations with Saudi Arabia after a series of political and economic tensions. However, their efforts have failed, and the country has continued to move away from the West towards Asia. Saudi Arabia sees China as its largest trading partner and its economic future lies with Asia rather than the West. The US has also been in a tussle with Saudi Arabia over oil prices.
The Dollar’s Fate Lies with Saudi Arabia and the Petrol Dollar
The dollar’s fate lies with Saudi Arabia, as it is the world’s largest oil producer and exporter. In the 1970s, the US reached an agreement with Saudi Arabia known as the Petrodollar System. In this agreement, oil was sold exclusively in dollars, making it the world’s reserve currency. However, as Saudi Arabia turns towards Asia, it becomes a challenge for the US dollar’s dominance. The petrol dollar had been so powerful because Saudi Arabia had control, but now their shifting alliances are putting the dollar’s position at risk.
De-dollarization Will Continue Despite Attempts to Maintain the Dollar’s Dominance
Despite attempts to maintain the dollar’s dominance, de-dollarization is on the rise. Central banks from around the world are moving away from the dollar and buying up other currencies. In recent years, countries like Russia, China, and India have been slowly moving away from the dollar and into their own currencies, which could threaten the dollar’s dominance.
The US Economy is Still Facing a Recession in 2023 and the Deterioration Trend is Getting Worse
Despite efforts to revive the US economy, experts predict that it will still face a recession in 2023. The economy has been deteriorating, and big retailers are predicting a recession. American consumers are struggling to keep up, and there is a growing divide between the rich and the poor. As the US government prints more money to deal with the economic crisis, inflation may also rise, leading to even more economic uncertainty.
FAQs
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What is de-dollarization?
De-dollarization is the process of central banks moving away from the dollar and buying up other currencies. -
Why has Saudi Arabia turned towards Asia?
Saudi Arabia sees China as its largest trading partner and its economic future lies with Asia rather than the West. -
What is the petrol dollar?
The petrol dollar refers to the system in which oil is sold exclusively in dollars, making it the world’s reserve currency. -
Is the US dollar’s position at risk?
Yes, as more countries are moving away from the dollar and into their own currencies, the dollar’s dominance is at risk. -
Will the US economy still face a recession in 2023?
Experts predict that the US economy will still face a recession in 2023, and the trend of deterioration is getting worse.
Conclusion
In conclusion, the US has been unable to save the dollar amid shifting global alliances and de-dollarization. Saudi Arabia’s turn towards Asia is a significant blow to the dollar’s dominance, and the US economy is facing increasing uncertainty. While there are still many factors at play, it is clear that the dollar’s future is uncertain, and the world may see a shift in the global monetary landscape.
