Saudi Arabia is reportedly considering accepting the Chinese currency yuan instead of US dollars for Chinese oil sales, the WSJ reports.
This would be a blow to the post-WWII global financial order and the Bretton-Woods agreement, which made the USD the world’s trade and reserve currency for almost a century.
Losing reserve currency status would cause great harm to the American economy.
Enjoying reserve currency status for the USD allows the Federal Reserve to print money indiscriminately as there is always demand for our currency.
That may change soon overnight and we will become the Weimar Republic.