Starting of the top for the petro-greenback?

The Economic Collapse
Friday, March 23, 2012

The largest oil exporter within the Middle East has teamed up with the second largest client of oil on the earth (China) to build a huge new oil refinery and the mainstream media in the United States has barely even noticed it.

This mammoth new refinery is scheduled to be absolutely operational within the Purple Sea port city of Yanbu by 2014. Over the previous several years, China has sought to aggressively broaden trade with Saudi Arabia, and China now really imports extra oil from Saudi Arabia than the United States does. In February, China imported1.39 millionbarrels of oil per day from Saudi Arabia. That was 39 p.c greater than final February. So why is this vital? Properly, back in 1973 the United States and Saudi Arabia agreed that each one oil sold by Saudi Arabia can be denominated in U.S. dollars. This petrodollar system was adopted by almost all the world and it has had nice benefits for the U.S. financial system. But if China becomes Saudi Arabia’s most vital buying and selling accomplice, then why should Saudi Arabia continue to only promote oil in U.S. dollars? And if the petrodollar system collapses, what is that going to imply for the U.S.

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