The Death of The American Petrodollar is Happening

In a recent conversation between TV host Brannon Howse and attorney and financial expert Rebecca Walser, a compelling exploration of the BRICs banking system’s expansion unfolded. This development, announced on January 20th, 2024, involves the inclusion of countries such as Iran, Egypt, Argentina, Ethiopia, Saudi Arabia, and the United Arab Emirates. The interview delved into the potential implications of this move, which some view as an economic challenge to the supremacy of the American dollar as the world’s reserve currency.

A Paradigm Shift for the Petrodollar

Rebecca Walser shared her perspective on this significant shift in the international financial landscape. She noted that six nations are being added to the BRICs system, and this expansion is a crucial turning point that signifies the end of the Petrodollar era. Walser emphasized that the BRICs conference has centered around bilateral trade agreements, indicating a growing effort to transact without relying on the US dollar.

Of particular significance are Saudi Arabia and the United Arab Emirates, both substantial oil producers. With these additions, the BRICs bloc now comprises a staggering 46% of the global population and approximately 37% of the world’s GDP. This surpasses the combined GDP of the G7 nations, a realization that underscores a growing shift away from the US dollar’s dominance in international trade.

Walser explained that Saudi Arabia’s participation in this transition is particularly noteworthy. As one of the world’s leading oil producers, Saudi Arabia’s decision to begin sales outside of the US dollar is a critical step toward the dollar’s potential decline. Bilateral trade agreements among the BRICs nations, set to commence in January, contribute to the broader narrative of decreasing dollar reliance.

Implications for Currency, Precious Metals, and Markets

The discussion then turned to the potential ramifications for the American dollar, precious metals, and the stock market. While no predictions can be entirely conclusive, the interview participants agreed that these changes have the potential to reshape these economic elements.

Walser acknowledged that the exact outcomes are complex and interwoven with multiple factors, including global interconnectedness and technological advancements. The interview highlighted the unprecedented nature of this currency transition, emphasizing that the modern world’s dynamics are distinct from past currency shifts. The rise of digital communication, intricate trade relationships, and initiatives like China’s Belt and Road project have reshaped the landscape in which such transitions occur.

Social Security and Economic Sustainability

The conversation also delved into domestic financial concerns, with a focus on the challenges facing the Social Security system in the United States. Walser addressed the unsustainable nature of the current Social Security model, which was designed in a vastly different era. She highlighted recent analyses that indicate potential losses in Social Security distributions for future retirees. The urgency of addressing this issue was underscored, with Walser cautioning against complacency due to the distant timeline of predicted problems.