What will happen to the United States of America If Saudi Arabia declares that it will use other currencies

[The SC]

https://twitter.com/x/status/1640518595858817024

 

[jhungary]

In short - NOTHING WILL HAPPENED

Longer Versions goes - US dollar strength is it being tradable and being the most abundant currency on earth. Say if Saudi entire trading goes to some other currency, US will loses that 2 Trillion GDP (probably around 800 billion a year trade) It wouldn't put a dent on the Tradable value of USD, which is between 5 - 8 trillion a day.

The USD gain its strength not because people use that currency, but people trade it even if you don't use it

For example, in a 3 way trade between France, China and Saudi Arabia, even tho Saudi may goes with Euro or RMB, there aren't going to be 800 billions worth of Yuan or Euro available for Saudi to trade immediately, which mean either they print more to offset this (which is going to be bad for their own economy) or they would have to trade Euro or Yuan into a third currency, and namely USD due to its world currency status.

In short, unless someone take down US as world reserve currency, nothing will change even with Saudi large petroleum export, it would only ever worth around 10-15 Trillion market (as a whole as per the entire petroleum industry) a year, but USD trade value and the T+ whatever (Depends on method of trade) interest payable depends on 20-25 quadrillion transaction a year, and that's just from SWIFT alone.

There is a reason why it was the secret service in the US who investigate currency crime (like counterfeit currency) because the currency market (not to be confused with the financial market) would literally bring down the entire US government due to its sheer volume of trade.

 

[The SC]

Saudi_Council of Ministers:
Officially approving the accession of the Kingdom of Saudi Arabia to the Shanghai Cooperation Organization.

https://twitter.com/x/status/1640879142051762177

 

[PakFactor]

In short - NOTHING WILL HAPPENED

Longer Versions goes - US dollar strength is it being tradable and being the most abundant currency on earth. Say if Saudi entire trading goes to some other currency, US will loses that 2 Trillion GDP (probably around 800 billion a year trade) It wouldn't put a dent on the Tradable value of USD, which is between 5 - 8 trillion a day.

The USD gain its strength not because people use that currency, but people trade it even if you don't use it

For example, in a 3 way trade between France, China and Saudi Arabia, even tho Saudi may goes with Euro or RMB, there aren't going to be 800 billions worth of Yuan or Euro available for Saudi to trade immediately, which mean either they print more to offset this (which is going to be bad for their own economy) or they would have to trade Euro or Yuan into a third currency, and namely USD due to its world currency status.

In short, unless someone take down US as world reserve currency, nothing will change even with Saudi large petroleum export, it would only ever worth around 10-15 Trillion market (as a whole as per the entire petroleum industry) a year, but USD trade value and the T+ whatever (Depends on method of trade) interest payable depends on 20-25 quadrillion transaction a year, and that's just from SWIFT alone.

There is a reason why it was the secret service in the US who investigate currency crime (like counterfeit currency) because the currency market (not to be confused with the financial market) would literally bring down the entire US government due to its sheer volume of trade.

To shorten the answer: TIME TO BRING FREEDOM & DEMOCRACY TO SAUDI'S.

 

[epebble]

In short - NOTHING WILL HAPPENED

US dollar strength is it being tradable, and being the most abundant currency on earth. Say if Saudi entire trading goes to some other currency, US will loses that 2 Trillion GDP (probably around 800 billion a year trade) It wouldn't put a dent on the Tradable value of USD, which is between 5 - 8 Trillion a day.

The USD gain its strength not because people use that currency, but people trade it even if you don't use it

For example, in a 3 way trade between France, China and Saudi Arabia, even tho Saudi may goes with Euro or RMB, there aren't going to be 800 billions worth of Yuan or Euro available for Saudi to trade immediately, which mean either they print more to offset this (which is going to be bad for their own economy) or they would have to trade Euro or Yuan into a third currency, and namely USD due to its world currency status.

In short, unless someone take down US as world reserve currency, nothing will change even with Saudi large petroleum export, it would only ever worth around 10-15 Trillion market (as a whole as per the entire petroleum industry) a year, but USD trade value and the T+ whatever (Depends on method of trade) interest payable depends on 20-25 quadrillion transaction a year, and that's just from SWIFT alone.

There is a reason why it was the secret service in the US who investigate currency crime (like counterfeit currency) because the currency market (not to be confused with the financial market) would literally bring down the entire US government due to its sheer volume of trade.

All these number crunching and paper moving are illusory. The real economic strength and health of a nation comes from innovation. When other countries start producing Steve Jobs, Bill gates, Jeff Bezos, Sergey Brin, Elon Musk .... in copious quantities, world will not have much use for U.S. dollar. Till then, USD will continue to be valuable.

 

[jhungary]

To shorten the answer: TIME TO BRING FREEDOM & DEMOCRACY TO SAUDI'S.

Well, it really don't need.

I mean Saudi was a good allied when we invade Iraq (both in 1991 and 2003) but I think like most country in West Asia and ME, it's time to cool.

I for one support pulling any of our troop from Saudi, I mean nothing happening there anymore, why would we want to leave troop in those area? Better redeploy them to somewhere we need those troop.

 

[The SC]

In short - NOTHING WILL HAPPENED

Longer Versions goes - US dollar strength is it being tradable and being the most abundant currency on earth. Say if Saudi entire trading goes to some other currency, US will loses that 2 Trillion GDP (probably around 800 billion a year trade) It wouldn't put a dent on the Tradable value of USD, which is between 5 - 8 trillion a day.

The USD gain its strength not because people use that currency, but people trade it even if you don't use it

For example, in a 3 way trade between France, China and Saudi Arabia, even tho Saudi may goes with Euro or RMB, there aren't going to be 800 billions worth of Yuan or Euro available for Saudi to trade immediately, which mean either they print more to offset this (which is going to be bad for their own economy) or they would have to trade Euro or Yuan into a third currency, and namely USD due to its world currency status.

In short, unless someone take down US as world reserve currency, nothing will change even with Saudi large petroleum export, it would only ever worth around 10-15 Trillion market (as a whole as per the entire petroleum industry) a year, but USD trade value and the T+ whatever (Depends on method of trade) interest payable depends on 20-25 quadrillion transaction a year, and that's just from SWIFT alone.

There is a reason why it was the secret service in the US who investigate currency crime (like counterfeit currency) because the currency market (not to be confused with the financial market) would literally bring down the entire US government due to its sheer volume of trade.

This is not what the former assistant US treasury secretary is saying in the video..

What I understand from it..is What will happen if Saudi Arabia is added to China, Russia, India and many other big nations who have decided to use different currencies than the US Dollar..

 

[jhungary]

All these number crunching and paper moving are illusory. The real economic strength and health of a nation comes from innovation. When other countries start producing Steve Jobs, Bill gates, Jeff Bezos, Sergey Brin, Elon Musk .... in copious quantities, world will not have much use for U.S. dollar. Till then, USD will continue to be valuable.

That's an abstract way of saying that.

I mean, there are always going to be constant influx of capital because capital market is probably the biggest on earth, and the best thing is, it basically touches everything, I mean, literally every start up, every scientific field needed venture capital, as long as those are in demand, there are never a lack of need for currency, and as I mentioned, unless US being dethroned from the World Currency basket, US currency is going to lead the way.

This is not what the former assistant US treasury secretary is saying in the video..

What I understand from it..is What will happen if Saudi Arabia is added to China, Russia, India and many other big nations who have decided to use different currencies than the US Dollar..

First of all, NEVER quote a video that is obviously cut/edit. That's not showing the whole picture, that's telling you what they want to tell you.

But regardless of that point, from the video itself, the host said on 0:19 "What would happen if US no longer dominate the world currency market?"

What that former Treasury Chief PR said is in response to that, not in response to Saudi using Rouble or Yuan or whatever currency to settle.,

And this is what I said

In short, unless someone take down US as world reserve currency, nothing will change even with Saudi large petroleum export, it would only ever worth around 10-15 Trillion market (as a whole as per the entire petroleum industry) a year, but USD trade value and the T+ whatever (Depends on method of trade) interest payable depends on 20-25 quadrillion transaction a year, and that's just from SWIFT alone.

The issue here is, can Saudi changing the currency settlement dethrone the US dollar as world reserve currency? Umm.......I will let you figure that out

By the way, Monica Crowley is the Assistant Secretary for Public Relation for the Department of Treasury (ie Assistant Chief PR person), she DOES NOT have a single economic or financial degree and strangely not even a Business degree, ie a MBA , she is NOT an expert on the field of economy. She has an Undergrad Political Science Degree and a PhD in International Relations

Monica Crowley - Wikipedia

en.wikipedia.org

 

[The SC]

China and France's Total complete the first gas deal in Chinese yuan

China completes the first liquefied gas deal in yuan.
The Shanghai Petroleum and Natural Gas Exchange announced on Tuesday that the China National Offshore Oil Company (CNOC) and France's Total Energies have completed the first yuan-denominated liquefied natural gas (LNG) deal.

https://twitter.com/x/status/1640817835122495501

That's an abstract way of saying that.

I mean, there are always going to be constant influx of capital because capital market is probably the biggest on earth, and the best thing is, it basically touches everything, I mean, literally every start up, every scientific field needed venture capital, as long as those are in demand, there are never a lack of need for currency, and as I mentioned, unless US being dethroned from the World Currency basket, US currency is going to lead the way.


First of all, NEVER quote a video that is obviously cut/edit. That's not showing the whole picture, that's telling you what they want to tell you.

But regardless of that point, from the video itself, the host said on 0:19 "What would happen if US no longer dominate the world currency market?"

What that former Treasury Chief PR said is in response to that, not in response to Saudi using Rouble or Yuan or whatever currency to settle.,

And this is what I said



The issue here is, can Saudi changing the currency settlement dethrone the US dollar as world reserve currency? Umm.......I will let you figure that out

By the way, Monica Crowley is the Assistant Secretary for Public Relation for the Department of Treasury (ie Assistant Chief PR person), she DOES NOT have a single economic or financial degree and strangely not even a Business degree, ie a MBA , she is NOT an expert on the field of economy. She has an Undergrad Political Science Degree and a PhD in International Relations

Monica Crowley - Wikipedia

en.wikipedia.org

A cumulative effect from major countries and others can challenge the dollar statut in the future..
I understand that you are talking about the internal US flow of money when talking about start ups and venture capital..it is different in the global economy..isn't it?

 

[The SC]

China and Brazil just concluded a deal to give up US dollars for trade..
@B667i

 

[lightning F57]

Using a basket of currencies vs US dollar may not dethrone the dollar but will make US sanctions abit more less effective.

 

[aryobarzan]

World largest OIL and Gas holders and producers are all now trying to switch $$:

Venezuela
Russia,
Iran
Iraq
and if you add Saudi Arabia to the mix it will be game over for $$$. The issue is what will replace $$$ and as far as I know no one has a good clean alternative..The day that alternative is found is the day $$ will become a local North American currency.

 

[ProudThamizhan]

I think it all depends upon how much longer Saudia oil reserves and exports remain valuable.

 

[fitpOsitive]

https://twitter.com/x/status/1640518595858817024

Crown Prince will be killed just like Shah Faisal.

 

[Pak_Sher]

All these number crunching and paper moving are illusory. The real economic strength and health of a nation comes from innovation. When other countries start producing Steve Jobs, Bill gates, Jeff Bezos, Sergey Brin, Elon Musk .... in copious quantities, world will not have much use for U.S. dollar. Till then, USD will continue to be valuable.

@epebble . US still #1 in R&D and many others copy and steal through espionage.