If you care about protecting your hard-earned money for the rest of the 2020s and beyond…
This may be the most important email you read all year.
In our last few emails, I shared what’s really happening in our financial and monetary systems.
I told you why the US is facing a potential inflation nightmare as the BRICS bloc is slowly decreasing demand for US dollars…
What I didn’t show you is how the “Petrodollar” system is on the verge of a historic change that will radically accelerate these trends. And this change will decrease demand for dollars even faster… putting pressure on dollar-denominated asset prices.
Kissinger’s Legacy Is Coming Unwound
In 1973, Henry Kissinger went to Saudi Arabia to forge an alliance with the House of Saud.
Kissinger promised that the US would supply military-grade weapons and protection for the Saudi government. In return, Saudi Arabia agreed to sell oil exclusively for US dollars.
This agreement created the Petrodollar… and it ensured steady, built-in demand for the US dollar. That’s because it required every nation to pay for oil in dollars.
Here’s the part most people don’t consider…
When the Saudis take dollars for oil, they don’t just stuff that money under the royal mattress. They recycle those dollars back into the US financial markets. That is to say, they buy US stocks and bonds.
So the Petrodollarsystem creates an artificial demand for dollars. And when those dollars flow back into the financial markets, they help push US asset prices higher.
You probably know what I’m going to tell you next…
The Saudis are now openly talking about ending their commitment to the Petrodollar system. In the space of a few months, the Saudis:
1. Restored relations with Iran.
2. Welcomed Syria back into the Arab League.
3. Backed multiple OPEC+ oil production cuts
4. Ended the war in Yemen.
5. Agreed to sell oil in other currencies – most notably the Chinese Yuan.
6. Agreed to join the Shanghai Cooperation Organization (SCO).
And now Saudi Arabia is also being welcomed as a member of the BRICS economic bloc. That’s effective January 2024.
All these items are against the wishes of those in Washington.
Saudi Crown Prince Mohammad bin Salman practically announced the end of the Petrodollar system when he recently said the quiet part out loud, declaring:
“We are no longer interested in pleasing the United States.”
Once the Saudis begin selling large quantities of oil outside the Petrodollar system…
Demand for US dollars is going to contract – dramatically. And that means demand for US financial assets will fall as well.
What happens next is Economics 101.
This is what the Federal Reserve’s (the Fed’s) aggressive rate-hiking campaign in 2022 was really about. The Fed isn’t just fighting inflation. It’s trying to defend the dollar.
Tomorrow, I’ll reveal the final piece to the puzzle – so you know how to protect yourself and even grow your money while the chaos of the 2020s unfolds.
In the meantime, have you heard of The Purple People?
They were an ancient tribe that left a legacy of innovations that we still use today. And they passed down an ancient business and investing secret that still applies to our modern world.
I’ve studied this secret extensively… and I can say with confidence that it works. I’ve used it myself.
If you would like to learn more about this ancient tribe and how to use their secret, just go here.
-Joe Withrow
P.S. Look for a big announcement tomorrow about how to protect yourself and even grow your money as the world rapidly changes in the 2020s and beyond.