from Rogue Money:
One Two Punch: Russia's Game Changing Intervention in the Mideast and the Failure of Engineered Lower Oil Prices to Break Moscow's Will While Draining Saudi Coffers Forced Riyadh to Beijing Hat in Hand
China has read out an inescapable verdict on the petrodollar -- it will be used less and less with each passing month in global trade, specifically transactions in petroleum that have been pegged to the greenback by agreement between Washington and its allied Persian Gulf producers led by Saudi Arabia since the 1970s. Without a radical shift that American elites appear utterly incapable of humbling themselves to achieve, China and its allies led by the Russians and Iranians' influence will grow stronger, while Washington and its relevance will grow weaker. Washington's failure to topple the Russian defended Assad government of Syria, a losing war of occupation for the Saudi kingdom in Yemen, and Riyadh's humiliating failure to break the will of liquefied natural gas exporter and rival Sunni Islam patron Qatar all demonstrate that the petrodollar's time is up.
The Increasingly Not So Subtle Saudi Shift to the Eurasian Camp, as Riyadh's Syria and Yemen Wars Fail and the Failed Qatar Blockade Humiliates the Kingdom
““In late May, then Deputy Crown Prince Mohammad bin Salman went to Russia to discuss with President Vladimir Putin the oil market and the situation in Syria. The visit came just three weeks before Crown Prince Mohammed bin Nayef was removed and bin Salman took his position. While in Moscow, the latter said that ‘relations between Saudi Arabia and Russia are going through one of their best moments ever.’
“Two months later, Moscow and Riyadh signed a preliminary military cooperation agreement worth $3.5bn.The Saudis have requested transfer of technology to accompany the signing of the deal.” [emphasis added]”
Seeing the writing on the wall, the young and ambitious Saudi Crown Prince Mohammed has softened his hard line stance in support of the Syria jihadists while looking for a way out of the Yemen quagmire which Iranian support for the Houthis has deepened. A Saudi withdrawal from Yemen that spares the Kingdom internal revolt may be possible, but not without Riyadh making the mother of all concessions to the Eurasian giants if not the arch rival Iranians -- abandoning the petrodollar in favor of the petroyuan. A development Russia's Deputy Foreign Minister Sergei Ryabkov warned this summer would be an inevitable consequence of the desperate, extraterritorial sanctions passed by the Congress to wreck Russian energy trade with Europe and force Europeans led by the Germans to buy expensive American LNG exports.
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