House of Saud

Posted: May 19, 2015 in Uncategorized

The new king of Saudi Arabia is shaping a new foreign politics for  the kingdom. It is important to understand the new foreign policy of the kingdom as it was an important piece in the last 40 years of world history.

In the various interactions with US President the kingdom clearly showed his displeasure with the policies versus Iran and at the same time realignment towards France and Asia (China).

There is also a sort of good relation with Israel and a presumably temporary .

The economic repercussions will be various – beyond the scope of this blog.

One that stands out is that the status of the US Dollar as a reserve currency was practically established in the 1970s with a pact between US and Saudi that imposed the payment of oil in USD. The petrodollar rule.

Now we have China Saudi and Russia working against the dollar. A change in reserve status of the USD is like a tectonic shift. If u go back in history since the Roman Empire to the English Empire and before you will get an hint of what I am talking about

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