Earlier this month, former NYC Fed repo guru Zoltan Pozsar wrote among his most important reports of 2022 , in which this individual described how Putin can unleash hell on the Western financial system by demanding that instead of dollars, Russian oil exporters are paid within gold, effectively pegging oil to gold and releasing Petrogold.
Then, China’s President Xi visit with Saudi plus GCC leaders marked the birth of the petroyuan and a leap within China’s growing encumbrance associated with OPEC+’s oil and gas reserves: that’s because with the China-GCC Summit, “ China can now claim to have got built a ‘ unique relationship’ not only with the ‘ +’ sign in OPEC+ (Russia), but with Iran and all of OPEC+. ”
At the time, Zoltan advised the reader to think of the time of this statement in a diplomatic sense:
“ President Xi communicated his message upon “ renminbi invoicing” not really during the first day of his visit – when he met only the Saudi leadership – but during the second day of his visit – when he met the leadership of all the GCC countries – to signal the following:
GCC essential oil flowing East + renminbi invoicing = the dawn of the petroyuan. “
And now, according to Bloomberg , Saudi Persia is open to discussions about trade in currencies apart from the US dollar, according to the kingdom’s finance minister.
“ Generally there are no issues with discussing how we settle our trade arrangements, whether it is in america dollar, whether it is the euro, whether it is the Saudi riyal, ” Mohammed Al-Jadaan told Bloomberg TV upon Tuesday in an interview in Davos.
“ I do not think we are waving away or ruling out any conversation that will help improve the trade around the world, ” Al-Jadaan said.
And echoing Poszar’s comments above, Al-Jadaan seemed to confirm The Kingdom’s objective seeking to strengthen its connection with crucial trade partners, most notably China:
“ We enjoy a very strategic relationship with China and we enjoy that exact same strategic relationship with other countries including the US and we want to develop that with Europe and other countries who are willing and able to work with all of us, ” Al-Jadaan said.
Saudi Arabia is also dealing with multilateral institutions to provide assistance to Pakistan, Turkey and Egypt, as part of the kingdom’s largesse to nations it believes “ vulnerable, ” Al-Jadaan said.
“ We are providing even oil and derivatives to support their power needs, ” Al Jadaan said.
“ So there is a wide range of efforts, but we wanted this to be conducted. ”
Watch the full interview beneath:
It doesn’t sound like the Biden administration can be high up in The Kingdom’s proper planning; and given the comments from The Kingdom’s FinMin, Zoltan’s ominous warning appears actually closer to reality: “ dusk for that petrodollar… and dawn for that petroyuan. “