The recent news of Saudi Arabia opening a swap line with China is getting lots of coverage everywhere but in the U.S. mainstream press. Is this really the game changer some people think it is regarding the U.S. dollar? @TomK, have you seen this article? Apparently China is now in the business of using its US treasuries to make USD loans that must be paid back in yuan.
I wonder what this means for the future of the middle east? Will the U.S. now consider both Iran and Saudi Arabia enemies? This could be very dangerous geopolitically.
446 sats \ 1 reply \ @gnilma 26 Nov 2023
My guess is that Saudis probably sense weakness in the US and are just hedging their bets / investments into their protection budget. Since they helped push the petro dollar system by receiving US military protection in return, when they sense weakness in their protector, it makes sense to hedge their bets and try to build relations with another "superpower".
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0 sats \ 0 replies \ @rafaelasprilla334 26 Nov 2023
If in fact they are already looking for new sponsors
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