China’s Attack on Petrodollar Dominance Reaches New Height | The Gold Spot

If crumbling domestic markets weren’t enough to worry investors, China’s outright attack on the US economy should do the trick. Earlier this week, Xi Jinping further solidified China’s dominance on the global stage by securing its first liquid natural gas purchase from the UAE in Yuan - signaling the inevitability of the Petroyuan.

The full extent of this massive shift in world order requires an understanding of the history of the Petrodollar. After abandoning the gold standard, the US maintained global hegemony by convincing Saudi Arabia and other OPEC nations to deal oil exclusively in USD.

This move required every country to convert to the green back to buy oil, solidifying the dollar as the de facto reserve currency. As the US government rests on its laurels, China has been plotting a decades-long assault on the Petrodollar.

By cozying up with previous US allies and brokering historic peace deals, China has taken a dominant geopolitical position on the world stage, leaving the US behind. With a towering debt crisis weighing down on Americans, this blow to the USD dominance could spell disaster for the economy.

Watch this week’s The Gold Spot to hear Scottsdale Bullion & Coin Founder Eric Sepanek & Precious Metals Advisors John Karow explain the growing influence of China, the power of the Petroyuan, and what this means for your investments.