by Paul Craig Roberts, Paul Craig Roberts:

Saudi Arabia’s recent announcement that the government is open to accepting payment for oil in currencies other than the dollar is a major announcement ignored by the presstitutes.  The end of the petrodollar would have severe adverse effects on the value of the dollar and on US inflation and interest rates. 

For a half century the petrodollar has supported the value of the US dollar and ensured financing for America’s large budget and trade deficits. By billing for oil in dollars, the Saudis guaranteed a worldwide demand for US dollars.  Without this demand for dollars, the constant increase in the US money supply would have eroded the dollar’s exchange value in terms of other currencies.  As the US has offshored so much of its production for home use, the US is import-dependent, and the widening trade deficit would have eroded the dollar’s exchange value and resulted in high inflation.