Earlier this month, former NY Fed repo guru Zoltan Pozsar wrote one of his most important reports of 2022, in which he described how Putin could unleash hell on the Western financial system by demanding that instead of dollars, Russian oil exporters are paid in gold, effectively pegging oil to gold and launching Petrogold.
Then, China’s President Xi visit with Saudi and GCC leaders marked the birth of the petroyuan and a leap in China’s growing encumbrance of OPEC+’s oil and gas reserves: that’s because with the China-GCC Summit,
At the time, Zoltan urged the reader to think of the timing of this statement in a diplomatic sense:
And now, according to Bloomberg, Saudi Arabia is open to discussions about trade in currencies other than the US dollar, according to the kingdom’s finance minister.
And echoing Poszar’s comments above, Al-Jadaan appeared to confirm The Kingdom’s goal seeking to strengthen its relationship with crucial trade partners, most notably China:
Saudi Arabia is also working with multilateral institutions to provide support to Pakistan, Turkey and Egypt, as part of the kingdom’s largesse to nations it deems “vulnerable,” Al-Jadaan said.
Watch the full interview below:
It doesn’t sound like the Biden administration is high up in The Kingdom’s strategic planning; and given the comments from The Kingdom’s FinMin, Zoltan’s ominous warning appears ever closer to reality: