In today’s brief live interview on Press TV, I was given the opportunity to evaluate the newly announced decision of the Saudis to exclude representatives of the U.S. Government from their annual investment conference planned for the 25th of this month. I place this decision in the broader context of Saudi and the Gulf States’ realignment these past several months away from the global hegemon that has been their traditional security guarantor and towards partnership with Russia in creation of a multi-polar world.
The counterpart of this new Saudi policy is de-dollarization. Given the historic role of the Petrodollar going back to the 1970s in securing the dollar’s position as global reserve currency, the implications of a shift to bilateral petroleum trading in local currencies by the Saudis holds great importance for compelling the world’s biggest debtor to start paying for its wars and other extravagances from its own pocket and not from the pockets of the Rest of the World. This process may now move much more quickly than American financial analysts have assumed.