For the last five decades, other countries have been dependent on buying the U.S., which has helped solidify the oil industry. It revolved around U.S> dollars. That is until Joe Biden took the wheel. The petrodollar agreement with Saudi Arabia began in 1974, which made the dollar important. Other countries had to buy them from us, and thus, the strength of the dollar remained high.
That law went into effect, for reference, during Biden's first term as a Senator. In his first term as the President, he has blown the basics of the agreement apart. Now, ever nation has essentially converted to the U.S. dollar, and combine that with inflation, and Biden has all but killed the dollar.
Daniel Turner of Power the Future says for years, we have been propped up by this petrodollar.
"Forcing the world to buy our currency has kept out dollar more stable...it was one more transaction that kept the dollar up, and that is gone...it is just one more sense of American global dominance disappearing," he says.
It all boils down to just one person, too.
"This is done because of Biden, and so many years of hostile statements from him, and the Administration, against the Saudi's...and now they want a little bit of political vendetta," he says.
The Saudi's have intent to surpass the U.S. in the global oil market and have the firepower to do so. On top of that, India and China, two of the largest pol importers in the world, are now converting their domestic currency to Saudi riyals, which cuts America out entirely.
But wait, there is more. OPEC this year announced production cuts, and that has hurt America even further. To combat rocketing gas prices, Biden has had to twice empty the strategic oil reserves, leaving America stuck with no supply, and no one wanting to sell to them.
Oil this week crested north of $80 a barrel, and even more surprising, we do not even bat an eye at it.
"We should not be accustomed to $80 oil, and this new normal of $80 oil is bad for the economy, and the American economy," he says.
By comparison, Trump averaged around $53 a barrel for oil during his run in office. The American dollar was strong, too. That is because the petrodollar forced countries to deal with America and our values of free markets. But, as with everything Biden touches, that is now all gone.
If Trump manages to win in November though, you can probably expect this situation to be fixed.
"Saudi needs America...they are testing their limits of the relationship...but they need us, and can return to this agreement if they want," he says. "This is all because the world sees weak American leadership, and when we are weak, the world is more dangerous."
Until then, we just get to sit back and watch the decline of America as a dominant superpower even further.
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