Dominate South Asia
Chapter 830: Petrodollar System
Over the years, the relationship between Pakistan and Saudi Arabia has been very close. At the beginning, Saudi Arabia only provided funds to help Pakistan resist the Soviet invasion in Afghanistan, but then the relationship between the two sides gradually developed. What excited Saudi Arabia the most was that with the help of Pakistan, Saudi Arabia successfully purchased medium-range ballistic missiles with a range of 2,000 kilometers! These ballistic missiles are very deterrent in maintaining Saudi Arabia's national defense.
Not to mention that now, after Pakistan successfully developed solid "carrier rockets", it has begun to help Saudi Arabia upgrade their ballistic missiles, giving Saudi Arabia a more accurate and rapid strike capability.
Later, with the continuous development of Pakistan's military technology, Saudi Arabia purchased a large amount of equipment from Pakistan. The front-line fighters of the Air Force and the main battle tanks on the ground were all made in Pakistan. These equipment greatly enhanced Saudi Arabia's national defense, and they didn't have to look at the face of the Americans.
When Saudi Arabia wanted to buy ballistic missiles, the Americans were reluctant and only sold short-range missiles with a range of more than 100 kilometers!
Not to mention that after the conflict with Iraq, Pakistan's army entered Saudi Arabia to help Saudi Arabia guard the border and prevent Iraq's invasion, and Pakistan's air defense missiles also guarded around Riyadh and intercepted dozens of Scud missiles fired from Iraq.
Saudi Arabia is a country that values friendship and is very grateful to Pakistan.
In terms of civilian use, it can be said that Pakistan is almost the main supplier of daily necessities. Various daily necessities made in Pakistan occupy the main counters of Saudi supermarkets. The distance is short and the quality is good.
At the same time, Saudi Arabia also gave its oil to Pakistan first. Many times, privately, even US dollars are not used for settlement, and goods are directly bartered.
Now, Pakistan's development has made Saudi Arabia look at it with admiration. After the United States accused Pakistan of planning terrorist attacks on the United States and challenged Pakistan, Pakistan calmly responded to the challenge. Originally, Saudi Arabia was sweating. The military strength of the United States is quite strong. Pakistan will not suffer, right?
As a result, the battle at sea surprised everyone. It turned out that the huge American aircraft carrier formation was just a showpiece.
Saudi Arabia is more confident in Pakistan.
"We will never choose war on our own initiative. We are peace-loving. However, we are absolutely not afraid of war. Your Majesty, I have said before. We South Asians make our own decisions on South Asian affairs. Similarly, we should make our own decisions on the affairs of the world." Muhammad said: "Now, the US economy is in rapid decline. If we use the US dollar as a settlement tool for oil, we are afraid that the US dollar will depreciate on a large scale worldwide. This will cause a serious blow to the entire oil-producing countries."
The biggest purpose of Muhammad's visit this time is to persuade Saudi Arabia to stop the petrodollar system!
What are the benefits of using the US dollar to settle oil for Saudi Arabia? The only benefit is that because the United States is a superpower, the United States will provide military protection to Saudi Arabia to ensure the continuation of the Saudi royal family's regime. The real benefits. All of them are obtained by the United States.
Now, the military strength of the United States has rapidly weakened, and Pakistan is gradually becoming an emerging industrial power with extremely strong military power. So, in this case. Pakistan can completely replace the United States to support the development of the Saudi royal family's regime.
You know, Saudi Arabia's pro-American policy has attracted countless voices of opposition. The entire Arab world has a deep hatred for Israel. Historically, if it were not for the help of the United States, Israel would have disappeared long ago. In recent years, Saudi Arabia has relied more on Pakistan's military power, and Pakistan can be said to have become Saudi Arabia's main source of mercenaries.
Saudi Arabia's defense policy is constantly leaning towards Pakistan.
But even so, it is difficult to make the Saudi royal family determined to break up with the United States and completely lean towards Pakistan. This is also the reason why Muhammad came to Saudi Arabia to meet King Fahd in person.
The first statement made by Muhammad is that the depreciation of the US dollar is inevitable.
"The domestic economic situation in the United States continues to deteriorate, and the US government keeps using its financial resources for the military. The society is almost on the verge of collapse, just like the Soviet Union." Muhammad said: "The economic recession in the United States is inevitable. And now, China, as the country with the largest foreign exchange reserves in the United States, has begun to sell dollars and exchange them for other countries' currencies. It can be expected that the US currency will soon become waste paper in the international community. This will affect those countries that hold a large number of dollars."
Countries that hold a large number of dollars, of course, include oil-producing countries in the Middle East. After all, their income is all in dollars.
Now, a mainstream understanding in the world, including Western Europe, is that the hegemony of the United States is about to end, especially after Western Europe reached an agreement with China and China began to increase its holdings of the currencies of these countries. It also means that international trade will gradually eliminate US dollar transactions. In this way, the US economy will definitely accelerate its decline.
Saudi Arabia naturally knows all this.
If the United States really declines, then there will be no need for the dollar oil system to exist. Now, it is not only the United States but also Pakistan that can help Saudi Arabia stabilize the country's political situation and realize the interests of the Saudi royal family.
"So what should we do? What should we use to replace the dollar?" King Fahd asked.
After all, until now, the US dollar is still the currency in circulation in the world. If Saudi Arabia does not accept US dollars, what will Saudi Arabia accept?
"The best thing is gold." Mhammad said: "Gold is hard currency. No matter when it comes, gold will not depreciate. To be honest, if the U.S. economy really declines completely, the U.S. dollar will be a piece of waste paper. That’s all.”
gold! These words immediately stunned everyone present, including Prince Sultan on the side. The muscles on his face were twitching. Gold, do you really have to pay with gold?
There is black gold buried underground in Saudi Arabia. The total amount of this gold is limited. If it is purchased with gold, it will obviously significantly increase the value of this black gold, and it will also increase the international presence of oil-producing countries such as Saudi Arabia. position in the economy!
In the original international system, the U.S. dollar was linked to gold to ensure the value of the U.S. dollar. But now, if oil is linked to the U.S. dollar, oil-producing countries no longer have to worry about the depreciation of the U.S. dollar! (To be continued ~^~)
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