Saudi Arabia is considering trading for oil in Chinese Yuan rather than the US Dollar, which could deal a blow to the integrity of the US Dollar and make it less valuable in the world market.

Considering recent trends involving America’s currency, including The Fed printing seemingly endless amounts of cash, causing inflation and devaluation of the dollar, if Saudi Arabia does follow through with pricing its oil in Yuan instead of the US Dollar and if other countries follow suit, we could see even further decay of the world’s current Reserve Currency.  And our military strength may no longer be enough to halt it this time.

What if the US Dollar continues its downward spiral?  I don’t know.  Investors could lose confidence in the dollar and take their money elsewhere, which would add insult to injury and damage the US economy even more.  And/or, US Dollar declines might give incentive to begin the transition to Central Bank Digital Currency…which countries across the globe have been talking about for a while now.

I know that the value of the Dollar has gone up and down and up and down over its lifetime, so maybe there is no cause for concern.  But, the big difference now is there finally seems to be a country (China) that can serve as an alternative option for foreign investors, companies, and governments to partner with.  Should the US Dollar continue to lose value and confidence, and investors turn to China, it is possible the Dollar may never regain its dominant status.

Also, it seems to me that it would be naive to think that the most astute economists and advisors in the country, theoretically speaking, responsible for regulating the US money supply, wouldn’t know the detrimental long-term consequences of dumping trillions of dollars into the US economy.  If they know that printing streams of cash causes inflation, yet they kept and keep doing it, which hurts and could potentially cripple the US Dollar and the economy, then what are we left to infer?