by Pam Martens and Russ Martens
Wall Street on Parade
Yesterday, it was widely reported in the business press that Saudi Arabia is considering pricing its oil deals with China in China’s own currency, the Yuan, rather than in U.S. Dollars, which is the currency of choice for the bulk of the global oil trade. While it should be noted that this talk has been making headlines for the past four years without actually coming to fruition, the U.S. should stop taking the respected status of the Dollar for granted.
Three of the key reasons that the U.S. Dollar has been able to maintain its status as the global reserve currency are the following: a stable government which is not subject to being toppled by coups; a large working population which allows federal tax payments to be automatically collected from paychecks in order to pay the nation’s debts on time; and, until 2008, a well-functioning financial system.