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There goes the Petrodollar — now how about that Petroeuro?
The real ‘Great Reset’ is happening right before our eyes. Does anyone in Europe even notice?
Here we are, people. This is it. The big one.
Saudi Arabia has ended the Petrodollar. For real this time.
Yeah, I know. This has been claimed a thousand times. I should know. I’ve been writing about this for more than a decade.
Also I don’t believe this comes as any surprise to Washington. If you want to pick a date for the end of the Petrodollar - you should probably go with the 31st of May 2016. That’s when the US mainstream press finally admitted to the secret Petrodollar deal. After 41 years.
So why are we talking about this now? What happened exactly?
Sitting in the Davos cold, because Klaus Schwab seems to force the media to conduct every interview outside for some reason, Saudi finance minister Mohammed al-Jadaan pushed the button for the real ‘Great Reset’.
“There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal (…) I don’t think we are waving away or ruling out any discussion that will help improve the trade around the world”.
Mohammed al-Jadaan, Saudi finance minister, 2022
Emphasis very much mine. Do you see what currency he is talking about first? It doesn’t say “Yuan” - does it?
I’m a huge critic of the Euro. But I haven’t forgotten what its intention once was: a way to move away from the US Dollar without war.
Now I truly wonder if there is anyone left in Brussels or Frankfurt who remembers this. It was Jean Claude Juncker in 2018 who was the last high profile EU politician to talk about the real raison d'être of the Euro.
We can and must go further. It is absurd that Europe pays for 80 % of its energy import bill – worth 300 billion euro a year – in US dollars when only roughly 2 % of our energy imports come from the United States. It is absurd, ridiculous that European companies buy European planes in dollars instead of euro. This all needs to be changed.
This is why, before the end of the year, the Commission will present initiatives to strengthen the international role of the euro. The euro must become the face and the instrument of a new, more sovereign Europe.
Jean Claude Juncker, President of the EU Commission, 2018
No, the Euro was never about German reunification, that’s just the story we tell the Americans. It was always about European sovereignty - meaning sovereignty from the US. But the idea was never to attack the Dollar outright or to force anything. The idea was to introduce this thing and then wait and let “market forces” work.
Obviously there are many, many problems with the Euro. Internally and externally. Inflation is raging. Censoring Russian currency reserves was a stupid move if you look to establish yourself as a “neutral” alternative.
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The current leadership of the ECB seems to have lost the plot completely. It’s almost as if they are sabotaging the project from within with their insane “green” money printing and the plans for a China-like central bank digital currency.
And yes, I will say it. If you see the Euro as a supranational, hard and neutral currency, Bitcoin eats the ECB’s lunch on every front. It’s why they hate it so much, but that’s another story.
Still, some hope remains: The Eurosystem holds 13,000 tons of Gold (analog Bitcoin). And when you look closely at the statements from relevant actors, they start to recognise the fact that Russia is not going to just disappear. In fact, Russia and China started using the Euro in a big way just minutes before Putin attacked Ukraine.
This is very much a developing story. I’m just not sure if anyone in Europe is even following it… They should.
If the Petroeuro is not happening now, it will never happen.
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