Let China sleep, for when she wakes, she will shake the world"
-- Napoleon Bonaparte
Back in the 1960s, French President Charles de Gaulle didn’t trust the US, and as a result, he decided to reduce France’s US dollar reserves. He traded them for gold from the US government. This action sent a wave through the market as others followed, and as a result, President Nixon killed the gold standard for the US dollar.
What followed was the creation of the petrodollar. As a result, Saudi Arabia, OPEC, and the rest of the world accepted the US’s request and started using US dollars for all oil sales.
Until now, that is.
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