Under New Management
14th May 2025
Zman peers behind the curtain.
President Trump has wrapped up his trip to Saudi Arabia and the Western media is trying hard to ignore it. The main reason is they hate Trump, of course, but a secondary reason is they do not understand the importance of the trip. To them, it just looks like another foreign trip by a president. In reality it is a glimpse of how the large share owners of America Inc. are restructuring the company. The deals signed in Saudi Arabia are the first step in that restructuring.
For fifty years, the United States and Saudi Arabia had an agreement primarily centered around oil trade and the use of the U.S. dollar. The formal part of the agreement committed the Saudis to investing their profits from energy into U.S. Treasuries in exchange for American military commitments. The result was the Saudis priced everything in dollars, which led all other OPEC members to work in dollars, thus establishing the petrodollar concept.
The reason the dollar is the world’s reserve currency is it is backed with energy, the one thing everyone needs. The gold bugs like to say the dollar is “fiat currency” and is just colorful bits of paper, but that was always false. The dollar, like all real money, represents power. From the 1970’s to the present, the dollar represented the power of the United States and the power of hydrocarbons. Instead of money backed by shiny bits of metal, the dollar was backed by energy.