In 1974, Saudi Arabia Agreed to Sell Oil only in US Dollars
By Felix Prehn
Every country on earth had to buy dollars just to purchase energy.
That created massive demand for US debt and let America borrow trillions while the world paid for it.
That 50-year system is now breaking.
• BRICS nations are trading in local currencies.
• Saudi Arabia is considering accepting other currencies for the first time.
When countries need fewer dollars, they sell US bonds.
• Bond prices fall
• Interest rates rise
• Stock valuations come under pressure
For your money, this means the purchasing power of every dollar in your savings and retirement account is gradually shrinking.
Your balance may look the same but what it buys gets smaller each year.
I walk through the full framework in the thread below:
In 1974, Saudi Arabia agreed to sell oil only in US dollars.
Every country on earth had to buy dollars just to purchase energy.
That created massive demand for US debt and let America borrow trillions while the world paid for it.
That 50-year system is now breaking.
• BRICS… https://t.co/wapLY2WoMd pic.twitter.com/ehHxnfVEya
— Felix Prehn (@felixprehn) April 24, 2026
