This system, in place for 75 years, marked the US dollar as the world’s reserve currency, granting economic stability and access to rising asset prices. The arrangement between the US and Saudi Arabia helped preserve the US dollar’s dominance over global trade.

However, this past Sunday, the Saudi Arabian prince announced that he would not renew the contract, signaling a major change in the global financial landscape. This agreement, initiated after World War II, allowed the US to control the world’s energy, and its impact on the standard of living for Americans is substantial. The Petro dollar system replaced gold as the standard of value and enabled the US to maintain dominance over international trade. The reasons behind Saudi Arabia’s decision not to renew the contract are part of a larger story, and its implications for us and future generations are yet to be fully understood.