''Since China has become S. Arabia`s major trade partner, the question is whether Riyadh will continue trading its oil in US dollars or it will switch to yuans or euro? This would be a catastrophe for the US economy. In 1973 S. Arabia agreed to trade oil in US dollars in exchange for Washington`s protection in regional conflicts. The US also sold arms to S. Arabia. Riyadh was followed by other countries, and in 1975 all OPEC countries agreed to trade oil in US dollars.
As a result of this the US dollar was in a very high demand in the 1970s. A higher demand for oil led to a higher demand for US national currency. The money came to the Federal Reserve System and thus caused a global demand for dollar. At the same time, the US received oil almost for free: being a non-governmental organization, the FRS printed as many bank notes as necessary. So, if now S. Arabia decides that it will no longer trade oil in US dollars, other countries could do the same. Of course, the US will do everything possible not to let destroy this oil-dollar link.''
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