Saudis will still accept USD, just not exclusively.
The world is still entangled in dollar-denominated debt. That is what it means to be the world reserve currency (and extremely dominant, over 80% of all transactions worldwide are in dollars).
Every other country borrows US dollars, those dollars are converted to their currency or spent on something else internationally.
The dollar isn't going to go away fast with the Saudis switching. It would take several other extreme international crisis happening at once which I currently don't see happening right now (USD-JPY goes vertical, Euro collapses, major country(s) adopt crypto, global supply chain collapse akin to 2020 or worse.
First you will see the dollars value rise if other countries can't easily get ahold of easy dollars. Your dollar will buy more but it'll choke other countries, and it becomes an avalanche of countries trying to break the noose around their neck.
Then it'll be a slow, painful,drawn out process that'll see extreme inflation for the US citizens. As other countries move away from the dollar, dollars flow back to their country of origin (USA) and increase the circulating money supply without an increase in demand. This causes inflating prices.
None this isn't to say you won't see a collapsing stock market in the USA. Too many loans have been created that can't be played back and that'll cause our electronic money supply to near instantly disappear when bankruptcies are rampant. If the Feds don't turn on the money printer this time, that'll probably be the catalyst to collapse the world, but you will likely not have dollars either if it's in a bank.
Saudis will still accept USD, just not exclusively.
The world is still entangled in dollar-denominated debt. That is what it means to be the world reserve currency (and extremely dominant, over 80% of all transactions worldwide are in dollars).
Every other country borrows US dollars, those dollars are converted to their currency or spent on something else internationally.
The dollar isn't going to go away fast with the Saudis switching. It would take several other extreme international crisis happening at once which I currently don't see happening right now (USD-JPY goes vertical, Euro collapses, major country(s) adopt crypto, global supply chain collapse akin to 2020 or worse.
First you will see the dollars value rise if other countries can't easily get ahold of easy dollars. Your dollar will buy more but it'll choke other countries, and it becomes an avalanche of countries trying to break the noose around their neck.
Then it'll be a slow, painful,drawn out process that'll see extreme inflation for the US citizens. As other countries move away from the dollar, dollars flow back to their country of origin (USA) and increase the circulating money supply without an increase in demand. This causes inflating prices.
None this isn't to say you won't see a collapsing stock market in the USA. Too many loans have been created that can't be played back and that'll cause our electronic money supply to near instantly disappear. If the Feds don't turn on the money printer this time, that'll probably be the catalyst to collapse the world, but you will likely not have dollars either if it's in a bank.
Saudis will still accept USD, just not exclusively.
The world is still entangled in dollar-denominated debt. That is what it means to be the world reserve currency (and extremely dominant, over 80% of all transactions worldwide are in dollars).
Every other country borrows US dollars, those dollars are converted to their currency or spent on something else internationally.
The dollar isn't going to go away fast with the Saudis switching. It would take several other extreme international crisis happening at once which I currently don't see happening right now (USD-JPY goes vertical, Euro collapses, major country(s) adopt crypto, global supply chain collapse akin to 2020 or worse.
First you will see the dollars value rise if other countries can't easily get aholf of easy dollars. Your dollar will buy more but it'll choke other countries, and it becomes an avalanche of them trying to get rid of it.
Then it'll be a slow, painful,drawn out process that'll see extreme inflation for the US citizens. As other countries move away from the dollar, dollars flow back to their country of origin (USA) and increase the circulating money supply without an increase in demand. This causes inflating prices.
Saudis will still accept USD, just not exclusively.
The world is still entangled in dollar-denominated debt. That is what it means to be the world reserve currency (and extremely dominant, over 80% of all transactions worldwide are in dollars).
Every other country borrows US dollars, those dollars are converted to their currency or spent on something else internationally.
The dollar isn't going to go away fast with the Saudis switching. It would take several other extreme international crisis happening at once which I currently don't see happening right now (USD-JPY goes vertical, Euro collapses, major country(s) adopt crypto, global supply chain collapse akin to 2020 or worse.
First you will see the dollars value rise if other countries can't easily get aholf of easy dollars. Your dollar will buy more but it'll choke other countries, and it becomes an avalanche of them trying to get rid of it.
Then it'll be a slow, painful,drawn out process that'll see extreme inflation for the US citizens. As other countries move away from the dollar, dollars flow back to their country of origin (USA) and increase the circulating money supply without an increase in demand. This causes inflating prices.
Saudis will still accept USD, just not exclusively.
The world is still entangled in dollar-denominated debt. That is what it means to be the world reserve currency. Every other country borrows US dollars, those dollars are converted to their currency or spent on something else internationally.
The dollar isn't going to go away fast with the Saudis switching. It would take several other extreme international crisis happening at once which I currently don't see happening right now (USD-JPY goes vertical, Euro collapses, major country(s) adopt crypto, global supply chain collapse akin to 2020 or worse.
It'll be a slow, painful,drawn out process that'll see extreme inflation for the US citizens. As other countries slowly move away from the dollar, dollars flow back to their country of origin (USA) and increase the circulating money supply without an increase in demand. This causes inflating prices.