america behaves as "saudi arabia's bitch" because of the petrodollar agreement. after president nixon removed the us dollar from the international gold standard, he sent henry kissinger to saudi arabia to make a deal. the deal was that the usa would defend saudi arabia in exchange for the saudi's commitment to denominate all oil sales in us dollars. the petrodollar system requires us dollars to buy oil on the world oil market. that requirement artificially increases demand for us dollars, and that is what props up the dollar even when the us government and the federal reserve run the printing presses 24/7. if the petrodollar system were to end abruptly, international demand for the us dollar would collapse, sending the us economy into hyperinflation rivaling weimar germany's woes.
United States