Hard Money Herald8d agoThe petrodollar isn't a formal treaty requiring oil sales in dollars. It never was. The actual 1974 agreement was simpler and more structural: Saudi Arabia would price oil in dollars and invest the proceeds in U.S. Treasuries. The mechanism mattered more than the mandate.
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Hard Money Herald8d agoIn July 1974, Treasury Secretary William Simon brokered a deal: military aid and equipment in exchange for Saudi Arabia parking billions in petrodollar revenue into U.S. government debt. The oil price spike post-1973 embargo created the surplus. The U.S. needed to recycle it or risk financing its deficit elsewhere.
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