Recently, with the collapse of the yen, the currency market in Asia has been stirred up, and banks in Asian countries are closely watching the change in exchange rates.
A new round of "Asian currency defense" has officially begun, and Saudi Aramco (Saudi Arabian National Oil Company) quickly came to the rescue, throwing trillions at the mainland.
Why did Saudi Arabia come up with so much money to support the mainland in the first place? What is the purpose of their doing so?
The Federal Reserve has announced that it may raise interest rates again
On April 19, 2024, William James, chairman of the New York Savings Board, delivered a speech in which he said that the Fed would raise interest rates further if calculated data showed that the Fed needed to raise interest rates to achieve its goal.
The United States seems to like to like to raise interest rates, to make small moves and play a little clever, so as to obtain a lot of benefits in the process, and it seems that the United States still thinks that other countries do not know.
In fact, all countries have long been aware of the "little ninety-nine" in the hearts of the United States, and according to the "familiar formula" of the US dollar interest rate hike, the next step is to burst the dollar bonds of various countries, so as to break the currency exchange rate between countries.
As a result, financial markets in various countries were thrown into chaos, and the market value of industrial assets fell sharply.
At this time, the Federal Reserve will cut interest rates again, so that the major capitalists in the United States can buy the assets of various countries at a low price, so that the United States can achieve the goal of harvesting the economies of various countries.
After the U.S. interest rate hike, it was found that all countries in the world were unusual, which made the U.S. a little "confused". Because the US interest rate hike has been going on for two years.
During this period, except for a very small number of small countries that did not resist it, several other large economies still stood proudly there, and it turned out that when all countries discovered the US aim, they successively launched relevant countermeasures, so that the US "conspiracy" did not succeed.
In order to accomplish its "great conspiracy," the United States has recently decided to attack the entire Asian currency market by sacrificing the Japanese currency exchange rate as a springboard.
The despicable act of the United States this time has indeed set off quite a storm in the Asian currency market, but this "petty trick" of the United States has not been able to shake the mainland's basic market, and only Japan and South Korea are the only ones in the Asian market who are "subservient to it."
Nowadays, Asia has become the basic plate of the mainland's economy, and the Southeast Asian market in particular is very important to the mainland, and if the United States collapses the Asian currency market, the mainland will suffer a lot of losses.
On the other hand, the United States is the same, the economic base of the United States is North America, if any country collapses the currency markets in Canada and Mexico, the United States will also pay a heavy price, so these principles are the same.
In order to earn the economy of Asia and the Middle East, the United States once signed an agreement with Saudi Arabia.
The agreement signed between the United States and Saudi Arabia
In the 70s, after the end of World War II, the Bretton Woods system established by the United States came to an end, and in order to further consolidate its position in global hegemony, the United States urgently looked for resources that could replace gold.
The oil resource came into the field of vision of the United States, and then the United States found Saudi Arabia and many countries in the Middle East, Saudi Arabia is the largest oil producer in the Middle East, and also has a great influence.
At this time, Saudi Arabia was engaged in an oil price war with its "old adversary" Soviet Union, and it was at this time that the United States threw an olive branch to Saudi Arabia and signed an agreement that the United States would settle oil in dollars on the condition of protecting Saudi Arabia's politics.
Subsequently, the Soviet Union was brought down by the United States for several decades, during which the petrodollar played an important role, and the United States "absorbed" the value needed from Saudi Arabia and then forgot about the content of the signed agreement.
In November 2019, Biden participated in the presidential candidate debate and bluntly said that he wanted to make Saudi Arabia a "pariah state", and Biden's behavior also successfully angered Saudi Arabia, and then the Saudi crown prince was no longer angry with Biden internationally.
On July 15, 2022, Biden met with the Saudi crown prince to discuss how to resolve the Khashoggi case (the case of the disappearance of Saudi journalists), in which Biden said that the Saudi crown prince should be held accountable for the Khashoggi case.
In response, the Saudi crown prince made a strong response, saying that the US military's mistreatment of prisoners in Iraq will only make the outside world's perception of the United States worse.
As soon as these remarks came out, they also made the Saudi people breathe a bad breath, and also let the United States know that Saudi Arabia is not easy to mess with, and since the United States does not regard Saudi Arabia as an equal partner, then Saudi Arabia does not need to give the United States face.
Today, Palestine in the Middle East is suffering from war, and the local people have been bullied and slaughtered by Israel for many years, but the United States has not fulfilled the contents of the agreement and has not protected the security of all countries in the Middle East.
Since this treaty has been broken by the United States, Saudi Arabia and other East Asian countries do not need to abide by this former treaty, and then the Saudi capitalists did something that made the United States "stunned its big teeth".
Saudi Aramco
Saudi Aramco (Saudi Aramco) was founded in 1933 and is headquartered in Dhahran in eastern Saudi Arabia.
At the beginning of its establishment, the company was jointly owned by the American oil group and the Saudi royal family, and later the Saudi royal family's extravagant spending was condemned by the US government, and the US side initially made Saudi Arabia suffer a lot of dumb losses when signing the contract.
As a landlord, the Saudi royal family, where can it stand this kind of angerThe Saudi royal family obtained the real benefits of Aramco through a covert investigation.
The Saudi royal family found itself in the dark of the United States for many years, and then made a showdown with the United States to split the profits generated by oil with the United States.
In May 1950, the Saudi royal family set a precedent in the Middle East and became the first country to have the exclusive right to share the profits of oil in the Middle East.
In 1974, the Saudi royal family and the United States launched several rounds of negotiations on the ownership of Aramco's shares, and finally the United States, as an "outsider", could only compromise with Saudi Arabia, and the Saudi royal family once again obtained 35% of the shares, accounting for 60% of the total shares
In the years that followed, the Saudi royal family continued to acquire Aramco's shares, culminating in a 100% stake in Aramco four years later.
In 1988, the Saudi government officially changed the name of Aramco to "Saudi Aramco", and since then the oil company has nothing to do with the United States, and the Saudi royal family will eventually complete the complete "Saudiization" of the oil company.
After 55 years, Saudi Aramco is finally back in the hands of the Saudis themselves, and under the leadership of the Saudi royal family, the company has reached new highs in recent years.
In 2022, Saudi Aramco's annual revenue and net profit reached US$161.1 billion, equivalent to approximately 1.1 trillion yuan, and the year-on-year growth rate of Saudi Aramco reached 46.5%, a record high!
According to the data, Saudi Aramco's net profit in 2022 is four times that of Shell, six times that of British Petroleum, and seven times that of PetroChina (601857.SH).
Saudi Aramco has very strong capital, and at the same time, the royal family of Saudi Aramco is very willing to cooperate with China, because the mainland has always maintained an attitude of equality, friendship and mutual assistance when cooperating and communicating with other countries.
Saudi Aramco enters the Chinese market
Saudi Aramco CEO Amin Nasser said in a call call that China's demand for oil has been growing in recent years and that Saudi Aramco has one of the most comprehensive refineries in China, and Saudi Aramco will further look for projects to invest in the Chinese market.
As soon as the speech was announced, it showed that this was an important means for Saudi Arabia to resist the US interest rate hike, and then Saudi Arabia entered the Chinese market in a big way and carried out close cooperation with mainland enterprises.
As early as 2023, Saudi Aramco has been actively investing in the Chinese market, and according to the data, Saudi Aramco invested a total of $49.7 billion in 2023.
Of this amount, more than 100 billion yuan (about 14.2 billion U.S. dollars) has been invested in the Chinese market.
In January 2024, Continental Rongsheng Petrochemical publicly announced that the company and Saudi Aramco are discussing a potential acquisition of Ningbo Zhongjin Petrochemical Co., Ltd. for no more than 50% of the shares.
The two companies plan to work with CICC Petrochemical to jointly develop and upgrade the existing equipment of the petrochemical company, and jointly complete the new project Rongsheng New Materials.
In February 2024, Saudi Aramco handed over the construction of the third phase of the natural gas network expansion to China Petroleum Engineering Construction Corporation, China Power Construction Group, and Sinopec Group.
Saudi Aramco's move has made the above-mentioned companies in mainland China make a lot of money in this project.
In 2023, foreign media reported that it is understood that many Middle Eastern countries, led by Saudi Arabia, the United Arab Emirates, and Qatar, have mastered a $10 trillion sovereign fund.
In the next few years, 10% of the capital will be invested in the Chinese market, and this 10% of the capital will amount to trillions of dollars.
Now, the United States' goal of attacking the Asian currency market by raising interest rates has been curbed by the concerted efforts of many Asian countries, which has also successfully broken the "conspiracy" of the United States.
All in all, the countries of the world are changing, and it is time for the United States to wake up from the dream of hegemony and face reality.
Key Sources:
International Finance News, March 11, 2024 – Saudi Aramco's net profit reached $121.3 billion last year!
The Paper, June 15, 2022 - Biden will visit Saudi Arabia and has scolded for turning Saudi Arabia into a "pariah state"
CCTV, July 17, 2022 - Biden was scolded by the Saudi crown prince in person