@gigliolaFifty years ago, the United States and Saudi Arabia struck a deal that has quietly shaped the global economy ever since. In 1974, Saudi Arabia agreed to price its oil exclusively in dollars and invest the proceeds in U.S. Treasury bonds. In return, the U.S. pledged military protection for the kingdom. The consequence: every nation that needs oil must first acquire dollars, effectively making the greenback the world's reserve currency. That arrangement has now lasted half a century.

@gigliolaFifty years ago, the United States and Saudi Arabia struck a deal that has quietly shaped the global economy ever since. In 1974, Saudi Arabia agreed to price its oil exclusively in dollars and invest the proceeds in U.S. Treasury bonds. In return, the U.S. pledged military protection for the kingdom. The consequence: every nation that needs oil must first acquire dollars, effectively making the greenback the world's reserve currency. That arrangement has now lasted half a century.