In 1974, William Simon struck a deal with Saudia Arabia where the Saudis got military protection and the ability to buy U.S. treasuries outside of the regular auction. U.S. got the agreement to denominate all sales in dollars. This also finances U.S. debts1,2.
Recycling
1.
Fishman, E. Chokepoints: American Power in the Age of Economic Warfare. (Portfolio, New York, 2025).
2.
If You Don’t Understand the Petrodollar, You Don’t Understand Geopolitics. (2026).