Dollars are still very dominant in the trade of oil or any other commodity. While there is no legal (de jure) agreement to do so, there still is a de facto necessity to. Saudi Arabia trying to move away from that is news, perhaps not for the "petrodollar" reason media are stating, but it is still news.
facts that are difficult for the United States to understand. USD as the world's reserve currency will fall from 60% to 20% in 10 years. and the United States government can no longer print money without the consequences of crazy inflation .😂. plus the debt crisis.
Could you similarly break down Gaddafi plan of Pan-Africa gold backed Dinar as competition to the US petro-dollar (and the Arab Spring)? Track people along the decades of work to bring the various Bretton-Woods agreements, WHY it was needed (to liberate capital spending and developed economics), how the good idea was conservatively reinvested and why petroleum is the true current “gold-standard”? Then a last assessment on the liberation of energy markets displacing the value of petroleum and its threat to the economy? (e.g. if (hypothetical example) fusion was suddenly possible and infrastructure in place to distribute the energy globally). Money and interest rates are representations of trust (exchange and risk). If costs of energy plummet (displace oil), that shows the currency market is NOT on value/exchange/risk - in essence, what is the exposure of all currencies to the energy market?
Another one is "the dollar is backed by nothing", as if the most powerful nation to ever exist in human history, along with the most powerful network of alliance (every single 1st world country) that's directly under U.S. security umbrella is "nothing"
@DanielFerreira-ez8qd Isn't that the truth. Rumors, opinions, and lies are now considered news. How often do any of these news sources ever admit they were wrong or correct themselves?
No, he's just telling you what you want to hear. Just like the fem and mist channels telling women its okay to not go to the gym and that men find university degrees appealing.
@@steviewonder417 Yeah, I'm referring to a specific meme that blew up in 2022 with a lot of cringy clickbait channels running a nonsensical countdown to when China would collapse. Money & Macro did a great video on it titled "Nonsense! China's Economy Will NOT Collapse". It's a lot like this one here, going calmly though the total nonsense.
People also dont watch his videos though, they take his misleading titles then parrot them as a gotcha to others, for example he said the saudis didnt ditch the us dolllar but thats not even what even lots of economists said they said they are slowly moving away from the dollar which is what he agreed with in the second half but the title is misleading
@@MithunOnTheNet and because the news doesn't cover what the BRICS are up to. If they don't report on the world moving away from the Dollar they can ignore the issue or laser in on single issues to convince people nothing at all is going on
Currently in Papua New Guinea. The relationship between the USD and oil is a real issue in this country, as the main fuel supplier for the whole country can't get enought USD to import fuel stocks. The oil company blames the govt, who blames the central bank, who blames the politicians, who say "everything is fine." meanwhile the pumps routinely run dry, the aviation sector is held hostage (a problem in country the has almost non-existant road connections) and the power grid is so bad that everyone needs to run gensets, which run on diesel, which is scarce. good times.
@cobra646 cool. I mean, thats sucks about the fuel problems, but PNG! What are you doing there?!?! Just aviation? So wild to find a yt comment form PNG. Saw some of your (very old) vids.
Time Papua New Guinea look for a better partner, supplier from the World Market. China have daily tanker going by New Guinea from Middle East. Daily Energy Tanker(s) ship by Chinese ship(s)
Meh. You're kind of splitting hairs on definitions. Simple fact is, until recently, Saudi only sold oil in dollars. Then it slowly began accepting other currencies. Now it's actively accepting other currencies. Whichever way you look at it, this is a net negative for the dollar, as it reduces global demand. It is also a net negative for America as a lower demand makes printing dollars less effective.
@@arglebargle5531 In amounts so small it makes your sterling angle, irrelevent. Oh and the last time the Saudis accepted the sterling as payment was way back in 1974 lol
Economic advisor to Biden wrote in op-ed that the dollar should be de-throned. What could go wrong? The problem is as I understand normal economists want to reduce the American debt burden so they are not selected to be advisors to politicians anymore.
@@kotenoklelu3471 all of the advisors are jedis , and jedis choose US financial policy to benefit a certain country thats invading gaza right now, a nation that sees americans as gentile fools to be exploited and tax farmed.
This video also ignores the trend. In a history book if you read "Saudi Arabia joined BRICS and 6 months later accepted a wider array of currencies in its oil trade" no historian would argue they are not related in the same trend. Okay some historians would argue. In the larger context this is another step. One cannot assess the heights a ladder can go by examining the condition of one rung.
The main thing to note is that Saudi Arabia can choose to not use the dollar, they can trade oil in yuan, whatever currency BRICS may use, etc but that doesn't mean they'll stop using the dollar. They've just got options now
BRICS seems to have failed to launch. Probably because the American elites put the kibosh on the Kissinger multipolar world order plan as can be seen in Ukraine. Next Israel will be taught the lesson that one cannot serve two masters.
Well the Saudi riyal is pegged to the USD and so are there defense affairs,Iran is still a threat for GCC and I guess they still need to buy weapons to intimidate there enemies.
4 месяца назад+71
USD problem is not about Saudi's selling petrol in other currencies. The fact is USD is still the global reserve currency, it is weaponized, any country no matter ally or enemy can be sanctioned if it commits anything which the USA does not like. A lot of countries are either slowly ditching USD from their reserves, or cant even hold USD reserves because they are sanctioned. it is just not safe to hold USD or US debt in central banks anymore, not as it used to be. This has nothing to do with ordinary plebs like us, its an issue of global commerce and politics. We keep earning, holding, using USD like nothing happened. But it does not change the fact that the global trade volume in USD is decreasing, mBRIDGE is already in use, BRICS is working on an alternative, some countries has to find other means of payment because they can not use swift system, a lot of countries are looking for other means of payment because they want to avoid the obvious risks involved with USD.
Channel's like this are establishment shills. They are the embodiment of "Nothing to see here" meme. They are as bad the clickbait "sky is falling tomorrow" chicken little fear porn channels. Both are pushing narratives that isn't what's good for the majority, especially the lower middle class currently being robbed by ruling elites who profit off these shills.
They are all slowly getting rid of their USD, hoping NOT to percipitate a run, because then they will take a huge loss from the remaining USD they can't get rid of. Nobody wants to crash the US economy (not even China) (well, maybe Putin) because they all have a lot of exports to the US, which will be affected.
Are these dollars being burned in a giant pile or is someone else accepting them as payment for goods/services? You're describing a zero sum transaction or even a disinflationary environment--exactly opposite of your alarmist conclusion. Let's make this easier. Do you think having fewer people using gold to buy/sell goods makes gold worthless? I assume you don't. You can still buy and sell gold using dollars right? So it still has value? If gold stays the same price but there are fewer dollars available to purchase it with...do a simple supply and demand graph and report back to us.
Saudi is suddenly the country that actually sponsored the 9/11 attacks. The media is shifting against the kingdom. How long will it take the US to train a Saudi opposition group?
As a Saudi Arabian, I frequently encounter online inquiries about the false "petrodollar agreement." The truth is, Saudi Arabia exports in dollars by choice, not due to any agreement. Our foreign exchange reserves, primarily in dollars, are among the world's largest, reflecting our strategic interests. Our currency has been pegged to the dollar for the last 50 years and still, because it serves us well. Thank you for pointing out the facts. Peace✌️
@raptorhacker599 you mean that stuff you can dig out of the ground that serves not purpose other than its shiny. Oh it conducts electricity but so does copper. If we went back to a gold backed system some of the wealthiest countries would be wealthy just bc they have large gold deposits under their ground. And now we have gold wars instead of just oil wars. Yay!
The 1974 agreement defacto makes Saudi Arabia only want to sell its oil (mostly) in USDs so it can buy US bonds, so it kinda is the petro-dollar deal. Sure enough there is nothing mentioned about obliging Saudi Arabia to only sell oil in USD, but what benefit there is to get British Sterling from oil to only convert it to USD to buy US bonds or enter the US market as this agreement is showing.. Secondly I feel like the video here missed the point in how grave this agreement was, it really was a deal breaker to the USD back in 1974 to wash out some of the bad reputation and negative sentiment the USD had after dropping it from the gold standard. So it was a huge life saver to the US.
@@suntzu1409 I think it goes a long the lines of "you don't have to, but you don't want to find out what happens when you don't". Imagine if the Saudis stopped buying treasuries and then 9-11 happened. We'd be in there in a second, regime change shock and awe style
Other countries now have the option to use local currencies when trading with the Saudis. Prior to this the USD was the only option. Forcing countries to purchase USDs. This is how the US can export its inflation and is the main reason it has this unending ability to print money.
Also not just force countries to purchase USD first and trade in that, but in the process, they were forced to by US treasury bonds, held in state, in america. So anytime America wanted, they could freeze those assets (which is what they did to russia). Without buying USD (bonds), the USA wont be able to behave like the mafia anymore.
Thank you for this, I was so tired of seeing other RUclipsrs going on their gloom-and-doom trip again (Looking at you Andrei Jikh) without actually doing some basic research. Getting really tired of these so-called "finance" influencers.
BRICS said in 2009 that they would develop to get rid of the dollar dominance and every few years, people bring that nonsense up again. India and China hate each other. It will not happen under 2 ultranationalist presidents.
Andrei Jikh is a magician! He doesn't know anything about economics. He made money using social media (good for him) but he thought that would make him an expert.
It's not that the dollar is being ditched, it's that other currencies can be used where the dollar was once exclusive. Once upon a time there were more 100$ bills in other individual nations than the United States, read it again if you have to. I think many of us remember growing up watching various presidents hold hands and kissing King Abdullah of Saudi Arabia specifically because we were so grateful for this agreement. We blunder with Saudi Arabian relations, we are too bellicose and arrogant when it comes to Russia and their Pipeline was destroyed. The rest of the world has worked around us and now have their own deal going because we weaponized the dollar too much. This is a slow bleed, definitely knocked us down several pegs.
If anything, US will eventually voluntarily relinquish the reserve currency status of the dollar when the benefits of cheap imports are outweighed by less-than-competitive exports.
Saudi Arabia is not EXCLUSIVELY selling oil in dollars anymore. So we don't ABSOLUTELY need to purchase and put Dollars as reserve in the bank. So yeah, this DOES put USD in vulnerable position, especially since there are some countries that are aggressively dumping the dollar. The World Bank itself has the lowest dollar reserve than it did for the last-how many years now?
CNY might be slightly less useful than the USD, but the deficiency is rapidly reducing. For every $10b Saudi exports to China, they import $16b. They are not going to have any problem spending those CNYs. Even countries that have a trade surplus with China like those in SEA, they will have no trouble finding other people to take their CNYs. Because those buy stuff from China too. The fact that China is generating so much exports means the CNY don't have to rely on other countries accepting CNY directly. It was how the USD got to it's position.
"A lie can be halfway round the world before the truth has got its boots on." But thanks to Plain Bagel for helping spread the truth. This was the first I'd heard of this!
Saudi is not ditching the USD. It is just diversifying, that is pricing and selling oil in other currencies too. That will just reduce the total reliance on the USD in direct trade with other countries .
Question if a store used to only accept payment in Visa but later on accept from Mastercard and JCB while still accept Visa, does that mean the store ditch Visa?
Which they did before, so it's not a surprise to anyone. Their currency is fixed to USD. Their debt, which is increasing, nominated in USD. Someone was paid to prop the blame America narrative.
There is a Joke in Czech republic from communist era: I am watching TV. What are you watching? Soviet weekly show, the end of dollar is close. And how close? It is 3491 episode. 😂😂😂
Empires take centuries to collapse. British empire 300 years. Ottomans 600 years. We are barely 80 years into the life of the US empire and for such videos and talks to even exist in the economic world being talked about both in and out of the US is a cause for major alarm. The collapse is slow, everyone agrees. But it is happening and it is happening faster than any empire in history that's a fact.
It is happening tho. Slowly but surely. He showed the graph at start. Plus countries are bringing back gold that they kept in foreign countries after They saw how western countries froze Russian offshore assets. The world trusts the west less today as compared to pre 2018. There was even the thing where countries banned spacex sattelites from going in their territory in space because they spied on Russia. I think it was in the first few months.
@@hanzohattori9576 You mean faster than the Second Reich, which lasted 47 years? Or the Hongxian Monarchy, aka the Empire of China, which lasted less than a year? There are tons of empires that lasted less than 80 years. You could have just Googled this, you know. There are more empires that lasted less than a year. Heck, there are several that lasted less than a decade.
great video, I was confused when I saw these videos pop-up and immediately checked the value of the dollar as that surely should see some negative impact. But nope, all was good even days afterwards. Additionally, I didn't know the Saudi Riyal was pegged to the dollar which makes sense that there is no need for them to really want to move away from USD. Also, all these videos did indeed include a advertisement (usually a long story I skipped) about investing in gold.
Around 15yrs ago 97% of international trade was done in the US dollar, today it's only 59%. It's being replaced by other currencies slowly. It's clear to see.
I think people completely misunderstood what the various news outlets meant when they said that Saudi has abandoned the Petro dollar deal. The Petro dollar deal means that Saudi trades oil EXCLUSIVELY in USD and the other oil producing states followed. That's what has changed. USD won't be abandoned immediately but slowly over time. So far only the interest has been expressed to sell oil in other currencies like Yuan (which in of itself would be an earth shaking news), but the deal made almost 80 years ago that kept this Petro dollar possible is no longer seemingly holding things together. And yes the deal does exist. It was made in 1974. But it was a much bigger deal so it's not specifically called the petro dollar deal because it includes many things that lead to the formation of the petro dollar. Everyone in economics was aware of it and has been speaking about it for decades. And whether such a deal exists or not, oil trade shifting away from the dollar is the main highlight.
This is exactly how I understood it and why I feel we do have reason to worry about this shift. Things are going change and hurt the dollar and that's the point. People are ditching and buying less of our bonds as well and this might all be connected, as well as the not doing great but still active BRICS's. The world is going have a huge change and it will effect the US a lot and thats the point.
Finally, a commentator who Gets It. Yes, exactly what you said. This video sucks bad; pure western propaganda, strawmanning the clearly-understood implications of the headlines and stories on this topic in recent days.
@@suezzle The Russian economy is on the skids, the Chinese economy is defaulting everywhere, the US is now a major oil and gas producer, but you think I'm going to ditch the USD....for what. the Iranian rial? You need to stay off the hard stuff, son.
In my opinion, the trust in the USD is a compounding effect. So small reductions in trust make a huge effect in the overall global economy. The fact of the matter is, if the situation does not radically change the trust in the USD is decreasing and people are looking for the tipping points
@1:20 While I agree with the general premise of this video, saying the dollar has experienced "a little erosion of its dominance" is extremely misleading. The chart on the screen shows this. Losing 10 percentage points (or the equivalent of -14%) of the dollar's global market share against other currencies while the Euro and GBP essentially remained flat shows a very sharp contrast. More importantly, the rise of the alternatives is unmistakably strong and persistent. The Ukraine war has definitely made the case in favor of diversification away from the dollar. These kinds of trends are not minor. They are MAJOR developments which cannot be quickly reversed. We are watching something comparable to what happened to the US auto industry in terms of global domination. The dollar won't go away and it still will be (at least for the foreseeable future) the dominant global currency, but it is extremely likely that alternatives will eventually surpass the dollar as a group in terms of market share. Again, my disagreement is that you said "a little", when it's far more substantial than that.
you continue to be by far my favorite finance RUclips channel. I wish more fin-tubers would be less clickbait-y and do more research. Thanks for all you do for the space!
Thanks for being a plain bagel, its exhausting watching people spread panic and disinformation when they could just have a rational conversation, as you do I appreciate the free education and the effort involved in attempting to keep people informed by facts
@@NeostormXLMAXevery country has to develop into a service based economy if they ever want to be rich. Canada is the 4th largest producer of oil and gas in the world. We exploit our natural resources as much as we can
Australian mining is 86% owned by a big western country. (Not China!) We also have US troops to make sure we behave. The resources of the country don't benefit us much. Multinationals cream it off and leave us with the crumbs..
Ditching the dollar means that not all transactions will be denominated in US dollars anymore. It does not mean they are not going to still transact with it, it does mean that they are looking for other ways to transact outside of a US dollar denominated system.
Nice red herring, bro. No one said SA was ditching the Petrodollar. Rather what's happened is that SA is now accepting payments in other currencies as well.
@@ThePlainBagel The line I wish to quote is this one: In fact, the share of the dollar in global reserves has already fallen from 71 percent in 1999 to 58.4 percent at present-in favor of several secondary currencies.
0:37 they sold oil in dollars now that is not necessary. You can buy oil in yen. Countries dont need to keep dollars in their account. It is as simple as that. Dollar will lose its importance but it will be a major currency.
This, found the one with a brain. Let's put it this in a lament term, let's say when we don't have wireless payment, we have go to ATM and takeout money because cash is the only way even though sometimes it's inconvenient. Now that we have the options of wireless payment, we seldom use cash because we can simple top up anytime anywhere, it's convenient, it's an extra option and a good one. So eventually if US still behave like Sh1t, USD will be ditch due to the weaponized dollar. People should start worrying instead of still being complecent.
I am quite certain that the world's largest oil producer will continue to sell oil in USD. There is really no question and people who disagree are woefully ignorant.
In other words economy is fine..... There are no risks like in 2008 crisis. Banks are doing fine, Foreign policy is fine. Stocks just hitting new and new records. Inflation? Accelerating debt accumulation? Nah. US economy is bulletproof. Presidential debates with best of the best representatives..... Nothing can go wrong....
Having lived in that region for years, most of their currencies have been set at a point for decades and propped up by the dollar all the way. Check out how much the dinar to dollar rate in Bahrain has changed over the last 20 years...
The petrodollar was an unofficial, but definitely existing, part of a trade agreement that was recently allowed to lapse. The agreement was implicit because they (the saudis) couldnt have handled the fallout in the 1970s of an official agreement. That doesnt mean it wasnt there. Its like the US defending Taiwan- its not signed but everyone knows its pretty likely. Saying there wasnt a petrodollar is Uncle Sam attempting to save face for letting saudi arabia switch teams now that they're almost out of oil.
@@ThePlainBagel Britain entered world war 1 because it has a handshake deal with Belgium. It seems you want to imply that if something is not written down then it can't be policy. You admit it's real and then follow up by saying it's not real.
You left out the fact that the petrodollar agreement came into being shortly after the USA was forced off the gold standard. The gold standard is what gave its dominance to begin with.
There is no agreement and less dollar credit being created by foreign banks to buy goods globally is good for US citizens who’s purchasing power will decline less rapidly.
The saudis just stooped selling oil in only US dollars which ended on the 9th of June of 2024 the ditching of the dollar comes with the new BRICS currency when it releases the Saudi currency isn’t backed by dollars but by gold which most gulf state currency are and if u look nations like Bahrain 🇧🇭 or Qatar 🇶🇦 their currencies are pretty strong. As long you keep debt out of your country which Saudi hasn’t and is crippling the economy. The future of Saudi is based diversification and using oil wealth to create blended economy that isn’t only an oil economy like what we have seen in UAE 🇦🇪.
If the Saudi currency is "backed ... by gold" then that means you can redeem it for gold from the Saudi Arabian government at a fixed ratio. Tell me: what's that ratio?
Saudi Arabian army is based on US weapons. There is no way they d risk their defense and policing by cutting ties with the US. After all,this is what USA depends it's growth on,the defense industrial complex, not production of goods or serviceslike all others.(the only in the world). That's the reason dollar is what it is,it is backed by the mighty US army/navy/airforce and CIA. So at present, noone can ditch the dollar without risking annihilation
What if they didn't see weapons as necessary and wanted to build up their country so not to rely solely on oil. Perhaps they might find a friend next door, like Iran say. No enemy, a good customer for their oil and the price pegged to a gold backed currency might be attractive to them. It might take a few years but once the debt can't be paid I think the TRUST in the dollar will go.
@@PhysicsGamer No. Where did you get that idea? Ever since Mohamad died there has been problems between Sunni and Shea Muslims. So Iran and Saudi Arabia have been competitors, often leading to war. Today they are friends, not best friends perhaps but the need for "defence" is not so important. Given the US overthrow of the elected, democratic government of Iran in the early 50s and the CIA funded Saddam keeping the wars going Those days are over. There is now China bringing all the Middle East together in peace through BRICS and the Belt and Road, The US will still cause problems but they will be a lot smaller until the US fades away.
@@PhysicsGamer You need help. Get your mummy to read my original comment and take you crayons with you so she can explain it. The "good customer" might be the "good customer" they have in China. I take it your first language is X Box?
You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it
I think you are underplaying the consequence a bit. While losing the petro dollar may not lead to the loss of the US dollar as the global reserve currency it could still make it unstable. What allows the US to freely print money all the time is that there is always a global demand for the US dollar. Imagine what would happen if the US suddenly could not fund itself with more debt because it would cause the inflation to go out of control.
In order for Saudi to "ditch" USD, two out of three highly unlikely event in the near-future must take place simultaneously: - US dollar must be unpegged from oil (unless US somehow voluntarily does this, won't happen) - US suddenly become a non-oil producing country (since US produces more than half the world's supply on commercial aviation fuel, again highly unlikely). - Saudi Arabia suddenly stops exporting oil (again, highly unlikely in the short term) Considering euro-based petroleum trade does not have big enough market cap, and yuan-based trades are almost always tied with some form of in-kind import/export contract, there still aren't any major competition to USD when it comes to oil trade.
@@PhysicsGamer The US dollar is soft pegged to petroleum, in that the largest commodity exchange handles oil futures in USD. This would not change unless US does so voluntarily, or if condition 2 is somehow fulfilled.
@@MaestroAbar Saying it again doesn't answer my question. In what manner is the dollar pegged to the value of oil? Given how notoriously unstable the price of oil is that wouldn't even make sense.
@@PhysicsGamer This will be a bit of a long-winded explanation but here it is: Soft pegs, unlike hard pegs, are not a fixed currency value to the pegged item, but rather a means to stabilize the currency to prevent rapid inflation/deflation of the currency of the item through various means. These various means, in case of USD and petroleum, would be the collective interest of the oil producing/consuming nations. The USD is pegged to various oil producing national currencies excluding Russia, some hard peg, some soft pegs. SR/AED/QR etc are hard pegs. CNY is a soft peg (While CNY is no longer hard pegged to the USD, it's foreign exchange value is tied to it's holdings of US security, due to China's lack of economic transparency). JPY, while a free-floating currency in itself, contributes to the soft-peg mechanism of the USD by functioning as a soft buffer through the BOJ's large holding of US security, which it will never sell in large quantities (for nationals security reason). The oil price relative to the USD may seem volatile as it bounces from 20s ~ 100s USD/barrel, the fluctuation are controlled by the interested parties (oil producer/consumers) to keep the fluctuation within that range with relatively short span of several month (ex: even during the height of Saudi/Russian price war, the value rebounded within a matter of days).
@@MaestroAbar Have you been sleeping in the last three years??? 1/3 World Oil Supplies are traded in non-US Dollars thanks to US sanction(s). Third World with limited supplies of US Dollar are now able to purchase energy with local currency, the US SWIFT has seen a large decrease fee(s) charges lost in the Market. Like the British Sterling, action speak better then word. The Killer: Sanction, Seizer and Trust of the USA.
SaudiaArabia has stated that she is open for trade in non-dollar-currencies, especially Euro and Yuan. So I would not be that sure that the hegemony of the dollar will continue forever. Before ww2, the British currency reigned supreme. That is but 80 years ago. So we could well see a major change in the next thirty years from a monopoly to a trade-systems with several important currencies (most likely dollar, euro, yuan and maybe one or two other ones).
The biggest reason why dollar is so dominant is that you can use it to buy US assets. With Chinese yuan you can purchase chinese imports but you are restricted of investing in to China due to capital controls. The whole Chinese financial system is practically isolated. This will hinder yuans popularity especially among countries that want to build massive national investment funds.
Saudi Arabia will be exporting oil to China in digital Yuan, and that means the US dollar will be in less demand. Also, digital BRICS coming so US dollar will wane out gradually
@@MohamedShoeb-hz5re Yes but the problem is the capital controls of yuan that make it less appealing compared to dollar. Saudi arabia has a positive trade balance that means they are accumalating forex reserves. They want to convert reserves into cash flow generating assets.
@@MajorGarlandUnfortunately, RUclips is still deleting comments, this abhorrent platform.. The dollar has been used against many nations and there is a global motion to move away from it
called it from day one, i lived in that region for nearly 20 years, so i am very familiar with the political and economic climate there. as long as the royal family lives and USA is still around, there will always be a petrodollar.
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Dollars are still very dominant in the trade of oil or any other commodity. While there is no legal (de jure) agreement to do so, there still is a de facto necessity to. Saudi Arabia trying to move away from that is news, perhaps not for the "petrodollar" reason media are stating, but it is still news.
facts that are difficult for the United States to understand. USD as the world's reserve currency will fall from 60% to 20% in 10 years.
and the United States government can no longer print money without the consequences of crazy inflation .😂.
plus the debt crisis.
Could you similarly break down Gaddafi plan of Pan-Africa gold backed Dinar as competition to the US petro-dollar (and the Arab Spring)? Track people along the decades of work to bring the various Bretton-Woods agreements, WHY it was needed (to liberate capital spending and developed economics), how the good idea was conservatively reinvested and why petroleum is the true current “gold-standard”? Then a last assessment on the liberation of energy markets displacing the value of petroleum and its threat to the economy? (e.g. if (hypothetical example) fusion was suddenly possible and infrastructure in place to distribute the energy globally). Money and interest rates are representations of trust (exchange and risk). If costs of energy plummet (displace oil), that shows the currency market is NOT on value/exchange/risk - in essence, what is the exposure of all currencies to the energy market?
Saudi didn't exact ditch the dollar but preserve oil transactions in other currencies, too
Name and shame that Indian media outlet.
Can't we all just panic without you coming ruining the fun ?
My bad
lmao
@@loudelement Isn't a null vote a valid option in the US?
@loudelement fantastic. But how is the election relevant to the video or topic at hand? 🙄
@@ThePlainBagel That's exactly what I was trying to say with my other comment, but this one nails it 🤣!
Headline: Saudi Arabia ditched the US dollar, America is doomed
Reality: The Saudi currency is pegged to USD.
Another one is "the dollar is backed by nothing", as if the most powerful nation to ever exist in human history, along with the most powerful network of alliance (every single 1st world country) that's directly under U.S. security umbrella is "nothing"
Did you even watch the video? The saudis are decoupling like crazy not completely ditched but distanced itself
@@NeostormXLMAXit is call derisking As soon as US lost it dominance everyone will sell dollars
@@NeostormXLMAX Let me get this straight. The US dollar is "manipulated", and "devalued". So they are looking at the Chinese currency?
@@NeostormXLMAXTheir currency is pegged to the dollar, they borrow in dollars, and they have reserves of dollars.
Sure, some "decoupling."
Buckwild how all these media outlets picked up the story so fast without checking things first.
Yep most news organisations today are no better than random people on Facebook. They see it they share it
welcome to modern "journaling/reporting"
the "age of information" never specified that information would be of good quality.
@DanielFerreira-ez8qd Isn't that the truth. Rumors, opinions, and lies are now considered news. How often do any of these news sources ever admit they were wrong or correct themselves?
Not a shocker
The bagel is the financial voice of reason
DITCH THE GENO SIDE DOLLAR
Ridiculous.
No, he's just telling you what you want to hear. Just like the fem and mist channels telling women its okay to not go to the gym and that men find university degrees appealing.
Please wear a football helmet at all times. 😆
You know what they say, a lie travels halfway around the world whilst the truth is still putting its shoes on
That's the quick way to attract traffic to your YT channel.
This and "china is over in 29 days" are probably my favorite recurring garbage content memes in the econ space. Truly worthless content.
Those demographics are scary. We’re entering uncharted territory. 29 days does seem a bit hasty though lol.
@@steviewonder417 Yeah, I'm referring to a specific meme that blew up in 2022 with a lot of cringy clickbait channels running a nonsensical countdown to when China would collapse. Money & Macro did a great video on it titled "Nonsense! China's Economy Will NOT Collapse". It's a lot like this one here, going calmly though the total nonsense.
Yeah, Peter Zeihan is still trying to ride that "China due to collapse on Tuesday" wave to this day.
@@MenwithHill Not since 2022, since 2008, we get waves every year.
@@steviewonder417 The claims weren't about demographics but more like about Chinese banks collapsing or something like that.
This is why I like and appreciate your videos because it is based on truth and this is what we all need
Could've stopped before "on," and your comment would've been just as valid :)
People also dont watch his videos though, they take his misleading titles then parrot them as a gotcha to others, for example he said the saudis didnt ditch the us dolllar but thats not even what even lots of economists said they said they are slowly moving away from the dollar which is what he agreed with in the second half but the title is misleading
Please wear a football helmet at all times.
The comments on those sensational videos: "Why isn't mainstream news media not covering this?!"
Well, now you know why.
DITCH THE GENO SIDE DOLLAR
@@oskadavid2964 No.
True and based.
@@MithunOnTheNet and because the news doesn't cover what the BRICS are up to. If they don't report on the world moving away from the Dollar they can ignore the issue or laser in on single issues to convince people nothing at all is going on
Because they're complisent in the cover up
Currently in Papua New Guinea. The relationship between the USD and oil is a real issue in this country, as the main fuel supplier for the whole country can't get enought USD to import fuel stocks. The oil company blames the govt, who blames the central bank, who blames the politicians, who say "everything is fine." meanwhile the pumps routinely run dry, the aviation sector is held hostage (a problem in country the has almost non-existant road connections) and the power grid is so bad that everyone needs to run gensets, which run on diesel, which is scarce. good times.
Global energy crisis.
@cobra646 cool. I mean, thats sucks about the fuel problems, but PNG! What are you doing there?!?! Just aviation? So wild to find a yt comment form PNG. Saw some of your (very old) vids.
Time Papua New Guinea look for a better partner, supplier from the World Market. China have daily tanker going by New Guinea from Middle East. Daily Energy Tanker(s) ship by Chinese ship(s)
@@kotenoklelu3471 US control of Papua New Guinea market and development.
Is PNG exporting enough to import fuels tho? There needs to be a more holistic solution here
Thanks for setting the record straight!
Yo its you
Pls nake nore spefic videos ike in 2022, still macro but more specificly
😮😮
Yo, its the dollar pillow guy.
Meh. You're kind of splitting hairs on definitions.
Simple fact is, until recently, Saudi only sold oil in dollars.
Then it slowly began accepting other currencies. Now it's actively accepting other currencies.
Whichever way you look at it, this is a net negative for the dollar, as it reduces global demand. It is also a net negative for America as a lower demand makes printing dollars less effective.
...no, as the video notes, Saudi also had long-standing Sterling sales that continued after the point of the supposed petrodollar
@@arglebargle5531 In amounts so small it makes your sterling angle, irrelevent. Oh and the last time the Saudis accepted the sterling as payment was way back in 1974 lol
Economic advisor to Biden wrote in op-ed that the dollar should be de-throned. What could go wrong?
The problem is as I understand normal economists want to reduce the American debt burden so they are not selected to be advisors to politicians anymore.
@@kotenoklelu3471 all of the advisors are jedis , and jedis choose US financial policy to benefit a certain country thats invading gaza right now, a nation that sees americans as gentile fools to be exploited and tax farmed.
This video also ignores the trend. In a history book if you read "Saudi Arabia joined BRICS and 6 months later accepted a wider array of currencies in its oil trade" no historian would argue they are not related in the same trend. Okay some historians would argue. In the larger context this is another step. One cannot assess the heights a ladder can go by examining the condition of one rung.
The main thing to note is that Saudi Arabia can choose to not use the dollar, they can trade oil in yuan, whatever currency BRICS may use, etc but that doesn't mean they'll stop using the dollar. They've just got options now
They've always had options. They never exercised those options for good reasons. Reasons that haven't changed.
@@dirtyblueshirt"reasons that haven't changed"
Lol. Lmao even
@@orenalbertmeisel3127 you should try paying attention to more than headlines.
BRICS seems to have failed to launch. Probably because the American elites put the kibosh on the Kissinger multipolar world order plan as can be seen in Ukraine.
Next Israel will be taught the lesson that one cannot serve two masters.
Well the Saudi riyal is pegged to the USD and so are there defense affairs,Iran is still a threat for GCC and I guess they still need to buy weapons to intimidate there enemies.
USD problem is not about Saudi's selling petrol in other currencies. The fact is USD is still the global reserve currency, it is weaponized, any country no matter ally or enemy can be sanctioned if it commits anything which the USA does not like. A lot of countries are either slowly ditching USD from their reserves, or cant even hold USD reserves because they are sanctioned. it is just not safe to hold USD or US debt in central banks anymore, not as it used to be. This has nothing to do with ordinary plebs like us, its an issue of global commerce and politics. We keep earning, holding, using USD like nothing happened. But it does not change the fact that the global trade volume in USD is decreasing, mBRIDGE is already in use, BRICS is working on an alternative, some countries has to find other means of payment because they can not use swift system, a lot of countries are looking for other means of payment because they want to avoid the obvious risks involved with USD.
Channel's like this are establishment shills. They are the embodiment of "Nothing to see here" meme. They are as bad the clickbait "sky is falling tomorrow" chicken little fear porn channels. Both are pushing narratives that isn't what's good for the majority, especially the lower middle class currently being robbed by ruling elites who profit off these shills.
They are all slowly getting rid of their USD, hoping NOT to percipitate a run, because then they will take a huge loss from the remaining USD they can't get rid of. Nobody wants to crash the US economy (not even China) (well, maybe Putin) because they all have a lot of exports to the US, which will be affected.
Well said. Probably the only one with proper brain cells in this comment section lol
Are these dollars being burned in a giant pile or is someone else accepting them as payment for goods/services? You're describing a zero sum transaction or even a disinflationary environment--exactly opposite of your alarmist conclusion. Let's make this easier. Do you think having fewer people using gold to buy/sell goods makes gold worthless? I assume you don't. You can still buy and sell gold using dollars right? So it still has value? If gold stays the same price but there are fewer dollars available to purchase it with...do a simple supply and demand graph and report back to us.
Saudi is suddenly the country that actually sponsored the 9/11 attacks. The media is shifting against the kingdom. How long will it take the US to train a Saudi opposition group?
Wait a mortgage-backed security is crown prince of saudi arabia?
Mr. Bone Saw
They learned nothing from 2008 smh...
Pretty much
DITCH THE GENO SIDE DOLLAR
@@oskadavid2964 No.
As a Saudi Arabian, I frequently encounter online inquiries about the false "petrodollar agreement." The truth is, Saudi Arabia exports in dollars by choice, not due to any agreement. Our foreign exchange reserves, primarily in dollars, are among the world's largest, reflecting our strategic interests. Our currency has been pegged to the dollar for the last 50 years and still, because it serves us well. Thank you for pointing out the facts. Peace✌️
they do have agreement but what are better money that USD?
@@MRoROBOT We have tons of agreements with many nations, south, north, east and west.. but this false "petrodollar agreement" is just fake news.
They never signed an agreement.
@@MRoROBOTever heard of a shiny thing called gold?
@raptorhacker599 you mean that stuff you can dig out of the ground that serves not purpose other than its shiny. Oh it conducts electricity but so does copper. If we went back to a gold backed system some of the wealthiest countries would be wealthy just bc they have large gold deposits under their ground. And now we have gold wars instead of just oil wars. Yay!
The 1974 agreement defacto makes Saudi Arabia only want to sell its oil (mostly) in USDs so it can buy US bonds, so it kinda is the petro-dollar deal. Sure enough there is nothing mentioned about obliging Saudi Arabia to only sell oil in USD, but what benefit there is to get British Sterling from oil to only convert it to USD to buy US bonds or enter the US market as this agreement is showing..
Secondly I feel like the video here missed the point in how grave this agreement was, it really was a deal breaker to the USD back in 1974 to wash out some of the bad reputation and negative sentiment the USD had after dropping it from the gold standard. So it was a huge life saver to the US.
An added point, every exchange comes with a cost.
what "buy US bonds" mean? Is it obligated to buy or only buy US bonds?
@@suntzu1409 I think it goes a long the lines of "you don't have to, but you don't want to find out what happens when you don't". Imagine if the Saudis stopped buying treasuries and then 9-11 happened. We'd be in there in a second, regime change shock and awe style
@@Pangora2 Now I understand why Saudi Arabia did not turn to be Iraq or Iran or Yemen or like just any other Arab country there🤣🤣🤣
@@User02-fk1re Saudi Arabia Different America and Canada (the West) tried more than once and failed
Respect for putting the ad at the end. I didn't skip it for that reason 🙂
IM STILL GONNA SKIP IT
Other countries now have the option to use local currencies when trading with the Saudis. Prior to this the USD was the only option. Forcing countries to purchase USDs. This is how the US can export its inflation and is the main reason it has this unending ability to print money.
Also not just force countries to purchase USD first and trade in that, but in the process, they were forced to by US treasury bonds, held in state, in america. So anytime America wanted, they could freeze those assets (which is what they did to russia). Without buying USD (bonds), the USA wont be able to behave like the mafia anymore.
Thank you for this, I was so tired of seeing other RUclipsrs going on their gloom-and-doom trip again (Looking at you Andrei Jikh) without actually doing some basic research. Getting really tired of these so-called "finance" influencers.
😂😂😂😂
BRICS said in 2009 that they would develop to get rid of the dollar dominance and every few years, people bring that nonsense up again. India and China hate each other. It will not happen under 2 ultranationalist presidents.
Andrei Jikh is a sellout, I saw his videos when he had around 20k subscribers and they were decent. These days all he does is post garbage
Andrei Jikh is a paid mouthpiece
Andrei Jikh is a magician! He doesn't know anything about economics. He made money using social media (good for him) but he thought that would make him an expert.
It's not that the dollar is being ditched, it's that other currencies can be used where the dollar was once exclusive. Once upon a time there were more 100$ bills in other individual nations than the United States, read it again if you have to. I think many of us remember growing up watching various presidents hold hands and kissing King Abdullah of Saudi Arabia specifically because we were so grateful for this agreement. We blunder with Saudi Arabian relations, we are too bellicose and arrogant when it comes to Russia and their Pipeline was destroyed. The rest of the world has worked around us and now have their own deal going because we weaponized the dollar too much. This is a slow bleed, definitely knocked us down several pegs.
Another episode of Richard destroying alarmist headlines. You’re basically the anti news 😂😂😂😂
If anything, US will eventually voluntarily relinquish the reserve currency status of the dollar when the benefits of cheap imports are outweighed by less-than-competitive exports.
DITCH THE GENO SIDE DOLLAR
nope, it's just copium
Mostly trolls from foreign countries like Russia hoping for the decline of the USA
If this finance thing doesn't work out there's always journalism. 🤣
Saudi Arabia is not EXCLUSIVELY selling oil in dollars anymore. So we don't ABSOLUTELY need to purchase and put Dollars as reserve in the bank. So yeah, this DOES put USD in vulnerable position, especially since there are some countries that are aggressively dumping the dollar. The World Bank itself has the lowest dollar reserve than it did for the last-how many years now?
CNY might be slightly less useful than the USD, but the deficiency is rapidly reducing. For every $10b Saudi exports to China, they import $16b. They are not going to have any problem spending those CNYs. Even countries that have a trade surplus with China like those in SEA, they will have no trouble finding other people to take their CNYs. Because those buy stuff from China too. The fact that China is generating so much exports means the CNY don't have to rely on other countries accepting CNY directly. It was how the USD got to it's position.
Another pointer, US Treasury Bond note is offering 4.3% now and still no buyer.
@@danielch6662 After World War II....
As a Saudi, I have never seen Saudi being covered by youtubers without an immense amount of BS and completely made up content. It's hilarious
If you successfully reflect people's prejudices, you will get views, comments and subscriptions. I hope it gets better, one day.😊
@@fransmars1645 no way, how dare they steal my opinions ! i should be suing these bastards for major IP theft
Hilarious the way they moan about Saudi complicity with genocide.
@@casteretpollux Saudis co-operate with Israel which is committing geno side, so yeah the Saudis are complicit.
@@silentwitness536correct 100%. The House of Saud were caravan raiders (Land Pirates) much like the English Royal Family had pirate origins.
4:50 - **a wild RUclips monetisation thought appears**
_NSA has logged into the chat_
Notice how he stumbles over at the start: 80 years vs 50 years agreement. He doesnt know about breton woods vs petro dollar agreement.
@@silentwitness536 eh no. Watch it again. He was pointing out the bad reporting
"A lie can be halfway round the world before the truth has got its boots on." But thanks to Plain Bagel for helping spread the truth. This was the first I'd heard of this!
Truth?????😅
Japan's dilemma will cause a ditching of the dollar more than this.
Japanese bank already dump $62Bn in month of May/June 2024... more dumping is coming...
Saudi is not ditching the USD. It is just diversifying, that is pricing and selling oil in other currencies too. That will just reduce the total reliance on the USD in direct trade with other countries .
Which is exactly what "ditching the petrodollar" means.
Question if a store used to only accept payment in Visa but later on accept from Mastercard and JCB while still accept Visa, does that mean the store ditch Visa?
@@dodixaber8968 yes, partially ditching
@@dodixaber8968They are not ditching dollar, they are ditching "petrodollar."
Which they did before, so it's not a surprise to anyone. Their currency is fixed to USD. Their debt, which is increasing, nominated in USD. Someone was paid to prop the blame America narrative.
There is a Joke in Czech republic from communist era:
I am watching TV.
What are you watching?
Soviet weekly show, the end of dollar is close.
And how close?
It is 3491 episode. 😂😂😂
Empires take centuries to collapse. British empire 300 years. Ottomans 600 years. We are barely 80 years into the life of the US empire and for such videos and talks to even exist in the economic world being talked about both in and out of the US is a cause for major alarm. The collapse is slow, everyone agrees. But it is happening and it is happening faster than any empire in history that's a fact.
It is happening tho. Slowly but surely. He showed the graph at start.
Plus countries are bringing back gold that they kept in foreign countries after They saw how western countries froze Russian offshore assets.
The world trusts the west less today as compared to pre 2018.
There was even the thing where countries banned spacex sattelites from going in their territory in space because they spied on Russia. I think it was in the first few months.
@@hanzohattori9576 You mean faster than the Second Reich, which lasted 47 years? Or the Hongxian Monarchy, aka the Empire of China, which lasted less than a year?
There are tons of empires that lasted less than 80 years. You could have just Googled this, you know. There are more empires that lasted less than a year. Heck, there are several that lasted less than a decade.
Unbelievable the number of foreign bots wanting the US to fail. Someone has got an agenda...
@@hanzohattori9576 collapsed like the very country Checkoslovakia this joke is from, hahahaha. You sinorussian commie apologists are pathetic.
Thank you as always for being the cool-headed and sane voice in the room, PB. 🔥🔥💯💯
Even if Saudi sells oil in other currencies, dollar will still benefit. That's how deceptive Petrodollar is. People don't look below the surface.
The thing is that Saudi Arabia is not exclusively using USD to trade oil. They are now open to accepting payment for oil other currencies as well.
Thanks. I had fed into the story about them ditching the dollar. Context and clarification was needed and is much appreciated.
great video, I was confused when I saw these videos pop-up and immediately checked the value of the dollar as that surely should see some negative impact. But nope, all was good even days afterwards. Additionally, I didn't know the Saudi Riyal was pegged to the dollar which makes sense that there is no need for them to really want to move away from USD.
Also, all these videos did indeed include a advertisement (usually a long story I skipped) about investing in gold.
Another arrogant guy. That means USA should keep exploiting the world?
"checked the value" 😂😂😂
@@mwase7782 Do you know what exchange rates are?
@@averagegeek3957obviously
I love how people watch one interview with Joe Rogan and then suddenly become international trade, finance, and geopolitical experts. It's unreal.
Around 15yrs ago 97% of international trade was done in the US dollar, today it's only 59%. It's being replaced by other currencies slowly. It's clear to see.
If I get a petrodollar every time some tinfoil-hatter says petrodollar is over, I would be richer than saudi prince. LOL
And if I got a ruble every time some tinfoil-hatter said the petrodollar was over, I'd be under international sanctions.
DITCH THE GENO SIDE DOLLAR
@@oskadavid2964 Nope.
@@averagegeek3957 Yes
Idk Dollar buys less and less every day eventually it'll cost $1 million to get a cup of coffee
When we went off gold standard completely in the 70s it was a de facto shift to the petrol backed dollar.
I think people completely misunderstood what the various news outlets meant when they said that Saudi has abandoned the Petro dollar deal. The Petro dollar deal means that Saudi trades oil EXCLUSIVELY in USD and the other oil producing states followed. That's what has changed. USD won't be abandoned immediately but slowly over time. So far only the interest has been expressed to sell oil in other currencies like Yuan (which in of itself would be an earth shaking news), but the deal made almost 80 years ago that kept this Petro dollar possible is no longer seemingly holding things together. And yes the deal does exist. It was made in 1974. But it was a much bigger deal so it's not specifically called the petro dollar deal because it includes many things that lead to the formation of the petro dollar. Everyone in economics was aware of it and has been speaking about it for decades. And whether such a deal exists or not, oil trade shifting away from the dollar is the main highlight.
This is exactly how I understood it and why I feel we do have reason to worry about this shift. Things are going change and hurt the dollar and that's the point. People are ditching and buying less of our bonds as well and this might all be connected, as well as the not doing great but still active BRICS's. The world is going have a huge change and it will effect the US a lot and thats the point.
Finally, a commentator who Gets It.
Yes, exactly what you said.
This video sucks bad; pure western propaganda, strawmanning the clearly-understood implications of the headlines and stories on this topic in recent days.
@@suezzle The Russian economy is on the skids, the Chinese economy is defaulting everywhere, the US is now a major oil and gas producer, but you think I'm going to ditch the USD....for what. the Iranian rial? You need to stay off the hard stuff, son.
@@TheGruntski LOL the Russian Economy is on the skids? where do you see evidence of that?
@@BlackHoleOfTime From Russian economic reports, sonny boy.
In my opinion, the trust in the USD is a compounding effect.
So small reductions in trust make a huge effect in the overall global economy.
The fact of the matter is, if the situation does not radically change the trust in the USD is decreasing and people are looking for the tipping points
you are doing a great service. it's so incredible how we can have access to your knowledge. thank you
He's telling you what you want to hear, and youre thanking him lol
Knowledge is power.
@1:20 While I agree with the general premise of this video, saying the dollar has experienced "a little erosion of its dominance" is extremely misleading. The chart on the screen shows this. Losing 10 percentage points (or the equivalent of -14%) of the dollar's global market share against other currencies while the Euro and GBP essentially remained flat shows a very sharp contrast. More importantly, the rise of the alternatives is unmistakably strong and persistent. The Ukraine war has definitely made the case in favor of diversification away from the dollar. These kinds of trends are not minor. They are MAJOR developments which cannot be quickly reversed. We are watching something comparable to what happened to the US auto industry in terms of global domination. The dollar won't go away and it still will be (at least for the foreseeable future) the dominant global currency, but it is extremely likely that alternatives will eventually surpass the dollar as a group in terms of market share.
Again, my disagreement is that you said "a little", when it's far more substantial than that.
you continue to be by far my favorite finance RUclips channel. I wish more fin-tubers would be less clickbait-y and do more research. Thanks for all you do for the space!
Thanks for being a plain bagel, its exhausting watching people spread panic and disinformation when they could just have a rational conversation, as you do
I appreciate the free education and the effort involved in attempting to keep people informed by facts
plain bagel is the GOAT of all times
Dudes been lifting
Neck thicker than the US debt
Great video! I love your facts and the documentation of facts.
12:22 - the Canadian and Australian dollars - RESOURCE MINING COMPANIES GO BRRRRRRRRRRRRRRRRRRRRRRRRR
No,Canadian economy is a lot more diverse then Australias
Not by a whole lot@@Hasanaljadid
@@Hasanaljadidif canada was smart they should have invested more in manufacturing and using its natural resources rather than a service industry
@@NeostormXLMAXevery country has to develop into a service based economy if they ever want to be rich. Canada is the 4th largest producer of oil and gas in the world. We exploit our natural resources as much as we can
Australian mining is 86% owned by a big western country. (Not China!) We also have US troops to make sure we behave. The resources of the country don't benefit us much. Multinationals cream it off and leave us with the crumbs..
Saudi Arabia ditching military and development pact with US looks far more potent than just ditching Petrodollar.
It was a 50 years agreement. Started 1973 to 2023. No shit
After all, it was a good run for the US Dollar... now it is holding the US $35 Trillions Debt bill.
The petro-dollar has been about to breakdown imminently for the last 30 years at least.
Thank you for shutting down the alarmists
Finally someone with the truth.
Copium maximum.
Ditching the dollar means that not all transactions will be denominated in US dollars anymore. It does not mean they are not going to still transact with it, it does mean that they are looking for other ways to transact outside of a US dollar denominated system.
This would obviously lessen tensions around the world, it's like a puppy clip, who could get mad speaking about trading loonies??
Nice red herring, bro. No one said SA was ditching the Petrodollar. Rather what's happened is that SA is now accepting payments in other currencies as well.
0:44
@@ThePlainBagel The line I wish to quote is this one: In fact, the share of the dollar in global reserves has already fallen from 71 percent in 1999 to 58.4 percent at present-in favor of several secondary currencies.
1:18
0:37 they sold oil in dollars now that is not necessary. You can buy oil in yen. Countries dont need to keep dollars in their account. It is as simple as that. Dollar will lose its importance but it will be a major currency.
We should not forget that some people are looking for exciting news, so that’s why they circulate false news for their own purposes.
My company provides oil services to Aeamco. They pay us in USD. Always have. We are not even an American company.
Thanks for filtering all the noise for us.. Is crazy out there.
LOL he's feeding you delusions silly
Great channel name!
Okay, they didn't ditch the dollar but are working on doing so. It's a notable development no matter how you spin it.
🎯💯
This, found the one with a brain. Let's put it this in a lament term, let's say when we don't have wireless payment, we have go to ATM and takeout money because cash is the only way even though sometimes it's inconvenient. Now that we have the options of wireless payment, we seldom use cash because we can simple top up anytime anywhere, it's convenient, it's an extra option and a good one.
So eventually if US still behave like Sh1t, USD will be ditch due to the weaponized dollar. People should start worrying instead of still being complecent.
I am quite certain that the world's largest oil producer will continue to sell oil in USD. There is really no question and people who disagree are woefully ignorant.
In other words economy is fine..... There are no risks like in 2008 crisis. Banks are doing fine, Foreign policy is fine. Stocks just hitting new and new records. Inflation? Accelerating debt accumulation? Nah. US economy is bulletproof. Presidential debates with best of the best representatives..... Nothing can go wrong....
The price of gas is the same as it was a decade ago.
Reminds me of that meme of the dog in the burning house
😂I am Totally Fine 😂 something those line I forget.
Another fantastic video and real look at the situation
This is why I love this channel
This and BRICS stories always get me laughing. Most people don't realize how strong and grandfathered in the dollar is
Thank you for the ray of informative sunshine in this crazy world of misinformation!
Having lived in that region for years, most of their currencies have been set at a point for decades and propped up by the dollar all the way. Check out how much the dinar to dollar rate in Bahrain has changed over the last 20 years...
Thought the Dinar just got repriced to almost match the dollar 1:1? I could be wrong but Im pretty sure that something like that was going on.
@@Scott-vy4zj Still 2.65 to a dollar...
You're so good at dismantling fake news that I worry for the day a doomsday headline gets shared, and you don't make a video about it
thank you! Thank You!! THANK YOU!!!
dude, nice neck hypertrophy. Also suggests more lateral shoulder raises to build that overall frame width
The petrodollar was an unofficial, but definitely existing, part of a trade agreement that was recently allowed to lapse.
The agreement was implicit because they (the saudis) couldnt have handled the fallout in the 1970s of an official agreement. That doesnt mean it wasnt there. Its like the US defending Taiwan- its not signed but everyone knows its pretty likely.
Saying there wasnt a petrodollar is Uncle Sam attempting to save face for letting saudi arabia switch teams now that they're almost out of oil.
What agreement expired then? Can you point to what actually changed this month to prompt the headlines?
@@ThePlainBagel Are you trying to imply the entire Petrodollar is a conspiracy theory?
@@Pangora2 no the petrodollar is real, but what trade deal “that was recently allowed to lapse” are you referring to?
@@ThePlainBagel Britain entered world war 1 because it has a handshake deal with Belgium. It seems you want to imply that if something is not written down then it can't be policy. You admit it's real and then follow up by saying it's not real.
@@Pangora2 okay, so it’s not written down. What grounds are you claiming it “lapsed” then?
I was wondering why all of a sudden "The Petrodollar" was over.
Even MBS as clumsy as he is knows that ditching the dollar would entitle him to an extra large helping of democracy.
Headline today: Saudi Arabia ditched the US Dollar.
Headline tomorrow: Saudi needs democracy.
Always are first statements before we mess with another country.
Headline 30 years running: China economy is collapsing...... yet no sight of that happening ...except the West is in decline..and that's fact
cant scratch asia now , there is russia , india and china military now
Actually, if SA ditched the dollar, tomorrows headlines would read "SA has weapons of mass destruction, which is a violation of a 1974 treaty."
True or not true do not matter .Why should the world be subservient to the US dollar😅
I can’t believe anything people say anymore. No matter who says it I would say nobody fully understands any of it.
Had me in the first minute 😂
Man, I feel like you mussed a golden oportunity to partner with Ground News at the end there
You left out the fact that the petrodollar agreement came into being shortly after the USA was forced off the gold standard. The gold standard is what gave its dominance to begin with.
There is no agreement and less dollar credit being created by foreign banks to buy goods globally is good for US citizens who’s purchasing power will decline less rapidly.
Never let the truth interrupt the narrative.
Gotta sell those fear-mongerinf financial scam courses somehow!
The saudis just stooped selling oil in only US dollars which ended on the 9th of June of 2024 the ditching of the dollar comes with the new BRICS currency when it releases the Saudi currency isn’t backed by dollars but by gold which most gulf state currency are and if u look nations like Bahrain 🇧🇭 or Qatar 🇶🇦 their currencies are pretty strong. As long you keep debt out of your country which Saudi hasn’t and is crippling the economy. The future of Saudi is based diversification and using oil wealth to create blended economy that isn’t only an oil economy like what we have seen in UAE 🇦🇪.
If the Saudi currency is "backed ... by gold" then that means you can redeem it for gold from the Saudi Arabian government at a fixed ratio. Tell me: what's that ratio?
This is why I am subscribed.
Saudi Arabian army is based on US weapons.
There is no way they d risk their defense and policing by cutting ties with the US.
After all,this is what USA depends it's growth on,the defense industrial complex, not production of goods or serviceslike all others.(the only in the world).
That's the reason dollar is what it is,it is backed by the mighty US army/navy/airforce and CIA.
So at present, noone can ditch the dollar without risking annihilation
What if they didn't see weapons as necessary and wanted to build up their country so not to rely solely on oil. Perhaps they might find a friend next door, like Iran say. No enemy, a good customer for their oil and the price pegged to a gold backed currency might be attractive to them. It might take a few years but once the debt can't be paid I think the TRUST in the dollar will go.
@@RickBlaine You think Iran is going to buy Saudi oil? Why would they need to?
@@PhysicsGamer No. Where did you get that idea? Ever since Mohamad died there has been problems between Sunni and Shea Muslims. So Iran and Saudi Arabia have been competitors, often leading to war. Today they are friends, not best friends perhaps but the need for "defence" is not so important. Given the US overthrow of the elected, democratic government of Iran in the early 50s and the CIA funded Saddam keeping the wars going Those days are over. There is now China bringing all the Middle East together in peace through BRICS and the Belt and Road, The US will still cause problems but they will be a lot smaller until the US fades away.
@@RickBlaine You claimed Iran would be "a good customer for their oil"... glad you're able to back off from at least one bizarre claim.
@@PhysicsGamer You need help. Get your mummy to read my original comment and take you crayons with you so she can explain it. The "good customer" might be the "good customer" they have in China. I take it your first language is X Box?
You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it
“How the British paying for oil with the British pound will raise the price of milk”
By 2030 we will be buying tickets to PLAIN BAGEL VS ZEROHEDGE BOXING MATCH
One Issue Bagel, reality does not sell, but FEAR does.
I think you are underplaying the consequence a bit. While losing the petro dollar may not lead to the loss of the US dollar as the global reserve currency it could still make it unstable. What allows the US to freely print money all the time is that there is always a global demand for the US dollar. Imagine what would happen if the US suddenly could not fund itself with more debt because it would cause the inflation to go out of control.
A lot of people saying USD is gonna collapse, yet it is currently perfoming the highest vs other currencies.
usd willl not collapse , it will be left within us only
In order for Saudi to "ditch" USD, two out of three highly unlikely event in the near-future must take place simultaneously:
- US dollar must be unpegged from oil (unless US somehow voluntarily does this, won't happen)
- US suddenly become a non-oil producing country (since US produces more than half the world's supply on commercial aviation fuel, again highly unlikely).
- Saudi Arabia suddenly stops exporting oil (again, highly unlikely in the short term)
Considering euro-based petroleum trade does not have big enough market cap, and yuan-based trades are almost always tied with some form of in-kind import/export contract, there still aren't any major competition to USD when it comes to oil trade.
Serious question: in what possible sense is the US dollar "pegged" to oil?
@@PhysicsGamer The US dollar is soft pegged to petroleum, in that the largest commodity exchange handles oil futures in USD. This would not change unless US does so voluntarily, or if condition 2 is somehow fulfilled.
@@MaestroAbar Saying it again doesn't answer my question. In what manner is the dollar pegged to the value of oil? Given how notoriously unstable the price of oil is that wouldn't even make sense.
@@PhysicsGamer This will be a bit of a long-winded explanation but here it is:
Soft pegs, unlike hard pegs, are not a fixed currency value to the pegged item, but rather a means to stabilize the currency to prevent rapid inflation/deflation of the currency of the item through various means. These various means, in case of USD and petroleum, would be the collective interest of the oil producing/consuming nations. The USD is pegged to various oil producing national currencies excluding Russia, some hard peg, some soft pegs. SR/AED/QR etc are hard pegs.
CNY is a soft peg (While CNY is no longer hard pegged to the USD, it's foreign exchange value is tied to it's holdings of US security, due to China's lack of economic transparency).
JPY, while a free-floating currency in itself, contributes to the soft-peg mechanism of the USD by functioning as a soft buffer through the BOJ's large holding of US security, which it will never sell in large quantities (for nationals security reason).
The oil price relative to the USD may seem volatile as it bounces from 20s ~ 100s USD/barrel, the fluctuation are controlled by the interested parties (oil producer/consumers) to keep the fluctuation within that range with relatively short span of several month (ex: even during the height of Saudi/Russian price war, the value rebounded within a matter of days).
@@MaestroAbar Have you been sleeping in the last three years??? 1/3 World Oil Supplies are traded in non-US Dollars thanks to US sanction(s). Third World with limited supplies of US Dollar are now able to purchase energy with local currency, the US SWIFT has seen a large decrease fee(s) charges lost in the Market.
Like the British Sterling, action speak better then word. The Killer: Sanction, Seizer and Trust of the USA.
A Loonie hasn't been backed a Double Double in over a decade. It is now like 3 Loonies for each Double Double.
You just ruin the day of Tankies and the “America Bad” crowd with your well informed video!
Your fast talking sounds like a real salesman.
You control the speed of the video, genius
SaudiaArabia has stated that she is open for trade in non-dollar-currencies, especially Euro and Yuan. So I would not be that sure that the hegemony of the dollar will continue forever. Before ww2, the British currency reigned supreme. That is but 80 years ago. So we could well see a major change in the next thirty years from a monopoly to a trade-systems with several important currencies (most likely dollar, euro, yuan and maybe one or two other ones).
The biggest reason why dollar is so dominant is that you can use it to buy US assets. With Chinese yuan you can purchase chinese imports but you are restricted of investing in to China due to capital controls. The whole Chinese financial system is practically isolated. This will hinder yuans popularity especially among countries that want to build massive national investment funds.
Saudi Arabia will be exporting oil to China in digital Yuan, and that means the US dollar will be in less demand. Also, digital BRICS coming so US dollar will wane out gradually
@@MohamedShoeb-hz5re Yes but the problem is the capital controls of yuan that make it less appealing compared to dollar. Saudi arabia has a positive trade balance that means they are accumalating forex reserves. They want to convert reserves into cash flow generating assets.
@@MajorGarlandPotentially, but the dollar has been weaponized against too many nations that there is major motion globally now to move away from it.
@@MajorGarlandUnfortunately, RUclips is still deleting comments, this abhorrent platform..
The dollar has been used against many nations and there is a global motion to move away from it
called it from day one, i lived in that region for nearly 20 years, so i am very familiar with the political and economic climate there. as long as the royal family lives and USA is still around, there will always be a petrodollar.
sure, petrodollar suddenly was "never happened". That's why Iraq and Libya were fine when they want to sell their oil in other currency.
afghanistan famous oil reserves
@@woodrowwilder481 I got things mixed up - I mean Libya (instead of Afghanistan).