Saudi Arabia Abandons The Petro Dollar: How This could Change Everything
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- čas přidán 19. 06. 2024
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Saudi Arabia, a long time US ally and key player in the Petra dollar system is shifting away from the United States. But how big of an impact is this? And what will the future bring?
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born too late to deploy to the middle east.
born too early to deploy to the middle east
born just in time to deploy to the middle east.
I hate sand, it’s course and rough and irritating and it gets everywhere
Maybe they'll deny my retirement 😂
BACK TO THE SANDBOX
If you think the world would allow that again then you are dumb. There are so many nations that would jump on top of America that we would just be eliminating ourselves 🙄
M’erica sure loves Arrakis
Nice video but I have to remind one extremely important detail that will change everything...
Saudi Arabia currency is pegged to the dollar.... so every Riyal that Saudi makes, is backed by a dollar in a fixed rate... so it doesn't matter if they "trade' in other currencies, their national currency value is attached to the FED interest rates and US monetary system.
And is not only Saudi Arabia.... Jordan, Qatar, Emirates, Kuwait, Bahrain, Oman, Azerbaijan and even Lebanon (their economic crisis is literally because of deficit of dollars for backing their currency) are in the same situation.
Also, their reserves are predominantly dollars and their sovereign wealth funds are tied to the US stock market.
We should be worried if Saudi Arabia took the yuan and used the currency to buy Chinese weapons and to invest in the Chinese market. Instead, Gulf nations just immediately coverting their yuan to dollars to use in the American market.
Sounds like cope… giving “mission accomplished” vibe s
@@jamesgich1038 What are you disputing?
Also there’s just not a good alternative to the dollar. Every country is going to try to use their currency for their own goals and the more authoritarian a country is the higher the risk that one man’s stupid decision could destroy the value of their currency.
@@jamesgich1038 this sounds like obstinence and denial. Do you want the US to crumble so bad you can't understand the complex contingencies made to prevent that happening?
Its important to note that the USD is the world reserve currency because:
A: post 1945 not only was the US economy the only one left, but Europe agreed in writing to trade internationally in the USD.
B: In the 1970s the Bretton Woods agreement collapsed, in part because of Vietnam and in part because nobody was willing to negotiate it because the alternative was better. Everyone's wealth was already stored in USD and it was so ubiquitous that there was already no alternative for trade and now countries could price negotiate instead of all trade being pegged requiring price fixing to make work (which is why governments were so involved in union disputes before). No other currency had enough volume, backed by large enough of an economy and had a government that did not fiddle with it's valuation. The USD was not backed up by Saudi Arabia... it's more that Saudi Arabia needed a new protector as the UK's influence waned and reached out to the USA.
C: Today the USA is not really all that interested in defending Saudi Arabia so they are courting a new partner. This does not mean by any means that the USD is in trouble. China has controls to keep people from taking too much Yuan out of it's borders which means it's physically impossible for it to be the world reserve currency. Every time they open the door a little they suffer crippling capital flight. Russia is a dying country (with less and less people under 30) that produces nothing but crude oil. The once mighty bear is now asking North Korea for artillery shells... There really isn't anyone else. India has trouble managing just it's own internal affairs and South Africa is collapsing internally...
The USD is it fellas. It wasn't backed by oil. Oil was backed by it.
" Today the USA is not really all that interested in defending Saudi Arabia so they are courting a new partner."
What partner? And who can replace Saudi Arabia in terms of energy partnership? Venezuela? Yeah that ain't gonna happen.
What you are suffering from is called American Exceptionalism, it isn't unique to America, the Romans had it, as did every empire in history... "what's the worst that could happen? We're too big to fall!", yes they all said that, and they all fell apart. This arrogance isn't translating too well into the real world. China's economy in terms of PPP had already surpassed the US long ago, and yes PPP does matter a lot, it's not something you can simply ignore.
Russia is not a dying country, Russia died in 1991 and it's growing again. About 43% of the country less than 35, compared to 51% in the US, with the major difference being Russian birth rate is starting to rise, while ours is still declining, and our culture is encouraging infertility, while they literally pay people to have babies.
This delusional view is what will accelerate the downfall, mark my words.
@@somebody700 well you already explained who saidi arabias new (desired ) partner is, China. They used to fill oil tankers and basically have them coast around the usa to appear when there's an oil price spike as an act of good will. They just recently last year did that for China.
Russia is a country that is incapable of manufacturing a car start to finish. Which btw is why they haven't made a tank since 2014 when sanctions banned the imported parts they need. Anything that requires any engineering skill. A new soviet union it is not. And losing 600,000 and counting out of their ideal 6 million male under thirty but over 18 cohort is not ideal either.... and legalizing wife beating isn't helping the fertility rates... and Moscow treating the rest of the federation as colonies doesn't help either. (Seriously. Chinese goods on the border with China are more expensive than in Moscow because they have to go to Moscow first.) Its a farcical joke to claim that Russia is on the cusp of greatness and you're just covered in propaganda.
But China? It's an interesting case. When we said they couldn't make a seven nanometer chip after sanctions? Huawei came out with one. It's not world class yet, BUT ITS IN THE RUNNING. Russia doesn't even make chips. Again Russia produces nothing.
China is a good option for Saudi Arabia but it's currency really isn't a good option for international reserve. Chinese capital controls and all that. The Russian ruble is even more of a fucking joke. When the formal invasion began and the sanctions hit you know how they kept the price of the ruble up? BY EFFECTIVELY BANNING TRADING RUBLES FOR OTHER CURRENCIES. International firms had to sell 80% of their foreign capital gained from trade to the central bank in exchange for rubles, which they then could not export our of the country. Because China and India still bought Russian oil rubles continued to flow into the country diminishing international supply. China still wanted oil but there were less rubles to be had (internationally) so the price of the currency rose up in spite of rapidly declining trade. The 20% interest at home rapidly sucked up what little wealth the common people had effectively drained it to prop up the currency and the govenrment. Thats..That's... not a country on the cusp of greatness. They can't defeat a corrupt backwater 1/3 its size...
Basically the ruble was held up with tricks not a strong economy. Russia sells it's oil to China practically at cost the discount is so cheap in exchange for access to the Chinese and Korean equipment market.
It's is a contraction and should be used where a sentence would normally read "it is" or "it has." The apostrophe indicates that part of a word has been removed. Its with no apostrophe, on the other hand, is the possessive word, like "his" and "her," for nouns without gender. For example, "The sun was so bright, its rays blinded me."
@@antimaster6432 Thanks for the good catch. I don't know if it resulted bc I posted on my phone or what!
"The USD is it fellas. It wasn't backed by oil. Oil was backed by it."
The USD is backed only the by the full force the US government can both produce & project. If you haven't noticed, that's no longer increasing to keep pace with other countries, it's declining. We haven't even gotten to the massive debt crisis MMT has given us (& associated other woes), the generational shock of caring for an aged-out population on fraction of their population, or the cultural shocks as our country wrestles with a pair of conflicting value systems while processing massive numbers of illegal immigrants.
The paradigm here isn't "1st" or "3rd" world, it isn't who's on top right now, it's "rising world" & "falling world". Russia is outproducing the West, the entire NATO block, in regards to artillery shells; sanctions & all. India can put together new high-speed rail projects; meanwhile California & NYC waste millions (if not billions) of public funds on woefully inefficient light rail projects, & the NTSB can't handle a train carrying industrial chemicals derailing in East Palestine without contaminating 16 states by setting it fire.
The start of freefall comes with temporary weightlessess. Don't make the mistake of thinking it'll last forever.
Great video. As a Nigerian, it's good to see some objective research and discussion about this. So many click-bait a-holes were trying to make this situation sound worse than it was. This doesn't mean the US dollar is doomed at al. Most countries still preferred to trade and use the dollar as a reserve currency because of high confidence in America's economy, political stability and trustworthiness.
American economy is based on debt issuance (not productivity), and there is no trust with all the unilateral (non-UN approved) sanctions and asset seizures, there is zero economic management just over printing and money creation, the US debt is unpayable now. Not sure where you are seeing people with 'high confidence'!
@@WazirinJosnEnvirons you are right about overprinting of money but you do know that this is also the same for many countries. Even China has a higher debt ratio than the USA and can you tell me which between them is more trusted on an economic basis and which has a better chance of actually paying their debt?
American political stability is uhhh, not in a good spot. Our credit rating got downgraded because of it. America is at war with itself.
Trustworthiness? I doubt. More to being force to follow them.
How one Nigerian does not know US Dollar is not your Master no more.. but if you wish to continue, you're on your own for US will find a way to "seize" your US dollars... as they did of the Russians...
The great thing about the USD is that every serious country will accept them for trade. Right now, nobody accepts the Ruble. The Euro is fine but the European Banks behind it have poor balance sheets, so its useless outside EU trade. The PRC heavily manipulates the exchange of the Yuan for trade purposes, so its unreliable. The Yen doesn't have enough capital flow to sustain global trade. The British Pound is a joke and the indian Rupee is again heavily managed. The USD is the best of a bad bunch cause of its scale and its ease of use.
Australia has indestructible dollars. - Americans
People should trade in CAD 🍁 Please buy Canadian things
Ah, the most American quality of all: being the least bad option.
@@FishBola1991To be fair historically that has always been the winning strategy for just about every successful civilization. 😂
For now at least. As long as the regime in charge doesn't fuck it up, and naturally our government has never made massively retarded financial decisions
That was the most succinct, rational explanation of petrol politics I've ever heard.
The man has a talent.
The Equestria at War meme of him is only a matter of time. 😂
It's fake. It's all made up.
of one whom can see it coming.... like the Dino seeing the Astro coming to end Dino future.
You hit the nail right on the head when you said you can't predict the future only state what's happened in the past. That's how we should be viewing/teaching history, not just cramming dates into your head until they lose all context or through the "look at us we're so great" blinker. History should be an objective analysis of what happened, why it happened, what were the consequences and, most importantly, how we can learn and grow as a species from the mistakes that were made (and there are always mistakes). Great video, as always looking forward to the next one.
There are too many parallels between today and the late days of the Roman empire... Too many to ignore.
And this is happening at the same time that our politicians buy into modern monetary theory and decide that "money printer go brrrrr!" is a legit economic policy that cannot possibly lead to inflation 😅
For the past ~50 years, a USD not tied to gold or silver has done just fine in terms of inflation. The USD is not the ZimDollar.
We've also never tried printing as many dollars as Zimbabwe, or other countries that have dealt with hyperinflation. But we did increase our money supply by an unprecedented amount during and in the years following the pandemic, and we also faced historic levels of inflation (for us) immediately after these increases. But we are supposed to believe this is just a coincidence. Really inflation is because corporations suddenly became greedy and realized they could arbitrarily make things more expensive for absolutely no reason (because they disliked making profits and/or had no ability to control their prices prior to 2020 or something like that). Surely if our leaders print Zimbabwe levels of currency, that will fix all our problems, and not at all cause any inflation 😏
That's not how MMT works but go off lol
@aaduwall1 I guess you were around in the late 79s/early 89s. Now, those were years of historic inflation.
But to address your point that current inflation is caused by too many USD being printed. That would be plausible if near every other country was also facing inflation as well. An alternative explanation that would explain the global nature of current inflation is that all countries experience a common event that depressed economic activity from 2020 to 2022. As economic activity returned afterwards, increased demand resulted in inflation. Now, the US is not experiencing the highest inflation, and US inflation is actually falling.
@@Rob_F8F It did not do just fine in terms of inflation, the total inflation since 1970 is 831%... Between 1800 and 1900, the inflation was 0%. What we are currently doing is a house of cards that is only held together by the strength of the military and the fear in others to challenge. But that fear is fading away, and others are willing to challenge.
Regardless of what you talk about, this ~20min video format is a good length!
Watch it in 2x and you can lower watch time to 10min. 😂😂
@@dalemsilas8425 already do
and yet, the video is only 19:26min.... are you sure you're wishful thinking...
@@chriswong9158 do you know what ~ means?
If you think dollars are worthless, then give it all to me, I am very glad to keep it.
Then they actually would be worthless, as nobody else would have any to spend. You'd have a shitload of paper that nobody would be willing to accept from you
@@PSNPerfectNinja give me your dollars then.
There are single mothers that need the money to go to college.
REMEMBER: Argentina were one of the richest countries....
They printed so much pesos, it doesn't worth nothing today 😂
THE CURRENT US DEBT IS $35 TRILLION, let's see how much this can go on 😂
That’s not the point
Informative video thank you. Concerning.
I have been desperately wanting for is episode
The best part about it is there never was any law requiring Saudi Arabia to trade oil exclusively in USD lol.
We were duped.
Bravo, great explanation without delving toooo deep into side tangents but just deep enough to give us the context needed to fully understand the situation 👏
Thank you for the shorter video yet still giving me a much deeper understanding of geopolitics.
Well done! Actually, I like the shorter videos bc I can't always get to the longer ones.
I enjoy geopolitics, please making more videos like this. Also, make videos on how we can protect ourselves from this. I know it's like predicting the future.
Good video my dude
This long form content is much better than your shorts. Please make more of these.
(But when your daughter is in the video, she steals the show!)
I sincerely like your videos in all formats, tis good brain candy
Great video.
Considering we're trying to go green, probably for the best
Edit: lemme clarify. We're shifting technologies and oil isn't going to be king forever.
Likewise our reliance on foreign nations who don't have our best interest in mind is also a problem.
Economics is just psychology: people's fears and desires decide where money goes. The emergence of other currencies on the global stage means that the US dollar is no longer the only option. Now it remains to see how those other currencies (AKA those governments) BEHAVE to drive people toward or away from those currencies.
They are creating a new currency that isn't dependent on one of them. The point behind it is it serves as a standard for their trade that isn't controlled by one nation which means it can't be weaponized by the controller.
Well that means either a big power move or Saudi doesn’t have much oil left. USA produces more than they do at this point so why would the US care as far as economy goes.
But - we may be in an era where the peninsula will see some freedom coming its way.
I'm thinking that they're trying to get the most they can out of the little oil that they gave left. So maybe a little of both but more the latter I think
Dont really think the saudis have ran out of oil, its about the fact that they may want to distance themselves from overly relying on it for their economy
It's not about Saudi oil being used in the USA it's about if other countries want Saudi oil they have to pay in US dollars which means they have to trade with the USA to get those dollars.
If Saudi oil can be bought with more currencies then a lot of countries no longer need US dollars so their value falls as there is now less demand.
They are estimated to have 221 years of oil left according to worldometers
@@Ushio01 it does want to hook smaller nations to their oil
The best way to verify if Saudi arabia's oil is really going to stop being sold in petro dollars is if it is invaded in the next few months XD
You couldn't completely pacify Afghanistan what hope do you hold against the religious capital of the world
@@aedenali5985 like that'll stop the US.
@@aedenali5985America would joint the covenant if it meant they’d keep Saudi oil lmfao
@@aedenali5985 thats fair, but america will still go out of their way to crumble a nations military and infrastructure, they may not "win" in the end but the left over nation will well... be left over
@@aedenali5985 What bro? America wiped the goddamn floor with the taliban, the problem is they played the long game and waited for American political will to diminish. An invasion of Saudi Arabia would look like another Iraq, everything being bombed to shit, the Saudi military wiped with the Saudi princes futures being questioned. Saudi Arabia doesn’t stand a chance against the US, the best they could hope for would be a repeat of Afghanistan, which would mean their entire country would be in ruins before the Americans leave. America may not be able to effectively create a nation state in its image but they sure as fuck can make it incredibly painful for every Saudi Arabian in the peninsula.
You should do like a monthly news update or something, on subjects you've covered before. Id really like that.
This is essentially a nothing burger as you said the dollar was the world reserve currency back then and its the world reserve currency today. The yuan is too manipulated to be a world reserve currency and the euro has all the same "problems" as the dollar while being backed by an overall weaker economic zone.
Where did he say it was a nothing burger? He very clearly says there are gonna be ramifications but that they'll be difficult if not 8mpossible to predict. Especially with very large economies like China and India becoming antsy after the Russian sanctions.
But don't the Chinese take the title when it comes to backing U.S dollar/Governmental debt?
Or is it that they're holding the most U.S Bonds? So therefore, aren't they the biggest underwriter of U.S Sovereign Debt? I don't really know for sure to be honest, because I don't really have a really good knowledge base when it comes to economics.
@@TheBigAEC He didn't say it was a nothing burger he said the petrodollar arose from the dollar basically being the only viable reserve currency. Thing is it's still the only viable reserve currency.
Says the bozo that commented within 6 minutes of the video coming out.
@@dragonace119 I've got a plugin that allows me to watch videos at 3x speed :)
18:30
And a large portion of our congressmen are getting ready to make an appointment with the guy with the scythe. Not exactly a sign they have the best long therm planning going on.
Can we get more of these 20-30 minute videos please? I usually don't have the time to watch a full hour long video
I would very much like to hear from you about the line project. It seems like an idea doomed to fail from the start and I'd love to know what on earth even brought it to the point of becoming a reality.
Been seeing this a lot lately. I feel you are the most neutral politically to talk about it. Plus your context of history I feel just adds and I have not clicked an informational video this fast in a longgggg time
If I know my US history like I think I do, then Saudi Arabia just signed up for a big dose of freedom.
Saudi Arabia can’t be invaded 🙄🙄🙄 they are backed by too many nations. The UN would be forced to interfere or no other nation would receive oil anymore.
Exactly !! Soon we will hear in the Media that Saudi has a mass of destruction weapons and they have terrorists and they are a threat to the whole world same as Iraq before
@@Charlie.Hervert
America: Invades Saudi Arabia
UN: You can't do that!
America: Veto.
UN: Well shit. My hands are tied.
Freedom? . destruction of other countries, support for the killing of children, genocide and the apartheid wall, siege and starvation of peoples. This is dictatorship, not freedom.
In short, nothing to worry about now since the other currencies aren't that transparent...
gold is also not transparent a people like it a lot never understood why but thats the reality we live in
I’m short… that’s a big mistake
Trend 1 de-dollarization in terms of commodities like oil, trend 2 remilitarization of Europe --> global de-dollarization
Bloomberg has a pretty good article on this btw from June 26th.
Looking forward to the Argentina video
I usually listen to HOE and MOE as podcasts at work, love when i catch a youtube episode 😎
Thank you for making this video 🙏The last video I watched about this topic was one-third an ad for stupid crypto....
The number of times this man says "would"...
BRICS when you try a failed copy of the EURO 😂
Why is the video flipped?
The map and the YT plaques are horizontally flipped.
Wow its almost as if i have been arguing against the petro dollar amd our debt for 17 years now
The historical part of the video was great, but your analysis of the current situation needs more time and thought.
Can't wait for an update on this topic in 2025, after the repercussions of this move by SA become more evident.
@1:08 there is no such clause in the agreement, and Saudi oil has been sold to many countries in many currencies, that agreement is about what to do with all the USDollars Saudis make.
I am not saying KSA didnt help USD take its global standing, their policies did so consistently even through economic crises
Id love to hear more about Argentina because I've considered living there many times
Experience prosperity one day.
Just to become almost broke two years later.
Then experience prosperity again.
And the cycle repeats.
Good country but their inflation rate has gone up like 300% or something crazy like that every year in the recent past take a look at the value of the argentine peso over the last few years and you will see.
It was not what "USA's support and protection for the Saudi Arabia" was in return for petrodollar deal. It was the protection and support for the continuity of the Monarchy in a 50% 30% 20% deal. 50% for the USA and proxies and allies like UK, 30% for the monarchy's pocket and 20% for the rest of entire country. I mean % of countries national riches of KSA.
This does not affect the dollar unless there is another alternative. Let us not forget that there were rumors that the euro would have great importance and the US dollar would end and the euro would become the one that controls the world, but this will not happen and everything continues and the dollar is in the lead and the exact opposite has become possible. The euro may fall and the US dollar will not fall at this speed, but it will take very long years to know whether there is an impact on the dollar or not.
Thx for the analysis but you forgot 3 points
1. This fast de-dollarisation is still far on the way, if ever
2. A weaker dollar would mean larger US export
3. Since it wi take long time, a reduction in oil demand may be faster
Decoupling from the Petro dollar system is an unviable scenario for Saudi Arabia at least in the foreseeable future.
Why?
@@McHobotheBobolast time country leaders tried to move away from dollar oil, guess what happened to em?
@@tilting_cat3344 So you are saying the US is going to attempt to take MBS out?
and yet, OPEC has follow suit... aka World Energy supply aka oil/gas can be purchase & sold by all parties...
no longer restricted by US policy.
I love the 20 minute-ish length. Easier to commit to.
I'm pretty sure I heard this before about a country with 4 letters that exists in that general region. Hmmm, I wonder when we'll "find" WMDs over there.
The fact that most "mainstream" Investors is NOT taking this seriously is absolutely disturbing
We don't know when the house of cards will fall. All we can't do is be aware when someone is shaking the table. The table is shaking
lol 😂 we have to see the outcome beacuse someone in office was not focused.
With the Barnett shell and natural gas being discovered on the East Coast. The US could invest in manufacturing and disrupt supply. The US agreed to not disrupt the supply.
For real, we still be Balling on currency value. Saudi playing a risky game on decoupling from an ally that already ignores most of what It dose
And ignore most of what it wants too, just be decreasing the amount of oil sold in dollars that might increase the price of oil and in global politics everyone is for himself, surely that will also leads to gaining new allies.
The US ignores everything its allies do just look at Israel and how they see nothing wrong in its doing this thing is not a specialty reserved for KSA for you to say "Oh they are doing the Saudis a favor they should be thankful and mindful"
Besides the agreement stated that the US would protect KSA but that seems far from the case as Yemeni drone strikes on oil refineries have become a regular occurrence in 2019 and onward.
I'd love to hear about the history of China vs Taiwan in their diplomatic stoushes involving Pacific Island countries and their drive to be recognised as "the" China.
The big problem that will come out of this is the change in the US debt payment - we can avoid the worst case if we can get the debt down - but it is looking like no one is willing to take that on maybe we need to bring in Javier Milei :)
Given global efforts to decouple from fossil fuels, and how the Saudi's oil reserves are a finite resource, we should have been prepared for this particular tie to at least weaken.
Heads up- Gopinath is the *deputy* MD.
There has never been an actual deal like what you set out. The Saudi Riyal is tied to the US dollar so we will continue to sell it with the dollar
The quote you bought up from Sputnik, has been an "unspoken, yet thoroughly understood economic reality" since before the first Oil Crisis in the 1970s.
The quote reads a bit too much like Russian cope to me. Russia would love it if countries stopped using the dollar out of fear of over reliance on the US but they still have to use something. Whatever currency they use gives that country the ability to weaponize it. Is Beijing more trustworthy than Washington?
Thank you very much for this important economic episode. When we look at the history of the United States of America, especially the merchants who rule the world, they established this foundation in the wrong way, and the price is paid by the people. Everyone is under the control of debt. The infrastructure in America, Canada, and Europe is destroyed, and everyone is under the control of bank debt. Millions of unemployed people in America, Canada and Europe. This is the reality of what is happening. The policy of making wars, strife and crime in the world for the sake of control and domination has failed and the American dollar has become only paper. For this reason they support wars to destabilize security and stability.
Don't worry, US always can pull up the 5th fleet card from its sleeve. So until someone will make a hole in some us carrier with unmanned boat-drone, we are fine.
This will end to a conflict one way or another.
you should this mic on the shorts
The Yuan is not a publicly traded currency, China actively does not like to sell for Yuan. After all giving their currency into foreign hands in large quantities means the value/exchange rate is now subject to open market evaluation or in other words: outside of the CCP's control. And that's just something that they would never tolerate. Especially looking at how dire the situation in China's economy already is, the illusion of financial stability by a purely centrally controlled monetary system is kind of holding it up.
Talk about the line and the 2030 saudi vision
The petro-dollar is not only America's problem, it is also our problem, because our currency, the riyal, is tied to the dollar. If the dollar rises, the riyal rises, and if it collapses, we will all collapse. So I say to our American brothers, do not fear our fate together and our end together.😂
Better said, under RMB the Riyal will be return and manage by the Saudi via BRICS+ Need not fear following the EU and Israel path.... Already, Saudi had sold their US $$$ Bonds holding for real asset. Thanks to US Democracy.
Love video but I couldn't help to point out historical error at 7:41 in 1967 war there no invasion from, the war started after Egypt closed the Tiran straight
Whats that, is that Freedom I hear spreading across the globe? Just listen to that kickass soundtrack being blasted from those Freedom Choppers
I wonder when the Houthis are getting this so called freedom?
😂😂😂
I'm starting to think you should do a video about henry kissinger. Dude seems to pop up all over the place.
Even Saudis deny such a thing and still keep trading oil in dollars 😂
It's not going to stop overnight. Probably take a year or more.
I'm a simple man. I see pickelhaube, I like the video
Maybe this will force us to start using our own oil
Good news all around...
Saudi Arabia is about to know what shock and awe mean.
Your bullying days are over.
no.
Nothing will happen, we will adjust
One really important thing. The US became the largest oil producer again due to fracking. That really started in 2008 and the US doubled its oil production due to that. Ever since the US has been much more willing to keep countries out of the global oil markets as much as possible. Venezuela was the first one to go and now Russia followed. With the US being an oil exporter it obviously benefits from high oil prices, but the general public does not like those, as they have to pay for them.
So the joke with invading other countries is just old. It used to be true, but is no longer.
It's still about oil, it's just about taking out the competition
How it COULD change everything - in many ways.
How it WILL change anything - probably not that much xD
I cannot find any supporting reporting from reliable sources for this, could you provide your sourcing for this news?
This
You believe this would be front page but no
theres a 100% chance of a default due to medical debt spending in 10 years
Emerging countries in the global south? Excuse me? The only financial "competitors" to the dollar zone is the euro zone and China, both of which is in the global north.
You need to start posting your sources in your description - this doesn’t make sense to anyone familiar with global markets and was very easy to dispel.
Youve got it backwards:
1. There is no formal agreement to sell in USD.
2. USD is extremely stable and
3. They are dependent on US goods.
Basically they use USD because they want to and thats it. Theres been no indication that saudi arabia is changing it and multiple credible sources including politifact refute having any credible sources claiming the contrary.
Just a little reminder he is a hostorian and not really that much into political science. I mention this not because you asking for sources is weong but usually there is a consensus that when talking about current events in a historical analysis you do not need to cite sources since everything is so easily accessible (THAT ONLY GOES FOR A HISTORICAL VIEW OF THE CURRENT).
But technically since it was 50 years ago he could have provided some sources.
@@drehherd7394 His opening several lines for this talk is informing that Saudi Arabia is transitioning away from selling oil for USD and talks about the "petrodollar agreement". So I politely but firmly disagree, if for nothing else but to not confuse people into thinking this is true. Historically speaking, there is no petrodollar agreement. And in terms of current events, Saudi Arabia does not intend to stop selling oil for USD. Both the historical context and the current events he mentions are just flat wrong. Unless he has sources I do not. In which case, he really should be showing them. If he does this sorta thing here, he'll do this sort of thing with other stories and their historical context. Having sources is an important part of a historian's job - and other historian creators have shown sources.
Lol end the Fed 😂
Iraq switched oil sales to Euro, and the Gulf War ensued. Let's see how this goes. In a sense, it is feasible to trade with different countries with different currencies. But at least some BRICS currencies are rather volatile. So it may not be feasible to Saudis to switch to Ruble or Rembin extensively.
Not everything has to be phrased as "would do x". You can just say "did x." So for example, "would end the conflict." becomes "ended the conflict." It's often the more direct and superior way to phrase things that have happened in the past. "Late last summer, the UAE would settle an oil trade..." is probably just plain bad grammar, but even if it's technically acceptable, it still sounds much worse than "Late last summer, the UAE settled an oil trade...". One small quibble with an otherwise very informative and enjoyable series of videos.
This is referring to something called active voice versus passive voice. “This is referring” is passive voice. “This refers” is active voice.
Essentially, it’s more assertive and direct. But it’s not bad grammar.
If you’re writing fiction, you use active voice to immerse yourself and your emotions into the experience of the characters, and if you want to pull out and contemplate from a more rational/less loaded lens, you use passive.
In the context of academic and journalistic analysis, you want to pull out and be more rational, more clinical. He’s also not trying to control your emotions about a topic, as you would in a fictional narrative or persuasive essay (two things your English/literature teachers would have talked to you about).
A detailed explanation of my disagreement with your assertion, rephrased; in terms of nonfiction that aims to inform, he’s choosing to treat you with the respect of a peer and a fellow student
@@andyaquitaine4225 You are largely incorrect. Using "would x" is not simply passive vs. active. It is something you should do only when telling a story told from the perspective of the past when you want to hint at things to come. For example, "Napoleon invaded Russia, a decision he would regret." as opposed to "Napoleon invaded Russia, which he regretted." The use of "would x" here subtly changes the audience's understanding of the timing of the things involved and their expectations about time order of information they are to receive. This has absolutely nothing to do with emotions, rationality, or fiction/non-fiction. It's mainly about tense. So while it is stylistically ugly most of the time that HOEP uses it, it is also grammatically incorrect when he uses it in situations such as the one I mentioned at the end of my post ("Late last summer, the UAE would settle an oil trade...") because he is trying to force the use of "would x" into a scenario in which he isn't telling a narrative whose perspective is set in the past. At that moment, he is telling us a narrative from the perspective of the present. The use of "Late last summer" tells us that the narrative is being told from the present while "would settle" has the narrative being told from the past. It's changing tense perspective midsentence. You basically have to say, "Late last summer, the USE settled an oil trade." The first part of the sentence dictates the form of the second part.
I apologize if I'm using any terms incorrectly in my explanation. I always found English grammar to be so intuitive I didn't really learn any of the fancy terms for things.
Can you talk more about US national debt.
The US gives foreign aid all around the world and I’m guessing that’s all in US currency. If the dollar collapses how would this affect the parts of the world dependent on that aid?
Mandatory supportive comment
The dollar has 85% of the FX market and other demoracies (esp. Euro) have 10%+. Dictatorship trade is a few percent. Saudi - Chinese trade switching from USD won't change the status quo.
I got an extra nuggie in my nuggie box. Just felt like sharing.
i doubt saudi abandoning the petro dollar will change much. petro is important but there are a lot of goods. like chips, entertainment, chemicals, refining and weapons.
Can u make a video about what u think of turkiye
on thanksgiving probably
It may change everything, but only for Saudi Arabia. The US is backing their own currency by being the largest exporter of petrochemical products. The US also can read the writings on the wall that petrochemicals will have a reduced mwrket in a few years and so they try to sell their stuff before the marketprice drops. Saudi Arabia is basically shooting themself in the foot, until now you had to exchange your whatever currency into US Dollars to buy oil or gas from the Saudis. If you can now pay in multiple currencies (or one of multiple) the Saudis are taking the risk of losing money through inflation and other capital market risks. And who will stop for example Germany to pay the Saudis with the trade surplus they have in turkish Lira?
No the Saudis have not thought this through.
What do you guys think about the recent assastination attempt on Slovak Prime Minister?
Yay
Sounds like Saudi Arabia's aboutta experience a little Democracy 😂
Given the lavish spending the Saudis do with us dollars for all their luxury goods, they will still want / need to continue buying bonds for barrels of oil.
When other countries don't want to exchange goods for yuan, it will be a slow if not "non existent" migration off dollars.