Saudi Arabia Trading Oil With China...MAJOR NEWS For US Investors

This major, major news update with Saudi Arabia announcing they're considering trading oil with China using the yuan. Now, we're going to hop right into this today. Here is the headlines that are starting to hit around the globe. Wall Street Journal reporting on this: Saudi Arabia considers accepting yuan instead of US dollars for Chinese oil. Now, why is this such a big deal? Because a lot of people will see this headline and go, oh, no big deal. When this hit my little news feed today, it put a trigger in my brain. I had to make a video. That's why we're doing a live today about this, because this is crucial to the United States. This is crucial to the US dollar and the next step in China's essentially trying to take over the US dollar as a world reserve currency. Now, to give you a little history lesson before we dive in today, and all the things, you know, if you guys welcome onto the channel, all that kind of stuff, but a little history lesson on the US dollar. So since Bretton Woods Agreement, after World War II, all these countries got together and they sat down and pretty much the US was the only country left with a standing army, with a navy, with anything. And the US came and proposed and said, hey, we will pay to have a navy, which having a navy is one of the most expensive things to have as a country. They said, we will have a navy. We will protect the entire globe. As long as you trade with us and you trade with us in U.S. dollars. And every country kind of looked around like, are these guys serious? That sounds like an awesome deal. You're going to pay for the Navy. You're going to protect all the waters. You're going to keep Russia and all these other countries at bay. And the only thing you want from us is to trade with you in dollars? Sure. That sounds great. And all these countries signed up and signed what is now known as the Bretton Woods Agreement. Since then, the U.S. dollar started to become the world reserve currency. And then after 1972, and actually in this article, you'll see here, since— and actually, I'll pull it down right here. You can see the exact dates here. With China, since 1974 with Nixon, Saudi Arabia has exclusively traded oil in U.S. dollars. So right there. This is what they've done. And why is that important? Because when you trade in US dollars, so let's say Brazil is buying oil from Saudi Arabia, they have to use the SWIFT system and they go, they change, they use whatever Brazil uses for their currency or whatever they want to buy it in. They have to change that into US dollars. And then the US dollars go and buy oil and change to Saudi Arabia. It builds an innate demand for US dollars. It creates a demand. For our greatest export, the United States, the greatest export of the United States is US dollars. I mentioned this last week, taking Russia off the SWIFT system was a major slap economically. However, I believe they need to add them back on quickly because you do not want countries like Russia or China, which we're seeing here, shifting away from the US dollar and from the SWIFT system. That is a global currency by law, by decree, from the U.S. empire is what Ray Dalio calls it, the U.S. empire. And it creates demand for our currency, for the United States dollar. People will work 80 hours a week. They will kill. They'll steal. They'll die for a U.S. dollar. It is the greatest export in the history of the world is U.S. dollars. The Fed, by the way, and tomorrow we're going to see interest rates go up, has flooded the world with U.S. dollars, especially over the last 18 months. And they flood the world with debt And guess how that debt is denominated? Oh, in US dollars. So we issue debts to countries and we say, hey, you got to pay us back, but you got to pay us back in US dollars. Like, it's the best business model ever invented in the history of the world is the US dollar. And the Fed, as a private company, has the best business model of all time. And so this right here, back to here, is a threat against that system. All right. Let me zoom out a little bit here. This is a threat against that system. Saudi Arabia considering accepting yuan instead of US dollars for Chinese oil sales. Now, we will see what happens. This would be a major move in the Saudis' overall strategy and game plan. I believe the US would go to war over this. That's how crucial trading large amounts of oil is in US dollars for the United States. We would go to war before we let this system go away. Now, you see right here, I'll scroll down a second. So, China buys more than 25% of its oil from Saudi Arabia. So, it would be a huge chunk. OK? This would be a major, major thing and boost China's currency. Over the last 2 decades, China has been one of the largest buyers of gold in the entire world. They have been stockpiling gold. Now, if you're a leader of China, Xi Jinping, I think, is the leader. Is it Xi Jinping? Yeah, Xi Jinping. I speak Chinese and I have to do the English version of his name. Anyways, they have been stockpiling gold with, I believe, the expect the plan to go and debunk the United States as the world reserve currency. You have leaders in the United States that are short-term presidents. We are four eight-year presidents. That's it. You have leaders in Russia or China that have 25, 30-year economic plans, and they can play this long-term game. And you're seeing this right now. It seems like all these countries are now testing the waters on the US's dominance. Ever since Afghanistan, you saw the US really laid an egg on Afghanistan. We've seen with Russia testing the waters with Ukraine. Right now, China is testing the waters with Taiwan. And so, and this is another major test of it. Reportedly today as well, yuan jumps. Let's see the exact number where it's at right now. Maybe I'll refresh this page. Let's make sure we're we have the exact up to date. Let's see if it'll give it to us on Bloomberg. Get these ads out of here. Yuan is jump. Australian yen climbed as much as 0.1 percent to 6.38 per dollar. So anyways, just on this news alone, the yuan has already jumped. That gives China a stronger. Oh, here's a. Here's our, let's see, 200-day average of the yen. So quite a spike after this news this morning. Now, the Saudis have been openly not very friendly with the Biden administration over the past term that Biden's been in office. It's interesting that they leaked— this is leaked. It could be— this could be a way that the Saudis are trying to get more negotiable, favorable terms with the United States. For different transactions and things that they're doing, this could be a way to you know hey here's some news out there just see what we could do and potentially we can move away from you now if they did this let's just say they went through with this deal China was going to buy all their oil from the Saudis in yuan I believe the U.S. would put major major sanctions on Saudi Arabian oil I believe we would stop and now Saudis were very upset with I believe I'm not I'm not a geopolitical analysis I'm just reading stuff. With their relationship with Iran and Yemen over the last couple years, it's been very rocky, and Saudi Arabia has been pretty upset with the United States. This could be kind of a little bit of a jab to say, "Hey, we can move away from you." I believe now this is all just a headline right now, but if they actually move forward with this and this plan to move into Chinese right to do this oil deal with China, I believe the U.S. would sanction. Very hard, Saudi Arabia. They would end protection on Saudi Arabia. I think they could do a lot of things to hurt Saudi Arabia. I think it would be— I mean, that'd be a big move. That would be a very big move. You saw earlier, right? It's been since the 1974. Where is that number? Right here. 1974, Saudi Arabia has been exclusively traded in dollars right there, or done in dollars right there. That's a long time to break an agreement like that. The US has been pretty favorable, pretty good friends with the Saudis. This could be a massive shift in that. So we will see what happens. And Saudi Arabia, you know, that's a major player. Back to the overall strategy, though, global currency, right? We have the SWIFT system. I believe, I mentioned this last week, XRP was a direct threat of the SWIFT system. XRP or Ripple, it's one of the best blockchains ever built. It directly threatened the SWIFT system. And what did they do? What did the SEC do? Oh, we're going to do a litigation or sue Ripple Labs. Why? They haven't really said. The SEC has never really explained why they are suing Ripple Labs, but it's been in this weird lawsuit for almost 3 years, and they've just tied down this cryptocurrency in litigation, I believe, because it threatens the SWIFT system. The Fed is the most powerful organization on planet Earth. I believe when anyone threatens the US dollar, I know of 2 people that have done this in the past, Umar Qaddafi out of Egypt and Saddam Hussein. Both people traded oil in large amounts of oil without US dollars. One way or another, both those individuals got kind of killed by the US CIA, military, whatever you want to call it. They got wiped off the face of the earth. It is a serious deal when you mess with the world reserve currency, and that is the greatest export of the United States. They will not let it go away easily. Russia and China obviously would love to be off the US dollar. It gives them a bigger edge. It gives them more of a standard. They would love to move away from this, and that's why you've seen Russia and China stockpiling gold to maybe make a play to say, hey, we're going to move off the US dollar. With high inflation right now, we have this whole thing. We could move off. Anyways, this is a bigger picture of what's this little jab right here. So when I saw this headline this morning, I said, wow, this is crucial, crazy news coming out of Saudi Arabia. Now, the other thing that the US has playing towards them, the United States has major, major oil reserves. So we could tap oil reserves in the United States. Very rich oil fields, which we don't tap. Which anyways, that's another conversation. We could tap all of our petroleum reserves, go get back to fracking, and essentially starve the Saudis. Now that would be quite a big play. They would you know hit us back with something else. But we are the biggest buyer and biggest protector of them, one of the biggest allies of Saudi Arabia. And so this is a huge play for them to move over to China right now. So we will see what happens. On here as well. Okay, well, I want to see the last thing on here. Currency's jumping. We'll see the next few days how this goes. And there's our currency jump right there. People are asking on the chat what's yeah, that's what it looks like right there. That's their yuan currency jump in the last man. I don't know how many is that last day. Let's just call it last day. I can't see this on this chart, but. I'm sorry, I'll zoom in for you guys so you can see it. There you go. Up 0.1%, which is, you know, major, major move for the yuan. And it could, you know, that brings up China's currency. They've had a lot of problems in the past. And anyways, could give them a lot there. Okay, that's it for today. Thank you guys so much. See you in the next video. Bye.