China & Saudi Arabia: Swapping Yuan & Riyal! End of Petrodollar?

Hi and welcome to Geopolitical Trends. So excited to be with you on this November 27th. I got an interesting topic for you today, and that has to do with the financial aspects between China and Saudi Arabia. Why is this important, you may ask? It's because of the impact on the financial, global financial system, but not tomorrow, of course. It's going to take time for that, and this is what I'm going to be elaborating on. I'm going to do something different in this live stream. I'm going to keep all my thanks towards— for the members and supporters and so forth towards the end of the show, if that's okay with you guys. So, but before I launch into the depth of all this, please make sure to type in where you are joining me from. I will greatly appreciate it. Uh, oh, I can already see— hi, Phil! From Can— from Ottawa. Hi, Adamson from Ontario. Alan Ray from Montreal. By the way, Alan, I responded to your, uh, comment about, uh, uh, the book. Let me know if you have any questions there. Uh, Kara Kulak from Nebraska, good to see you. Uh, Jamaica Watson, good to have you here. Agricola from Berlin, good to have you as always. Timeline from New York City. Michael, Follow Texans, good to have you here, Michael. And, uh, oh, Bobby from London, good to have you. Uh, Maryland, Keith Holloway, good to have you here. So, so let me start first of all for you guys by asking the key questions, and there are 3, 3 or 4 key questions because this is a very, very, uh, what's the word I'm looking, very specific, uh, change that's going to be impacting the financial system, global one that is. And you need to be aware and heed the warnings of it, because those changes in the financial system will impact you one way or another. Whether you are a millionaire or not is beside the point. It's going to impact the value of your purchasing power once the dollar goes down, and it will go down no matter what others say. Of course it's not going to go down tomorrow, but it will happen. So here's the first question: how significant is this development between China and Saudi Arabia to swap their currency? That's one— yuan and the riyal. Second, is this the beginning of the end for the petrodollar? Third question is, could— and this is very important, why? If you look at the trend of history Could the US resort to a war, to the hot war, that is, to defend the possession of the dollar? Then the last question— and all this is meant, pardon me, is meant for us to think outside the box— the fourth question will be, is what about the BRICS? Brazil, Russia, India, China, and South Africa. Within this context of the swap of the currency. And this is what I'm going to be providing you, uh, the detail or, or analysis that is. And it's not a detailed analysis, it's, uh, it's, it's, it's the research that I conducted as part of this. So here is a background just for those who might not know. China and Saudi Arabia have recently signed a local currency swap agreement which was about around the $7 billion, uh, US dollars. That's a 50 billion, yuan and about 26 billion, uh, Saudi riyals. So the equivalency for the currency was— for the US is about $7 billion. So, and this one, uh, makes, uh, uh, the impact on, uh, sort of deepening the economic, uh, ties between the two countries. And this, of course, coincided with not only the chaos that's taking place in the Middle East, which we are part of, It's also the shift that is going on inside the Middle East from some countries, including Saudi Arabia, about the shift more of non-US trade, uh, uh, non-oil— I'm sorry, non-oil trade with the US dollar. This is why it's important, and this is why both central banks of Saudi Arabia and China have agreed to a 3-year deal, rather, for a maximum of 50 billion yuan or 26 billion riyal. Why 3 years, you may ask? There is a reason for that, and the reason is to think in terms of how things will progress. Because remember, either the fall or a rise of any currency doesn't happen overnight. I'll give you again the example of what we did after World War II when Bretton Woods was set up, all the way to 1971 when we stopped using the gold to back the dollar, you know. But it was during that time when the arrangements and agreements was made between the US and Saudi Arabia to use the dollar for all oil transactions. Saudi is on the top oil producers in the world. And of course, that was the agreements that we have made. Now, as one of, uh, uh, the viewers in the community asked the question— perfect question— now what if that agreement has been made during Henry Kissinger's time? Now what? Perfect question. So, and here is the idea. There are those who saying what this swap suggest, that China now is promoting the yuan's use in transactions Yes, it does, but not to the point of what some Western analysts are saying. Oh, the yuan intends to take over the dollar role as a global dominance currency. No, at least for the research that I conducted, at least the people who know about this field that I've talked to from overseas, not only here in the US, China has no interest in that at this time. Now, could this be the next 30 years? Maybe, maybe not, I don't know. For now, all I'm seeing the signs suggesting that China has no interest in making the yuan replacing the dollar. But what China is interested in is ensuring that its bilateral trades with other countries— remember, there are a lot of people do not know, and of course was not disclosed openly here in the West, that China has about, has agreements with about 40 countries. 40. 4-0 countries regarding the swap of their currencies. That tells me right there is the impact of the yuan regarding the bilateral trade. Will it go to the global level? It's beside the point. But if we are to go back in 2016, that's when the yuan was added to the global basket of currencies. Which means it can be traded on a global level. Will it go as far as replacing the dollar? China has no interest at this point. So, and this is why it's important to understand these dynamics as we move forward into all this. Oh, Osiris, I gotta say thank you to Osiris. Thank you so much for the other super stickers, Osiris, on the other channel, on the other videos that I've launched, I've released. So thank you so much for your support. Truly appreciate it. Uh, so the idea of thinking in terms of, uh, why is this important between Saudi Arabia and China— well, there are a lot of reasons for that. Consider, consider just two factors. That's the only one I'm going to say to you for now. One is that Saudi Arabia is top oil producers, and two, China is a top importer of, of energy, especially oil. From Saudi Arabia and other countries. So, but the indication that I see for this, the impact of it down the road, is that now the ties, the deepening ties between Saudi Arabia and China is going to go beyond just the, uh, the hydrocarbon. As I mentioned in the recorded video that I released, uh, earlier or yesterday, I think, or the day before, uh, that this cooperation is going to go into the security and technology aspect, which we will evolve other dimensions. Mind you that Saudi Arabia is already, uh, accepting now Huawei instead of Apple in all its— and the Chinese gonna be— Chinese companies, tech companies gonna be providing training inside Saudi Arabia for the Saudi government. So, or the Saudi society, that is. So, but it behooves us to understand history. And by the way, speaking of history, thank you all for your answer to my question about whether to keep history or not. Majority of you, if not all, have said to keep history on. So we're gonna keep the history as part of— and you're absolutely correct, you won't understand the context without understanding the history. The past shapes the, the present, which will influence the future. Simple as that. This is the mistake we are making in, in the US when it comes down to policies, especially in the foreign policy. We don't learn from history the mistakes that been made, and we are repeating them again and again. And you wonder why we have an ill-conceived and fragmented foreign policy? Because we haven't learned anything from history. And we are— and I'll say it, and I don't shy away from it— We are, some of us of course, not all, poor readers of history. So anyway, let me, excuse me, let me share with you a brief snapshot of the history of Saudi Arabia and China's relations. So what you need to understand is that the first, yeah, the first China-Saudi official meeting took place in Oman in, in 1985. And this was following like several years of heightened, uh, contact between the two countries. You know, as of 1989, Saudi Arabia was the only Arab country that still had not established diplomatic ties with the People's Republic of China. Or of course, because we convinced the Saudis not to do it. Remember what was taking place during this time. What was taking place during the '80s? Can anybody type in, in the chat box? I'm talking about global level, not just about the Saudis. What was going on during the '80s? It was a major event that the Saudis played a major role in, and we have convinced the Saudis, oh, you don't need to establish any, any ties with the, with China and so forth. So, so I'm gonna check the, uh, just the box to see Oh, I want to say thank you to Alan Emsen. Thank you so much for your Super Sticker, truly appreciate it. Uh, yeah, what happened back in the '80s? If you, if you guys can type in here, and I know it takes a little bit of while for us to show up. Uh, Mike, you wrote King Faisal oil embargo, and maybe this was mid-'70s. No, it was in the '70s, it was 1973. So a Cold War, that is true, but what was specifically, uh, Iraq War was after, after that, uh, oil embargo. That is true, John, but it was in the '70s. I'm talking about '80s. Yeah, let me, let me share it with you guys here so we can move on, because I'll be asking you more questions anyway. It was the, uh, the Soviet presence in Afghanistan. So what happened at that time? We were— of course, the Iraq-Iran War was taking place in the Middle East at that time, but the Iran Revolution in 1979, of course, uh, but what I'm referring to here specifically is the, uh, Soviet, uh, uh, presence or, or conflict in Afghanistan. Why? Because we were the one training the mujahideen at that time in Afghanistan, but the Saudis were providing the funding. And this one has to do You're absolutely correct, Afala. The creation of the Wahhabi groups, because that was the whole reason for why back then it was a proxy war between Iran and Saudi Arabia about which ideology will dominate in Afghanistan. That's why, uh, you end up witnessing what took place with the group there. I know it's a word you don't use here on YouTube, that, that banned girls from going to school and cover head to toe. Which is an indication of the Wahhabism ideology and so forth. But my point in this, it was in— within the context of the history I'm talking about, it was during this time when the US convinced the Saudis at that time not to establish diplomatic ties with China. So, and of course, after a few years, especially in June of 1989, Uh, uh, during that time, Saudi relations with China sort of were upgraded. It's very important to understand how far they have come. This is where history comes in. So, so Saudi Arabia did not provide at the time any issues with the Chinese government. You all remember the Tiananmen Square, which the West has turned it into something else. Saudi refrained from even saying a word. They choose not to. They remained neutral, which is exactly what China is doing in the Middle East by staying neutral. That doesn't favor one or another. So, and in August of 1989, uh, Saudi Arabia foreign minister at that time, uh, presented his credential to Chinese foreign ministry. Well, guess who was at that time? He was none other than Prince Bandar. Prince Bandar, if you know the history of the Saudis, Prince Bandar was the long-serving ambassador in Washington from Saudi Arabia. As a matter of fact, and I was aware of this because I had some knowledge of all this inside and so forth, Prince Bandar at that time used to just walk in the White House without signing, because usually if you want to get in, into the White House, you You have to sign the book that you name it. Bandar used just to walk in. He used to come a lot to Texas here to the ranch for President Bush, you know. So at that time in 1990, that's when Prince Bandar Saudi ambassador to the United States paid a visit to Beijing with an agreement to establish diplomatic relations. Isn't that interesting? Because instead of sending someone else, It was the Saudi ambassador to the US, Prince Bandar, who end up going to Beijing. And few days later, after 1990, which was exactly on July 21st, few days later after that, after the visit of Prince Bandar, uh, uh, diplomatic relations were established between Beijing and Riyadh. And that's how Tanks and that, because remember one thing, it was during after that when Saudi Arabia ended— listen carefully, guys— ended over 40 years of diplomatic ties with Taiwan. We were the one behind the scenes telling the Saudis what to do because we have an interest in maintaining conflict over the Taiwan Strait, even though we're saying we maintain the policy of One China policy, two system. You know, we're just saying those are words. In reality, with the wind, we undermining that behind the scenes. And here is an important thing also about this history that you need to understand. After 2008, uh, you all remember— I don't know whether you do or not— the earthquake that took place in Sajwan, Saudi Arabia was the largest aid donor to China. It provided over about €40 million, yeah, €40 million in financial assistance and an additional €8 million worth of relief material. So Chinese companies in Saudi Arabia have awarded scholarship in return, awarded scholarship to Saudi students allowing them to study abroad in China. And the Chinese government also offered a scholarship directly to students and professionals for further training. Now you understand how far they have come, uh, to why the relationships are— the relationship between, uh, Saudi Arabia and China are so strong. And we are concerned about that one. We are very, very concerned. Of course, not happened that just a few years ago, in 2019, UN ambassadors of 37 countries, that including Saudi Arabia, have signed a joint letter to the United Nations Human Rights defending— listen carefully, guys— defending China's treatment of Uyghurs. Because it was no genocide, it was nothing but a lie. And when the delegation of Muslim countries went to Uyghurs, to Xinjiang, and saw with their own eyes, it was nothing, it was nothing but a lie. But Saudis were among those who signed this one. And this is where the big of them all is what happened in March 2023. What happened? Saudi Arabia and Iran restored their diplomatic ties. Were cut in 2016, and thanks to China. This is why it's important to understand the historical part of this, because it's very, very important. So, so now let's make it back to my analysis about this one here. What I need to tell you about this, uh, the idea of the China and Saudi Arabia's close, uh, ties because they are considered the strategic allies, something that the United States never counted on. They never ever assumed that this would have happened because we were the one telling the Saudis what to do at that time. But this has to do also with the de facto leader, Mohammed bin Salman, MBS. His dad, by the way, still the king But his dad is ill, he's not able to manage day in, day out. Saudis becomes a king at a later age in life, they serve few years and they pass away. So probably we wish him well, of course, but anytime now you probably will hear one day that he passed away. So, and that's, you know, age, we're all going to age one day. So, but it just has to do with how well you take care of your health. It's very important. So, so the de facto leader, Muhammad bin Salman, is thinking in terms of— what is he thinking about? The Vision 2030, by which he want— he wanted to reinvent the Saudi society. Why? The concern has to do with oil, because oil one day is going to run out. Saudis basically have no industry, have nothing. If it's— if it, if it is not for the massive amount of oil we won't be talking about Saudi Arabia. Saudi Arabia will be in the dust of history, you know, the dustpan of history. Nobody will be talking about— but because of its massive oil reserves, that's why we're talking. So, so MBS is thinking in terms of, well, I'm gonna do this. It was hinted that China could boost that investments into his Vision 2030. On the other hand, China also is taking an interest. Why? The BRI, the Belt and Road Initiative. You can just see those, those dynamics when it comes out to geopolitics. There is always a strategic thinking that goes into it, something we are lacking for us here to even think in terms of 20 years, 30 years, 40 years from now. You know, Chinese, that's part of their culture. Saudi start to think about it because When MBS takes over, unless he is taken out— you all know what I mean by that— when he takes over, we're gonna be looking at the next 5 decades because he's only in his late 30s now. So, and this is why you started to see now China's diplomatic footprints are being steadily increased in the Middle East in a good way. I might emphasize that Why? Because China's come in with ventures, not conflict. I mean, I'm going to ask you a question, which is really— it's— we all know the answer. Would you take $100 billion in ventures, or would you take $100 billion in conflict? Yeah, the answer is, is clear, right? And this is where the idea of why China, uh, diplomatic and now economic footprints are increasing in Middle East, at the same time promoting global and regional peace, security, stability, and prosperity. And this is why China also has to think of its own strategic interest, and mainly has to do with access to energy. I mean, it's no secret That is why it's very important for us to understand these dynamics now of, uh, this currency swap. The currency swap, in my opinion, paved the way because remember in December of the last— December 2022, uh, it was the meeting that President Xi had with the GCC leaders. And what did he say? He told them that he will be willing to pay for gas. He said— and as a matter of fact, let me get the exact quote because I remember the article, I read it and I talked about it in some previous videos. Yeah, he said, and I quote, President Xi, that is, China will buy oil and gas in yuan, but China has not yet used the local currency to buy Saudi oil, end of quote. This is what President Xi told the Gulf leaders. And right there, as a geopolitical analyst, it becomes clear to me where this is headed. It's headed for ensuring that not only China pays with its own currency in swap with the Saudis, but also for the Saudis to start to consider maybe we need to start thinking about different currencies here, because the dollar will not, will not be forever the dominant currency. So could it be— and again, another question for you— could it be that the Saudis preparing themselves for what lies ahead? I'll let you answer that question, guys. And like I mentioned earlier, a lot of people do not know that China has about, uh, arrangements with 40 countries around the world, but, but rarely disclose these terms because those are on bilateral trades. So now If I am to think about the analysis of all this, you know, again, you have to put it within the context of the bilateral relations between Saudi Arabia and China, you know. And this relationship, of course, is for convenience and reciprocity on two fronts. One is economic, and second one is geopolitical. There is no other way around it. So, and when I say economics, I'm referring also including the financial aspect. Pardon me, the financial aspect, because that is part of it. And this, in my opinion, this, this swap of currency, it's paving the way and it's complementary to the process that is going on right now around the world for de-dollarization that is taking place, which is going very fast. Of course, we're gonna have now to question the judgments of the new elected, uh, president of Argentina Who is going for, uh, for using the dollar instead of— he's gonna drop the pesos and use the— I, I, it's beyond me. I don't know who's advising him, but I can just sense, and knowing as one who works in Washington, I can just sense that the hidden hand behind closed doors pushing him into that direction. I shared that photo with you guys on the, uh, on the community post where he was wearing the kippah with the Israelis— the Jews, I'm sorry, the Jewish in Argentina. Uh, and, and that tells me the story right there. So now the Saudis, of course, Saudis realize that the shift of wealth from the West to the East is already underway, and this is why Saudi Arabia wants to prepossess itself for a maximum benefit from the economic boom that was and is anticipated in Asia, headed by China. This is where I see this swap they are doing. That's another slap on the face for the US. Mind you, don't forget, we— Saudi Arabia will still maintain certain transactions with the United States, especially in the defense aspects of it, even though there is a cooperation, there is some sort of, uh, uh, a conversation right now between Saudi Arabia and China regarding military hardware. But this not is going to be at the same level as it is with Saudi Arabia— with the United States. The reason being because if the Saudis wants to do this, they're going to have to change their entire weapon system. Which is, uh, it's, it's time-consuming, the training involved, and it's going to take years to do that. That is the reason why. So also, uh, the, uh, uh, on, on the part of, uh, China, Saudi Arabia also pivot towards China is driven also by the political shifts taking place in the Middle East. Yeah, it's both from, as I said, economic and geopolitical landscape. The chaos that is going on right now in the Middle East, which spells trouble for both the United States and Israel, that the end of the Western order is collapsing before our own eyes. You know, because if we are to say Israel is losing badly, this issue of the exchange of hostages, that is not a win for Israel. That is bad. I mean, of course we are happy for the hostages to be free, As a matter of fact, the, the group in, in, in Gaza, Hamas, has released now a Russian citizen because doing favor for Russia, not because Israel asked for it. It's because they wanted— they, the group Hamas, wants to show their respect for Putin. That's why they did that. They also released Muslim Thai from Thailand. You know, they're very shrewd as to how they moving forward. And I intend to do video for you about this particular aspect down the road. Now, what lies ahead? And here is where I see the rationale for why— uh, now, by the way, this swap thing, I, I couldn't confirm whose decision was it. Was it the King Salman, or was it the de facto MBS? I couldn't, I couldn't confirm. I don't know. I don't claim to know for this. The only thing I can see is that if, knowing how the dynamics of the Saudi royal family works, and, and I've been there, we're aware of certain things that didn't make it to the public knowledge, uh, if King Salman is very sick, then the decision was made by MBS, meaning he's very sick to the point of not being able to maybe he's in coma, maybe whatever, maybe he's incapacitated, can't make decisions, then in that case it's MBS' decision. And why is this? Because MBS wanted either to follow on what his dad did back in 2017, I think. You all remember when King Salman went to China, what happened during that trip. At that trip, Saudi Arabia, uh, cut a deal or signed the deals with China worth about $65 billion the first day King Salman landed in Beijing. So that's, that's to me where I see, uh, there is, there is some dynamics to all this. Of course, it goes without saying that the dynamics of how MBS wants to demonstrate to the world that he is visionary, uh, and can turn his Vision 2030 into action, even though I'm saying it's easier said than done. But you never know, you never know. Now here is the two other aspects that I asked in the previous questions. One of them has to do with BRICS. You need to understand the image of this, and I'm gonna share something with you here that you need to see. Uh, no, I have the image here for you guys because you can't, uh, you can't, uh, ignore the BRICS role into this aspect. And, and we will, and I'm going to leave it here for you guys. Uh, All right, now for BRICS. Why is this important? Uh, it is important because when it comes down to understanding whether, uh, uh, BRICS is gonna— not whether BRICS is going to move forward with its currency. You all remember in its summit of 2023 in, in South Africa uh, BRICS announced official— yeah, official decision, uh, to abandon the use of the US dollar for trade settlements. And this decision, of course, was aligned with the alliance's ongoing efforts to promote the use of the local currencies in international trade. Well, of course, we have India that is not playing, that is not supporting the team. The team for this? Well, there is a reason for that, because India, as I always say, I don't know how to explain it. India is the weak link. India is gonna— I've always believed in this, this is nothing new, and nothing against India. India will be undermining BRICS, because I am coming to realize, based on the latest, uh, declassified paper that I came across that India will be doing the bidding for the United States inside BRICS. That's the way I see it. So of course India, of course they already said no, we're not support that one. But to me, the idea of Saudi Arabia and, uh, and, and China agreeing to the swap by the time Saudi Arabia join BRICS, it will be affaire accomplie. But don't ever underestimate that India, it can undermine the BRICS efforts. Even the question now is worth to ask about what Argentina is going to do, because remember, Argentina has been invited to BRICS. But if Argentina is going to be using the dollar, you all say— of course, there are those who will say, well, wait a minute, this is going to be in a bilateral trade. You're absolutely correct. But at the same time, when you think about BRICS, how many countries wants to join it? At some point, those bilateral trade, especially in the financial, is going to become a multilateral trade because BRICS will be in a position to compete with the EU, G7, G20, but not if it is undermined from within. And I do see India is going to be the same. This is the same arguments I'm making, and I'm going to make you a video for this, guys, about, uh, uh, China recent conversation with Bhutan. Bhutan, you, you— I don't know if you're aware of it, but the, the, the declassified paper that came out was that India was and is spying on behalf of the United States regarding the border, uh, uh, uh, region between China and Bhutan. In other words, India does not want the two other countries to line up. So, so it will be interesting to see how this is going to move forward. I want to share with you, by the way, uh, a comment from one of our viewers in the community by the name, uh, Charito Monos 8537. Thank you so much for your comment. Why? The reason I want to say, share this with you, because it makes perfect sense. And he wrote, and I quote, he or she, I don't know, uh, Western wealth is measured by how much US dollar you have. Reduce the demand and value of the US dollar at the same time. Also reduce reliance on SWIFT. Reduce trustworthiness of SWIFT to transfer hidden wealth in offshore accounts. In addition, other national currencies have the opportunity to strengthen their purchasing power. Alternative payment systems— spot on, spot on! And thank you so much for sharing this with the community here. This is why, guys, I read the comments, and if you ever get a chance to read them, it's very worth your time. So, so this is where I see another aspect of the BRICS is going to be Uh, once China now moves forward with the— China, remember, they only doing it for 3 years. They wanted to see if they agreed to further this, which I am sure they will. Uh, it's gonna be now, uh, the next question will be is, will the Gulf countries— because Saudis usually takes the lead when it comes down to the Gulf countries, uh, GCC, that is, uh, when the Saudis there, we'll be seeing Qatar, we'll be seeing United Arab Emirates, we'll be seeing Kuwait, we'll be seeing Bahrain, Oman. Maybe, maybe not, but this is where I see— what I see is the currency's potential expansion. This is what I am looking— this is what I'm observing and keeping my eyes open to understand how the impact on the financial, global financial system is going to be. And this is why, to those who say, oh, China wants to dominate the global currency— no, no, no, no, no. They might do this later. For now, it does not make any sense given how they, uh, I mean, you look no further than for us. Most Americans do not understand what lies ahead with these issues of the currencies. And this is why I'm seeing, uh, uh, uh, the challenges that lies ahead when it comes down to American citizens. They don't understand uh, what lies ahead. Now, for BRICS— and I'll, I'll, I'll close this, then move on to the next part— for BRICS, this is why I'm seeing the, the call for the president, uh, the Brazilian President Lula, uh, he is the driving force, by the way, behind the proposal to abandon the US dollar. That is why I believe something was in the works in Argentina to ensure that Jair Bolsonaro wins the election because he's gonna adopt the US dollar. Because remember, Brazil was calling for a unified currency between Brazil and Argentina called a sur. Now with this guy in power, you know, I, I just don't see that happening. I don't see that happening. So I got another image for you guys to see. Why is this important? Why do you think this is important? It is important because the idea of gold— will gold now gain its role as it was before 1971? That is what's important about it. And I do see, uh, the importance of this one. Now there is another aspect that I need to share with you regarding also why China moved forward, uh, with, with this. And I'm going to share a screen with you because I need you to see something. And I'll put it in perspective for you. Share screen. Okay. All right, what are you looking at, guys? What are you looking at is you're looking at— at, uh, this is the model of the Beidou satellite system in China for the International Space Station. That's not the point of all this. The point is the technology aspect. Why? Because China just reported that its businesses collected in profit about $199 billion in business revenues for the telecom companies. That is why it's important. Why? It's because when Saudis decided to drop Apple and go with Huawei It's the Chinese that's going to be providing the support, technological one, that is. That is why it's important to understand, uh, these dynamics. And, uh, and of course the timing of it. And this, by the way, was reported, uh, from January, uh, to October 2023. This is the amount of expansion of the small businesses that, that took place. And China's— or, uh, Saudi Arabia rather, is going to be benefiting from this because Chinese going to be training the Saudis on certain databases and so forth. Because now they realize— that's why they going with Huawei instead of Apple. And now you see why the business leaders in the US during the APEC summit in San Francisco met with President Xi. That is the importance of it. Now there is the aspects of also understanding, uh, the, the Saudis, uh, swap of currency with the Chinese. And I did mention earlier about the Saudi oil richness, uh, but also China's interest in, uh, fueling, uh, uh, or supporting access to its, uh, energy sources to fuel its economy. So, so both of them— China decided to increase its economic cooperation with the Saudis to ensure access to energy, in addition to expanding cooperation in defense and other areas. Uh, when I did the research about the Saudi book, uh, that I, uh, wrote, and I devoted a section of this— by the way, I'm sharing with you this part from the book. So I hope you guys, uh, uh, uploaded the free, free copy for the book and let me know if you have any questions. So it was there a quote by Minnie Chang who wrote, and I quote, the Chinese military website and military experts said Saudi Technology Development and Investment Company had signed a protocol with China's Aerospace Long March International Trade for the drone production line at the Biennial International Defense Exhibition that took place in Abu Dhabi in February, which was during the time when I wrote, uh, the book. My point in this is to highlight to you this cooperation between Saudi Arabia and China is not limited only to this financial aspect. It is also expanding into the military, uh, aspects and technology. So that is what's important about this, and it's very— we can't ignore that one. It's very, very important of it. Uh, to the Saudis, of course— to the Chinese, I'm sorry. To the Chinese, of course, they are watching now how the US is, is bogged down into the Middle East chaos. Has always been. As a matter of fact, I do recall reading a cable at that time uh, uh, it's declassified now, uh, it became, uh, public information that China did, uh, tell US not to go in into Iraq back in 2003. So China was not in support of that, but yet the US didn't listen and it just went. Even the Saudis themselves were saying to, uh, the US, don't do it, you know. And I argued that from the perspective that this is going to turn the Middle East upside down, knowing the history of that part of the world. And that will be the beginning of the end for the US dominance in the Middle East. And here we are. So now the idea of the central bank, China's central bank, uh, when agreed that the agreements, uh, between these two countries, between Saudi Arabia and China regarding this swap for 3 years, is again, as I mentioned earlier, to see how this is going to move forward. And I do believe, uh, it, it will work out to the benefit of both countries economically speaking. But also the idea of China is, is also taking some interest in ensuring— you all know what's going on in the, uh, uh, the— not, not what's going on, the potential conflict, uh, in that part of the world and how that's going to impact, impact the Malacca Strait. This is why there is a, a conversation. As a matter of fact, they're going to move forward with building the bridge between Thailand and China, which will make Malacca Strait irrelevant to a degree. You will always have that there. So, and I'm looking into that. I, I've been aware of the conversation about it way back, uh, but that, that will be a seismic change if when that moves forward. So, and I will keep you posted on it. All right guys, let me see what else I need to cover. That's about it. That's basically what I wanted to, to share with you on this aspect. And I will provide you, of course, all the links to, uh, this information here so you'll, you'll take a look and watch it later on. So now let me express my sincere thanks to the channel supporters and members I want to thank a new channel member by the name Frank Pons 10. Thank you very, very much for becoming a channel member. I want to also thank a channel supporter by the name Nermin Ali Reza. Thank you so much for becoming a channel supporter. And for those who bought me coffee, especially Stephen Chang, thank you so much for, uh, buying me coffee. I truly appreciate it. So, and by the way, David mentioned to me in a comment that the link to Buy Me a Coffee wasn't working. I went ahead and fixed it. So I thank you very much if you wanted to support the channel. This channel, because of you guys, because the support you are providing, that's what keeps me coming here. But also because of the type of community we have now developed. We moving forward, uh, yes, of course I'm letting it— I'm letting this channel grow organically. That's the way I'm gonna do it. Let it be because it's all about the content, it's all about the value of the information, not about some hypes. And I, I don't do that, you all know that. But also because of your support. Without you, there will be no channel. So I can't thank you enough for your support. Uh, should you decide to become a channel member or supporters, please sign up for that. And, uh, uh, Oh, here is a new member. Thank you so much, uh, T for becoming a channel member. Truly appreciate you being here. I had a great conversation last Saturday with the channel members and supporters, uh, for 1 hour. I answered the questions, uh, and I'm already thinking, uh, once we get about to 300 members for the channel, that is, I'm gonna have a different platform. I have something in mind. Once we get to that, that's what I'm gonna be doing it., with you all. But, uh, your support means a lot, whether you buy me coffee, whether you sign up for the channel, whether Super Sticker, whether even your kind words. That's all, it's all good, it's all good, guys, because we are a community here, and that is the objective, is to share knowledge with you all. So, so I'm gonna take a question or two, guys, then, uh, let's say I'm gonna sign up. By the way, uh, remember to join me tomorrow on the big channel I am going to be having a conversation with Ray McGovern. Shall be interesting as, as a, as a, as an analyst to an analyst. So we kind of, uh, I look forward to having a conversation with him. So it will be tomorrow on the Geopolitics in Conflict channel. All right, I'm gonna scroll all the way up and, uh, and Oh, oh, uh, Agricola, you wrote, uh, Dr. Dead, I watched some videos of Malay and I agree with you, he gives me a weird impression, very nervous. Yeah, I saw some videos and again, I'm not judging the guy, it's just the behavior. When you become a head of state, uh, yeah, the past is the past, but it's still, you know, you need to think in terms of, uh, that, that's like, uh, uh, uh somebody who has a visual, he has a strategic thinking down the road, you're always gonna avoid doing some stupid things that can come back 10 years from today and put you on a spotlight. Why? Because you were always thinking in this term. So, so I did see some videos, and, and I don't need to sort of this because we're not here about pointing fingers, but, but it's concerning to me. That's, that's what I can share with you. So And I will do a video for you guys about Argentina because you need to know some stuff going on there as well. Oh, Hong Wan, I got a question from you here. Will BRICS, apart from India, be using the yuan as a temporary form of currency exchange until the BRICS currency is formed? Yeah, the possibility if they all agree. As a matter of fact, yeah, beside India— India already mentioned that, but that to me wasn't about just the bilateral. It was about the fact of undermining something like this that they could all BRICS member agree to and move forward. So India decided, no, no, no, no, we're not going to do it. I bet you India was pressured by the US behind the scenes. That, that's again my thinking. Could I be wrong? Possibly. And if I'm wrong, I'm wrong, and I'll admit it, and I'll say, hey, I was wrong. But knowing what I know How the dynamics work, I bet you they were pressured, and to the point that I am convinced that India is the eyes and ears of the US inside BRICS. And the concern for me is moving forward, 10 years from today, BRICS will be where it is today, and that's problematic because you give now ammo to the Western analyst to say See, we told you BRICS is useless. It's because it's been undermined from within. This is why I see the solution is ask India politely to leave on its own term, or figure out a mechanism by which to remove India and move forward with others. Otherwise, BRICS will always be undermined. But the first part of your question, yes, I see that I see now because we already China and Russia doing it, and China and Argentina, but now it's gonna be different. China and Brazil are doing it. It's, it's, it's gonna be going into that direction. Mind you that while I'm thinking about it, India, you know, you guys, do you know who India now is talking to about oil? I got— I want you to guess, just write it down in the chat box. Give me a name of a country that India now is talking to about buying oil from. Because remember, they were buying oil from Russia at a discounted price, but Russia end up being stuck with the rupees, billions of rupees that is useless. Maybe India— Russia saying, maybe we need to stop. Sorry, we can't do this. China now is— I'm sorry, India is turning its attention to another country. Can you guess who this country is? It's an oil producer, by the way. I just want to see your, your answer to that, and I'm gonna give you my response later on. So I hope I answered your question, Hongwan. All right, let me see another question here. It's very interesting dynamics how China— how India is going to this country asking for, uh— oh, there's a question here from Army with Harmony. Uh, agreed. Who is in their right mind will have voted for that guy? It had to be slammed down. Yeah, I agree with you, but at the same time, we have it here in the US. Who is in the right mind will have to vote for incompetent Biden? On the other hand, you said to yourself, hey, if there is so-called democracy or votes, whatever, that's the outcome. And this is what makes me think about when we criticize other countries, mainly the Chinese system, for example, when Biden will say dictator, uh, Xi, which doesn't make any sense. We didn't want to argue that, well, wait a minute, could it be that The system is set up that way. Yeah, if the Chinese wanted to have Xi a president for life, that's their country, that's their decisions, because they wanted to have stability in the political system. Of course we're not going to argue that because it's the right thing. We're not going to say it. What we're going to say, like what Biden did, which I have no understanding of what the context under which Biden will say such thing. Dictatorcy. Well, look what you, Biden, doing to some Americans here. You know, that's, that's where I see. Yeah, so I see your point. I see your point there. So let me, let me go back down here, see if there's an answer from you. Oh, Pangwan, thank you so much for your Super Sticker. Truly appreciate it. Uh, all right, let me see which country did you guys put, because I like to know your input, and I'll go back to the question. Hi, Boon, good to see you. Boon, Jack Robert. Uh, Boon, you wrote Uruguay. No, no, Iran. No. Uh, oh, you got it, you got it! It's Venezuela, it's Venezuela. You all know why, right? But will Venezuela do it? Because they saw what happened to Russians with getting so much rupees that is useless. So India now is in talks with Venezuela about getting oil. And if, if Venezuela is smart enough, they're gonna have to think, yes, of course we are hammering Venezuela with sanctions, but Behind closed doors, just to let you guys know, behind closed doors, Biden reached out to Maduro asking for oil in return for the lifting of some sanctions because our SPR, Strategic Petroleum Reserves, are going down. So it just shows you it's the end for the US dominance on the global stage, and we're just gonna be now embarking on some irrational policies that defy logic. That's the way I see it. And, and that usually doesn't end up well, knowing history, how some, uh, you look at it from even Alexander the Great, how great he was, his ambitions went too far to the point that even his advisers were saying, you are a madman, you know, to be thinking in terms going and conquering this, conquering that, and You know, it was because he reached the plateau. And this is what I see for us. We reach our plateau and now it's time the other direction. So, so this is the way I see it. And I'm just concerned, I'm just concerned, especially now that the Middle East turmoil is really demonstrating that— will this expand all the way to Asia? That is where my big concern is. No, as I intend to head out to Asia next year, uh, and I'm like just watching for the signs, watching for the signs to see. So I'm looking for your— for any question here, guys, if there's one, and I will answer it for you. Yeah, I, I'm wondering what Venezuela is going to do, and I'm going to keep an eye on that because, because what's interesting all of a sudden India is reaching to Venezuela. Why India didn't reach to Venezuela 3 years ago? Why did they go with the, with the Russia? So I don't know, it's very interesting. So, oh, I think— woo, thank you very much, and thank you for being here, man, and appreciate your support. To all of you guys, to all of you. So let me see one another question. I'll take one more here or two if I can see question. It's very slow, you know how it is. And please guys, by the way, please hit the like button. I would really appreciate it. Asil, if anybody can help me with understanding why we got a video when we do live and the, the, the likes show about 200, 400, you know. I, I don't understand. I don't understand. But again, it is what it is. Um, we'll focus on the content. But, uh, if you can, uh, help with spreading the word about the channel, guys, because it's only you. I, I only have you guys for this support. Oh, question here. Uh, is Turkey going to Gaza now? No, as far as aid, yes, but militarily, no. No one's gonna do militarily, especially from the Arab world, because they talk too much. Uh, except now that you seeing what the Houthis, the Ansarullah, doing in Yemen, or Hezbollah for that matter. We don't hear much about what Hezbollah is doing. It's because it's almost like there's a media blackout, and Hezbollah is pounding, uh, the Israelis on the on the— I know there is today, or yesterday was a visit by Elon Musk, and he went to Israel. Well, he didn't— no, he didn't go because he cares, you know. I, I believe, and again, nothing against Elon Musk, but I think Elon Musk is playing both sides, you know. And I usually don't like people who play both sides. That's called hypocrisy, you know. He went over because he got hammered about anti-Semitism per se. And he wanted to show his good graces to Israel. Shame, man. You couldn't take stand when it matters. To me, this is where the leadership is so weak. When it matters, that's when you find out about a true leader. In a good time, yeah, it's a good time, so who cares? So, and same thing, those, uh, uh, uh, the, uh, Turkey, yeah, they talking Saudi is talking about sanctions, you know, it's just talk. That's the reason why I didn't do the video on it, because I knew it was nothing but a talk. If I am to do a video for you, I'll do a video for you of substance, something of substance. So, uh, so this is where I see, uh, the importance of something like that. But, but I'm keeping an eye, uh, Oh, Jack, Jack Robert, good to see you. Will Argentina shifting to the dollar fill in the gap? More, uh, countries start to use currency swaps, so Saudi Arabia can reduce its dollar-dominated debt, but will still need the dollar trading with other countries, with others mainly in the oil industry. That was the whole agreement for what Henry Kissinger made with the Saudis back in the '70s, you know. Yeah, the Saudis is gonna be noticing that. Other countries will be noticing that. But don't forget, Saudis have also another reason for why they won't want to get off the dollar completely. Why? Because they have their gold in the United States. I saw it with my own eyes, over $120 billion worth of gold bars. And I asked when I was in the vault, uh, in New York City $120 billion. So we could just block that, like what we did to Germany, like what England is doing to Venezuela, like what England is doing to India, you know. And of course, there are some other gold that belongs to both Iraq and Libya. So, so that's where I see. But other countries will be mainly when it comes down to BRICS. But you always have to keep in mind, India will be undermining that. So that's, that's a fact. It's a reality. I think I need to figure out a way, because having— like I always say, I look at it in military terms. If you have a team of special ops and there is the weak link inside the team, what do you do? You remove. There is no emotions, there is no feeling, there is no— no, because you're going to undermine the success of a team. End of story. You remove the individual. Same thing. It's like for us here in the community, we have somebody who's creating division. What do we do? We remove the individuals from the community. End of story. And I don't— usually for me, I don't, I don't negotiate that kind of stuff. I just do it because that's to me how I see. So India, India, I've, I've always believed when— because I've been aware of BRICS from way back and I've been always watching what will India do. M. All right guys, I hope you find this very, uh, oh, I see, uh, no, no, no, that was, it was just an answer to my previous question. So, so I'll be working on another story for you guys this week. And, uh, oh, oh, Clarence Edward, thank you Clarence, by the way, thank you for your comments. I read your comments very attentively. And you guys, if you get a chance to read Clarence's, uh, comments, they're spot on, well articulated and, uh, spot on. So you wrote, India let me down big time. And I agree with you, David. BRICS are going to have to ask. Yeah, there is no other way. I don't see how, how else they're going to do it. Because few years from today, Western analyst is going to be saying, see, we told you BRICS is nothing but hype. When in reality it's not. You're looking at 40% of the global population that, if they work out its internal affairs, they could become a powerhouse economically speaking on the global stage as the world moves into multipolarity, then with the financial system that is away from the US dollar. But if India stays in undermining that, then there will be— BRICS will be where it is today, 5 years, which will be— will be sad to see, will be sad to see. So, all right guys, I hope you find this very informative, and I look forward to seeing you again in the next live or another video. As always, remember to either support the channel through Buy Me a Coffee or become channel members. Please hit the like, spread the word about the channel, and remember, geopolitics impact your daily life in more ways than one. Till next time, guys, bye-bye.