Dumping Petrodollar Once They Join BRICS?

Hello everybody and welcome to Geopolitical Trends. My name is David Oualaalou. So good to be with you guys as always, of course. Is Saudi Arabia about to dump the US dollar from like the petrodollar? This is a question that now a lot of, a lot of insiders in Washington are wondering. In this video, I'm going to explain to you why that is and what you should expect between now and next year's summit of the BRICS that's going to be held in South Africa. So, but before I'll dive into this topic, please subscribe and hit the, and hit the notification button so you will be notified every time I upload a new video. I also take this opportunity to say thank you for your wonderful comments and your response to the questions. It's so engaging and so refreshing to know there are viewers such as yourself, that truly makes me want to come on the air every day. And almost I'm going to be trying to do this because we wanted to grow this community and also for the sake of our humanity. You know, this is the reason why I'm doing what I'm doing, because I care about where the world is headed and I want to contribute to the best of my abilities. So, so once again, thank you so much for your continued support. So, so here is what happened. Let me, let's delve deeper into this one here. So, uh, last week it was a visit by the South African president Cyril Ramaphosa. He went to Saudi Arabia, met with the, with the king, of course King Salman, but also met with the crown prince Mohammed bin Salman in Saudi Arabia. And in BS, during the meeting asked about joining BRICS. It's a major development. Major. Why that is? It's because you're talking about the restructuring of the financial global system when it comes down to the transactions in the energy. This is why you hear the term petrodollar, you know. And I have a very interesting question for you at the end. So a petrodollar, because That was the deal that was cut between the United States and Saudi Arabia, that all the transactions will be conducted in the US dollar in return for the United States providing security for Saudi Arabia. Well, things are changing now, Sam. So the BRICS alliance is preparing— as a matter of fact, when I say BRICS, I'm referring to Brazil, Russia, India, China, and South Africa. The alliance is preparing to welcome new members, and that includes Saudi Arabia, you know, whose potential admission will have significant implications for the global geopolitical balance. Because it's no small matter. You're looking at— and here is the simple way to look at it. When you look at the BRICS, the members: Brazil, Russia, India, China, and South Africa. Well, you have Russia, okay, a major oil producer. Then if you add Saudi Arabia to the club, what are you looking at? You're looking at two major oil producers in the world, okay? Then who other members are you get? Uh, beside Brazil, you get China and India. What do they share in common? They are large consumers of energy. Large markets with over a billion each. So you're looking at 40% of the population of the world, or 30% rather, just in those countries. So you got two— assuming when Saudi Arabia joined the BRICS, so you're gonna have two major oil-producing countries and you're gonna have two major consuming markets in the same club. This is why the implication will be for the global geopolitical balance will be like unmistakable. So, so, because here's the thing, BRICS now is a merger, is a merger of the economic powerhouse of, as I said, Brazil, Russia, India, China, and South Africa, you know. But get this, guys, even Iran has applied for full BRICS membership. Now, can you imagine adding Iran to the mix? Because Iran is the third or fourth major oil producer in the world. So if you have, uh, Saudi Arabia and Iran joining, uh, BRICS in addition to Russia, yeah, they control global market as far as energy. So, but here is the surprising that Washington didn't expect this. And what Washington didn't expect is that Indonesia and Algeria, of course, both, especially Algeria, is an OPEC member, a member of the club of the oil-producing exporting countries. So Indonesia and Algeria also expressed interest in joining the BRICS. But I'm not here to talk about Indonesia and Algeria. I'm here to focus on Saudi Arabia. Why? Because it will have a major economic and financial impact if ever Saudi Arabia joins BRICS and dumps the US dollar. That will be a major, major event. This is why Washington is watching carefully as to where things are headed. So, so here's the thing. Next BRICS meeting, which will be held in South Africa next year, you know, and the foreign ministers from usually You will have to have a meeting of the foreign ministers to approve the agenda for the meeting to take place. That's how the protocol for BRICS works. So the foreign ministers from Brazil, Russia, India, and China extended their full support— get this, guys— full support to South Africa for its BRICS chairmanship in 2023. And also for holding its 5th summit, you know. Well, one thing is sure, you know, I have to put my geopolitical analyst hat. One thing is sure, Saudi Arabia joining BRICS will mean a significant change in the countries that form the bloc, or the economic bloc, that is, you know. And here is one statement by the South African president during his trip to Saudi Arabia. Ramaphosa said, and I quote, let me get you the quote, guys, exactly. He said, and I quote, the BRICS nations are going to be meeting in a summit next year under the chairmanship of South Africa, and the matter is going to be under consideration, end of quote. Well, which matter is he referring to? Is the admission of Saudi Arabia. Because it has to be a full member approval, you know, and there is no doubt in my mind that any country in the BRICS will object to having Saudi Arabia because it's a major oil producer. So, so, and here's the funny thing, or the interesting thing, not the funny thing, it's an interesting rather. In geopolitics, there is no funny thing. It's always interesting. Without naming names of the countries Okay, Ramaphosa revealed that there are several— and this is the key word— several nations have been making approach to join the BRICS, you know, which represent, as I said earlier, 30 or almost 40% of the global population. That's a large market, consuming market. So This is where, where I see it going. So, so in addition to BRICS, get this, guys, the Shanghai Cooperation Organization, known as the SCO, is also trying to get Saudi Arabia to join it. Do you see the trend where things are headed? And the question you need to ask yourself, and we all need to ask ourselves, is will the BRICS or SCO, or both of them, overtake the EU, the European Union? Given how paralyzed the EU right now with the energy crisis. European Union is becoming poorer in the last few months. You know, they just didn't handle well this, what's going on when it comes down to the conflict in Ukraine. And by imposing sanctions on Russia, they shot themselves in the foot when it comes down to economics. This is why you see major demonstrations in Europe, which by the way, we don't hear much about here. In the West. So, so SCO is also trying to get Saudi Arabia to join it. And both alliances— here is the thing— both alliances are keen to support alternatives to Western structure. This is a strong message there, because what are they looking at? They're looking at alternatives. And this is why I said Saudi Arabia joining the BRICS, which means no more petrodollar, or Saudi Arabia wants to ditch the US dollar. This is where it's going, and especially now with the structure of how the West controlling the global economy through SWIFT, which is the US, through the US dollar mechanisms, with this idea of, uh, both alliances the BRICS and the SCO, you know, are keen, which means they are in favor of supporting a new alternative to Western structures, for example, in monetary and banking systems. This is very, very, very sort of seismic, if you will, in the world of geopolitics, because once Saudi Arabia joined BRICS, you're talking about the restructuring of the global financial order. The US dollar will not hold anymore when it comes down to oil transactions. So, so, and here's the thing. The BRICS and the SCO have an important ideological commonality. They share one common goal. And you know what that common goal is? That ideological commonality in terms of they are both oriented towards multipolarity. Like I always said, you know, the world is shifting from a unipolar to a multipolar. The West does not want to admit this, does not want to accept it. So, and this is why you see in both entities, the BRICS and SCO, moving into that direction, assuming they play their geopolitical cards the right way. And what you want to add to this is also the election of Lula da Silva in Brazil, which I talked about a month ago, and I'm going to do a video for you guys about this one. That is another major aspect. And why is this? Just to give you a hint or a heads up, because Lula is calling for a unified currency in Latin America and ditching the US dollar. You can just see where this is headed. So, so the multipolar approach of the BRICS should be of a particular interest to Saudi Arabia. You know, while Saudi Arabia has maintained close ties with Washington, you know, for many, many decades, almost 7 decades, in recent years the kingdom has struggled to become an independent global player. Because also, we're going to be realistic, if it weren't for oil, we wouldn't be talking about Saudi Arabia. I wrote a book about Saudi Arabia, it's called The Fall of the House of Saud. In it, I disclosed that if it weren't for oil, we won't be talking about Saudi Arabia, but also the amount of oil Saudi Arabia produces, you know. And this is why it's very, very important for you to understand why it is significant if Saudi Arabia join— it's not if, it's when Saudi Arabia join BRICS. It's because Saudi Arabia has struggled to become an independent global player on its own. But has since expanded its ties with both China and Russia. You can just see the trend. So, so you may ask yourself the question, and we all need to ask ourselves, question is, why is this important? Why is it important for us to know? Well, if you happen to be an American watching this, you should be concerned, because if Saudi Arabia ditches the US dollar, we're gonna have some major issues here at home, economically speaking. It's the same thing with what's going on with the microchip problems that the United States now has with China. You all see where this is going. But to stay within the topic of the, of the US dollar, you know, a petrodollar, by the way, let me just provide you a brief description of what a petrodollar is. Petrodollar usually is a US dollar obtained through the sale of crude oil, for example. You know, it's a term that was created particularly to describe the situation of the OPEC countries. OPEC stands for Oil Producing Exporting Countries, you know, where the sale of this commodity, oil that is, allow these nations to prosper and reinvest its US dollars in the nation which purchases it. So It's one of those unofficial axioms over which the world, uh, energetical or geopolitical or financial or economic system depends on, you know. But if Saudi Arabia joined BRICS, this will cease to exist. You're already seeing that Russia and China are moving away from, uh, the US dollar. Indonesia is moving away from US dollar. Global South is moving away from US dollar. And this is why I talked last time about the BRICS countries amassing gold, so much gold, because that's what they're gonna back their currency with. So, so, so any change to this system by default, which means the petrodollar, any change to it by default will generate significant effect, not just in prices but economic levels as well. So Nevertheless, some dismissed this effect as, oh, it's just a drive, it will be nothing happen. No, it will happen, and it will further decline the US dollar value on the global market. That's what it will be. Of course Washington would not want to admit to this, you know. And doubtly, you know, the US-Saudi relations survived the 9/11, uh, uh, events that took place, and I disclosed this in the Saudi book in detail because this book, by the way, had to be approved by the United States government, believe it or not. It is what it is. So I worked in Washington, D.C., so I'm obligated to do that. But here's the thing about the 9/11 thing is that the families of the 3,000 American families who died a painful and horrible death have not received justice on behalf of their deceased loved ones. So the American people are confused and perplexed. So as to what's going on right now with, with Saudi Arabia, well, this one of course came in the heels of what just happened with OPEC+ decision to cut oil production by 2 million barrels a day. That is a major decision. 2 million barrels a day is no small matter. So, and this is why the United States wants to lash out at the Saudis, but the Saudis will retaliate also, and their retaliation, it will be simple, just drop the US dollar from all oil transactions. As a matter of fact, Saudi Arabia is in talks with China right now to to accept the Chinese currency for the delivery of energy. They don't need to accept the US dollar. So, and this is why it's very, very important to understand this dynamics, and that's why I wanted to share with you. So here's my conclusion for you. It will be a significantly, uh, it will also significantly decrease the effect of the US sanctions if the dollar is dropped from the oil transactions. No more petrodollar, which means the US sanctions will become ineffective, useless, that is, which might impact somewhat the way the country conducts its foreign policy because countries won't worry about, yeah, let the US use sanctions, so what? We don't use the dollar. So, so whatever the outcome is, it is about time the United States felt what a free market means when it comes to, for example, currency and oil. And again, mark my word on it, this, this is going to be within a year. But again, I, I like to get ahead of things, you know. It takes, it takes a long time to see where the trends are headed, you know. And again, when Saudi Arabia joins BRICS and drops the US dollar, it's over for the US from a financial perspective. So here's my question for you for today. Do you believe, or do you think, Petro Yuan will replace Petrodollar? Let me repeat. Do you think Petro Yuan will replace Petrodollar? Make sure to let me know what you think. And I always enjoy your feedback and answers and so forth. And as always, guys, remember, geopolitics impacts your daily life in more ways than one. Till next time, bye-bye.