David Oualaalou argues Russia's decision to accept gold for oil signals the end of the petrodollar system. Russia's gold reserves now total $640 billion, equivalent to 17 months of export revenue, and the country is building MIR as a SWIFT alternative. Saudi Arabia, China, and India may follow, shifting oil pricing from dollars to gold and rubles.
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Hello everybody and welcome to Geopolitical Trends. My name is David Oualaalou. So good to be with you as always. Russia moves towards gold standard for oil. It's a seismic change and the announcements, it just is going to turn the global financial market upside down. So in this video, I'm going to provide you some insight as to how much impact this will have not only geopolitically but also economically and financially. But before I'll delve deeper, please make sure to subscribe if you have not done so and smash that notification button so you will be notified every time I upload a new video. Also, I wanted to express my sincere thanks to the new channel members who becomes a member, uh, who became a member rather for the channel. So thank you very much for your support, it means a lot. I also want to let you know that on December 30th, which is a Friday, I will be doing a live stream. I will post the announcements for you. So this way you'll have an idea, and I will look forward to having you join me for that live stream. So let's dive in into this. A very savvy— I will use the term savvy. I know in the West, the man— and I'm not here to defend Russia or speak on behalf of Russia. Or I care less for all this. I care for what is realistic. I'm a pragmatic guy. That's how I see things. So, so I will use the term savvy. A very savvy Russian President Vladimir Putin now will offer a discount. Okay, it will offer a discount to any country that pays for Russian oil with gold. You all know what it means. This is a very major announcement. So, so this way, this basically will destroy the petrodollar. I don't think so the West thought about it the moment they were imposing sanctions. Europeans, of course, they can't think, you know, I'll say it straightforward. It's just the United States didn't think very far to realize that this could become a problem, those sanctions. And now we are seeing this. So, so basically Uh, this, uh, this move, shall we say, now puts pressure on OPEC, oil-producing exporting countries, to do the same. They're gonna move into that direction. I'm not surprised. I did talk about this before. And given how, for example, Saudi Arabia, which is a major oil producer and the head of the OPEC, you know, uh, sort of dislike— have a dislike for Joe Biden. You can just see where this is gonna be headed. You know, this is where I see the challenges that coming forward. So, so Putin's oil for gold payments method will greatly increase now the Russian gold inventories, which already been increasing for the last 20 years. You know, uh, you know, it's already extensive, and I'm gonna share some stats with you and provide you the link, of course. So, so additionally President Putin has an oil and gas sale agreement with China for an estimated of $115 billion. So basically, the domestic ruble will be backed by gold, okay? At the same time, the ruble will be floating internationally. I do see, as an analyst, I just see that China will likely join the system I can also see, uh, countries like Turkey, South Africa, uh, for the case of China and Turkey, have already expressed interest. For South Africa, maybe Saudi Arabia, some other countries, India maybe, you know, they're gonna consider joining this. And this is where I talked about that seismic change on the financial global markets. So the plan as a whole, I had a chance, by the way, to read an article by Bill O'Reilly, he is an American commentator on military affairs, you know. And basically what he said, and I quote this here, the world underestimates Putin and overestimated the left-wing Biden regime. It appears he, Putin, appears to have prepared for a protracted assault and beyond, as Donald Trump said. He is a genius, end of quote. This is about Vladimir Putin. So, so that where things stands as we speak now. Well, the Russian Central Bank, okay, the gold reserves there now stands at about, get this guys, $640 billion. Yes. And I'll provide you a link for all this, which is a record for them. So And that is, if you take this amount, that is the equivalency of 17— get this, guys— 17 months of Russian export revenues, which they are already continuing to grow thanks to surging oil prices. So, you know, so Putin basically what he did way back, which he was savvy about it ahead of time, he created new payments. Processing system, you know. Why? It's because he wants to be a replacement for the what we call the Society for Worldwide Interbank Financial Telecommunications, or in short acronym known as SWIFT, you know. And this is, by the way, the SWIFT from which Biden has threatened out— has threatened to out Russia of it. You know, so in 2015, after US sanctions, Moscow launched the MIR payment platform. And here's the— here's— I did not know this. I just find that out as I was digging for this information to share it with you. I just find out that this MIR payment systems, you know, it's even connected to Apple Pay. How so? You know, you can't just keep thinking the West talking about these sanctions and unity and all this nonsense. I'm telling you, they are behind the scenes, things that's taking place. So an average Joe, average Jane, whether he in the US or Europe, has no clue, sadly. So Putin has increasingly replaced the trade in dollars with gold. And this is from— get this, guys— this is from a record of only $2 billion worth of gold that Russia had back in 1995. So Russia, as of today, has piled up a mountain of it that is worth up to $140 billion, or 20% of the total reserves. Remember I said about $640 billion? So, so the Russian president, Vladimir Putin, that is, now can afford to sell his oil at deeply discounted prices. But you know who's gonna sell that to? Europe? No way. It's gonna be sold to Global South. It's gonna be sold to, uh, or, uh, being sold to India, China, you know, you can— the countries that supported Russia. No. And by doing this, he can now force the world to reprice oil in terms of gold. Remember what I said last time about European disunity? Despite what you hear, they couldn't come up on agreements regarding price, uh, putting a price cap on Russian gas oil. They're talking about $60 a barrel. Ain't gonna happen. And by the way, I'm gonna release a video for you guys tomorrow. By the time you see it, it would be there. I'm gonna release a video about that. So, so this is what the world now is gonna end up doing— repricing oil in terms of gold, and then by extension rubles, rather than the dollar. Why? Because the ruble is going to be backed to the dollar, it's going to be attached to the dollar. It would become a gold-backed ruble and a global floating circulating one. It's a smart move. I, I— that's all I can say. So what it means basically is the end of the petrodollar economy. It's not going to happen tomorrow, of course, but it's the end of the petrodollar economy. That the US has grown rich from since the early 1970s. And we all know what happened in 1971. So when this happens, the US will literally become poor in no time. And I've talked about this before, you know, with incompetent officials that we have running the government, it might be seen as the right opportunity and right time for the so-called the Great Reset. You can just see where things are headed. So here's my conclusion for you, because I want to keep this brief to you, just for you to have an idea of what, what's coming. Energy importing nations are the most vulnerable. And what are we talking about? Europe right now is in great danger. All those people today, virtue signaling about pulling out of the Russian energy project are cutting their own throats. The proof is in the markets now. You all need to see the prices of commodities. Gold is breaking higher alongside oil, okay? Meaning what? It means that currencies are crashing relative to energy. The euro has crashed to $1.08 as of Friday, a few days ago, you know. All other commodities are repricing higher from— you're looking at metal to grain to fertilizer to coffee, you know, at a level that the world has never seen before. So I would say it's a brilliant plan, and that plan will have a lot of paybacks planned as well. So interesting times. To say the least. So, so I hope you find this short video informative and look forward to seeing you next time. As always, remember, geopolitics impact your daily life more ways than one. Thank you guys. See you. Bye-bye.
