The Collapse of the Dollar | The End of America & Rise of China.

well the world is freaking out over the

idea that the US dollar Supremacy is

being faded away that the U.S is going

to get pushed into a corner and China is

going to take over the world after all

China not only just established a

partnership with Saudi Arabia to start

trading and settling oil in Chinese Yuan

Renminbi instead of the US dollar aka

the Petro dollar the U.S currency is the

world's Reserve currency everybody buys

oil in dollars and therefore the dollar

stays strong and America remains

relevant until it's not like the Chinese

partnership between Saudi Arabia and

China to trade oil in Chinese money and

a now newly reported uh release of

information via Reuters that now the

Chinese Nash National oil company

c-n-o-ook and France's total energies

have completed China's first Yuan

settled liquefied natural gas trade

through not United States markets but

instead the Shanghai petroleum and

natural gas exchange according to the

exchange on Tuesday approximately 65

000 tons of liquefied natural gas gas

imported from the United Arab Emirates

traded hands in this via the Chinese

currency not the American dollar and

this is leading a lot of folks to wonder

holy hell is this the beginning of the

end for America because as we've talked

about over the last few days we've made

an end of America video discussing how

our politics are becoming so divisive

people care less about their Community

patriotism and they care less about

having children the only thing people

seem to care about that's been a change

over time over the last 30 years is

money that is community patriotism

children all down in interest but money

uh at the same time now we're seeing the

Petro dollar be faded away while we also

talked yesterday about the weakening of

America's military in the Middle East

how we're potentially becoming

Irrelevant in the Middle East that out

of 78 times Americans were attacked in

the Middle East since we withdrew from

Afghanistan the United States military

has only responded three times that's it

that's embarrassing leading to more and

more attacks because militants in the

Middle East just don't care because why

would they if they have basically a five

percent chance of actually getting

attacked back it's pretty embarrassing

so it's leading a lot of folks to really

be concerned about the Petro dollar and

the potential that the United States

will lose its status as the world's

Reserve currency what could that do to

America what could be bad if the dollar

becomes less relevant then other

countries will be less likely to want to

hold treasuries when other countries

hold treasuries they actually lower

borrowing costs in America because they

lower rates they make it cheaper for us

to do business they make it cheaper for

our government to finance policies

whether it's stemi checks or new parks

in your neighborhood they keep our car

rates down our credit card rates down

our mortgage rates down they make it

easier for us to trade with foreign

countries they make it easier for us to

travel to foreign countries and spend

money more easily the US dollar is also

a powerful tool for military

efforts throughout the world people want

to be nice to America because we got the

Dallas we got power sanctions power

international power we have power

everywhere so what is the Petro dollar

well the Petro dollar is just basically

a fancy way of saying any dollars that

are used for the trade of oil and the

Petro dollar is really important because

I want you to

I want you to know the reality of what's

going on here and that's always what I

try to accomplish on my channel

obviously I'm a licensed financial

advisor I don't give you personalized

Financial advice but I get financial

advice uh I run an ETF I have courses on

building your wealth I have a real

estate startup I have affiliate links

for life insurance and some free stocks

linked down below you already know that

but let me give you my POV on the Petro

dollar so first some background in 1973

the United States made a deal with Saudi

Arabia that all oil sold by OPEC that is

sort of your organization of petroleum

exporting countries mostly in the Middle

East and Africa all of that oil would be

priced in U.S dollars and in exchange

the U.S promised to protect Saudi

Arabian oil fields from attacks so think

about it we'll send our guns you trade

oil in Dallas this deal created the

Petro dollar system it may Aid and it

helped make and maintain the US dollar

as the world's Reserve currency and it

allowed the U.S to guess what print more

money without causing inflation because

the more people use the dollar the more

people trust the dollar even though

we're inflating the crap out of it the

Petro dollar also gave the US enormous

economic and geopolitical power as

countries around the world as I've

mentioned needed to hold dollars to buy

oil and every country needs oil

losing the petrol dollar would be an

incredible hit to the strength of the

dollar and it could make products

substantially more expensive around the

world causing something known as

imported inflation so in addition to

rates going up like I've just talked

about you could also see imported

inflation imported inflation is the last

thing we want higher inflation would

mean more financial Strife in America so

that would be very bad

now keep in mind the easy way to think

about a strong dollar right now is think

about an iPad if an iPad sells for 700

euros in uh France that iPad sends

basically eight hundred twenty dollars

of US Dollars back to America

but what if uh the dollar is super super

strong well that weakens money that we

get from other countries right when the

dollar was actually stronger than the

Euro we get less dollars back so it

hurts companies that actually sell stuff

in other countries and send the money

back but for us as buyers we love it

because if I could go buy a 700 Euro

iPad and it only cost me 680 versus 820

I save money as an individual right so

that just gives you another example so

the strong dollar helps individuals and

people who sell stuff in America but in

recent years there's been a big push to

create an alternative to the petrodollar

system and it's this is sort of

especially now because of these deals

between China and other countries and a

lot of it has started because we kicked

Russia out of the Swift system now Swift

is the society for World bank interbank

finance uh and Telecommunications it's

basically a Communications tool for

transferring money between different

countries the US has used Swift to four

sanctions against other countries like

Iran and North Korea but China is like

we don't know if we want America to have

this much power so China created sips

which is the China international payment

system as an alternative and so they're

really trying to hit us on both ends not

only are they trying to get rid of the

petrol dollar and use the Yuan dollar

but they're also trying to get rid of

our banking communication system as

China tries to be as their Prime uh as

their Premier who actually just spoke

yesterday says a World's Force for

stability so they're trying to basically

eliminate America's power this is how

the end of America begins now when we

talk about the petrodollar it's

important to remember that OPEC controls

about 40 percent of the world's oil

supply and right now they use the dollar

so that's a big part of the oil supply

that uses the dollar and we've been

using the petrodollar system since

really like I mentioned the early 70s

and the way to think about the

petrodollar I think is in comparison to

other uses of Dollars around the world

there's something known as the euro

dollar the euro dollar is kind of like a

petrodollar it's it's not a Euro not to

be confused at all with the Euro it's

basically just dollars held by other

countries outside of the United States

or even within the United States at

embassies and what I like to do is I

like to compare the petrodollar strength

to the strength of the euro dollar to

show you how much you should actually be

concerned about the loss of the Petro

dollar so here's the way to look at it

the Petro dollar trades by the amount of

about 3.5 trillion dollars per year

this is the Petro dollar right here

okay the euro dollar system

trades to the tune of about

12.4 trillion dollars I'm gonna call it

the E dollar

not to confuse people with the Euro

because it's still the US dollar so the

Petro dollar is actually about

one-fourth as important as other

countries using dollars to buy

treasuries and have dollars in their

reserves outside of the Petro dollar so

as scary as it initially seems that we

might lose the Petro dollar when we

actually look at the volume of trade in

the Petro dollar system it's

significantly smaller than the dollar

strength outside of the oil and natural

gas sector so as nice as it would be to

maintain the Petro dollar some losing of

the Petro dollar strength to China

probably isn't as big of a deal as it

seems now other countries in the past

have tried to de-dollarize Venezuela in

the 90s and again in 2017 tried to

de-dollarize and what did the U.S do the

U.S basically imposed massive sanctions

on Venezuela and helped them create a

massive distrust for the Venezuela's for

Venezuela's own currency which led to

inflation in Venezuela that was one

million percent in 2018. and it fell all

the way to nineteen thousand percent in

2020.

Venezuela had so much inflation after

trying to get away from the petrodollar

system that they actually tried to

create a crypto called the Petro which

the U.S basically called a scam

so it's obvious like trying to get away

from the dollar system has been tried

before but it's actually surprisingly

sticky and even if we lost the Petro

dollar

it's a drop in the bucket relative to e

dollars call them e dollars not to

confuse them with euros

so the point is losing the petrodollar

probably isn't that big of a deal and

it's actually really really sticky just

because we hear of some of these trades

outside of the petrodollar system we've

literally been hearing about that for

decades but here's how I really want you

to put to express the fud around losing

the Petro dollar you ready for this this

is my take on how you get rid of the fud

for losing the Petro dollar

we've other countries have been trying

to get out of the petrodollar for 30

years even if we lost 100 of the petrol

dollar today it wouldn't be that big of

a deal even though there are fears it

would be when we look at it actually as

sort of along like the global banking

system scale it's a drop in the bucket

petrodollar 3.5 trillion the global

banking systems like 100 over 100

trillion dollars like it's not that big

of a deal but anyway

even if we lost 100 today it's not a big

deal but it's not good we're not going

to lose 100 today it's gonna probably

take 30 years in my opinion to actually

kill the Petro dollar

what do you think is going to be less

relevant in 30 years

oil

I hate to say it but as the Petro dollar

which is let's say supremely relevant

right here as the Petro dollar let's

that might be 2008 where it was most

relevant as the Petro dollar loses

relevance and maybe it's totally gone

the Petro dollar dominance is totally

gone and I don't know 20 55. let's just

make that example

what's gonna happen between now and that

well Petro

AKA oil is it gonna be relevant anymore

anyway instead we'll probably be a lot

more focused on like

the end phase dollar who controls the

micro inverters for solar or the EV

dollar or some form of other or the the

self-driving in autonomy dollar or the

AI dollar so really this this fear

around the petrodoll around the the

Chinese working with the French and the

Chinese working with Saudi Arabia yes to

some degree it's a sign that oil or

America is losing relevance yes to some

degree it's a sign that America and

American exceptionalism is being worn

away our exceptionalism is wearing away

there's no question about that is this

something that is going to change

tomorrow and cause massive issues

no is this something that China would

love to go away of course I mean keep in

mind what helped create and prop up the

petrodollar system nothing other than

the military industrial complex the U.S

spends more on its military than the

next 10 countries combined the

military-industrial complex has a vested

interest in keeping the dollar strong

that makes a lot of sense and so of

course a country like China wants to

slowly start mining away the importance

of the US dollar but e even though we

might not trust currencies and Trust

Fiat there is no currency that is

trusted more than the American dollar

and you can see that just by comparing

the e-dollar space euro dollar space

relative being three times the size of

the bachelor dollar space and how

important is the petrol now really in

the very interesting things I mean yeah

it's useful maybe maybe it provides some

form of global stability at least at

this point but by the time it actually

matters I don't think oil will matter

anymore so do I really care bottom line

bottom line of all it do I really care

that China is you know playing you know

with liquefied natural gas with rants

no so the next time somebody asks me

about the petrodoll or ask you about the

petrodollar make sure to send them to

this particular video because I think we

provide a realistic perspective on how

the reality is this isn't going to

affect your daily life

there's a lot of fun around what it

could do the reality is it's gonna be

such a slow burning candle it probably

won't matter but if for some reason it

still gives you anxiety get life

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