The U.S. Dollar was Just REJECTED | Saudi Arabia & BRICS - Dedollarization.

Saudi Arabia just dumped the US dollar

what this means for United States and

inflation could be a big deal a lot of

people are talking about this and a lot

of people have been asking Kevin what is

your opinion for example our good buddy

Andre J made a fantastic video on this

topic great editing too way better than

the editing that I will do in this video

which is next to zero but what I'm going

to do is give you a quick background of

what's going on and then I'm going to

talk about implication for this so first

of all if you don't know yet bricks

Brazil Russia India China South Africa

now that is an organization that has put

about a hundred billion do of funding

together and they can give emergency

loans to each other if they need to and

brics has regularly been thought of in

the same sentence as dollarization in

other words the more these countries try

to have a common currency or common

trade agreements the less powerful the

United States is fair now what's

interesting is starting in January 24

bricks has doubled in size it probably

shouldn't really be called bricks

anymore because now it includes Iran the

UAE Ethiopia Egypt and Saudi Arabia was

announced as a member but they actually

pulled that back and said we're still

studying if we want to be a part of it

turkey has appli to join and Malaysia

and Thailand may end up joining as well

now Argentina was invited but president

mle have mlay chainsaw guy decided

against it Malay indicated that his ally

is the US and Israel not China and

Brazil so what does that reiterate to

you hm interesting Us Versus Them In

other words bricks versus the West which

would be the Euro the US France Canada

Germany Italy Japan the United Kingdom

these are sort of your traditional

Western allies versus now the Brazil

Russia India China South Africa and then

potentially the others that I mentioned

as well so people are sort of picking

sides but what a big deal is is that at

the same time as Saudi Arabia is

reviewing the potential for joining

bricks and being part of the group

that's now being called bricks plus you

have this announcement on June 13th that

Saudi Arabia will not be renewing an

agreement they signed with Nixon back in

1974 to sell oil exclusively in the US

dollar both of these things happening at

the same time are sending the signal

that the US is losing its strength and

power in the International Community and

that American exceptionalism is decaying

away and the dollar is going to go to

crap and you're going to be screwed with

inflation

forever okay now we'll talk about how to

deal with all of that in just a moment

but first it's worth thinking

practically why why would Saudi Arabia

ice the United States is it because

Saudi Arabia is pissed off at the United

States is Saudi Arabia trying to send a

signal that the US

sucks maybe but it could also be that

Saudi Arabia is no longer the number one

supplier of oil for the United States it

might have to do with the fact that

Saudi Arabia used to be the number one

oil producer in the world but this has

flip-flopped thanks to the Shale and

fracking revolution in the United States

case in point the United States as

listed here is now the number one oil

producer in the world and we import less

than onethird as much oil as we used to

from Saudi Arabia in other words we

showed Saudi Arabia up in the oil Market

we blew them out of the water with oil

production and we're buying less oil

from them so back when this agreement

was signed where the dollar just left

the oil or the dollar just left the gold

standard and we needed Saudi Arabian

oil those factors have essentially

flipped now we produce the most oil in

the world we need Saudi Arabia probably

not at all in fact probably the oil that

we do buy from Saudi Arabia is just to

sort of maintain some relationship with

them we probably don't need any oil from

them and we need less confidence in the

US dollar net now than what we needed

back then now I know that might sound

crazy you might be thinking to yourself

Kevin I don't trust this dollar at all

and trust me you shouldn't you

definitely shouldn't keep your money

exposed to the dollar let's be clear

about that # notp personalized Financial

advice but back in

1974 we just left the gold standard for

a few years inflation expectations were

skyrocketing the opposite of what's

Happening Now and inflation was

skyrocketing still also the opposite of

what's happening now yes inflation did

Skyrocket but now it's not skyrocketing

anymore if anything it's disinf lating

and so we actually need less support for

the dollar today than we did then

because back in the 70s people like what

money not backed by gold this is a scam

every fiat currency that has ever

existed before in history has failed and

your boy Kevin is out of

coffee so why should we trust it well

cuz Saudi Arabia exclusively uses it

they're the largest oil producer in the

world notice how then is actually almost

the opposite of what we see now we are

the largest oil producer we don't need

them to reiterate our fake funny money

anymore and if anything Saudi Arabia's

top client just became China and it

entirely makes sense that they probably

ought to start trading oil in Reni

Chinese

currency as opposed to the US dollar now

I'm not not encouraging

dollarization just saying it kind of

makes sense now this is where it's kind

of worth thinking about the Petro dollar

and the importance of it in the first

place about 80% of global trade is

traded in the US dollar the oil Market

in 2022 was estimated to be about $1.4

trillion and so 80% of that is somewhere

around 1.14 $1 1.15 trillion Okay cool

so if the oil Market is 1.14

trillion how does that compare to just

our GDP alone in other words our GDP

that's traded in dollars right gross

domestic product our GDP is 24x the

entire oil market so yes the oil Market

seems like a really big deal but let's

be real the US economy itself is 40%

larger than China and China's GDP is

twice X all of the other bricks members

from last year so like we are huge

compared to all of them in the bricks at

the United

States and even if all oil transactions

were conducted in some other form of

currency you know we could slow bleed

this or it all evaporates tomorrow there

would still be plenty of demand for the

dollar given that we are the largest

economy in the world now could that

change could the United States suffer

depopulation or uh you know slowing

population growth much like China is

experiencing now although their economy

in worse off shape shape than ours is uh

could the United States economy uh end

up stop innovating could China

eventually have a larger GDP than the

United States of course all of these

things could end up happening in the

long term and frankly they probably will

uh so now the question is what do you do

about it all and does it matter well my

opinion the answer is it doesn't matter

the reason it doesn't matter what's

going on with the pet doll whatever else

is you shouldn't be exposed to the

dollar anyway in my opinion one of the

best things that we can do is just get

out of exposure from dollars and get

into assets assets which would be things

like real estate or stock exposure or

for some folks those are cryptocurrency

exposures in other words we don't

actually need to be exposed to the

dollar at all we can transact with the

dollar and then get our butts out of it

so to speak in that case you're not

exposed to the risks of a law a dollar

that's losing its PCH purchasing power

now is it possible that in the future

the United States becomes something like

the British Empire where we're much less

relevant than uh we used to be right

British Empire now the United Kingdom

much less relevant than the British

Empire was uh sort of like the Roman

Empire they all sort of die at some

point in the future anyway at some point

the United States dominance is going to

wear away but is this really anything

more than a partnership

amongst others to counterbalance the big

Partnerships we have now not really now

of course why is the topic then of

dollarization so popular well it's

popular because it in my opinion

represents this growing discontent

amongst Americans who fear that America

is losing its exceptionalism could be

because of unaffordable housing uh lost

faith in the Federal Reserve frustration

over crime borders uh political uh you

know polarization on social media

practically a growing bricks sort of

deepens tensions potentially between

bricks and the United States and sort of

Western allies and I think this is why

Saudi Arabia is on the more cautious

side of like oh yeah I'm going to go all

in and join bricks because they realize

like a vote for bricks is sort of a vote

against the United States so you've got

some folks here suggesting hey you know

okay like maybe maybe you don't want to

blow this up so quickly because the US

is still pretty

dominant but again how much does this

really matter long term in my opinion

not terribly much in my opinion for

right now the focus continues to be

build assets build your exposure to real

estate assets consider investing in

things like what I talk about in the

courses on building your wealth where I

send stock Buy sell alerts uh when I see

a trend in the stock market not

guaranteed to make money but I always

send uh alerts when I see a trend or

spot a potential Trend uh uh real estate

zero to millionaire investing the uh

we've got Kathy Wood speaking at our

event this weekend we've got the

do-it-yourself uh property management

and ren Renovations course the gold

course on entrepreneurship and

productivity a lot of cool things to

choose from these are the sort of

Investments that I would make but Fring

over dollarization I don't think is the

best so this is my take I see it as a

growing slow moving trend but not

something that really creates a lot of

fear for me at this point anyway I'm

hedging myself anyway but just not being

exposed thank you so much for watching

and we'll see you in the next one

goodbye and good luck can not advertise

these things that you told us here I

feel like nobody else knows about this

we'll we'll try a little advertising and

see how it goes congratulations man you

have done so much people love you people

look up to you Kevin PA there financial

analyst and YouTuber meet Kevin always

great to get your

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