The Petrodollar, which is probably the most important economic concept that the vast majority of Americans are completely ignorant of, is on its way out. Saudi Prince Mohammed bin Salman has refused to renew his nation’s agreement to sell oil in dollars with the United States, and the potential repercussions on the U.S. economy could be catastrophic.
Jimmy discusses how the petrodollar allows the United States to sanction other nations, which serves only to drive other countries to want to abandon the dollar.
Transcript
0:01
hey come see me do stand up in Ontario
0:03
California Las Vegas and Davenport Iowa
0:05
go to Jimmy door.com for a link for
0:07
tickets so it finally happened Saudi
0:09
Arabia's petrol dollar exit a global
0:12
Finance Paradigm
0:13
Shift the financial world is bracing for
0:16
a significant upheaval following Saudi
0:19
Arabia's decision not to renew its
0:22
50-year Petro dollar deal with the
0:24
United States which expired on
0:28
Sunday June 9th
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so I would I
0:33
know I talk about the petrol dollar I
0:36
don't know anyone else who ever brings
0:38
it
0:39
up um but it's why we have such a a Rel
0:42
close relationship with Saudi Arabia it
0:45
has a lot to do with why we were we do a
0:48
lot of the wars we do especially
0:50
Yemen uh so here is a explainer this is
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uh Marin kausa I don't know how do you
0:58
say that name katusa he the author of
1:00
2014's the colder War how the global
1:03
energy trade slipped from America's
1:05
grasp so here's just a few minutes
1:07
that's going to explain it to you better
1:10
than I can the Petra dollar is actually
1:12
a device invented by Kissinger and
1:18
Nixon the standard of living of all
1:21
Americans can be traced back to here the
1:24
vast oilr deserts of Saudi Arabia in the
1:28
early ' 70s after Thea crisis happened
1:31
with the oil embargos OPEC basically
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tripled the price of oil to the Western
1:36
World and at that time America realized
1:40
that they were vulnerable because they
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were importing about 70% of all the oil
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they consumed to secure a reliable
1:47
foreign source of oil US president
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Richard Nixon sent his secretary of
1:52
state and National Security adviser
1:54
Henry Kissinger to Saudi Arabia for a
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secret meeting
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the result was a pact that still stands
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to this day if Saudi Arabia which at the
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time was the world's largest producer of
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oil would sell the oil in US Dollars
2:12
America would defend Saudi Arabia and
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make sure the house Assad would stay in
2:17
power as a direct result of this us
2:20
Saudi agreement all other oil producing
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Nations also adopted the dollar as the
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de facto medium of exchange demand for
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it increased exponentially all over the
2:31
world and soon it had a new name the
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Petro dollar your currency is only a
2:37
strong as the demand for it just like
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anything else a supply and demand why
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the Petr dollar is important it causes a
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demand for the US dollar a lot of
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Americans don't realize that over 70% of
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all the $100 bills in the world are
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actually outside of the US there's more
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$100 bills in Russia than there are in
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America this stockpile of US dollars in
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countries around the world is because
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oil is bought and sold using the green
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back if oil starts trading in non petol
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dollars such as gold or a basket of
3:14
currencies or if China and Russia start
3:17
trading in Wan and Ruble rather than US
3:20
dollars that demand isn't there and the
3:23
way of life for the average American
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will be done it will be worse than the
3:28
Great Depression
3:30
to date anyone who's potentially
3:33
threatened the status of the Petro
3:34
dollar hasn't fared
3:37
well Libyan strong ban mumar Gaddafi
3:40
publicly pushed for a pan-african
3:43
goldback currency that he would trade
3:45
for Libya's oil he was killed during a
3:48
us-backed revolution in
3:51
2011 and just a few short years before
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Iraqi dictator Saddam Hussein advocated
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selling oil for euros at this hour
4:01
American and Coalition forces are in the
4:03
early stages of military operations to
4:05
disarm Iraq the US invaded under the
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guise of looking for wmds Iraq did not
4:12
have any weapons of mass destruction and
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interestingly enough after the Americans
4:17
invaded took over put in their own
4:21
government the whole concept of selling
4:23
oil in
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Euros never surfaced again today many
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countries resent the current Petro
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dollar system and their leading
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spokesperson is none other than Russian
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President Vladimir
4:37
[Music]
4:38
Putin Americans should be very worried
4:41
about what Putin can be there is a new
4:43
cold war going on it is the colder war
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that is exactly what's going on and
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who's in the center of this push
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Vladimir Putin and the Petro dollar is
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so crucial to the cold of war the only
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thing holding America right now at the
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top is the P dollar and let me make it
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very clear if the Petro dollar
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dies so does America as a
5:11
[Music]
5:14
superpower
5:16
so it's dying so it's not going to
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happen
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immediately that was quite a stat right
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70% of all $100 bills are outside the
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United States there's more $100 bills in
5:27
Russia than around in the United States
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that's so that's so all the countries
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can trade with each other they use
5:34
dollars but they're going off that
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that's what bricks is that's Brazil
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Russia India China South Africa and now
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I've heard turkey wants to join bricks
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there's 80 some 80 countries I've also
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heard wants to join
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bricks so the United States dollar as
5:54
the reserve currency of the world is
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going
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away and it's not going to happen over
5:59
overnight but it's on its way it's it it
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will happen within 10
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years so it's going to happen slowly not
6:11
immediately but Saudi Arabia already
6:14
started selling gold to
6:17
China not in United States
6:20
dollars uh so here's some more uh The
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crucial by the way this is not this
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should be the headline in every
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newspaper it should be the lead story on
6:30
every uh news show they're not even
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talking about they're not even
6:33
mentioning it on
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CNBC why should they they didn't tell
6:37
you about it to begin with they didn't
6:39
they never explained to you what was
6:41
actually propping up the US dollar in
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the first place they never explained the
6:44
Petro dollar never came up just like
6:47
they don't tell you the real cause of
6:48
the Ukraine war or the real cause of the
6:50
Syrian war or the real cause of the Iraq
6:52
war or the real cause of the Libyan war
6:55
or the real cause of Afghanistan
6:57
occupation for 20 years they don't tell
6:59
you the real cause of anything they're
7:00
not going to tell you when they do
7:02
finally start telling you about this
7:04
they're not going to tell you the real
7:05
cause of
7:06
it so the crucial decision to not renew
7:09
the contract enables Saudi Arabia to
7:12
sell oil and other Goods to multiple
7:14
currencies in multiple currencies
7:16
including the Chinese R&B Euros Yen and
7:22
Juan instead of exclusively in US
7:25
Dollars additionally the potential use
7:27
of digital currencies like bit coin so
7:31
this is going to also help
7:33
Bitcoin ah yes the latest development
7:36
signifies a major shift away from the
7:40
petrol dollar system established in
7:42
1972 when the United States decoupled
7:45
its currency from
7:47
gold I and uh I just tell you this makes
7:51
me feel better about putting my
7:55
retirement money in Precious Metals gold
7:59
so I haven't I haven't put all of it I
8:01
put a huge Chunk in gold makes me feel a
8:05
lot better uh when the US decoupled its
8:08
currency from gold and is anticipated to
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hasten the global shift away from the US
8:14
dollar I also put some in
8:16
Bitcoin
8:19
Bitcoin
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uh Bitcoin gold what's the other I did B
8:25
get some um some
8:27
treasuries because they're paying right
8:29
now I was trying to invest in bombs in
8:32
bombs bombs oh yeah yeah in a more
8:36
recent move Saudi Arabia has announced
8:38
its involvement in Project MC mbridge a
8:42
project which explores a multi- central
8:44
bank digital currency or cbdc platform
8:49
shared among participating central banks
8:51
and Commercial Banks it is built on a
8:54
distributed Ledger technology that
8:56
enables to enable instant cross border
9:00
payment settlements and foreign exchange
9:02
transactions so right now when a country
9:04
wants to do that we we've showed you
9:06
African countries complaining about this
9:08
they say if I want to go trade with
9:10
another African country I have to take
9:12
my currency exchange it into American
9:14
dollars and then we can do business why
9:16
do we have to stop that that's so that's
9:18
what AAR Gaddafi wanted to do he wanted
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to get an African uh a gold back
9:24
currency that's a big huge reason why
9:27
they killed him and overthrew his
9:28
country so that's what they're talking
9:30
about here they're talking about making
9:32
now
9:34
U uh an an economic system to compete
9:37
with the dollar so people can trade with
9:39
each other without having to and what
9:42
also that also give without having to
9:44
change their money into Dollars you U us
9:46
back
9:48
dollars what also the current system
9:51
does is it gives the United States the
9:52
ability to weaponize the dollar which is
9:54
why we could put sanctions on everybody
9:56
which we shouldn't be doing because then
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it makes people want to go off the
10:00
dollar which it what this is and then
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it's going to hurt the dollar and hurt
10:06
our economy and hurt people
10:08
here uh the project has more than 26
10:12
observing members including the South
10:13
African Reserve Bank which which was
10:16
greenlighted as a member this month
10:18
project embridge is the result of
10:21
extensive collaboration starting in 2021
10:24
between so this is all
10:26
caused by the neocon this is the stuff
10:29
they said Trump was going to do Trump
10:30
didn't do this
10:33
Trump Biden's doing this this is the
10:37
neocons and the Biden Administration
10:39
Biden is not doing anything he can't
10:40
even wipe himself but but the the people
10:43
the neocons in the Biden Administration
10:46
they're doing this so they're still
10:48
doing wars every war every that's why it
10:50
was so stupid when people were like oh
10:52
I'm a I'm a Biden bro now that he's
10:54
pulling out of Afghanistan you heard the
10:56
uh the Malibu Barbie Kyle kolinsky say
10:58
that like
10:59
an empty-headed knucklehead which he is
11:02
and immediately the question no when
11:04
when Joe Biden was pulling out of
11:05
Afghanistan the question is what are
11:08
they going to do with that money that
11:10
we've been spending in Afghanistan he
11:12
never said I'm going to take that money
11:13
and invest it back no no they had
11:14
another War lined up and I said they've
11:16
got another War lined up and they did
11:18
it's the Ukraine war and
11:21
so uh by doing constant Wars by
11:25
constantly say they're still they're
11:27
putting more sanctions on Russia right
11:28
now
11:30
this is not working in fact it's doing
11:33
the this is everything they said that
11:35
Donald Trump's presidency would do that
11:38
even our old friends Saudi Arabia
11:40
turning against us getting closer with
11:41
China getting closer with Russia bricks
11:44
South Africa
11:46
India this is exactly why we shouldn't
11:49
it's exactly what's wrong with neocons
11:53
and the neocons run the Democratic party
11:55
and they run the Republican Party
11:58
project EMB Bridge is a result of
12:00
extensive collaboration starting in 2021
12:02
between the bis Innovation Hub the bank
12:05
of Thailand the Central Bank of the
12:08
United Arab Emirates the digital
12:10
currency Institute of the People's Bank
12:12
of China and Hong Kong monetary
12:17
Authority in 2022 a pilot with real
12:21
value transactions was
12:23
conducted since then the mbridge project
12:26
team has been exploring whether the
12:27
Prototype platform could evolve to
12:30
become a minimum viable product in MVP a
12:32
stage now
12:34
reached as it enters the MVP stage
12:37
project embridge is now inviting private
12:40
sector firms to propose new Solutions
12:42
and use cases that could develop the
12:46
platform and showcase all its
12:49
potential so the pet here's what Dan
12:52
Whipple says dan Whipple says the Petro
12:55
dollar agreement with Saudi Arabia which
12:56
has been in existence for 50 years was
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not renewed yesterday this is a huge
13:01
financial news event and it's not even
13:03
on the back pages of CNBC the advantage
13:06
the US has had since 1974 was squandered
13:10
via trillions of dollars in printed debt
13:13
so it's not completely
13:14
unexpected but the current
13:16
administration's Tantrums of seizing
13:19
Russian assets and preventing access to
13:21
the Swift banking system which is what
13:24
we did to Russia has
13:26
accelerated this inevit ility into
13:30
existence by transmitting our intentions
13:32
to the world obviously other countries
13:35
are getting the message that hedging
13:37
one's bets and diversifying where their
13:39
assets are stored is a worthwhile
13:42
approach this is the signal other
13:46
countries will follow it may take a
13:48
decade for it to
13:50
conclude but the US dollar
13:54
dominance is over
13:59
and nobody else is talking about this
14:02
nobody even on Twitter's talking about
14:03
it except this guy Dan
14:06
Whipple and now this show is talking
14:09
about
14:11
it so anyway Saudi Arabia that's a I'll
14:15
just say this that's a fine show of
14:17
gratitude by the Saudis to the United
14:20
States I mean we've helped them in
14:22
starving and incendi and burning up the
14:25
yemeni
14:27
people that's thank
14:31
you yeah that that's that's who's been
14:34
helping commit the genocide in Yemen so
14:36
we're helping commit the genocide in
14:38
Yemen and now Gaza we're a great
14:43
country uh look at that that's from
14:46
March 29th Saudi MBS views and on
14:50
adopting the petroy WAN the petan not
14:55
Petro dollar the petan in oil trades
14:58
with with
15:02
China they look happy don't they look
15:06
happy that they like pity their
15:09
countries don't aim to do better than
15:10
the United States they just want to
15:12
become
15:14
us here we go watch
15:19
this yeah that's Putin there you go
15:22
there's Saudi
15:23
Arabia they're big buddies
15:40
uh audacious pundit says if this
15:42
happened under Trump the media would be
15:44
blasting that it had ended
15:46
America no doubt about
15:50
it so there you go there's a story
15:53
you're uh very few places are going to
15:55
have we have it here for you we the I've
15:57
never heard another show talk about the
15:59
Petro dollar I've talked about it here I
16:01
remember when I I've had people on and I
16:03
bring it up and they're like I don't
16:04
know anything about Petr dollar
16:06
the thing that has under uh uh
16:09
supporting our dollar and under uh
16:12
bidding our uh under I don't know what
16:15
the word is I'm looking
16:16
for but providing support for our
16:19
economy and our dollar nobody knows
16:21
anything about
16:22
it never even talk about it this
16:24
happened on Sunday today's Wednesday I
16:27
have you seen a headline about it have
16:28
you seen even talked about I
16:33
haven't hey the mainstream media is
16:35
unreliable and dishonest that's why you
16:37
watch the show right yes how can you
16:40
trust them when they're never they never
16:41
told you the truth about Russia gate
16:43
Julian Assan Ukraine Co Syria that's
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[Music]
