'This is HUGE!' Saudi Arabia to DROP 'weaponised' Dollar as 'final nail in the coffin' for America
I'll start this second hour by discussing reports that Saudi Arabia is going to let the 50-year Petro dollar agreement with the United States expire is the US dollar going to be able to remain the global Reserve currency or are we all as a planet looking at something new in the monetary realm uh with commodity backed money potentially returning here to discuss this I'm delighted to be joined by Andy sheckman president and owner of Miles Franklin precious metals I am genuinely deled delighted to see you Andy shman thank you for joining us well the pleasure is mine thank you for the invitation it's fantastic this story Andy absolutely preoccupies me I I became aware of the Petro dollar uh and I thought it was of significance especially around what was happening in relation to uh Saudi Arabia but many even even economists and economy-minded people that I talk to try to tell me that there is no such thing as a Petro dollar and there clearly is so can you for the for the beginners really like myself and others out there can you give a sense of what the Petro matters yeah I mean it's huge the Petr dollar has given the United States the ability to live far beyond its means for for a very long time it was a deal that 1974 50 years ago just a few weeks ago whereby in essence for for a condition of protection and Military assistance with the Saudi Kingdom and and by extension OPEC for valuing oil in dollars globally and recycling any treasuries the Saudi kingdom was granted uh protection from the United States military and and it's been that way literally for 50 years which has created a massive synthetic demand for the US dollar in other words every single country on the planet has had to stockpile dollars in order to buy oil where nearly 100% of all the oil sales over the last 50 years have been done in US Dollars it is a massive deal amongst other things of course Saudi Arabia joining bricks the bricks new development Bank the Shanghai cooperation organization and what really got me on this path almost four years ago was the realization that every single OPEC country Saudi Arabia included is on the Belt Road initiative conspicuously the West is not and I would just simply say this is just another nail in the coffin I call it logarithmic Decay little by little by little by little by little then bang all at once now we haven't seen that all at once moment yet but certainly You could argue the fuse has been lit in that Saudi Arabia now has cart blanch really to trade with whomever they want and whatever currency they want for oil without having it to be literally exclusively in US dollars big now uh I think there are several reasons that it's happening now but the biggest reason of all would be the weaponization of the dollar and the treasury uh the United States is viewed by many in the southern hemisphere Neil as being hypocritical where Janet Yellen can say to CNN listen we're okay with Putin and Chi being friends well thank you very much Madame secretary that's fantastic benevolent of you were my first thoughts on that she said but if one penny is given to the Russian war machine we will sanction your your Banks your companies in Beijing itself never mind the fact that we've given 260 billion to the Ukraine with n a hair of can uh congressional oversight including Javelin missiles f-16s and the Intelligence on where to drop it where we can go into ackq 20 years ago no granted I love this country I'm I'm a patriot but what I see is happening breaks my heart we go into Iraq 20 years ago under the guise of weapons of mass destruction and say we're sorry we didn't find any but we're still here we've destroyed your country really and we'll help you rebuild it of course with our American companies and uh but we've we put in a new regime and yet we're still here and um sanctioning 20 or 14 of your Banks right now for having the audacity to trade try to buy liquid natural gas using Iranian Banks which are on the do not trade list and and you know they they made 90 billion do in oil Revenue in 2023 they asked for a billion dollars towards the end of the year and the United States said not a good time come back to us in 24 what they have done as a result is formally apply to the bricks uh they are in the process of kicking Western Coalition forces out of the country they have made trading in dollars illegal if you own a business and trade in dollars high probability you'll end up in prison and your business taken and as of January 1st of 202 four there are no green dollar bills in any of the banks in Iraq anymore in other words half of the World Views this as hypocritical where we can go around the world making these these these declarations these sanctions and let's just call it what it is we have confiscated five billion in the Russian Assets Now in your neck of the woods in the European Union and I don't know exactly how the UK fits into this but the EUR European Union has 260 or 70 or 80 billion worth of Russian assets they've agreed to steal just the interest in both cases whether it's the five uh you know billion dollars worth of uh us treasuries or taking the 280 billion the interest from it and using it to buy weapons to give to the Ukraine the country that you stole from you're giving the weapons to the country they're fighting in a war that's a line you cross and you'll never come back from it's it is the weaponization of the dollar the weaponization of the treasury from what appears to be by many a hypocritical position and it is not going over well to say the least and let's not forget you know the United States is is creating a a trillion dollars of debt every 100 days a trillion seconds go Neil was 31,6 188 years ago it took us 200 years to do it the first time we're destroying the value of the dollar through the printing press uh and you know it's a situation that is just unattainable with um the the continued uh debasement of the dollar and weaponization of the treasury of the United States is not looked at the way they were by many of these countries Saudi Arabia included Andy hold on hold hold that thought for a second Jasmine wles it's an extraordinary story I field hasn't attracted anything like the amount of attention that it ought to have this is the world swinging on a hinge moving yeah it it's massive I mean I I agreee with Andy and you it's it's a huge story and and the whole idea of of the dollar as the reserve currency of of the world is is evaporating in front of our eyes as you know the the Dollar's been the reserve currency for well for decades replacing the the pound boo um and these things do I mean it's a cyclical thing but um as Andy says by confiscating Russian assets they they've basically I think that plus you know the loss of of Saudi Arabia um that has just completely cut themselves off and and really meant that I think it's we've just got a few years left now if if that of of the reserve currency being um the dollar because other countries looking going oh so if we do anything against the United States they could take all of our assets could they um however the question next is what would be the next Reserve currency and and I'd be interested to hear what Andy says about this because it seems to me that we're going into a multi-polar world there isn't one particular currency including the Yen I think that would necessarily take over from the dollar and Sh what do you what what would be your uh estimate on on the likelihood of there being another replacement Reserve currency or as Jasmine suggests will it be a more of a all well I think first of all to to talk about Saudi Arabia without speaking of the bricks is is a mistake there was just a meeting in in novag Russia where 59 countries have formally applied to to the bricks on top of the 10 that are already there and you know this meeting had 21,000 attending and 139 Nations and much of what we've seen over the last year was was talked about here too and that's 80 billion dollar of bilateral deals done on the sidelines so let's first say the first step of the the I guess you could say the the the trouble associated with the Petro dollar would be the fact that there settlement is done in all of these local currencies we've been seeing this non-stop where you know Saudi Arabia is selling their oil to China for for for Yuan which is immediately convertible into gold on the Shanghai Gold Exchange and you have to understand that gold was reclassified by the bank of international settlements in 2019 as the world's only other tier one Reserve asset we could have another discussion about Gordon Brown and what he did with all of your gold but the point of it is is that the world is now looking at gold in my opinion as a for the treasury bond and if you go back to 2000 go back for last almost 25 years gold has doubled the performance of the 10-year treasury while at the same time is an asset that has no counterparty liability and this is why you're seeing the central banks of the world not only massively accumulate gold but also like the Bank of India just did purchasing one and a half times the amount of gold in the first four months of this year as they did all of last year but they repatriated that gold and all of the gold held at the bank of England over a 100 metric tons because it's not just looking at gold which has no counterparty liability and has averaged over 9.9% per year for the last 25 years but but repatriating it which is an indictment of the of the system so what I'm getting at is this this new bricks system in fact they just announced last week the head of the bricks new development Bank uh Dilma russof had all sorts of meetings with uh with Putin and it was announced publicly that they have agreed upon a new settlement currency settlement currency which will be called the unit and that unit will be backed 40% by gold which is what the only other tier one Reserve asset that the central banks have been buying at a level the world has never seen and I I'll tell you they use the suppression of the gold market on the London Metals exchange and on the comcs which are trading many many many multiples of the ounces of gold that they hold in order to and have been for a long time to maintain a certain price level to make the Western system seem better than it is but when these exchanges were were designed these countries in the southern hemisphere didn't have the coordination sophistication or wealth to stand for delivery and that's what we are seeing now that's going to change the system so when you look at the way that these count oh by the way and 60% of the unit will be bricks plus currencies so they're using something called the project embridge which has been um a joint development between China Hong Kong uh Singapore and the United barab Emirates and it is a platform that sidestep the Swift so that there is no ability to sanction these trades and what it is is the ability for these countries to trade in local currencies right so they're all going to have their own Central Bank digital currencies using the project embridge but there will be one common settlement currency for the brics union which as it is right now you guys represents the majority of human population larger swwa of global GDP two of the three largest nuclear arsenals in the world way more of the Commodities way more in the shipping lanes whether it be the Red Sea or the Straits of Hormuz and on and on and on and it is a growing Union where these countries are finding safety and numbers and a rallying Pride pushing against the West so it will be settlement in local currencies what's which chips away at the settlement value of the dollar and then settling in things or reinvesting the proceeds in things like gold or oil which I believe across the globe are being remonetized in favor of a treasury which can be weaponized and if we don't like what you're doing never mind what we're doing but if we don't like what you're doing hey we're gonna take it from you and we might even give it to the country you're in the midst of a war with to buy weapons and fire them back at you this is something that is is bigger than people think and you know the the real truth of it is you guys and I give you um a lot of Kudos and respect because over here the media doesn't do a poor job of telling us what's going on they do no job and and most of the people in this country have no idea that the dollar what you know why the dollar has been the world Reserve currency they don't know that gold has jumped alongside of it as the only other tier one Reserve asset they don't see what is happening but this growing Coalition of countries is is something to not uh I think take lightly and and to dismiss it as a mistake and it's it stri one of the things that strikes me as as extraordinary about it is that I was kind of raised all race that you see America as the policeman of the world the good guys the you know the Cowboys in white hats and yet in this instance what's happening here everyone else you know the bricks Nations and and and all of those prospective members of that entity in the north south Corridor everyone else is behaving like grown-ups everyone else is setting aside all sorts of differences and ideological you know divisions and getting on with the business of building and creating and and somehow America has been left as the behind yeah I'm glad you said that even mentioning the north south Corridor there's probably not a person in this country that understands what that is but these shipping lanes and trade routes are all integral to the Belt Road initiative as as a as an example the Belt Road initiative is the largest infrastructure project in human history connecting Asia Africa uh South America and parts of Europe it represents 75% of human population as it is right now 50% of global GDP it's it's Bridges and Roads and Maritime channels and and uh Railways that will be patrolled nothing but by Commerce and Military you add that into the Shanghai cooperation organization and the operative word here is cooperation to your point there is no coercion they are cooperating with one another and the Eurasian economic Union which the president of bellarus said let's get them all into the bricks I've been saying that for three years in over 3,000 videos I've done on this topic and that is exactly what is happening it is a Cooperative Endeavor where these countries are aligning and putting aside ideological differences because my enemy's enemy is my friend and I think they realize they have one shot look all of us in the west have Ruled The Roost for 500 years and these countries which have never had a chance to speak on their own are finding uh safety and coordination and sophistication together and is representing a trend that when it's all said and done will re if you put all those groups together and they are in essence the same groups the Belt Road initiative the Shanghai cooperation organization which by the way Iran and Saudi Arabia have joined it is the largest regional financial and military organization on the planet along with the Eurasian economic Union the Bel Road you're talking 85 to 90% of human population and the majority of all the Commodities there is a man named zultan posar who is one of the smartest guys I've ever known he used to work at the New York fed he works at UBS now he talks about where we are in this system now uh twoe Associates point the dollar which took over for the pound sterling did so at Breton Woods New Hampshire at at the end of World War II that was uh Breton Woods one Breton Woods 2 would Loosely be when we became the Petro dollar uh in August of uh or excuse me 1974 and now he says we've entered a new system called Breton Woods 3 and that will be based upon transparency and commodities and if you look at what these countries are all doing they are finding value in Commodities I would argue that oil is being remonetized as well Iran just had their largest airport they they awarded a contract to China to have their largest airport remodeled couple billion dollars will pay for it in oil these countries understand that he or she used to be he who has the gold makes the rules now it's going to be he or she who has the commodities makes the rules right along with with Saudi Arabia you have China who bought the London Metals exchange which is all the the base Metals you know uh copper and lead and zinc and whatnot they they're buying up Commodities All Around the World in a Cooperative manner they come in they industrialize they help these countries uh uh you know enhance their middle class and bring their natural resources to the market and all the benefits that come with it in a Cooperative manner in you know has decided not to mention you know our president signs an executive order to go green there's one piece that I'd like to mention real quick and hopefully I'm not I'm not hurting you with time but the lead economic adviser to the United States government is a knucklehead named Jared Bernstein and Jared Bernstein's entire thesis believe it or not is to lose the world Reserve currency it's a privilege we can no longer afford he's written all sorts of reports about it the most famous being Dethrone King Dollar but if you realize weaponizing the dollar sign an executive order to go green that is a hell of a good start to pushing Saudi Arabia out of the the the this hemony fold that has been for 50 years and into a new group that is providing Safety and Security and numbers and they're not going green the way that we are Andy she I as far as I'm concerned this is the biggest story in the world I it it Biggers belief for me that that more people aren't preoccupied with it but and thank you I can't thank you enough for you know helping me to better understand it and I'll look forward to picking this up with you another time uh because this is a this is a story that's just going to develop and develop thank you Andy
