Yes. Exactly. It is critical to the US as it needs it to maintain their hegemony. Without it, the USD and the US will fall even further and faster. It is inevitable.
You have to be careful. People make all kinds of predictions about stocks, or companies or bitcoin. Think that it will go up price or down. They have been proven wrong, time after time. Why predicting how economy goes is very hard to do.
@@DrMarkyMarkyou are clearly blinkered in your vision. It is the usa that no one trusts with their money and as for europes debt, it's not even at tenth of the usa's national debt. Where are you getting your fairytale figures. Other countries trust China more than the usa. Economic relations between nations highlight that. "India plays it down the middle", what does that bs even mean?....
Indeed, to some extent. However, the incessant imposition of sanctions by the United States-a form of international bullying-has compelled other nations to devise alternatives to circumvent these persistent threats. Consider it akin to an overbearing parent who constantly dangles the threat of control over you, stifling your autonomy until you can assert your independence. It’s hardly surprising that countries would seek to liberate themselves from such overreach.
Excellent comment. Team USA world police, and their UK and EU sidekicks, are becoming less relevant in the current and future world. This should lead to reduced tensions around the world
@@Goodkiwibloke When Thieves become hungry, they might make foolish moves without considering consequences. The G-7 Guys are forced to divide up 20% of World Resources, they used to be able to get all they wanted. How hungry is the current Market making US Investors? How desperate are they becoming as prices are now regulated by Producers. What will happen to the Colonial Empire's Lifestyle?
@@danielhutchinson6604 look to Japan. They have almost no natural resources and no military. Yet they do very well (4th largest economy) But the old colonial powers, USA almost exclusively, is fixated with imposing democracy and capitalism on other nations. All the countries I listed are or were targets of USA, plus several in south America I live in a democracy. My country (NZ) supported Britten and the allies in WW1 and WW2, despite being on the opposite side of the world. We supported USA in invading Korea and Vietnam. But when our population voted in the 1980's to become a nuclear free country (bombs, electricity, propulsion), USA shut us out of all military aliances, and our military was banned from all US military bases and practices. We were instructed to abandon our stance, so that US could maintain a neither confirm or deny nuclear status of their visiting military vessels. We didn't, and for 30 years, USA was happy to freeze out a very old friend and ally. Then the pacific became a focus, and USA needed us, and finally changed their policy
I've been looking for someone to explain what this action by the Saudi's did would do to the dollar. You're the first one I've found that explains it in a way I can begin to understand. Thank you for the effort you have put in to explain this difficult issue in a way us mere mortals can understand.
@@thebuilder2018 Now,, you get the crazed commies and Islamic horde,, it will not be called imperialism but submission,,USA will be just fine without these loosers.
End if petrodollar will likely result in higher prices for the American consumer, more inflation, a lower standard of living & possibly higher unemployment. But some of this may be alleviated if the US discovers alternative energy sources to replace oil or reduce dependence on ot. ie - Nuclear Fusion.
The solution is to default. Taking Russian assets in reality means to default on money Russia did lend to the west. The problem is that Russia could pass the losses back to the west or retaliate with a default that would normalize defaults.
@@josepablolunasanchez1283or just devalue the dollar to a point where those Russian assets are pretty much worthless. The US is in a very bad position economically. One crisis like 2008 or covid then it’s a very bad situation. The US cannot currently print money at the amount needed to bail out a crisis like those mentioned. Inflation would skyrocket and store shelves would dry up causing chaos.
Erin, you talk and talk, and sound like you're providing so much information to your viewers. However, you're not being honest, I guess. One major factor many countries are trying to ditch the US Dollar is "TRUST". Lack of trust drives most other nations to do whatever they can to protect their own economy.
@@danieltam3923 I'm not denying what you're saying. But she's talking about the technicalities behind it. Trust is another subject that I'm sure many other youtubers would talk about.
Biden has weaponises the USD. Do what we say or you don't get any currency and you can't buy oil. The exact reason they said you can't do business with China. Democrats accusing everyone of doing what they're doing. Corrupt liars.
This is going to hurt other countries more. As the dollar weakens, no need to travel abroad..but more realistically, no need to buy as much imports. Maybe America will become a manufacturer and producer again. And oil is a dying business. To depend on it and not look into alternatives is like closing our eyes and walking in traffic. Eventually youll be hit
When petrodollar was sign in 1974 Us was world largest oil importer. Now US is self sufficient, and China is Saudi largest customer. No sense to restrict to US dollar trade.
My Mother a retired Government teacher in the Philippines has this time tested word of advice to us her siblings; Live within your means! Single handidly she raised us up five siblings with her meager income supplement it with selling food and catering services and we all helped and hands on, this made us at a young age saw the value of money and to save for our future. All of us got college degrees and became professionals and almost all worked and live now abroad k! And as for my part continuing to teach my two daughter to Live within their means and have the discipline to save a portion of their income for their stable future k!
Unfortunately this is another small step in the global markets turning against the dollar which is alredy down over 90% in value over the past 50-60 years. Elephants are eaten one bite at a time.
Erin, thanks for the explanation and historical context. In my lifetime the USA has always been the top international dollar with little to no real challenger. Times are changing for sure.
The United States exports the most oil. 2-3 decades ago this would be major news and affect the economy. Really less concerning in 2024. Remember this means Saudi will sell oil in several currencies rather than the dollar. The dollar is still one of the currencies it sells oil in.
Saudi and Russia cut production for 6 months. that caused Oil Price rise. It is apparent that Russian and OPEC Producers are in control of world oil prices? The US Investors seem to be moving money over there to get some profits?
IT MEANS NO 3 PERCENT, NO WAR MACHINE 35 TRILLION IN DEBT , AND STOP DRINKING THE KOOLAID AND THE WORLD IS DUMPING THE US ASAP BC THEY SMELL BLOOD IN THE WATER AND THE US IS DYING 90 PERCENT OF THE WORLD IS AGAINST THE US AND SUPPORT RUSSIA
@@mikehughes8023 Russians and Saudi Producers can flood the Markets , driving the Bond Markets Nuts as Fracking becomes unaffordable. No matter what prices do, their Producer's efforts will not be noticed?
Very insightful, as I was completely unaware, I couldn’t help but think about those random commercials on TV that emphasize precious metal funds as a small part of a portfolio as a means of diversifying…..or perhaps art
Not a factor in the current global changes. The U.S. dollar is the most reliable currency in the world. The U.S. produces more oil than any nation. Saudi Arabia’s main customer is China. This is what US OIL independence looks like. China is facing a huge crisis as companies are leaving. The US is still the most powerful economy in the world, by far.
You are absolutely correct: it is. But how? Answer: The US's deficit financing results in a flood of dollars hitting the world economy, raising inflationary pressures. Because those foreign countries are holding large reserves of the US dollar, the increased supply of dollars lowers the value of their dollars, thus raising material prices for them. In effect, the US exports _its_ inflation to _them_ . They end up paying for loose fiscal discipline of US politicians. Naturally, they don't like it, because it arouses their people's anger against them. For example, in the recent Indian elections the governing BJP performed much worse than expected, weakening Prime Minister Modi's hold on power, because people blame the government of the day for inflation, since they don't know macroeconomics. Other countries have their own reasons to dislike the power of US politicians and financiers to shape their lives as well: Russia found its money frozen at the start of the Ukraine war.
Indeed, to some extent. However, the incessant imposition of sanctions by the United States-a form of international bullying-has compelled other nations to devise alternatives to circumvent these persistent threats. Consider it akin to an overbearing parent who constantly dangles the threat of control over you, stifling your autonomy until you can assert your independence. It’s hardly surprising that countries would seek to liberate themselves from such overreach.
Keep in mind that we will still pay for oil with the dollar if we have to buy oil. Since the Russian and Chinese currencies are already in trouble, it is highly probable that Arabia will continue to value the dollar above other currencies, and will hold a dollar as its reserve currency while paying bills with lesser currencies.
Erin, I appreciate you making a video covering this subject, since there’s a lot of concern out there, but the reality is the U.S. saw this coming from a mile away. While it’s no secret the Saudis economy is heavily dependent on oil exports, the fact is the world is slowly shifting away from gas powered vehicles due to the recent surge in EVs. China just passed the U.S. automakers in car sales due to the onslaught of cheap EVs they’ve started selling around the world. Also, the U.S. has been an oil producing juggernaut lately, which is preventing the Saudis from artificially increasing the price of oil by decreasing their production. As of March of this year, the U.S. produced nearly 13 million barrels a day, which is the most oil produced by any country, ever! This is all concerning for the Saudi’s economy going forward.
so, US oil reserves being in all time low is a lie?how about the oil from Canada? if Canada stops exporting to US, can US still sells oil to Europe without Canada's oil?
Great subject Erin. If I am not mistaken, many US investors heavily focused their portfolios investing in US companies. Although they do business internationally, I do believe diversifying beyond the US borders is something to consider for the future.
That's something I've done for decades for diversification -- due to our embarrassing congress / Beltway politics overall. BUT, longer term, ex-US stocks have grown slower than US stocks. Trade-offs.
While I am reading “Broken Money” by Lyn Alden, this video just ties the history and future of macro economics altogether!! Is fiat currency really dying? I can’t see how Saudi Arabia and OPEC would pug the oil to another currency or diversify to multiple currencies again now that it’s off the U.S. petrodollar era. Maybe it’s the break that really makes crypto the next dominant currency.
Seems we’ve been saying that for 25 years man.. it’s clearly not happening.. hell we are still waiting on the lordstown plant to reopen since the orange clown promised to reopen in 2019
Yep, like battery production/recycling. Vehicle production like trains and busses. We could really overhaul our old infrastructure and create jobs needed to update and maintain them that way. We did that to get out of the Great Depression, but hopefully we don't need a World War this time...
Thanks, Erin. I can understand why some people worry about this topic. Personally, if I want to worry about something, I'd worry a lot more about our federal governments unbridled spending, the astronomically rising deficit, poor education in public schools in larger cities, the apparent lack of socialization of people under 30, and even the rise of antibiotic resistant bacteria before I would worry about this. Erin sums it up best when she says "only worry about the things you can control". Absolutely correct. It is a waste of energy and unproductive to worry about things you cannot control. What we can control is our own level of debt and investing in the future to help shield us from which we cannot control. Once again, Erin is a beacon of light in a stormy sea 😊
The US is now second world country. Hyperinflation in two years and greats depression 3-5 and collapse in 10 years we are dead as a country. We don't export anything but war. We import everything and all our jobs and manufacturing is overseas. AMERICA IS DEAD. The only thing keeping us alive is just people still need USD to continue global trade until they don't need us anymore. Social Civil unrest, crime, marshall law, banks limiting the amount of money you can take out, bank runs, and massive job losses. You should be more worried. Google Venezuela and hyperinflation see how that is going. Anything that is pegged to the US dollar pensions, retirement, and etc will go to zero eventually just don't know when.
@@Knightcraft42 I understand your pessimism and even agree to a limited degree for the reasons in my original post, but I refuse to succumb to pessimism. A world without hope leaves despair. Hope gives us power in the face of adversity
Like this kinda of content; better than just another video about compounding interest and saving for the long haul. While those are important, these topics are more interesting.
I like it to an extent, but a lot of other creators took this idea and ran with it until they ended up going down conspiracy theory rabit holes. I hope that doesn't happen here.
Interesting video. I think the difference will be slow but noticeable. I’m skeptical about this new trade currency they are trying to implement. I do think that oil in Euros, Yuan, etc. will slowly have an impact.
Were the other countries having to pay US taxes for the sale in US dollars of the oil? I moved a part of my 401k into bonds today. I set an alert for the S&P retracing to 5175 to indicate I should stop bleeding capital for the rest of it. It’ll be interesting to see if the government does raise interest rates and the new bonds benefit from it. Or if the stock market gets propped up to try and get people elected. I’m 50/50. An effort for safety in an unpredictable situation. Thanks for the great video.
This is interesting timing as Saudi Arabia itself seems keen on transitioning away from an oil-based economy, and realistically, oil as a commodity will be less important than natural gas or even coal within the next 10 years.
Renewal energy is a scam, for the love of God do your own independent research. There was a storm that broke all the solar panels and now all the toxic metals made in for solar panels are leaking into the ground and contaminating the ground water. Most of the metal used in EV or solar panels don't break down naturally and are harmful to the environment. It's literally cheaper for companies to write Tesla that have be destroyed in car crashes than fix them. Because like I said before the batteries are toxic to the environment and it literally cheaper to give them a new Tesla than to fix their old ones.
Renewal energy is a scam, for the love of God do your own independent research. There was a storm that broke all the solar panels and now all the toxic metals made in for solar panels are leaking into the ground and contaminating the ground water. Most of the metal used in EV or solar panels don't break down naturally and are harmful to the environment. It's literally cheaper for companies to write Tesla that have be destroyed in car crashes than fix them. Because like I said before the batteries are toxic to the environment and it literally cheaper to give them a new Tesla than to fix their old ones.
@@Knightcraft42 Not for as long as many people believe. Oil already only plays a limited role in power grids and manufacturing, and we're already seeing heavy mining equipment transitioning to all-electric. Aircraft and shipping will probably be the last hold outs for oil use, and again, by that point, it will be a less important commodity than coal or natural gas.
You support Profits by purchase of the Elements that large Investors provide for us to buy. The development of profits from sales is their major concern. The end of Capitalism now appears to be a more apparent effect that stops the flow of Carbon, into the Air. The use of Capital to influence Politics is apparent as Billions are spent to buy Political prostitutes a Position. The use of Media by the same Oligarchs is directed at delivering Propaganda for profits. Humans can exist quite well without worship of the Profits that please the Oligarchs.
International countries only need US DOLLAR for trading with USA, Not with another country. For Example: Russia trading with Tiongkok, only need Yuan and Rubel. India trading with Saudi Arabia, only need Rupee and Riyal. ETC.
there was no formal agreement requiring purchase of oil in US dollars. countries have been increasingly purchasing oil in other currencies for a while now; otherwise an interesting informative video.
@melvinmolly4151 21 hours ago I kind of think you are on a topic that is above your head.. Without the Petrodollar, other nations would have to pay in their own currency, and that would be all but impossible for most of the world... For example there is about 157 Chinese Yens in a dollar, if oil is 80 dollars a barrel and China want to import 500 thousand barrels of oil, .. Instead of paying 40 million dollars, China would have to pay well over 6 billion Yens.. So it really makes ZERO differences if OPEC wants to accept volatile and unstable currencies .. It means NOTHING......
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
Love your channel! It's on my regular rotation for drivetime listening. I appreciate your foray into macroeconomic issues. As you state, however, these are LONG term processes. In fact, I can assure you that rumors of the demise of the US dollar have been circulating (pun intended) since the late 1960s. Right up there with impending Armageddon as far as prophetic accuracy goes. Long story short, I would not worry about any of this. As with individuals, the best response for countries is to focus on what they can control. Stable government, strong education, solid infrastructure, etc. These will ensure the attractiveness of the US economy and its currency for years to come.
You appear to have missed the 1967 Currency Crisis that cost the Johnson a chance at re-election? That created the creation of Fiat Currency in 1971. The race to the bottom seems to have begun with that event that appears to have Rockefeller Bros Roots..... The Family Bank became the Biggest using the principals the change permitted. I assume Moslem Scholars thousands of Years ago who prohibited Usury, were visionaries who saw this phase coming as Capital was being first manipulated.
It will be interesting to see how removing the USD base effect the Saudi Arabian economy. With EVs, solar, and other technologies, they and other economies based on oil need to figure out how to continue to be prosperous in a world in which oil's importance diminishes.
It's a resource curse. Unfortunately for the people of Saudi Arabia, it's an ultraconservative, authoritarian dynasty, and innovation is stifled in societies like that.
well when the rest of the world realize they are actually saving more money per barrel by using BRICS currency instead of USD all that 13 million barrels a day will be useless lmao EU cant afford it australia cant afford it whos left to be their customers? 61% of all the nations of the world have had enough of america sucking the life out of every nation
@@casa87blue That is smart thinking. Norway has the same dependency on oil revenues has used some of the oil money to subsidize the switch to EVs. In 2023 over 82% of passenger vehicles sold in Norway were EVs. They have also expanded their Hydroelectric power generation with some of the oil money
Thank you for such a well balanced analysis of the current economic changes and challenges that the average American faces. So much click bait and fear porn on UA-cam and social media platforms.
I think we should invest in precious metals such as gold and silver cuz that's no only a way to proctect yourself if the dollar drops but also a way to make some good money in that case
So say they who sell gold and silver. But they only return roughly inflation over time. The stock market returns closer to triple the inflation rate over time, re total nominal return.
5:24 In reality, all of those currencies and the nations they were/are tied to, including the missing U.S Dollar, were built on răce bāsed sĪăve labōr. They're also all Eurōpean nations or a descendent of Eurōpean nations. They might as well all represent 1 era of currency reserves, instead up being split up. This is actually a big deal, and potentially represents the end of an era that only a statistical minority of the world got to enjoy.
However, despite the importance of the agreement, there has been no news yet about Saudi Arabia taking any step towards renewing the agreement again or even Comments from Washington.
We have the wrong president for that to occur. The current administration doesn’t care about the struggles of the American people. They are more concerned with illegals and giving aid to other countries
It doesn't matter one bit! U.S. economy is still by far the largest and most important in the world. The U.S. economy represents about 36% of total global output, and is still larger by far than that of China. The U.S. is the second largest manufacturer in the world and a leader in higher-value industries such as automobiles, aerospace, machinery, telecommunications and chemicals. The U.S. economy features a highly-developed and technologically-advanced services sector, which accounts for about 85% of its output. The U.S. economy maintains its powerhouse status through a combination of characteristics. The country has access to abundant natural resources and a sophisticated physical infrastructure. It also has a large, well-educated and productive workforce. Moreover, the physical and human capital is fully leveraged in a free-market and business-oriented environment. The government and the people of the United States both contribute to this unique economic environment. The government provides political stability, a functional legal system, and a regulatory structure that allow the economy to flourish. The general population, including a diversity of immigrants, brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix. Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment. The U.S. will remain the economic and military juggernaut that its been for decades to come.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidance
@@CanTho2022 That is not correct, Saudi has no military agreement with Russia, they still depend on the U.S. who are far more reliable than Russia or China. BRICS is weak, and mostly poor except for China and India. India is not in BRICS in opposition to the U.S., they are walking the fence. The U.S. no longer depends on Saudi oil, in fact we produce more oil than Saudi Arabia. Countries are joining BRICS because they depend on Chinese products, but BRICS is a long way from having financial continuity.
The US will have to adapt to being less reliant on oil and OPEC countries. I think they know it too, and responded with these recent decisions--with the shift to renewable energy worldwide, they had to find a way to lower transaction expenses to eke out more/the same profit on less export units. In the US we're about due for infrastructure improvements and we can use this as an opportunity to shift more jobs back domestically. So more Americans can get higher wages, and will be better able to afford a good quality of life, and within our means.
that isnt gonna happen unfortunately you poor silly sod BRICS nations were discussing how professionals in their countries are making less money than unskilled workers in america and have decided to roll out their own currency for everyone involved to stop being bled dry by the USD how are americans gonna get more employment when business' wont be able to afford staff lmao
You make some good points on transaction costs by shifting to a new currency, but I also think we are not as dependent on oil as we used to be in the 70’s
@@Ethan-bu2zy Lol. I have made a killing in the stock market and investments. Trump is the loser who couldn't even sell bottled water correctly and you losers send money to pay for his fees. Lol.
@@PaulLikesMoney calm? A chaotic withdrawal from Afghanistan followed by more chaos in the Middle East along with an Ukraine war that is likely to escalate even further hardly qualifies as “calm.”
This week witnessed the end of the Petrodollar Agreement that the Kingdom of Saudi Arabia had signed with the United States 50 years ago, in June 1973.
It only confirms what is always been pretty good advice to stay out of debt and be invested. Sounds like it’s about to get a whole lot worse for those carrying debt.
both of you are correct. taking on new debt is more expensive, i agree. prices are higher, interest rates are higher. i also agree that debt becomes relatively less expensive when inflation affects your salary. the people who bought a house in 2020 with 2% interest rate might have initially had to be frugal but are now having an easier time now that salaries are higher.
This is a nothing burger. Saudi Riyal is still pegged to the dollar; every oil deal in foreign currency would still be converted based on US dollar; there is no other reserve currency; RMB isn't exchangeable and would require China to open up and tank both RMB and their US treasury positions; BRICS haven't done anything since inception and membership has seen every members' economies decline by half or more, so the idea that the lager countries would peg their economies to each other is a pipe dream; and the list goes on. This is why you saw absolutely ZERO reaction on global markets for oil, USD, and US treasuries. The only country that this could impact would be China, but China has a closed monetary and fiscal system, but more importantly they have set themselves up for mutual destruction by the USD being disrupted as reserve currency. US is still China's largest market. China's trade would suffere immeasurably because the cost of their goods would become much higher. The Euro has been unable to supplant as reserve currency. Heck, the US is now Germany's largest trade partner.
Saudi is the only country to announce it. There is Kuwaiti, UAE, Qatar etc still Pending. Also Malaysia, Brunei, Vietnam are in South Asia is not pro China, they are Pro business, but will not shy away from Dollar anytime soon. Same thing with Singapore.
The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now, how do you guys still make so much….?
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast. I will also suggest investors to get yourselves a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Despite all the financial struggles i and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord!!!
She is talking about two things here. SA has always sold oil using other major currencies : euros, swiss francs, Chinese yuan. Then there is the petrodollar deal which she describes ok : the SA surplus US$ is invested in the US primarily as US Treasuries. What SA gets back for its petrodollars is the implied security & defense guarantee from the US. Until SA gets the same protection from another country like Russia or China, it will not leave the petrodollar scheme.
I'm planning to invest $150,000 of my savings into some stocks to ensure safety in case there is a recession. What is the best investment strategy to use?
As a contractor with limited time to analyze investments, I've relied on a fiduciary for the past seven years to manage my portfolio. This strategy has helped me navigate market fluctuations effectively and also increased my porfolio by up to 300%. You might consider a similar approach
Monica Shawn Marti is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I have been hearing this since 2000´s it sells well, by then articles in different newspapers or books, now it gives likes on UA-cam... not biting it anymore.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
Its a trend on the eventual "valuation" of the dollar as a world currency; its a matter of time, but its a fact that the Nation is loosing its domimation status and acelerated by the actions taken by this administration, which at this stage its un reversable.
If the US dollar loses it's reserve status, we'd have more manufacturing at home. Why the hell is our domestically circulating currency the reserve currency? That's why we get price gouged and politicians think they can print so many dollars.
IF YOUR TIME IS SHORT Experts in the global oil market told PolitiFact they knew of no evidence that Saudi Arabia plans to stop using the U.S. dollar for oil sales. Geopolitical shifts mean that more oil sales are happening using other currencies. The U.S. and Saudi Arabia have a long history of economic and political cooperation, and experts said they expect sales of oil in U.S. dollars will continue. In 1974, the U.S. and Saudi Arabia established a Joint Commission on Economic Cooperation. It encouraged stronger political ties between the countries via economic cooperation; it didn’t mean Saudi Arabia formally agreed to exclusively sell oil for U.S. dollars.
The United States concluded this agreement with the Kingdom of Saudi Arabia shortly after the United States left the gold standard for the dollar, which then had far-reaching consequences for the American economy and global finance. It still exists today.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidance
Gold has apparently surpassed the Euro as a reserve currency. I think people should own some gold. I call all of my investments this: "Pretending that the world is not coming to an end."
When everyone trades in gold instead of Fiat, be sure and get back to us on that theory. In the real world, gold is just a commodity which is highly durable and the supply doesn't change much -- so it's a great inflation hedge.
Gold is just a shiny rock. I used to own gold but not anymore. Its value is based on demand, but it produces nothing. Buying stocks, brokered CD’s, or US treasuries, is far more valuable and will make you real money.
@@obijuan3004 Shiny rock people don't sound intelligent to me--since of course, gold is a metal not a rock. It's value is based on its intrinsic properties and its rarity. It is very useful and beautiful and has multiple real world applications. But of course, it's usage as real money is the most beneficial of all, and that is a big reason that it always has high value. Currently gold is worth more by weight than CAD $100 bill. Soon it will be worth more by weight than USD $100 bill. Gold is real money by world-wide historical consensus. Paper currency is declared to be legal tender by law.
Most debt, around the world, is in USD. This is because most currencies are far sketchier than the USD and there's enough USD volume in the world to satisfy this use. Listen to Michael Howell about this.
Yes, and that seems likely UNTIL the US dollar doesn't hold a stability / trust advantage. Obviously the future is impractical to predict accurately, but our politicians and the voters who elect them are short sighted.
A weaker dollar could also increase exports which would bolster employment and reshore manufacturing. Based on historical precedents, cozying up to Russia instead of the US seems like a blunder of epic proportions in the making.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
You are indeed a very logical thinker on all these economic events but l believe that the time table on a financial crisis for the American economy is on centre stage. As soon as you see one EUROPEAN country join BRICS, the US dollar as well as the standard of living of most Americans will deteriorate!!
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
The petrodollar agreement stipulated the Kingdom of Saudi Arabia's commitment to sell its oil exclusively in US dollars and invest its surplus oil revenues in US Treasury bonds. In return, the United States provided military support and protection to the Kingdom.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with assist
In case you haven’t noticed, the United States has a horrible education system. We are already falling behind in technology and innovations. This is going to get much worse as some of our older people retire and this newer generation is entering the workforce. The United States is going to rank right up there with the average Third World country in the next 20 years.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidance
No one can seem to come up with a signed copy of this 50 yr agreement, it was more like an aid understanding. Saudi is still taking USD but adding RMB in a cuddle up to China. UA-cam and social media run away with them selves.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with assist
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
I'm reading that they extend this agreement every 5 years. Also, not one major news organization is running this story. This makes me believe that the Saudi's are NOT ditching the US dollar. This would be a major financial news story if they truly were.
I don't think you're correct that less demand for the dollar would result in the FED raising interest rates. Interest rates are the cost of money. If demand drops, you want to decrease the cost of money to match demand. Increasing rates makes the dollar more expensive, not less. Foreign entities aren't really going to care about a High Yield Savings account, and will care more about their ability to take out large loans for projects and investment. If I could buy a house in either USD or Pesos, and the USD loan costs 8%, and the Peso loan costs 3%, I'm going to take out the loan in Pesos, and that is an increase in demand. If the FED wants to drive demand, they would likely decrease, not increase, interest rates.
@@MeltingRubberZ28 I'm not actually saying mortgages drive the demand for the dollar. I'm just making a relatable example. Treasuries are paid in USD but that doesn't mean that's an increase in supply not demand. Cheap debt is how you drive demand. The mortgage example is small peanuts. As demand drops, prices must drop for to meet demand.
Great advice, ma'm. Stay the course and continue doing whatever you are. Invest for future and control the expenses by setting them to our earnings. What is happening at macro level doen not percolate down to micro level in a kind of waterfall fashion especially in countries such as US whise financial ecosystem can cushion shicks at macro level. In all this, what an ordinary person should be really looking at is the inflationary pressures eating into our savings and enhancing the outlay on our expenses.
Saudi currency is still pegged to the U.S. Dollar via a currency board. Those foreign vurrencies being used to buy oil fron the Saudis? Theyvwill still be traded into U.S. Dollars so that the Eaudiw can maintain their peg.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with help
I would guess IMO and say ‘bric+’ see a problem with a reduction of demand from the US. This would cover reductions in oil/gas and consumer/business demand by US. Also, inflation will reduce debt in the US and EU. I don’t think bric+ want to suffer US dollar inflation and higher import tariffs. Btw - I don’t think there is concern in Washington about a lapse in this agreement with the Saudi’s, since we can frack our own fuel and sell our LNG to EU.
Saudi Arabia doesn't ditch USD, Saudi Arabia just wants to use different currencies for trading, and all countries should be allowed to do so.
Yes. Exactly. It is critical to the US as it needs it to maintain their hegemony. Without it, the USD and the US will fall even further and faster. It is inevitable.
Someone's wife did not ditch him but decided to spend more "time" with his friends!
@@GirishJois Totally different.
@@eliso5973 sure, it's different, however from having total control versus being one of many, progressively, is massive.
@@GirishJois not really, it is what the world should be, US should learn how to live in a world without hegemony.
Dollar has become a weapon
Dollar always been a weapon.
You have to be careful. People make all kinds of predictions about stocks, or companies or bitcoin. Think that it will go up price or down. They have been proven wrong, time after time. Why predicting how economy goes is very hard to do.
Right now the price of US dollar has not drop or even budged.
@@DrMarkyMarkyou are clearly blinkered in your vision. It is the usa that no one trusts with their money and as for europes debt, it's not even at tenth of the usa's national debt. Where are you getting your fairytale figures. Other countries trust China more than the usa. Economic relations between nations highlight that. "India plays it down the middle", what does that bs even mean?....
Dollar going to be around still but not strong like before
Indeed, to some extent. However, the incessant imposition of sanctions by the United States-a form of international bullying-has compelled other nations to devise alternatives to circumvent these persistent threats. Consider it akin to an overbearing parent who constantly dangles the threat of control over you, stifling your autonomy until you can assert your independence. It’s hardly surprising that countries would seek to liberate themselves from such overreach.
Bingo...!! You nailed it!!!
US is no big brother. It's the synagogue of satan
Excellent comment. Team USA world police, and their UK and EU sidekicks, are becoming less relevant in the current and future world. This should lead to reduced tensions around the world
@@Goodkiwibloke When Thieves become hungry,
they might make foolish moves without considering consequences.
The G-7 Guys are forced to divide up 20% of World Resources,
they used to be able to get all they wanted.
How hungry is the current Market making US Investors?
How desperate are they becoming as prices are now regulated by Producers.
What will happen to the Colonial Empire's Lifestyle?
@@danielhutchinson6604 look to Japan. They have almost no natural resources and no military. Yet they do very well (4th largest economy)
But the old colonial powers, USA almost exclusively, is fixated with imposing democracy and capitalism on other nations. All the countries I listed are or were targets of USA, plus several in south America
I live in a democracy. My country (NZ) supported Britten and the allies in WW1 and WW2, despite being on the opposite side of the world. We supported USA in invading Korea and Vietnam. But when our population voted in the 1980's to become a nuclear free country (bombs, electricity, propulsion), USA shut us out of all military aliances, and our military was banned from all US military bases and practices. We were instructed to abandon our stance, so that US could maintain a neither confirm or deny nuclear status of their visiting military vessels. We didn't, and for 30 years, USA was happy to freeze out a very old friend and ally. Then the pacific became a focus, and USA needed us, and finally changed their policy
Its my first video that i watch in this channel.
Clear, attractive, concise and scientific.
I subscribed for the above reason.
I am Lebanese
Welcome to the channel! 🙏
Unfortunately the very topic of this video is fake news.
I've been looking for someone to explain what this action by the Saudi's did would do to the dollar. You're the first one I've found that explains it in a way I can begin to understand. Thank you for the effort you have put in to explain this difficult issue in a way us mere mortals can understand.
i can simplify it better, it basically means the end of american imperialism
@@thebuilder2018
Now,, you get the crazed commies and Islamic horde,, it will not be called imperialism but submission,,USA will be just fine without these loosers.
Thank you 🙏
End if petrodollar will likely result in higher prices for the American consumer, more inflation, a lower standard of living & possibly higher unemployment. But some of this may be alleviated if the US discovers alternative energy sources to replace oil or reduce dependence on ot. ie - Nuclear Fusion.
Completely agreed!
US GDP to debt ratio is 122%. Meaning all of your income goes to pay bills and you’re still 22% short. Nuff said
The solution is to default. Taking Russian assets in reality means to default on money Russia did lend to the west. The problem is that Russia could pass the losses back to the west or retaliate with a default that would normalize defaults.
You need to understand if you are a small nation it means that Saudi Arabia can bully you now. So watch out they are a Kingdom.
@@josepablolunasanchez1283or just devalue the dollar to a point where those Russian assets are pretty much worthless. The US is in a very bad position economically. One crisis like 2008 or covid then it’s a very bad situation. The US cannot currently print money at the amount needed to bail out a crisis like those mentioned. Inflation would skyrocket and store shelves would dry up causing chaos.
us can't print its way out like they used to. that's why they choose murdring people all over the world ooopps i mean wars
oh noes the debt to gdp ratio means all my income goes to pay bills?
lol nonsensical.
Erin, you talk and talk, and sound like you're providing so much information to your viewers. However, you're not being honest, I guess. One major factor many countries are trying to ditch the US Dollar is "TRUST". Lack of trust drives most other nations to do whatever they can to protect their own economy.
Spot on.. 🤗
Erin is sticking to the topic and not bringing in politics
@@jace1113 Trust in any paper currency is not solely political. Will you trust any national paper currency without question?
@@danieltam3923 I'm not denying what you're saying. But she's talking about the technicalities behind it. Trust is another subject that I'm sure many other youtubers would talk about.
Biden has weaponises the USD. Do what we say or you don't get any currency and you can't buy oil. The exact reason they said you can't do business with China. Democrats accusing everyone of doing what they're doing. Corrupt liars.
Why is there zero coverage about this in the main stream media?
Great video
this must be embarrasing for yor media
Because it's all fake; Saudi Arabia never ditched the dollar. They are making it up for UA-cam sensationalism.
Because it isn’t true
Because they fear to report the reality, but everything is coming out.
@@gh-om3pk Because it's a garbage story that isn't true.
These grifters are literally spreading lies for viewership.
This is going to hurt other countries more. As the dollar weakens, no need to travel abroad..but more realistically, no need to buy as much imports. Maybe America will become a manufacturer and producer again. And oil is a dying business. To depend on it and not look into alternatives is like closing our eyes and walking in traffic. Eventually youll be hit
You explained the once "King Dollar" dimise the best way I've ever heard. Very clear and concise and matter of fact. Excellent video. Thank you.
Wow, thanks!
When petrodollar was sign in 1974 Us was world largest oil importer. Now US is self sufficient, and China is Saudi largest customer. No sense to restrict to US dollar trade.
Then why is the US still occupying Syrian oilfields?
Very good question that mainstream media doesn't even mention it anywhere at all..
The petrodollar was not a way to secure oil supply.. It was a way to control inflation and generate artificial demand for the dollar..
@@COUNTVLAIDMIR Stealing Syria oil to sell 😡
Hahaha you american still leaving on your copium drug
My Mother a retired Government teacher in the Philippines has this time tested word of advice to us her siblings; Live within your means! Single handidly she raised us up five siblings with her meager income supplement it with selling food and catering services and we all helped and hands on, this made us at a young age saw the value of money and to save for our future. All of us got college degrees and became professionals and almost all worked and live now abroad k! And as for my part continuing to teach my two daughter to Live within their means and have the discipline to save a portion of their income for their stable future k!
Unfortunately this is another small step in the global markets turning against the dollar which is alredy down over 90% in value over the past 50-60 years. Elephants are eaten one bite at a time.
how much the other currencies have fallen during the same time, did you check on that?
@@alessandrogrimaldi6535 good point.
Erin, thanks for the explanation and historical context. In my lifetime the USA has always been the top international dollar with little to no real challenger. Times are changing for sure.
VERY REALISTIC APPROACH, simple advice but to the point, Thank you.
Thanks for watching!
The United States exports the most oil. 2-3 decades ago this would be major news and affect the economy. Really less concerning in 2024. Remember this means Saudi will sell oil in several currencies rather than the dollar. The dollar is still one of the currencies it sells oil in.
Saudi and Russia cut production for 6 months.
that caused Oil Price rise.
It is apparent that Russian and OPEC Producers are in control of world oil prices?
The US Investors seem to be moving money over there to get some profits?
IT MEANS NO 3 PERCENT, NO WAR MACHINE 35 TRILLION IN DEBT , AND STOP DRINKING THE KOOLAID AND THE WORLD IS DUMPING THE US ASAP BC THEY SMELL BLOOD IN THE WATER AND THE US IS DYING
90 PERCENT OF THE WORLD IS AGAINST THE US AND SUPPORT RUSSIA
The oil price per barrel will increase significantly which makes it more concerning in 2024.
@@mikehughes8023 Russians and Saudi Producers can flood the Markets ,
driving the Bond Markets Nuts as Fracking becomes unaffordable.
No matter what prices do, their Producer's efforts will not be noticed?
BRICS.
Very insightful, as I was completely unaware, I couldn’t help but think about those random commercials on TV that emphasize precious metal funds as a small part of a portfolio as a means of diversifying…..or perhaps art
Can't help but think our out of control deficit spending is contributing to this.
Not a factor in the current global changes. The U.S. dollar is the most reliable currency in the world. The U.S. produces more oil than any nation. Saudi Arabia’s main customer is China. This is what US OIL independence looks like. China is facing a huge crisis as companies are leaving. The US is still the most powerful economy in the world, by far.
You are absolutely correct: it is. But how? Answer:
The US's deficit financing results in a flood of dollars hitting the world economy, raising inflationary pressures. Because those foreign countries are holding large reserves of the US dollar, the increased supply of dollars lowers the value of their dollars, thus raising material prices for them.
In effect, the US exports _its_ inflation to _them_ . They end up paying for loose fiscal discipline of US politicians.
Naturally, they don't like it, because it arouses their people's anger against them.
For example, in the recent Indian elections the governing BJP performed much worse than expected, weakening Prime Minister Modi's hold on power, because people blame the government of the day for inflation, since they don't know macroeconomics.
Other countries have their own reasons to dislike the power of US politicians and financiers to shape their lives as well: Russia found its money frozen at the start of the Ukraine war.
@@ArmageddonIsHere it wasn’t just the US handing out cash during the pandemic. Also global supply chains were disrupted.
Indeed, to some extent. However, the incessant imposition of sanctions by the United States-a form of international bullying-has compelled other nations to devise alternatives to circumvent these persistent threats. Consider it akin to an overbearing parent who constantly dangles the threat of control over you, stifling your autonomy until you can assert your independence. It’s hardly surprising that countries would seek to liberate themselves from such overreach.
@@obijuan3004 saya suka akan ke bodohan kamu 😂😂 pertahankan !!! 👍👍👍👍🤣
Keep in mind that we will still pay for oil with the dollar if we have to buy oil. Since the Russian and Chinese currencies are already in trouble, it is highly probable that Arabia will continue to value the dollar above other currencies, and will hold a dollar as its reserve currency while paying bills with lesser currencies.
?????
Thank you for clarifying this situation
DITCH THE GENO SIDE DOLLAR
Thank you for the info. Straight to the point. It’s rare to hear this kind of info from a woman. You’re in rare form. Blessings.
Erin, I appreciate you making a video covering this subject, since there’s a lot of concern out there, but the reality is the U.S. saw this coming from a mile away. While it’s no secret the Saudis economy is heavily dependent on oil exports, the fact is the world is slowly shifting away from gas powered vehicles due to the recent surge in EVs. China just passed the U.S. automakers in car sales due to the onslaught of cheap EVs they’ve started selling around the world. Also, the U.S. has been an oil producing juggernaut lately, which is preventing the Saudis from artificially increasing the price of oil by decreasing their production. As of March of this year, the U.S. produced nearly 13 million barrels a day, which is the most oil produced by any country, ever! This is all concerning for the Saudi’s economy going forward.
so, US oil reserves being in all time low is a lie?how about the oil from Canada? if Canada stops exporting to US, can US still sells oil to Europe without Canada's oil?
Great subject Erin. If I am not mistaken, many US investors heavily focused their portfolios investing in US companies. Although they do business internationally, I do believe diversifying beyond the US borders is something to consider for the future.
That's something I've done for decades for diversification -- due to our embarrassing congress / Beltway politics overall. BUT, longer term, ex-US stocks have grown slower than US stocks.
Trade-offs.
While I am reading “Broken Money” by Lyn Alden, this video just ties the history and future of macro economics altogether!! Is fiat currency really dying? I can’t see how Saudi Arabia and OPEC would pug the oil to another currency or diversify to multiple currencies again now that it’s off the U.S. petrodollar era. Maybe it’s the break that really makes crypto the next dominant currency.
This is not good news for US Dollars. US needs to bring back manufactures back in the US.
They have brought back a lot in the last few years. We need to bring back more but we are on the right track.
Seems we’ve been saying that for 25 years man.. it’s clearly not happening.. hell we are still waiting on the lordstown plant to reopen since the orange clown promised to reopen in 2019
Yep, like battery production/recycling. Vehicle production like trains and busses. We could really overhaul our old infrastructure and create jobs needed to update and maintain them that way. We did that to get out of the Great Depression, but hopefully we don't need a World War this time...
Part of the plan. No sweat. Buy physical Gold and Silver... you'll be fine.
Not with leftist ruling over everything.
Concentrate to gain; diversify to maintain.
Or buy NVDA and enjoy the ride to the moon.
Thanks, Erin. I can understand why some people worry about this topic. Personally, if I want to worry about something, I'd worry a lot more about our federal governments unbridled spending, the astronomically rising deficit, poor education in public schools in larger cities, the apparent lack of socialization of people under 30, and even the rise of antibiotic resistant bacteria before I would worry about this. Erin sums it up best when she says "only worry about the things you can control". Absolutely correct. It is a waste of energy and unproductive to worry about things you cannot control. What we can control is our own level of debt and investing in the future to help shield us from which we cannot control. Once again, Erin is a beacon of light in a stormy sea 😊
Vote democrat = more of this will happen
The US is now second world country. Hyperinflation in two years and greats depression 3-5 and collapse in 10 years we are dead as a country. We don't export anything but war. We import everything and all our jobs and manufacturing is overseas. AMERICA IS DEAD. The only thing keeping us alive is just people still need USD to continue global trade until they don't need us anymore. Social Civil unrest, crime, marshall law, banks limiting the amount of money you can take out, bank runs, and massive job losses.
You should be more worried. Google Venezuela and hyperinflation see how that is going. Anything that is pegged to the US dollar pensions, retirement, and etc will go to zero eventually just don't know when.
@@Knightcraft42 I understand your pessimism and even agree to a limited degree for the reasons in my original post, but I refuse to succumb to pessimism. A world without hope leaves despair. Hope gives us power in the face of adversity
Agree 😢
DITCH THE GENO SIDE DOLLAR
Like this kinda of content; better than just another video about compounding interest and saving for the long haul. While those are important, these topics are more interesting.
I like it to an extent, but a lot of other creators took this idea and ran with it until they ended up going down conspiracy theory rabit holes. I hope that doesn't happen here.
I still really love the topics of personal finance 😊 macroeconomics is fun to explore, but my heart lies over on personal finance
DITCH THE GENO SIDE DOLLAR
Interesting video. I think the difference will be slow but noticeable. I’m skeptical about this new trade currency they are trying to implement. I do think that oil in Euros, Yuan, etc. will slowly have an impact.
Idk. I do a lot of international trade. No factory wants payment in anything other than USD. Except for euro zone or uk gbp
not anymore after US- Saudi deal expired.wait and see
Were the other countries having to pay US taxes for the sale in US dollars of the oil?
I moved a part of my 401k into bonds today. I set an alert for the S&P retracing to 5175 to indicate I should stop bleeding capital for the rest of it.
It’ll be interesting to see if the government does raise interest rates and the new bonds benefit from it. Or if the stock market gets propped up to try and get people elected. I’m 50/50. An effort for safety in an unpredictable situation.
Thanks for the great video.
This is interesting timing as Saudi Arabia itself seems keen on transitioning away from an oil-based economy, and realistically, oil as a commodity will be less important than natural gas or even coal within the next 10 years.
Renewal energy is a scam, for the love of God do your own independent research. There was a storm that broke all the solar panels and now all the toxic metals made in for solar panels are leaking into the ground and contaminating the ground water.
Most of the metal used in EV or solar panels don't break down naturally and are harmful to the environment.
It's literally cheaper for companies to write Tesla that have be destroyed in car crashes than fix them. Because like I said before the batteries are toxic to the environment and it literally cheaper to give them a new Tesla than to fix their old ones.
Renewal energy is a scam, for the love of God do your own independent research. There was a storm that broke all the solar panels and now all the toxic metals made in for solar panels are leaking into the ground and contaminating the ground water.
Most of the metal used in EV or solar panels don't break down naturally and are harmful to the environment.
It's literally cheaper for companies to write Tesla that have be destroyed in car crashes than fix them. Because like I said before the batteries are toxic to the environment and it literally cheaper to give them a new Tesla than to fix their old ones.
You still need oil to mine, manufacturer, refine, transport and etc. you still need oil for the power grid.
@@Knightcraft42 Not for as long as many people believe. Oil already only plays a limited role in power grids and manufacturing, and we're already seeing heavy mining equipment transitioning to all-electric. Aircraft and shipping will probably be the last hold outs for oil use, and again, by that point, it will be a less important commodity than coal or natural gas.
You support Profits by purchase of the Elements that large Investors provide for us to buy.
The development of profits from sales is their major concern.
The end of Capitalism now appears to be a more apparent effect that stops the flow of Carbon,
into the Air.
The use of Capital to influence Politics is apparent as Billions are spent to buy Political prostitutes a Position.
The use of Media by the same Oligarchs is directed at delivering Propaganda for profits.
Humans can exist quite well without worship of the Profits that please the Oligarchs.
I appreciate you making a clear, concise, and scientific video covering this subject.
Because of this, I subscribed.
Welcome to the channel! 😊
Scientific? Do you know what science is?
I have US stocks with a moat and quite a lot of gold. The future doesn’t scare me
Thanks Erin , because that bad news has not on the TV, the same with the Russian submarine stop in Cuba
International countries only need US DOLLAR for trading with USA, Not with another country.
For Example:
Russia trading with Tiongkok, only need Yuan and Rubel.
India trading with Saudi Arabia, only need Rupee and Riyal.
ETC.
there was no formal agreement requiring purchase of oil in US dollars. countries have been increasingly purchasing oil in other currencies for a while now; otherwise an interesting informative video.
@melvinmolly4151
21 hours ago
I kind of think you are on a topic that is above your head.. Without the Petrodollar, other nations would have to pay in their own currency, and that would be all but impossible for most of the world... For example there is about 157 Chinese Yens in a dollar, if oil is 80 dollars a barrel and China want to import 500 thousand barrels of oil, .. Instead of paying 40 million dollars, China would have to pay well over 6 billion Yens.. So it really makes ZERO differences if OPEC wants to accept volatile and unstable currencies .. It means NOTHING......
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
@ErinMoriarity
Love your channel! It's on my regular rotation for drivetime listening. I appreciate your foray into macroeconomic issues. As you state, however, these are LONG term processes. In fact, I can assure you that rumors of the demise of the US dollar have been circulating (pun intended) since the late 1960s. Right up there with impending Armageddon as far as prophetic accuracy goes. Long story short, I would not worry about any of this. As with individuals, the best response for countries is to focus on what they can control. Stable government, strong education, solid infrastructure, etc. These will ensure the attractiveness of the US economy and its currency for years to come.
You appear to have missed the 1967 Currency Crisis that cost the Johnson a chance at re-election?
That created the creation of Fiat Currency in 1971.
The race to the bottom seems to have begun with that event that appears to have Rockefeller Bros Roots.....
The Family Bank became the Biggest using the principals the change permitted.
I assume Moslem Scholars thousands of Years ago who prohibited Usury,
were visionaries who saw this phase coming as Capital was being first manipulated.
Just stumbled across your site. Straight forward and thought provoking.
Welcome! 😊
It will be interesting to see how removing the USD base effect the Saudi Arabian economy. With EVs, solar, and other technologies, they and other economies based on oil need to figure out how to continue to be prosperous in a world in which oil's importance diminishes.
That’s exactly right. Not to mention, the United States is producing a record 13 million barrels of oil a day, which is hurting the Saudis as well.
It's a resource curse. Unfortunately for the people of Saudi Arabia, it's an ultraconservative, authoritarian dynasty, and innovation is stifled in societies like that.
well when the rest of the world realize they are actually saving more money per barrel by using BRICS currency instead of USD all that 13 million barrels a day will be useless lmao EU cant afford it australia cant afford it whos left to be their customers? 61% of all the nations of the world have had enough of america sucking the life out of every nation
Saudi vision 2030 reform plan is designed to free the Kingdom from its dependence on oil exports.
@@casa87blue That is smart thinking. Norway has the same dependency on oil revenues has used some of the oil money to subsidize the switch to EVs. In 2023 over 82% of passenger vehicles sold in Norway were EVs. They have also expanded their Hydroelectric power generation with some of the oil money
Thank you for such a well balanced analysis of the current economic changes and challenges that the average American faces. So much click bait and fear porn on UA-cam and social media platforms.
Good sound advice, Erin. Don't over-react and do something panicky. Keep investing and diversifying and practice living in your means.
Well said!
Great news! I love to see a new monetary competition against 5the USD. Lets see how this changes things!
I think we should invest in precious metals such as gold and silver cuz that's no only a way to proctect yourself if the dollar drops but also a way to make some good money in that case
So say they who sell gold and silver. But they only return roughly inflation over time. The stock market returns closer to triple the inflation rate over time, re total nominal return.
@@rogergeyer9851 yes, but if inflation hits silver and gold and other comodities are gonna increase their value, it is what usually hapends
I'M starting to get very concerned about all things digital.
5:24 In reality, all of those currencies and the nations they were/are tied to, including the missing U.S Dollar, were built on răce bāsed sĪăve labōr.
They're also all Eurōpean nations or a descendent of Eurōpean nations. They might as well all represent 1 era of currency reserves, instead up being split up.
This is actually a big deal, and potentially represents the end of an era that only a statistical minority of the world got to enjoy.
I guess Saudi Arabia will defend itself now.
No need, it has Russia & China and Iran to protect it from AmeriKKKa!! 😂😂
However, despite the importance of the agreement, there has been no news yet about Saudi Arabia taking any step towards renewing the agreement again or even Comments from Washington.
I'm hoping this is get us to produce more of our own oil and natural gas domestically.
We have the wrong president for that to occur. The current administration doesn’t care about the struggles of the American people. They are more concerned with illegals and giving aid to other countries
no ones gonna buy it when russia, china, saudis arabia is using their own currency 😂😂
You do know the US is the largest producer of oil and natural gas already.
It doesn't matter one bit!
U.S. economy is still by far the largest and most important in the world. The U.S. economy represents about 36% of total global output, and is still larger by far than that of China.
The U.S. is the second largest manufacturer in the world and a leader in higher-value industries such as automobiles, aerospace, machinery, telecommunications and chemicals.
The U.S. economy features a highly-developed and technologically-advanced services sector, which accounts for about 85% of its output.
The U.S. economy maintains its powerhouse status through a combination of characteristics. The country has access to abundant natural resources and a sophisticated physical infrastructure. It also has a large, well-educated and productive workforce. Moreover, the physical and human capital is fully leveraged in a free-market and business-oriented environment. The government and the people of the United States both contribute to this unique economic environment. The government provides political stability, a functional legal system, and a regulatory structure that allow the economy to flourish. The general population, including a diversity of immigrants, brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix. Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment. The U.S. will remain the economic and military juggernaut that its been for decades to come.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidance
Very interesting insight! I'm still more concerned with the budget and national debt.
You and me both!
SA never agreed to sell oil exclusively in US dollars, and has been selling in other currencies forever.
Saudi Arabia will need to depend on countries other than U.S. for its defense.
Saudi signed agreements with Russia last year!! NO NEED for AmeriKKKa…they can’t win at anything since WWII anyway 😂😂
no one wants usa defence , we have seen afganistan
America is more of American't 😂
@@CanTho2022 That is not correct, Saudi has no military agreement with Russia, they still depend on the U.S. who are far more reliable than Russia or China. BRICS is weak, and mostly poor except for China and India. India is not in BRICS in opposition to the U.S., they are walking the fence. The U.S. no longer depends on Saudi oil, in fact we produce more oil than Saudi Arabia. Countries are joining BRICS because they depend on Chinese products, but BRICS is a long way from having financial continuity.
@@ZenoSamaOmniKingOoohh My God
The US will have to adapt to being less reliant on oil and OPEC countries. I think they know it too, and responded with these recent decisions--with the shift to renewable energy worldwide, they had to find a way to lower transaction expenses to eke out more/the same profit on less export units.
In the US we're about due for infrastructure improvements and we can use this as an opportunity to shift more jobs back domestically. So more Americans can get higher wages, and will be better able to afford a good quality of life, and within our means.
that isnt gonna happen unfortunately you poor silly sod BRICS nations were discussing how professionals in their countries are making less money than unskilled workers in america and have decided to roll out their own currency for everyone involved to stop being bled dry by the USD how are americans gonna get more employment when business' wont be able to afford staff lmao
We are not reliant on OPEC countries for oil. We get less than 15% of oil from OPEC countries and most of that is African countries.
You make some good points on transaction costs by shifting to a new currency, but I also think we are not as dependent on oil as we used to be in the 70’s
My thoughts? Elections have consequences...
Stolen/rigged ones.
@@republicunited2183No one respects Trump my dude...he lost fair and square.
@@cocoarose9990and FJB is doing such a great job. Everything he touches turns to 💩. Everything.
@@Ethan-bu2zy Lol. I have made a killing in the stock market and investments. Trump is the loser who couldn't even sell bottled water correctly and you losers send money to pay for his fees. Lol.
@@PaulLikesMoney calm? A chaotic withdrawal from Afghanistan followed by more chaos in the Middle East along with an Ukraine war that is likely to escalate even further hardly qualifies as “calm.”
This week witnessed the end of the Petrodollar Agreement that the Kingdom of Saudi Arabia had signed with the United States 50 years ago, in June 1973.
Who wants toilet paper USD?
It only confirms what is always been pretty good advice to stay out of debt and be invested. Sounds like it’s about to get a whole lot worse for those carrying debt.
Generally those w locked rates benefit due to paying back loan w inflation diluted $. Especially for "good" debt like home or reasonable car.
Inflation helps debtors
@@pat-orl I was commenting on rising interest rates, not inflation.
both of you are correct. taking on new debt is more expensive, i agree. prices are higher, interest rates are higher.
i also agree that debt becomes relatively less expensive when inflation affects your salary. the people who bought a house in 2020 with 2% interest rate might have initially had to be frugal but are now having an easier time now that salaries are higher.
This is a nothing burger. Saudi Riyal is still pegged to the dollar; every oil deal in foreign currency would still be converted based on US dollar; there is no other reserve currency; RMB isn't exchangeable and would require China to open up and tank both RMB and their US treasury positions; BRICS haven't done anything since inception and membership has seen every members' economies decline by half or more, so the idea that the lager countries would peg their economies to each other is a pipe dream; and the list goes on. This is why you saw absolutely ZERO reaction on global markets for oil, USD, and US treasuries. The only country that this could impact would be China, but China has a closed monetary and fiscal system, but more importantly they have set themselves up for mutual destruction by the USD being disrupted as reserve currency. US is still China's largest market. China's trade would suffere immeasurably because the cost of their goods would become much higher. The Euro has been unable to supplant as reserve currency. Heck, the US is now Germany's largest trade partner.
Saudi is the only country to announce it.
There is Kuwaiti, UAE, Qatar etc still
Pending.
Also Malaysia, Brunei, Vietnam are in South Asia is not pro China, they are
Pro business, but will not shy away from Dollar anytime soon.
Same thing with Singapore.
This was the only physical backdrop for the US Dollar.
Do you have any source documents to prove there was an agreement?
The crypto market has been unfavorable for months and I keep losing my money selling-off during dips, I'm very scared of holding right now, how do you guys still make so much….?
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast. I will also suggest investors to get yourselves a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Any info on how i can liaise with her, i'm new at this
You invest with Devion too? Wow that woman has been a blessing to me and my family.
Exactly and many of us don't know where to invest our money so we invest it on wrong places and to the wrong people
Despite all the financial struggles i and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord!!!
She is talking about two things here. SA has always sold oil using other major currencies : euros, swiss francs, Chinese yuan. Then there is the petrodollar deal which she describes ok : the SA surplus US$ is invested in the US primarily as US Treasuries. What SA gets back for its petrodollars is the implied security & defense guarantee from the US. Until SA gets the same protection from another country like Russia or China, it will not leave the petrodollar scheme.
I'm planning to invest $150,000 of my savings into some stocks to ensure safety in case there is a recession. What is the best investment strategy to use?
As a contractor with limited time to analyze investments, I've relied on a fiduciary for the past seven years to manage my portfolio. This strategy has helped me navigate market fluctuations effectively and also increased my porfolio by up to 300%. You might consider a similar approach
Monica Shawn Marti is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Invest in commodity Gold, Silver, land, and in business you will have more returns and safe investment as well.
I have been hearing this since 2000´s it sells well, by then articles in different newspapers or books, now it gives likes on UA-cam... not biting it anymore.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
IM MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
@ErinMoriarity
They would never heard anything about oil if it wasn't for the USA dollar and they are not your friend...
Its a trend on the eventual "valuation" of the dollar as a world currency; its a matter of time, but its a fact that the Nation is loosing its domimation status and acelerated by the actions taken by this administration, which at this stage its un reversable.
You write like an 8 year old. Your political blather is empty copy catting. So there's that.
What currency are they using instead??
I know Russia and China are trying to trade in their own currency
Thanks for the info. Your brilliant 👍🏽. God bless you 🙏🏽
If the US dollar loses it's reserve status, we'd have more manufacturing at home. Why the hell is our domestically circulating currency the reserve currency? That's why we get price gouged and politicians think they can print so many dollars.
IF YOUR TIME IS SHORT
Experts in the global oil market told PolitiFact they knew of no evidence that Saudi Arabia plans to stop using the U.S. dollar for oil sales.
Geopolitical shifts mean that more oil sales are happening using other currencies. The U.S. and Saudi Arabia have a long history of economic and political cooperation, and experts said they expect sales of oil in U.S. dollars will continue.
In 1974, the U.S. and Saudi Arabia established a Joint Commission on Economic Cooperation. It encouraged stronger political ties between the countries via economic cooperation; it didn’t mean Saudi Arabia formally agreed to exclusively sell oil for U.S. dollars.
Outstanding Explaination. Thank You
The United States concluded this agreement with the Kingdom of Saudi Arabia shortly after the United States left the gold standard for the dollar, which then had far-reaching consequences for the American economy and global finance. It still exists today.
This is very good news, we are awaiting for the brand new dominant currency,the mighty BRICS currency.
Excellent video. Well articulated.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidance
No matter how much you don't like your boss, your boss is still your boss
You can also switch bosses and change.
So relax!
Gold has apparently surpassed the Euro as a reserve currency. I think people should own some gold. I call all of my investments this: "Pretending that the world is not coming to an end."
When everyone trades in gold instead of Fiat, be sure and get back to us on that theory. In the real world, gold is just a commodity which is highly durable and the supply doesn't change much -- so it's a great inflation hedge.
Gold is just a shiny rock. I used to own gold but not anymore. Its value is based on demand, but it produces nothing. Buying stocks, brokered CD’s, or US treasuries, is far more valuable and will make you real money.
@@obijuan3004 Shiny rock people don't sound intelligent to me--since of course, gold is a metal not a rock. It's value is based on its intrinsic properties and its rarity. It is very useful and beautiful and has multiple real world applications. But of course, it's usage as real money is the most beneficial of all, and that is a big reason that it always has high value. Currently gold is worth more by weight than CAD $100 bill. Soon it will be worth more by weight than USD $100 bill. Gold is real money by world-wide historical consensus. Paper currency is declared to be legal tender by law.
@@obijuan3004 you Janet Yellen? SHILLING
@@PeterWDunn-of5fsnot only intrinsic but industrial and retail needs
Most debt, around the world, is in USD. This is because most currencies are far sketchier than the USD and there's enough USD volume in the world to satisfy this use. Listen to Michael Howell about this.
Yes, and that seems likely UNTIL the US dollar doesn't hold a stability / trust advantage. Obviously the future is impractical to predict accurately, but our politicians and the voters who elect them are short sighted.
Great content, I shared it with my young daughters! Thanks
A weaker dollar could also increase exports which would bolster employment and reshore manufacturing. Based on historical precedents, cozying up to Russia instead of the US seems like a blunder of epic proportions in the making.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
IM MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
@ErinMoriarity
You are indeed a very logical thinker on all these economic events but l believe that the time table on a financial crisis for the American economy is on centre stage. As soon as you see one EUROPEAN country join BRICS, the US dollar as well as the standard of living of most Americans will deteriorate!!
Maybe the U.S. won’t protect them when SHTF.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
IM MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.
@ErinMoriarity
The petrodollar agreement stipulated the Kingdom of Saudi Arabia's commitment to sell its oil exclusively in US dollars and invest its surplus oil revenues in US Treasury bonds. In return, the United States provided military support and protection to the Kingdom.
Still the price of crude oil is fixed in dollars per barrel. ????
Well spoken,thanks
Is it as big a deal as everyone are making it to be or will people still use the USD to buy oil because it’s the most stable currency?
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with assist
In case you haven’t noticed, the United States has a horrible education system. We are already falling behind in technology and innovations. This is going to get much worse as some of our older people retire and this newer generation is entering the workforce. The United States is going to rank right up there with the average Third World country in the next 20 years.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidance
I thought the US was transitioning away from oil to electric. Would have made it a moot issue.
So Wise , thank you
No one can seem to come up with a signed copy of this 50 yr agreement, it was more like an aid understanding. Saudi is still taking USD but adding RMB in a cuddle up to China. UA-cam and social media run away with them selves.
The step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with assist
when use dollars as weapon why we should keep it in walet ?
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with guidelines
I'm reading that they extend this agreement every 5 years. Also, not one major news organization is running this story. This makes me believe that the Saudi's are NOT ditching the US dollar. This would be a major financial news story if they truly were.
Thank you Erin...
Well done 👏 ✔️ Saudi Arabia 🇸🇦.
I just paid $5.59 per gallon. Portland OR
Ouch!
I don't think you're correct that less demand for the dollar would result in the FED raising interest rates.
Interest rates are the cost of money. If demand drops, you want to decrease the cost of money to match demand. Increasing rates makes the dollar more expensive, not less. Foreign entities aren't really going to care about a High Yield Savings account, and will care more about their ability to take out large loans for projects and investment.
If I could buy a house in either USD or Pesos, and the USD loan costs 8%, and the Peso loan costs 3%, I'm going to take out the loan in Pesos, and that is an increase in demand. If the FED wants to drive demand, they would likely decrease, not increase, interest rates.
You're looking way too small. She's speaking of foreign investors buying US treasuries since they are higher returns than Pesos
@@MeltingRubberZ28 I'm not actually saying mortgages drive the demand for the dollar. I'm just making a relatable example.
Treasuries are paid in USD but that doesn't mean that's an increase in supply not demand.
Cheap debt is how you drive demand. The mortgage example is small peanuts. As demand drops, prices must drop for to meet demand.
Great advice, ma'm. Stay the course and continue doing whatever you are. Invest for future and control the expenses by setting them to our earnings. What is happening at macro level doen not percolate down to micro level in a kind of waterfall fashion especially in countries such as US whise financial ecosystem can cushion shicks at macro level. In all this, what an ordinary person should be really looking at is the inflationary pressures eating into our savings and enhancing the outlay on our expenses.
Saudi currency is still pegged to the U.S. Dollar via a currency board. Those foreign vurrencies being used to buy oil fron the Saudis? Theyvwill still be traded into U.S. Dollars so that the Eaudiw can maintain their peg.
The first step to successful investing is to know your goals and your ability to take risks either on your own or with the help of a financial professional, but it is highly advisable you work with help
I would guess IMO and say ‘bric+’ see a problem with a reduction of demand from the US.
This would cover reductions in oil/gas and consumer/business demand by US.
Also, inflation will reduce debt in the US and EU. I don’t think bric+ want to suffer US dollar inflation and higher import tariffs.
Btw - I don’t think there is concern in Washington about a lapse in this agreement with the Saudi’s, since we can frack our own fuel and sell our LNG to EU.