1
00:00:00,360 --> 00:00:03,680
Speaker 1: I'm shocked that no mainstream media are currently covering this

2
00:00:03,760 --> 00:00:07,800
Speaker 1: because what I'm breaking down is massive news. Saudi Arabia

3
00:00:07,880 --> 00:00:12,600
Speaker 1: has ditched the US dollar. On Sunday, the ninth of June,

4
00:00:12,640 --> 00:00:16,560
Speaker 1: Prince Muhammad Ben Salmon NBS he refused to renew the

5
00:00:16,640 --> 00:00:20,479
Speaker 1: fifty year Petro dollar agreement between the US and Saudi Arabia. Now,

6
00:00:20,680 --> 00:00:22,759
Speaker 1: real quick for those of you that maybe you know,

7
00:00:22,840 --> 00:00:25,680
Speaker 1: scratching your heads trying to figure out what that means. Basically,

8
00:00:25,840 --> 00:00:29,040
Speaker 1: the US dollar was backed by gold until nineteen seventy

9
00:00:29,080 --> 00:00:31,920
Speaker 1: one when Richard Nixon removed it from the gold standards,

10
00:00:31,960 --> 00:00:34,160
Speaker 1: and then the dollar was sort of like in freefall.

11
00:00:34,520 --> 00:00:36,920
Speaker 1: And then in nineteen seventy four, a couple years later,

12
00:00:37,080 --> 00:00:39,760
Speaker 1: when the US made a deal with Saudi Arabia creating

13
00:00:39,760 --> 00:00:42,320
Speaker 1: what was known as the Petro dollar. Now, the United

14
00:00:42,360 --> 00:00:45,519
Speaker 1: States basically agreed to sell Saudi Arabia cheap military equipment

15
00:00:45,560 --> 00:00:49,000
Speaker 1: and weapons, think you know, protection in exchange for Saudi

16
00:00:49,000 --> 00:00:53,440
Speaker 1: agreed to keep the oil trade domnominated in dollars, meaning

17
00:00:53,640 --> 00:00:56,320
Speaker 1: any country that wanted oil from Saudi Arabia had to

18
00:00:56,360 --> 00:00:58,960
Speaker 1: invest in dollars. Then, as a result of that agreement,

19
00:01:00,080 --> 00:01:03,600
Speaker 1: percent of all global oil trade happened in dollars, and

20
00:01:03,640 --> 00:01:07,720
Speaker 1: that basically cemented the US dollar as the world's reserve currency,

21
00:01:07,920 --> 00:01:10,360
Speaker 1: which the dollar's been since the end of World War

22
00:01:10,400 --> 00:01:14,039
Speaker 1: Two with the Brettonwoods Agreement signed in nineteen forty four.

23
00:01:14,319 --> 00:01:19,119
Speaker 1: But now Saudi Arabia just officially walked away from that agreement.

24
00:01:19,400 --> 00:01:22,240
Speaker 1: So the ripple effects for the US dollar are going

25
00:01:22,280 --> 00:01:24,320
Speaker 1: to be massive, which is why in this video I

26
00:01:24,400 --> 00:01:27,840
Speaker 1: want to go over what exactly is going on, why

27
00:01:27,840 --> 00:01:30,760
Speaker 1: are the Saudis walking away from this deal now, and

28
00:01:30,800 --> 00:01:33,120
Speaker 1: more importantly, where are they going? And then of course

29
00:01:33,280 --> 00:01:35,440
Speaker 1: how is this going to affect our future and the

30
00:01:35,480 --> 00:01:40,280
Speaker 1: potential consequences of it all. So let's get into it now.

31
00:01:40,319 --> 00:01:42,039
Speaker 1: If you're new here, my name is Mark Moss, and

32
00:01:42,200 --> 00:01:46,960
Speaker 1: I talk about a range of topics covering investing, macroeconomics, business, finance, bitcoin,

33
00:01:47,360 --> 00:01:49,920
Speaker 1: and more. But it's crucial that you stick around to

34
00:01:50,000 --> 00:01:52,400
Speaker 1: the end of this video to understand everything we're about

35
00:01:52,400 --> 00:01:55,200
Speaker 1: to break down because these ripple effects could affect you

36
00:01:55,320 --> 00:01:58,400
Speaker 1: no matter where you are in the world. Okay, so first,

37
00:01:58,840 --> 00:02:02,360
Speaker 1: what just happened and what's going on? Well, the decision

38
00:02:02,640 --> 00:02:05,680
Speaker 1: of Saudi Arabia just made not to extend. The petro

39
00:02:05,720 --> 00:02:08,760
Speaker 1: dollar agreement allows them to now sell oil and other

40
00:02:08,760 --> 00:02:12,800
Speaker 1: goods in multiple currencies, including the Chinese R and B, Euro,

41
00:02:13,040 --> 00:02:16,160
Speaker 1: Yen yu want, and even even Bitcoin if they want,

42
00:02:16,200 --> 00:02:18,600
Speaker 1: which it sort of sounds like they may want to do.

43
00:02:18,760 --> 00:02:21,560
Speaker 1: We'll come back to that. But there's basically more choice

44
00:02:21,560 --> 00:02:24,079
Speaker 1: for Saudi, which is of course great news for them.

45
00:02:24,440 --> 00:02:27,000
Speaker 1: But the issue is the problem for the US, and

46
00:02:27,040 --> 00:02:29,400
Speaker 1: that is that the petro dollar agreement that's been going

47
00:02:29,440 --> 00:02:31,720
Speaker 1: on for now decades has kept the dollar in the

48
00:02:31,760 --> 00:02:35,720
Speaker 1: dominant position, and without it, we, speaking of those of

49
00:02:35,800 --> 00:02:38,520
Speaker 1: US that use the dollar system, lose a great amount

50
00:02:38,600 --> 00:02:41,560
Speaker 1: of global power. This agreement acts as a safety valve

51
00:02:41,560 --> 00:02:44,480
Speaker 1: for our economy because it allowed US to release pressure

52
00:02:44,680 --> 00:02:48,920
Speaker 1: by exporting dollars to other countries, because after an oil trade,

53
00:02:48,960 --> 00:02:53,000
Speaker 1: one party is sitting on too many dollars surplus dollars,

54
00:02:53,040 --> 00:02:55,880
Speaker 1: and then those dollars are then reinvested back into the

55
00:02:55,960 --> 00:02:59,960
Speaker 1: US dollar system, usually into US treasuries or equities, or

56
00:03:00,040 --> 00:03:04,560
Speaker 1: or even sometimes local infrastructure. When the excess dollars are reinvested,

57
00:03:04,800 --> 00:03:08,560
Speaker 1: it's called petro dollar recycling, and petro dollar recycling is

58
00:03:08,600 --> 00:03:12,880
Speaker 1: the primary way the US is able to export its inflation. Now,

59
00:03:12,919 --> 00:03:16,640
Speaker 1: petro dollar recycling allows the government to print money and

60
00:03:16,760 --> 00:03:20,720
Speaker 1: keep those dollars outside the US money supply. However, the

61
00:03:20,800 --> 00:03:25,200
Speaker 1: resulting inflation, we feel, although very high, it actually only

62
00:03:25,240 --> 00:03:29,000
Speaker 1: represents about four percent of the monetary expansion because those

63
00:03:29,080 --> 00:03:32,560
Speaker 1: dollars have been exported to the other countries. Meaning again,

64
00:03:32,639 --> 00:03:35,880
Speaker 1: like I said, we've exported the inflation. But if those

65
00:03:35,920 --> 00:03:40,320
Speaker 1: dollars come back, we could experience massive, even potentially triple

66
00:03:40,360 --> 00:03:43,640
Speaker 1: digit inflation in the US. Okay, So now that we

67
00:03:43,880 --> 00:03:47,280
Speaker 1: understand that deal, then the question is why why are

68
00:03:47,280 --> 00:03:49,920
Speaker 1: the Saudies ending the deal now? And then what's this

69
00:03:50,000 --> 00:03:52,520
Speaker 1: new system? Well, from the outside, it looks like they're

70
00:03:52,560 --> 00:03:54,720
Speaker 1: simply stepping away from the agreement to be able to

71
00:03:54,800 --> 00:03:58,520
Speaker 1: trade any currency. They want more options, more choices. If

72
00:03:58,560 --> 00:04:01,920
Speaker 1: you have a store, why not accept more currencies I suppose, which,

73
00:04:02,120 --> 00:04:04,960
Speaker 1: you know, like I said, as a country, seems pretty reasonable. However,

74
00:04:05,360 --> 00:04:08,400
Speaker 1: in reality, there's a few things going on. The First

75
00:04:08,440 --> 00:04:11,559
Speaker 1: one is it turns out that, like in a partnership,

76
00:04:11,600 --> 00:04:14,680
Speaker 1: they're supposed to work two ways, meaning you know, both

77
00:04:14,720 --> 00:04:17,840
Speaker 1: partners should be respectful of each other. But when President

78
00:04:17,960 --> 00:04:21,240
Speaker 1: Biden came in, he basically came into office with threats

79
00:04:21,279 --> 00:04:23,720
Speaker 1: and even name calling, which of course is you know,

80
00:04:23,800 --> 00:04:26,160
Speaker 1: not a good way to start a partnership or a relationship.

81
00:04:26,440 --> 00:04:28,880
Speaker 1: When President Biden was on the campaign trail back in

82
00:04:28,960 --> 00:04:32,960
Speaker 1: twenty nineteen, he vowed to make Saudi Arabia quote the

83
00:04:33,000 --> 00:04:37,400
Speaker 1: pariah that they are, and even Biden initially shunned the

84
00:04:37,440 --> 00:04:40,599
Speaker 1: Crown Prince, agreeing to speak only to his alien father,

85
00:04:40,920 --> 00:04:44,400
Speaker 1: King Solomon. Then he went on to rescind Trump's terror

86
00:04:44,400 --> 00:04:47,960
Speaker 1: designation for the Huthies despite the group having attacked Saudi

87
00:04:48,000 --> 00:04:50,320
Speaker 1: oil infrastructure, and of course now we've seen what the

88
00:04:50,360 --> 00:04:54,000
Speaker 1: Hoothies have done to the oil industry overall. Then even worse,

89
00:04:54,240 --> 00:04:57,599
Speaker 1: Biden attempted to revive the nuclear deal with Iran, which

90
00:04:57,680 --> 00:05:02,240
Speaker 1: is Saudi Arabia's bitter enemy. On October eleventh, twenty twenty two,

91
00:05:02,480 --> 00:05:05,640
Speaker 1: President Biden gave an interview with Jake Tapper on CNN

92
00:05:06,120 --> 00:05:09,440
Speaker 1: basically talking about you know, the sanctions Russian President Vladimir

93
00:05:09,560 --> 00:05:13,800
Speaker 1: Putin China, Saudi Arabia and so forth, the midterms, all that,

94
00:05:14,200 --> 00:05:19,320
Speaker 1: and in the interview, Biden threatened Saudi Arabia publicly with consequences. Well,

95
00:05:19,760 --> 00:05:22,120
Speaker 1: let's just listen to it. They're going to have to.

96
00:05:22,480 --> 00:05:24,760
Speaker 1: There's going to be some consequences for what they've done

97
00:05:24,920 --> 00:05:28,400
Speaker 1: with Russia. What kind of consequences, Menenda says, suspend all

98
00:05:28,520 --> 00:05:31,920
Speaker 1: arm sales? Is that something you'd consider. I'm not going

99
00:05:32,000 --> 00:05:33,880
Speaker 1: to get into what i'd consider and what I'm have

100
00:05:34,000 --> 00:05:37,760
Speaker 1: in mind, but there will be consequences, okay. So besides that,

101
00:05:38,000 --> 00:05:40,880
Speaker 1: it's also a result of Saudi Arabia's commitment to the

102
00:05:40,880 --> 00:05:44,800
Speaker 1: Bricks Alliance. The Bricks I've talked about them a lot, Brazil, Russia, India, China,

103
00:05:44,839 --> 00:05:47,760
Speaker 1: South Africa, and of course more nations now. But China

104
00:05:47,800 --> 00:05:50,560
Speaker 1: and Russia have been reducing their reliance on the dollar,

105
00:05:50,720 --> 00:05:53,760
Speaker 1: or what we call de dollarizing, for over a decade now,

106
00:05:54,000 --> 00:05:56,920
Speaker 1: and of course Russia has been now completely kicked out

107
00:05:56,920 --> 00:06:00,440
Speaker 1: of the entire global financial system. So how could all

108
00:06:00,520 --> 00:06:04,720
Speaker 1: three of these powerful nations continue to trade. Well, they'd

109
00:06:04,760 --> 00:06:07,680
Speaker 1: have to use another currency, one that's outside the dollar.

110
00:06:08,040 --> 00:06:10,560
Speaker 1: So China and Saudi Arabia have been engaging in trade

111
00:06:10,640 --> 00:06:14,520
Speaker 1: using the Chinese yuan, especially for trades involving oil and gas.

112
00:06:14,760 --> 00:06:17,280
Speaker 1: Nigel Green, the CEO of one of the world's largest

113
00:06:17,320 --> 00:06:22,200
Speaker 1: independent financial advisory and asset management companies said quote. One

114
00:06:22,200 --> 00:06:25,960
Speaker 1: of the most significant but underreported outcomes of April's three

115
00:06:26,040 --> 00:06:30,159
Speaker 1: day summer between Russia's Vladimir Putin and China's Xijingping was

116
00:06:30,160 --> 00:06:33,880
Speaker 1: that Putin said, Russia is now in favor of using

117
00:06:33,880 --> 00:06:37,800
Speaker 1: the Chinese yuan for oil settlements end quote. Ever since

118
00:06:37,839 --> 00:06:40,200
Speaker 1: Western sanctions were put on Russia for its invasion of

119
00:06:40,279 --> 00:06:44,120
Speaker 1: Ukraine early last year, Russia's increasingly depended on China to

120
00:06:44,240 --> 00:06:47,760
Speaker 1: buy the oil other countries won't touch. This move away

121
00:06:47,920 --> 00:06:51,160
Speaker 1: from the petro dollars suggests that the world's second largest

122
00:06:51,160 --> 00:06:55,800
Speaker 1: economy and the world's largest energy exporter are actively intending

123
00:06:56,080 --> 00:06:59,480
Speaker 1: to reduce dominance of the US dollar as the bedrock

124
00:06:59,680 --> 00:07:02,560
Speaker 1: of the international financial system. Now, if we look at

125
00:07:02,560 --> 00:07:04,400
Speaker 1: the data, as you can see from the graft that

126
00:07:04,440 --> 00:07:06,719
Speaker 1: I have on the screen, in the first two months

127
00:07:06,720 --> 00:07:10,320
Speaker 1: of twenty twenty three alone, China's imports of Russian goods

128
00:07:10,320 --> 00:07:13,800
Speaker 1: surpassed their total purchases for all of twenty twenty two,

129
00:07:14,480 --> 00:07:18,720
Speaker 1: with a staggering nine point three billion flowing in February

130
00:07:18,720 --> 00:07:21,480
Speaker 1: even saw a record high of over two million barrels

131
00:07:21,520 --> 00:07:24,320
Speaker 1: of Russian crude oil being imported by China. Now. This

132
00:07:24,400 --> 00:07:27,760
Speaker 1: surge suggests that Yuan is gaining traction as a major currency,

133
00:07:27,800 --> 00:07:31,520
Speaker 1: and this points towards a larger shift in global power dynamics,

134
00:07:31,640 --> 00:07:35,640
Speaker 1: potentially giving China more influence in shaping economic policies that

135
00:07:35,720 --> 00:07:39,400
Speaker 1: impact everyone. In Russia, they've also been buying up tons

136
00:07:39,440 --> 00:07:42,200
Speaker 1: of gold since the sanctions were imposed on them by

137
00:07:42,200 --> 00:07:46,200
Speaker 1: the Western States the NATO Alliance. In twenty twenty three,

138
00:07:46,320 --> 00:07:49,440
Speaker 1: Russia announced that it's Boyon holdings jumped by approximately one

139
00:07:49,480 --> 00:07:52,840
Speaker 1: million ounces over the past twelve months. The bank reported

140
00:07:52,880 --> 00:07:55,920
Speaker 1: having nearly seventy five million ounces at the end of

141
00:07:55,960 --> 00:07:59,160
Speaker 1: February twenty twenty three, up from about seventy four million

142
00:07:59,360 --> 00:08:02,040
Speaker 1: a year early. Now, while the US dollar remains the

143
00:08:02,040 --> 00:08:05,920
Speaker 1: current king of preserve currencies, its rain isn't guaranteed. It's

144
00:08:05,960 --> 00:08:08,680
Speaker 1: not absolute, at least not as it once was. Over

145
00:08:08,720 --> 00:08:11,440
Speaker 1: the past two decades, the dollars share in global central

146
00:08:11,440 --> 00:08:14,280
Speaker 1: bank holdings has shrunk from a dominant seventy two percent

147
00:08:14,320 --> 00:08:17,080
Speaker 1: in two thousand and one to just under sixty percent

148
00:08:17,160 --> 00:08:21,080
Speaker 1: in twenty twenty three. Meanwhile, Duan has been steadily climbing.

149
00:08:21,120 --> 00:08:24,720
Speaker 1: Since twenty sixteen, its share has more than doubled, reaching

150
00:08:24,840 --> 00:08:28,200
Speaker 1: roughly two point eight percent of global reserves by September

151
00:08:28,200 --> 00:08:31,280
Speaker 1: of twenty twenty two. Now I get it. Those numbers

152
00:08:31,320 --> 00:08:34,320
Speaker 1: are small. It's a small number compared to a big number,

153
00:08:34,360 --> 00:08:38,600
Speaker 1: but it's not about the absolute number. Obviously that's important,

154
00:08:38,760 --> 00:08:41,320
Speaker 1: but we also have to consider the rate of change

155
00:08:41,360 --> 00:08:44,760
Speaker 1: and the direction. Right we're trying to see where we're going,

156
00:08:44,960 --> 00:08:47,439
Speaker 1: not where we're at, and it's pretty clear what's happening.

157
00:08:47,840 --> 00:08:51,040
Speaker 1: So then the question is, so what what does this

158
00:08:51,160 --> 00:08:53,560
Speaker 1: matter to me? And why should I even care? Well,

159
00:08:53,720 --> 00:08:57,360
Speaker 1: as we've already discussed less countries, recycling trade surpluses into

160
00:08:57,480 --> 00:09:02,000
Speaker 1: US treasuries makes them by less treasuries, and we can

161
00:09:02,040 --> 00:09:04,640
Speaker 1: see how this has been happening over the last ten years.

162
00:09:04,840 --> 00:09:07,680
Speaker 1: Central banks around the world have become net sellers of

163
00:09:07,760 --> 00:09:12,360
Speaker 1: US treasuries and net buyers of gold. At this point today,

164
00:09:12,400 --> 00:09:16,439
Speaker 1: there's no good reserve currency status. It's not like the

165
00:09:16,480 --> 00:09:18,360
Speaker 1: other nations are going to start parking their money in

166
00:09:18,440 --> 00:09:21,760
Speaker 1: Russian or Chinese bonds. But going back to gold is

167
00:09:21,800 --> 00:09:23,720
Speaker 1: working well for them, and you can see the price

168
00:09:23,720 --> 00:09:26,480
Speaker 1: of gold is moving in accordance of that. And if

169
00:09:26,520 --> 00:09:29,199
Speaker 1: the FED is forced to buy more of their own treasuries.

170
00:09:29,240 --> 00:09:33,760
Speaker 1: That means more money printing. More money printing means more inflation,

171
00:09:33,960 --> 00:09:36,960
Speaker 1: and it also means less global influence for the US

172
00:09:37,000 --> 00:09:40,480
Speaker 1: when it comes to trade and political issues. Now does

173
00:09:40,520 --> 00:09:44,000
Speaker 1: this mean it's game over for the US dollars global status?

174
00:09:44,280 --> 00:09:47,760
Speaker 1: Well not entirely. The US could raise the Fed Fund

175
00:09:47,840 --> 00:09:50,560
Speaker 1: rate right, and by doing that they could attract more capital.

176
00:09:50,840 --> 00:09:53,720
Speaker 1: The problem is it also makes it way more expensive

177
00:09:53,760 --> 00:09:55,800
Speaker 1: for the US government to borrow money, and as we've

178
00:09:55,800 --> 00:09:58,240
Speaker 1: seen in the interest payments on the US debt, which

179
00:09:58,280 --> 00:10:01,280
Speaker 1: have now exceeded a trillion dollar even exceeded the amount

180
00:10:01,360 --> 00:10:04,280
Speaker 1: that the US spends on its military. That's a problem,

181
00:10:04,440 --> 00:10:07,000
Speaker 1: and that's only a problem for the government, but it's

182
00:10:07,160 --> 00:10:10,840
Speaker 1: also extremely hard on the economy. Homeowners are struggling to

183
00:10:10,840 --> 00:10:15,000
Speaker 1: buy homes, Businesses struggle to finance new projects, finance inventory,

184
00:10:15,160 --> 00:10:18,320
Speaker 1: Consumers struggle to keep up with living expenses. Now, the

185
00:10:18,360 --> 00:10:20,840
Speaker 1: other thing the US could do, or really I guess

186
00:10:21,120 --> 00:10:23,760
Speaker 1: could have done, or maybe should have done, is to

187
00:10:23,840 --> 00:10:28,960
Speaker 1: be less demanding, less demeaning, right less coercive. It turns out,

188
00:10:29,679 --> 00:10:32,640
Speaker 1: when you see the global superpower like Russia's assets and

189
00:10:32,679 --> 00:10:35,600
Speaker 1: then you threaten nations like Saudi that quote, there will

190
00:10:35,640 --> 00:10:39,080
Speaker 1: be consequences. Those other nations don't really like that, and

191
00:10:39,120 --> 00:10:41,760
Speaker 1: then they start to maneuver to protect themselves from that.

192
00:10:42,120 --> 00:10:44,800
Speaker 1: So while the US could try to go back on that,

193
00:10:44,920 --> 00:10:48,320
Speaker 1: you know, that hard line rhetoric, it's one of those

194
00:10:48,320 --> 00:10:51,160
Speaker 1: things that you can't really take back. Okay, So that's

195
00:10:51,240 --> 00:10:53,920
Speaker 1: the what and the why and even what comes next.

196
00:10:53,960 --> 00:10:56,439
Speaker 1: But what do you and I do about this? Well,

197
00:10:56,440 --> 00:10:58,920
Speaker 1: first off, I'm not saying, let me be clear here,

198
00:10:59,000 --> 00:11:01,640
Speaker 1: I'm not saying the US dollars demise and the end

199
00:11:01,760 --> 00:11:05,120
Speaker 1: is imminent. I'm not saying it's coming anytime soon. As

200
00:11:05,120 --> 00:11:08,719
Speaker 1: we've already discussed, the dominance is falling, and I think

201
00:11:08,720 --> 00:11:11,719
Speaker 1: it continues to fall, but the dollar doesn't just disappear,

202
00:11:11,920 --> 00:11:14,480
Speaker 1: at least at least not for decades, in my opinion.

203
00:11:14,800 --> 00:11:17,040
Speaker 1: You have to understand history, right, So the US dollar

204
00:11:17,120 --> 00:11:20,120
Speaker 1: took over the global status from the pound sterling about

205
00:11:20,160 --> 00:11:23,040
Speaker 1: one hundred years ago, and yet the pound it's still

206
00:11:23,080 --> 00:11:26,839
Speaker 1: the third largest currency today and the UK doesn't even

207
00:11:26,880 --> 00:11:30,840
Speaker 1: really like produce an export anything. So US has a

208
00:11:30,960 --> 00:11:34,120
Speaker 1: long way to go. And I think this is a process.

209
00:11:34,320 --> 00:11:36,040
Speaker 1: It's not like an event that's going to happen it's

210
00:11:36,080 --> 00:11:38,960
Speaker 1: a process, and I think this goes out more of

211
00:11:39,120 --> 00:11:41,839
Speaker 1: like with a whimper and not a bang. That means

212
00:11:41,840 --> 00:11:43,880
Speaker 1: that we continue to just sort of head in the

213
00:11:43,880 --> 00:11:46,960
Speaker 1: direction that we're going into, which is, you know, the

214
00:11:46,960 --> 00:11:50,160
Speaker 1: same direction, more inflation, more money printing, but only at

215
00:11:50,280 --> 00:11:54,959
Speaker 1: accelerating rate. This means more deficit spending, more money printing,

216
00:11:55,160 --> 00:11:58,959
Speaker 1: more inflation. It also means less global cooperation, which means

217
00:11:59,160 --> 00:12:03,520
Speaker 1: more trade proper problems, which means uh, more inflation, which

218
00:12:03,559 --> 00:12:06,440
Speaker 1: is exactly why I've been an inflation bowl. I continue

219
00:12:06,480 --> 00:12:08,800
Speaker 1: to remain an inflation bowl. I've been saying for a

220
00:12:08,800 --> 00:12:12,520
Speaker 1: long time. I think this is still just getting started. Now.

221
00:12:12,720 --> 00:12:15,640
Speaker 1: There's good news and there's bad news in this Now.

222
00:12:15,679 --> 00:12:17,800
Speaker 1: If you work for hourly wages and you don't own

223
00:12:17,880 --> 00:12:20,400
Speaker 1: any assets, it's going to be bad, right. You're going

224
00:12:20,480 --> 00:12:23,080
Speaker 1: to continue to fall further and further behind, and your

225
00:12:23,120 --> 00:12:25,120
Speaker 1: quality of life is going to continue to go down.

226
00:12:26,080 --> 00:12:28,480
Speaker 1: And I know that's bad. But for those of us

227
00:12:28,480 --> 00:12:31,320
Speaker 1: who do own assets and even long term debt like

228
00:12:31,360 --> 00:12:34,080
Speaker 1: a home, we can expect inflation to continue to push

229
00:12:34,120 --> 00:12:37,880
Speaker 1: those asset prices higher and higher, and inflation will continue

230
00:12:37,920 --> 00:12:41,600
Speaker 1: to make our fixed rate debt cheaper and cheaper now

231
00:12:41,640 --> 00:12:44,480
Speaker 1: for bitcoin. Of course, not all assets move at the

232
00:12:44,480 --> 00:12:46,679
Speaker 1: same rate and speed. Now, we know that bitcoin has

233
00:12:46,720 --> 00:12:50,439
Speaker 1: a nine percent sensitivity ratio to global liquidity, so as

234
00:12:50,520 --> 00:12:53,520
Speaker 1: more money is printed, more debt is finance, more inflation,

235
00:12:53,840 --> 00:12:56,760
Speaker 1: Bitcoin should continue to outperform the rest of the market.

236
00:12:57,000 --> 00:13:01,760
Speaker 1: But interesting developments are that Saudi specific mentioned accepting bitcoin

237
00:13:01,840 --> 00:13:05,120
Speaker 1: as payments for oil. Now, I don't expect them to

238
00:13:05,200 --> 00:13:07,880
Speaker 1: do that today. Okay, so I already hear all the comments.

239
00:13:07,920 --> 00:13:10,080
Speaker 1: I'm not expecting them to do that today. But again,

240
00:13:10,400 --> 00:13:13,680
Speaker 1: it's the trend, it's the direction that we're going. We

241
00:13:13,760 --> 00:13:16,080
Speaker 1: know that some of the oil producing nations in the

242
00:13:16,120 --> 00:13:19,040
Speaker 1: region are already starting to mine bitcoin with their energy,

243
00:13:19,240 --> 00:13:22,000
Speaker 1: and there are talks of Saudi Arabia joining into this.

244
00:13:22,400 --> 00:13:24,960
Speaker 1: We also know that bitcoin is legal there, We know

245
00:13:25,000 --> 00:13:28,720
Speaker 1: there's lots of bitcoin ATMs there. We know their Sovereign

246
00:13:28,720 --> 00:13:31,320
Speaker 1: Wealth Fund, the Saudi Sovereign Wealth Fund, invests into bitcoin

247
00:13:31,360 --> 00:13:34,560
Speaker 1: and crypto projects, so there's lots of interesting developments there.

248
00:13:34,760 --> 00:13:37,400
Speaker 1: And remember, again, it's the direction we want to be

249
00:13:37,400 --> 00:13:39,760
Speaker 1: focused on. And as we continue to see a decline

250
00:13:39,760 --> 00:13:42,000
Speaker 1: in the global power of the US dollar, I think

251
00:13:42,080 --> 00:13:43,920
Speaker 1: the trend will be that we continue to see a

252
00:13:44,000 --> 00:13:47,320
Speaker 1: rise of foreign countries investing into bitcoin, sort of like

253
00:13:47,360 --> 00:13:51,360
Speaker 1: what else Savador has done. Why Well, of course, instability

254
00:13:51,360 --> 00:13:54,640
Speaker 1: of the dollars means people need somewhere else to park

255
00:13:54,720 --> 00:13:57,840
Speaker 1: their money, something else to use as trade, something else

256
00:13:57,880 --> 00:14:00,360
Speaker 1: they can trust. Now, I hope this is answered a

257
00:14:00,400 --> 00:14:03,440
Speaker 1: lot of your questions. My honest opinion is again, this

258
00:14:03,559 --> 00:14:07,160
Speaker 1: isn't emminent. I'm not saying warning, warning, warning, like I

259
00:14:07,240 --> 00:14:10,480
Speaker 1: have to go do something right now, but rather it's

260
00:14:10,520 --> 00:14:13,400
Speaker 1: the confirmation that we're on the same trend, which means

261
00:14:13,520 --> 00:14:16,160
Speaker 1: for our future plans of wealth building we want to

262
00:14:16,200 --> 00:14:18,800
Speaker 1: stay long. We also need to continue to watch for

263
00:14:18,840 --> 00:14:22,320
Speaker 1: further developments and for more on the Bricks Alliance and

264
00:14:22,320 --> 00:14:25,360
Speaker 1: the developments there their currency reserve status. You might want

265
00:14:25,360 --> 00:14:27,880
Speaker 1: to go watch this video I did about that here now.

266
00:14:27,920 --> 00:14:29,680
Speaker 1: As always, give me some thumbs up if you like

267
00:14:29,720 --> 00:14:30,880
Speaker 1: the video. If you don't, you can give me some

268
00:14:30,920 --> 00:14:32,720
Speaker 1: thumbs down. That's okay, but at least tell me why

269
00:14:32,720 --> 00:14:34,800
Speaker 1: in the comments down below. And of course, while you're

270
00:14:34,800 --> 00:14:36,960
Speaker 1: at it, don't forget to subscribe. And that's what I

271
00:14:37,000 --> 00:14:38,880
Speaker 1: got to your success. I'm out