Saudi Arabia is moving away from the Dollar their Great Escape has officially Begun now Republican of this a thousand Times that the Saudis are breaking away From America but things are moving Really fast the kingdom has joined the Shanghai Corporation organization or the SEO and that is the china-led economic And security block they are now a Dialogue partner which is the first step Towards full membership and this is a Shift that Riyadh is making they are Shifting towards the east and the Saudi Knows that trading with the West is a Dangerous Affair and their economic Future lies in Asia in lives with Russia Lies with China and India and the signs Were all building up to this and the World shouldn't be shocked your President XI traveling to Saudi Arabia In December and unlike Biden he didn't Get a face bomb but a royal welcome from MBS himself then we're at China Brokering a peace deal between the Kingdom and Iran through historical Rivals are now resuming diplomatic talks With each other plus Russia is also Paving the way to restore ties between The Saudis and the syrians the agenda is Obvious Let's Help the Middle East move Towards lasting peace and let them focus More on their economy and we are seeing A strategy by the Chinese by the Russians to shift the global order
Eastwards and the best way to do this is To win over the Saudis and OPEC if you Can get the biggest oil producers in an Economic block that is enough to Challenge Western her Germany and all Alliance between Russia China and Saudi Arabia would control nearly 30 percent Of Global Production and that is more Than American and Canadian production Combined but why is Saudi Arabia Breaking away from the United States America is still the Kingdom's main Security partner and just in 2022 alone Biden approved over three billion Dollars worth of arms sales to the Saudis however even that is sleeping They are now called some Congress to Hold U.S weapons support to the kingdom Based on human rights concerns with a Senator saying U.S weapons don't belong In the hands of Human Rights abusers and They are proposing a resolution they Could cut off security assistance to the Kingdom Congress could end their arms Sales so the other shoe could be Dropping very soon and that is why Saudi Arabia is moving to the east but this Security issue is just the tip of the Iceberg we need to dig deeper guys the Real worry Riyadh has revolves around Their oil revenues they need to secure Their economic interest and this brings Us to the two biggest threats facing Saudi Arabia's oil and this goes beyond
Just sanctioning away U.S treasuries or Dollar denominated assets every country Is worried about that for sure but we Are talking about threats unique to Saudi Arabia and the first is the price Caps on oil now if the G7 they can Impose the price caps on Russian oil it Can also happen to Saudi Arabia and the Reasoning will be different for sure but The effects will still be the same what If the world's richest countries the G7 It comes together and says we won't buy Your oil unless it is at a price that we Like then if the Saudis aren't Diversified away from customers in the West they will be in big trouble and we Can see that back in 2020 Saudi Arabia Still supplies a lot of oil to the Western world and the G7 15 to Japan 10 To Europe and around seven percent to The United States that's almost a third Of the oil supply that can be subjected To sanctions and price caps even though Saudi Arabia supplies a ton of oil to India and China it still isn't nearly Enough their revenues could take a Bigger hit and that's why they are Moving eastwards they want to reduce Their dependence on G7 money but it gets Worse the US Congress has also Reintroduced the infamous no pack Bill Back into the spotlight now if passed This could allow America to take action On Opex oil companies on the basis of
Being a monopoly it revokes the servant Immunity that has protected OPEC Plus Members and that is disastrous Saudi Arabia of course is having none of this They have slammed the no pack Bill and Have told the world that they aren't Selling oil to any countries that Imposes price caps which kind of sounds Very similar to Russia's position and I Hope this crystallizes the reasons why Saudi Arabia has almost no choice but to Pivot to Asia there's nothing left in The west except for threats and Sanctions to get the price that they Want so what is on offer with the SEO Why is Saudi Arabia choosing to join the Block and this is where we have to break Down what the SEO is all about now if You look at the member states and Especially on the world map we can see It essentially includes the entire of Asia except the south east we have Russia China India and Pakistan and the Group and even Iran is also joining the SEO very soon and that's why brokering Peace between the Saudis and the Iranians was so important and if you Look at the other dialogue Partners There are even more countries in the Middle East including Qatar and turkey The majority of the SEO are developing Countries that need oil to power di Economies and to Saudi Arabia that is Like hitting the jackpot finding a
Treasure Trove of customers outside of The West and more importantly there Aren't allies of the United States now MBS he has a plan for Saudi Arabia and It is captured in its Vision 2030 agenda It is all about diversifying the economy Away from oil and integrating themselves With the rest of the world and this is Where the SEO comes in the group Accounts of 40 of the world's population And over 30 percent of global GDP Outside of the West plus the Belt Road Initiative the Bri actually runs through The heart of the SEO collecting Asia the Middle East and Europe together and We're talking about 149 countries we Trade totaling over 1.7 trillion dollars Done just with China alone and this fits Perfectly into MBS Vision to connect Saudi Arabia with the rest of the world So can you just imagine the Possibilities the Saudis have and I want Us to recall the bombshell the Saudi Finance Mr Muhammad I'll get done Dropped at the Davos conference he told The world that Saudi Arabia is open to Settling Dr trade in other currencies Outside of the US dollar there are no Issues with discussing how we settle our Trade Arrangements whether it is in the US dollar whether it is in a euro Whether it is in Saudi riyal now even if The kingdom decides not to use the Yuan They can always price their oil in their
Own currency that we are and that is Also the dollarization now the Dollarization doesn't mean only using The Chinese Yuan it just means not using The US dollar and that's one fundamental Reason why economic alliance with Asia Will be successful it is because unlike The United States they don't mix foreign Policy with business Asia isn't Interested in interfering with another Country's local politics but a big shout Out to our sponsor today private Internet access we all know the Importance of keeping some money outside Of the banking system especially in Gold We want privacy for our wealth and you Should be treating your data the same Way now using the internet without Pia Is like holding your wallet in your back Pocket all it takes is one fast if it Keeps all your money goodbye now online Browsing isn't as safe as it used to be You don't want your identity stolen and Any of your financial accounts Compromise and this is why having a VPN Is just so useful it hides your IP Address and encrypts your internet Connection through the encrypted tunnel And that keeps your data activity Confidential away from the hackers now Pia is completely easy to use you can Download the app to your phone or to Your desktop and get started in fact you Can use it to protect all your devices
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Barrels of crude oil from Saudi Arabia That is more oil secured for China and More cash secured for the Saudis is Essentially the Saudis are starting to Refine oil in China using the country as A base to export to the rest of Asia and The world and this just strengthens China's economic position because now They have all the energy that they need They can keep cheap oil from Russia Saudi Arabia is already their top supply Of crude oil and now China has the Additional refining capacity courtesy of The Saudis but here's the kicker there's A very good chance that once the Refinery comes online China is going to Pay for the oil supply in Yuan they're Going to use the Chinese Yuan or at Least the Saudi real for the energy deal And this isn't far-fetched it is not a Fantasy because China just completed the First LNG trade in Yuan but this is the Best part they didn't buy the LNG cargo From the Middle East or even Russia it Didn't come from MBS or Putin they Bought 65 000 tons of LNG from the French company total energies France a G7 a NATO member just price their LNG in The Chinese Yuan and sold it to China Not in Euros not in dollars but settled In Yuan and we are literally witnessing The rise of the petrol Yuan and the US Dollar getting sidelined by one of their Own allies so it is not a stretch to
Project out into the future that the Saudis will also eventually price their Oil in Yuan as well and as long as Spider keeps hammering away on Saudi Arabia this oil for yuan is virtually Inevitable it's just a matter of time U.S influence in the Middle East is Slipping away fast especially when it Comes to trade and energy we can see U.S Oil imports from OPEC and the Persian Gulf dropping to an all-time low Importing only 1.6 million Barrels in 2021 and just last year a China loan Imported over 1.7 million barrels from Saudi Arabia more than the United States But that's not all China and Saudi Arabia's biggest trading partner hitting 87 billion dollars in 2022 that's over Three times more than the us so we can Expect the petrol Yuan to continue Getting prominence for the petrol dollar Is now officially under threat but can It get worse for the dollar yes it can Because the dollarization is going Global just recently Brazil and China Announced a shocking deal that should Make Biden fall off his chair they are Ditching the US dollar and trading in Their own local currencies the Chinese Yuan and the Brazilian real they are Going to sidestep the dollar and just do More bilateral trade we are seeing a Global Rebellion against the reserve Currency in real time it's bombshell of
The bombshell and this isn't going to Stop according to Brazil this deal will Reduce costs to promote even greater Bilateral trade and facilitate Investment business between China and Brazil is also very significant China's Brazil's biggest trading partner with Trade heating 150 billion dollars in 2022 and that is a lot of money that Will shift away from the Greenback Towards the Chinese Yuan towards the Brazilian real but if you combine this With another deal you realize how Dangerous this move is for the Battlefield dollars future Brazil Doesn't just export corn soybeans or Meat to China they are one of the top 10 Oil producers in the world accounting For three percent of the world's oil Production just below Iran here's the Kicker China also teamed up with Brazil In a two billion dollar deal to share Production in an oil field just off the Brazilian coast and if you merge this Deal with the bilateral trade bombshell China could be buying oil from Brazil Using the Chinese Yuan very soon in fact They might already be doing it just Under the radar and this is obviously Bad news for the petrol dollar and the Petrol yuan is becoming more of a Reality with each passing day but notice Something interesting Brazil and China Are both part of bricks so we can expect
More bilateral trade outside of the Dollar throughout the brics Nations very Soon and once Saudi Arabia joins the Club it will be game over but why is This happening why is the dollar losing Its Reserve status and weirdly enough Elon Musk hits the the nail on the head Saying U.S policy has been too Heavy-handed making countries want to Ditch the dollar but that's not all he Goes on to highlight an even bigger Issue combined with excess government Spending which forces other countries to Absorb a significant part of our Inflation so unless the United States Stops with their sanctions and the Federal Reserve stops splitting money Every time there's a crisis things Aren't looking good for the Dollar's Future the dollarization at this point Is virtually Unstoppable now the Breaking of the petrol dollar system is Important there are two pillars they are Still propping up the dollar as the Supreme currency and the first is the Petrol dollar which we know is under Attack and the second shoot to drop will Be the euro dollar system cracking now There's a lot to talk about how the US Dollar can't be the throne because the Whole world transacts too much in the Reserve currency now the majority of the Debt is still denominated in dollars That's true in fact over 60 percent of
Foreign debt is issued in U.S dollars Plus many people around the world still Use dollars when it comes to saving Money or investing in the capital Markets but we need to come back to the Basic fundamentals of money when we boil It down money has only two functions in This modern world that we really care About a store of value and a medium of Exchange now obviously currencies are Not good long-term stores of value we Can all agree on that they are now Colorful pieces of paper used to Exchange for goods and services you hold Currencies because you want to access a Basket of goods and commodities and if The petrol dollar system breaks the Dollar will be less useful there will be Less demand for it you don't need it to Exchange for the world's most important Commodity which is oil and this will Deal a big blow to the euro dollar System as well because they are all Interconnected now when will the other Shoe drop and the key sign to look out For is if there's less debt around the World being issued in dollars and that Will happen fast if the United States Decides to default on their debt by Either not paying or inflating It Away By printing money so hang on tight Because the is the dollarization Spree Is getting from bad to worst but let me Know what you think in the comments
Below will the petrol dollar survive Will Saudi Arabia price their oil in Yuan let me know in the comments below Stay safe be sure to smash the like Button and subscribe as we navigate Through these crazy times
