The Petrodollar, which is probably the most important economic concept that the vast majority of Americans are completely ignorant of, is on its way out. Saudi Prince Mohammed bin Salman has refused to renew his nation’s agreement to sell oil in dollars with the United States, and the potential repercussions on the U.S. economy could be catastrophic.
Jimmy discusses how the petrodollar allows the United States to sanction other nations, which serves only to drive other countries to want to abandon the dollar.
Its a real concern as well as the longstanding hubris the US has exhibited by extorting countries via sanctions as well as what in my estimation were fruitless wars in Iraq, Afghanistan, Vietnam and probably Ukraine
The only thing that works in the Dollars favor is how corrupt China, Russia, Brazil are plus India and China are apparently mortal enemies.
While the US debt is out of control, most of the rest of the world is even worse so its not without risk that the Saudis go off the dollar, especially if we no longer protect them (which I wouldnt mind plus I'd like to not be reliant one a country that openly defies our highest principles like free speech, women rights, etc, etc).
I'm hearing the relationship between China and Russia is tenuous as well so if the Saudis move to a currency far more unstable (currently) than the dollar like the Chinese yuan or Russian ruble, it would probably be a horrible move because I'm hearing the Chinese economy is FAR worse than what is obvious because China has a tight grip on what information is released and they always spin everything to make them look as good as possible. What does the Russian economy produce besides vodka and oil/gas?
This guy elaborates on BRICs and why he thinks it wont work. He lived in China for approx 14 year, speaks Chinese and has a lot of contacts there he still communicates with. He and his partner were the first to tell the story about the 4 people (3 Americans) who were recently stabbed in China. They seem well informed and strike me as a good source of information, here's a video he made discussing BRICs: