The Fake Petrodollar Story - No, Saudi Arabia Didn’t Ditch the Dollar

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00:00:00 - Introduction
00:02:54 - What's a Petrodollar?
00:03:52 - The Death of the Dollar
00:04:36 - The "Petrodollar" Agreement
00:08:00 - Why the Dollar Dominates
00:10:11 - Why Saudi Arabia Can't Quit the Dollar
00:11:55 - The Truth Around the Dollar's Decline
00:14:19 - Conclusion
We've seen some fake headlines spreading about the end of a 50-year petrodollar agreement with Saudi Arabia - today's video looks into the facts around the situation.
June 8, 1974 agreement (p. 788): tile.loc.gov/storage-services...
Bloomberg Story on the July 1974 agreement: www.bloomberg.com/news/featur...
If you'd like to support the channel, you can do so at Patreon.com/ThePlainBagel :)
DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers

[@ThePlainBagel]

Happy Friday! Take your personal data back with Incogni - use code BAGEL at the link below and get 60% off an annual plan ➡ incogni.com/bagel

[@louisfriend9323]

Dollars are still very dominant in the trade of oil or any other commodity. While there is no legal (de jure) agreement to do so, there still is a de facto necessity to. Saudi Arabia trying to move away from that is news, perhaps not for the "petrodollar" reason media are stating, but it is still news.

[@carkawalakhatulistiwa]

facts that are difficult for the United States to understand. USD as the world's reserve currency will fall from 60% to 20% in 10 years. and the United States government can no longer print money without the consequences of crazy inflation .😂. plus the debt crisis.

[@KGTiberius]

Could you similarly break down Gaddafi plan of Pan-Africa gold backed Dinar as competition to the US petro-dollar (and the Arab Spring)? Track people along the decades of work to bring the various Bretton-Woods agreements, WHY it was needed (to liberate capital spending and developed economics), how the good idea was conservatively reinvested and why petroleum is the true current “gold-standard”? Then a last assessment on the liberation of energy markets displacing the value of petroleum and its threat to the economy? (e.g. if (hypothetical example) fusion was suddenly possible and infrastructure in place to distribute the energy globally). Money and interest rates are representations of trust (exchange and risk). If costs of energy plummet (displace oil), that shows the currency market is NOT on value/exchange/risk - in essence, what is the exposure of all currencies to the energy market?

[@zerolegel]

Can't we all just panic without you coming ruining the fun ?

[@ThePlainBagel]

My bad

[@sintongsaragih]

lmao

[@loudelement]

Still not voting for Trump, sorry. 🤗🤗

[@DanielFerreira-ez8qd]

@@loudelement Isn't a null vote a valid option in the US?

[@lam7499]

​@loudelement fantastic. But how is the election relevant to the video or topic at hand? 🙄

[@TheGIGACapitalist]

Headline: Saudi Arabia ditched the US dollar, America is doomed Reality: The Saudi currency is pegged to USD.

[@hamzamahmood9565]

Another one is "the dollar is backed by nothing", as if the most powerful nation to ever exist in human history, along with the most powerful network of alliance (every single 1st world country) that's directly under U.S. security umbrella is "nothing"

[@John-PaulHunt-pv6ol]

Me: Then I don't need the bs job anymore then. moving on as the news media is politically divided even in finance now.

[@NeostormXLMAX]

Did you even watch the video? The saudis are decoupling like crazy not completely ditched but distanced itself

[@hengleekai7788]

​@@NeostormXLMAXit is call derisking As soon as US lost it dominance everyone will sell dollars

[@mignik01]

@@NeostormXLMAX Let me get this straight. The US dollar is "manipulated", and "devalued". So they are looking at the Chinese currency?

[@ZKtheMAN]

Buckwild how all these media outlets picked up the story so fast without checking things first.

[@luisfilipe2023]

Yep most news organisations today are no better than random people on Facebook. They see it they share it

[@JohnSmith-fo5cx]

welcome to modern "journaling/reporting"

[@DanielFerreira-ez8qd]

the "age of information" never specified that information would be of good quality.

[@ccrider8483]

​​@DanielFerreira-ez8qd Isn't that the truth. Rumors, opinions, and lies are now considered news. How often do any of these news sources ever admit they were wrong or correct themselves?

[@28ebdh3udnav]

Not a shocker

[@MithunOnTheNet]

The comments on those sensational videos: "Why isn't mainstream news media not covering this?!" Well, now you know why.

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@averagegeek3957]

@@oskadavid2964 No.

[@paaklapi]

True and based.

[@MoneyMacro]

Thanks for setting the record straight!

[@mesiroy1234]

Yo its you Pls nake nore spefic videos ike in 2022, still macro but more specificly

[@abdulelahsm]

As a Saudi, I have never seen Saudi being covered by youtubers without an immense amount of BS and completely made up content. It's hilarious

[@fransmars1645]

If you successfully reflect people's prejudices, you will get views, comments and subscriptions. I hope it gets better, one day.😊

[@reymurad]

Do you like that Saudi is a dog on a chain to US and Israel? Serious question

[@echelonrank3927]

@@fransmars1645 no way, how dare they steal my opinions ! i should be suing these bastards for major IP theft

[@casteretpollux]

Hilarious the way they moan about Saudi complicity with genocide.

[@silentwitness536]

@@casteretpollux Saudis co-operate with Israel which is committing geno side, so yeah the Saudis are complicit.

[@comosaycomosah]

The bagel is the financial voice of reason

[@bones642]

Plainly

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@trakkaton]

Ridiculous.

[@silentwitness536]

No, he's just telling you what you want to hear. Just like the fem and mist channels telling women its okay to not go to the gym and that men find university degrees appealing.

[@hello-4229]

This is why I like and appreciate your videos because it is based on truth and this is what we all need

[@shrimpofdeath5199]

Could've stopped before "on," and your comment would've been just as valid :)

[@NeostormXLMAX]

People also dont watch his videos though, they take his misleading titles then parrot them as a gotcha to others, for example he said the saudis didnt ditch the us dolllar but thats not even what even lots of economists said they said they are slowly moving away from the dollar which is what he agreed with in the second half but the title is misleading

[@MenwithHill]

This and "china is over in 29 days" are probably my favorite recurring garbage content memes in the econ space. Truly worthless content.

[@steviewonder417]

Those demographics are scary. We’re entering uncharted territory. 29 days does seem a bit hasty though lol.

[@MenwithHill]

@@steviewonder417 Yeah, I'm referring to a specific meme that blew up in 2022 with a lot of cringy clickbait channels running a nonsensical countdown to when China would collapse. Money & Macro did a great video on it titled "Nonsense! China's Economy Will NOT Collapse". It's a lot like this one here, going calmly though the total nonsense.

[@evanburrows1697]

Yeah, Peter Zeihan is still trying to ride that "China due to collapse on Tuesday" wave to this day.

[@weird-guy]

Sk and japan is going away, usa debt is scary,Europe is done,everyone is flewing “the west”, why I’m moving to Dubai (the main reason is not taxes but is one) ect ect😂

[@flubadubdubthegreat1272]

You know what they say, a lie travels halfway around the world whilst the truth is still putting its shoes on

[@Ethelgiggle]

Wait a mortgage-backed security is crown prince of saudi arabia?

[@Darrylx444]

Mr. Bone Saw

[@aL3891_]

They learned nothing from 2008 smh...

[@personzorz]

Pretty much

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@averagegeek3957]

@@oskadavid2964 No.

[@cpm1003]

"A lie can be halfway round the world before the truth has got its boots on." But thanks to Plain Bagel for helping spread the truth. This was the first I'd heard of this!

[@luisfilipe2023]

Another episode of Richard destroying alarmist headlines. You’re basically the anti news 😂😂😂😂

[@bobsinhav]

If anything, US will eventually voluntarily relinquish the reserve currency status of the dollar when the benefits of cheap imports are outweighed by less-than-competitive exports.

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@cyber_engine]

nope, it's just copium

[@aaronwalsh8469]

Mostly trolls from foreign countries like Russia hoping for the decline of the USA

[@JosephDickson]

If this finance thing doesn't work out there's always journalism. 🤣

[@001sander2]

Respect for putting the ad at the end. I didn't skip it for that reason 🙂

[@PanicGiraffe]

IM STILL GONNA SKIP IT

[@stupidbro2301]

There is a Joke in Czech republic from communist times: I am watching TV. What are you watching? Soviet weekly show, the end of dollar is close. And how close? It is 3491 episode. 😂😂😂 It i

[@hanzohattori9576]

Empires take centuries to collapse. British empire 300 years. Ottomans 600 years. We are barely 80 years into the life of the US empire and for such videos and talks to even exist in the economic world being talked about both in and out of the US is a cause for major alarm. The collapse is slow, everyone agrees. But it is happening and it is happening faster than any empire in history that's a fact.

[@bowxfire5275]

It is happening tho. Slowly but surely. He showed the graph at start. Plus countries are bringing back gold that they kept in foreign countries after They saw how western countries froze Russian offshore assets. The world trusts the west less today as compared to pre 2018. There was even the thing where countries banned spacex sattelites from going in their territory in space because they spied on Russia. I think it was in the first few months.

[@AD173]

@@hanzohattori9576 You mean faster than the Second Reich, which lasted 47 years? Or the Hongxian Monarchy, aka the Empire of China, which lasted less than a year? There are tons of empires that lasted less than 80 years. You could have just Googled this, you know. There are more empires that lasted less than a year. Heck, there are several that lasted less than a decade.

[@kandle54]

Unbelievable the number of foreign bots wanting the US to fail. Someone has got an agenda...

[@kandle54]

@@hanzohattori9576 collapsed like the very country Checkoslovakia this joke is from, hahahaha. You sinorussian commie apologists are pathetic.

[@monsterboomer8051]

If I get a petrodollar every time some tinfoil-hatter says petrodollar is over, I would be richer than saudi prince. LOL

[@benoithudson7235]

And if I got a ruble every time some tinfoil-hatter said the petrodollar was over, I'd be under international sanctions.

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@averagegeek3957]

@@oskadavid2964 Nope.

[@pendulmonium]

​@@averagegeek3957 Yes

[@chris0000924]

Idk Dollar buys less and less every day eventually it'll cost $1 million to get a cup of coffee

[@moazhussain6729]

Thank you for this, I was so tired of seeing other KZbinrs going on their gloom-and-doom trip again (Looking at you Andrei Jikh) without actually doing some basic research. Getting really tired of these so-called "finance" influencers.

[@DK-ev9dg]

😂😂😂😂

[@the0ne809]

BRICS said in 2009 that they would develop to get rid of the dollar dominance and every few years, people bring that nonsense up again. India and China hate each other. It will not happen under 2 ultranationalist presidents.

[@victorln]

Andrei Jikh is a sellout, I saw his videos when he had around 20k subscribers and they were decent. These days all he does is post garbage

[@sdsodrod]

Andrei Jikh is a paid mouthpiece

[@monicalopezpinzonart]

Andrei Jikh is a magician! He doesn't know anything about economics. He made money using social media (good for him) but he thought that would make him an expert.

[@thisbarb]

The USD has something no other currency has: a blue water navy.

[@badluck5647]

'Merican, F**** Yeah!

[@olan5]

Yeah I remember when Britain had the same

[@ryanreedgibson]

Yep. Although others like to pretend with their tofu dreg Navy. I won't name names.

[@badluck5647]

@@olan5 Back when the pound was the reserve currency

[@DK-ev9dg]

Go away. Arrogant and cocky American.

[@samialkhammash1985]

As a Saudi Arabian, I frequently encounter online inquiries about the false "petrodollar agreement." The truth is, Saudi Arabia exports in dollars by choice, not due to any agreement. Our foreign exchange reserves, primarily in dollars, are among the world's largest, reflecting our strategic interests. Our currency has been pegged to the dollar for the last 50 years and still, because it serves us well. Thank you for pointing out the facts. Peace✌️

[@MRoROBOT]

they do have agreement but what are better money that USD?

[@samialkhammash1985]

@@MRoROBOT We have tons of agreements with many nations, south, north, east and west.. but this false "petrodollar agreement" is just fake news.

[@deeznuts3145]

They never signed an agreement.

[@raptorhacker599]

​@@MRoROBOTever heard of a shiny thing called gold?

[@Nick-kn6il]

@raptorhacker599 you mean that stuff you can dig out of the ground that serves not purpose other than its shiny. Oh it conducts electricity but so does copper. If we went back to a gold backed system some of the wealthiest countries would be wealthy just bc they have large gold deposits under their ground. And now we have gold wars instead of just oil wars. Yay!

[@worlddj1364]

The 1974 agreement defacto makes Saudi Arabia only want to sell its oil (mostly) in USDs so it can buy US bonds, so it kinda is the petro-dollar deal. Sure enough there is nothing mentioned about obliging Saudi Arabia to only sell oil in USD, but what benefit there is to get British Sterling from oil to only convert it to USD to buy US bonds or enter the US market as this agreement is showing.. Secondly I feel like the video here missed the point in how grave this agreement was, it really was a deal breaker to the USD back in 1974 to wash out some of the bad reputation and negative sentiment the USD had after dropping it from the gold standard. So it was a huge life saver to the US.

[@tranquility6789]

The main thing to note is that Saudi Arabia can choose to not use the dollar, they can trade oil in yuan, whatever currency BRICS may use, etc but that doesn't mean they'll stop using the dollar. They've just got options now

[@fv5855]

There is NO BRICS Currency 😀😀. Sounds like You are just Another RUSSIAN TROLL Cryng as Your Ruble has Collapsed and Your Russian Economy is Collapsing ....Again

[@dirtyblueshirt]

They've always had options. They never exercised those options for good reasons. Reasons that haven't changed.

[@orenalbertmeisel3127]

​@@dirtyblueshirt"reasons that haven't changed" Lol. Lmao even

[@dirtyblueshirt]

@@orenalbertmeisel3127 you should try paying attention to more than headlines.

[@steviewonder417]

BRICS seems to have failed to launch. Probably because the American elites put the kibosh on the Kissinger multipolar world order plan as can be seen in Ukraine. Next Israel will be taught the lesson that one cannot serve two masters.

[@elucidator1277]

Thank you as always for being the cool-headed and sane voice in the room, PB. 🔥🔥💯💯

[@BensonCaisip]

Headline today: Saudi Arabia ditched the US Dollar. Headline tomorrow: Saudi needs democracy.

[@EMan-cu5zo]

Always are first statements before we mess with another country.

[@TheRealMcCoyAndChipsAhoy]

Headline 30 years running: China economy is collapsing...... yet no sight of that happening ...except the West is in decline..and that's fact

[@NAAAAAZ4]

There is no paper agreement called the petrodollar, but there is a pledge from both countries on the idea of ​​the petrodollar. What made the two countries confident that no party would violate this agreement is that it is a tremendous gain for both parties. Meaning that there is no such thing as renewal every 50 years, but there are Saudi intentions to abandon the idea of ​​the petrodollar and the reason is America’s violation of its part. By the way, if Saudi Arabia abandons the ​​petrodollars, America will gradually lose 7.5$ Trillion

[@Hossak]

Japan's dilemma will cause a ditching of the dollar more than this.

[@BigGrizzNYC]

Other countries now have the option to use local currencies when trading with the Saudis. Prior to this the USD was the only option. Forcing countries to purchase USDs. This is how the US can export its inflation and is the main reason it has this unending ability to print money.

[@silentwitness536]

Also not just force countries to purchase USD first and trade in that, but in the process, they were forced to by US treasury bonds, held in state, in america. So anytime America wanted, they could freeze those assets (which is what they did to russia). Without buying USD (bonds), the USA wont be able to behave like the mafia anymore.

[@hanzohattori9576]

I think people completely misunderstood what the various news outlets meant when they said that Saudi has abandoned the Petro dollar deal. The Petro dollar deal means that Saudi trades oil EXCLUSIVELY in USD and the other oil producing states followed. That's what has changed. USD won't be abandoned immediately but slowly over time. So far only the interest has been expressed to sell oil in other currencies like Yuan (which in of itself would be an earth shaking news), but the deal made almost 80 years ago that kept this Petro dollar possible is no longer seemingly holding things together. And yes the deal does exist. It was made in 1974. But it was a much bigger deal so it's not specifically called the petro dollar deal because it includes many things that lead to the formation of the petro dollar. Everyone in economics was aware of it and has been speaking about it for decades. And whether such a deal exists or not, oil trade shifting away from the dollar is the main highlight.

[@BlackHoleOfTime]

This is exactly how I understood it and why I feel we do have reason to worry about this shift. Things are going change and hurt the dollar and that's the point. People are ditching and buying less of our bonds as well and this might all be connected, as well as the not doing great but still active BRICS's. The world is going have a huge change and it will effect the US a lot and thats the point.

[@suezzle]

Finally, a commentator who Gets It. Yes, exactly what you said. This video sucks bad; pure western propaganda, strawmanning the clearly-understood implications of the headlines and stories on this topic in recent days.

[@TheGruntski]

@@suezzle The Russian economy is on the skids, the Chinese economy is defaulting everywhere, the US is now a major oil and gas producer, but you think I'm going to ditch the USD....for what. the Iranian rial? You need to stay off the hard stuff, son.

[@BlackHoleOfTime]

@@TheGruntski LOL the Russian Economy is on the skids? where do you see evidence of that?

[@TheGruntski]

@@BlackHoleOfTime From Russian economic reports, sonny boy.

[@hugosalinasaliaga5266]

you are doing a great service. it's so incredible how we can have access to your knowledge. thank you

[@silentwitness536]

He's telling you what you want to hear, and youre thanking him lol

[@ferrjuan]

You just ruin the day of Tankies and the “America Bad” crowd with your well informed video!

[@InspiredStrangers]

A good balanced view with references. Thanks !

[@patricknicklaus9536]

thank you! Thank You!! THANK YOU!!!

[@ChineseKiwi]

4:50 - **a wild KZbin monetisation thought appears**

[@ChuckThree]

_NSA has logged into the chat_

[@silentwitness536]

Notice how he stumbles over at the start: 80 years vs 50 years agreement. He doesnt know about breton woods vs petro dollar agreement.

[@ChineseKiwi]

@@silentwitness536 eh no. Watch it again. He was pointing out the bad reporting

[@rahmashabeer1630]

You definitely have my sub. This content is next level. For me Unimantic was the turning point. Please keep doing what you do and keep being you, love it

[@willjensen5595]

This is such a helpful channel

[@janetwilliams7705]

Thank you! Very enlightening.

[@natashadickson4819]

Okay, they didn't ditch the dollar but are working on doing so. It's a notable development no matter how you spin it.

[@suezzle]

🎯💯

[@kilotech3808]

Really impressive research, Great job.

[@StudiousMD]

Thank you, Richard. This was quite insightful.

[@user-ln5pi6zp2t]

Saudi is not ditching the USD. It is just diversifying, that is pricing and selling oil in other currencies too. That will just reduce the total reliance on the USD in direct trade with other countries .

[@nickkorkodylas5005]

Which is exactly what "ditching the petrodollar" means.

[@dodixaber8968]

Question if a store used to only accept payment in Visa but later on accept from Mastercard and JCB while still accept Visa, does that mean the store ditch Visa?

[@vipul_singh]

​@@dodixaber8968 yes, partially ditching

[@charybdis8113]

​@@dodixaber8968They are not ditching dollar, they are ditching "petrodollar."

[@kandle54]

Which they did before, so it's not a surprise to anyone. Their currency is fixed to USD. Their debt, which is increasing, nominated in USD. Someone was paid to prop the blame America narrative.

[@ahtheh]

In my opinion, the trust in the USD is a compounding effect. So small reductions in trust make a huge effect in the overall global economy. The fact of the matter is, if the situation does not radically change the trust in the USD is decreasing and people are looking for the tipping points

[@christopherdamiano4233]

Awesome video. Thank you for providing well balanced and researched reporting, unlike the vast majority of the media landscape.

[@cobra646]

Currently in Papua New Guinea. The relationship between the USD and oil is a real issue in this country, as the main fuel supplier for the whole country can't get enought USD to import fuel stocks. The oil company blames the govt, who blames the central bank, who blames the politicians, who say "everything is fine." meanwhile the pumps routinely run dry, the aviation sector is held hostage (a problem in country the has almost non-existant road connections) and the power grid is so bad that everyone needs to run gensets, which run on diesel, which is scarce. good times.

[@Kvothe4]

Thanks for making this. As someone who doesnt follow this area much, I was googling around and couldnt figure out which sources were telling the truth and which ones were misinformation.

[@sumnerrogers5091]

Great content

[@beefchampion2792]

Thank you for the ray of informative sunshine in this crazy world of misinformation!

[@HarvestStore]

Great video.

[@wontonkid5896]

Another fantastic video and real look at the situation

[@MomentsInTrading]

Nice job 👍🏻

[@sugarskulllyfe5890]

This is why I love this channel

[@MaestroAbar]

In order for Saudi to "ditch" USD, two out of three highly unlikely event in the near-future must take place simultaneously: - US dollar must be unpegged from oil (unless US somehow voluntarily does this, won't happy) - US suddenly become a non-oil producing country (since US produces more than half the world's supply on commercial aviation fuel, again highly unlikely). - Saudi Arabia suddenly stops exporting oil (again, highly unlikely in the short term) Considering euro-based petroleum trade does not have big enough market cap, and yuan-based trades are almost always tied with some form of in-kind import/export contract, there still aren't any major competition to USD when it comes to oil trade.

[@emilthomas2136]

Wow didn't know this

[@Gest-wg2yb]

Thanks for being a plain bagel, its exhausting watching people spread panic and disinformation when they could just have a rational conversation, as you do I appreciate the free education and the effort involved in attempting to keep people informed by facts

[@CultureCrossed64]

The petrodollar was an unofficial, but definitely existing, part of a trade agreement that was recently allowed to lapse. The agreement was implicit because they (the saudis) couldnt have handled the fallout in the 1970s of an official agreement. That doesnt mean it wasnt there. Its like the US defending Taiwan- its not signed but everyone knows its pretty likely. Saying there wasnt a petrodollar is Uncle Sam attempting to save face for letting saudi arabia switch teams now that they're almost out of oil.

[@ThePlainBagel]

What agreement expired then? Can you point to what actually changed this month to prompt the headlines?

[@bensonmathew8679]

Finally some news based on reliable and diverse facts than lot of click baity craps! ❤

[@raxacoricofallapatorius8484]

Thank you.

[@ogrehaslayers605]

Thank you for shutting down the alarmists

[@bintokiria5338]

Am subscribing already 😊

[@michaelpatton9573]

@1:20 While I agree with the general premise of this video, saying the dollar has experienced "a little erosion of its dominance" is extremely misleading. The chart on the screen shows this. Losing 10 percentage points (or the equivalent of -14%) of the dollar's global market share against other currencies while the Euro and GBP essentially remained flat shows a very sharp contrast. More importantly, the rise of the alternatives is unmistakably strong and persistent. The Ukraine war has definitely made the case in favor of diversification away from the dollar. These kinds of trends are not minor. They are MAJOR developments which cannot be quickly reversed. We are watching something comparable to what happened to the US auto industry in terms of global domination. The dollar won't go away and it still will be (at least for the foreseeable future) the dominant global currency, but it is extremely likely that alternatives will eventually surpass the dollar as a group in terms of market share. Again, my disagreement is that you said "a little", when it's far more substantial than that.

[@joshuacoll.6100]

You sir, are truly one of Canada's greatest exports. Thank you for the balanced and clear perspective.

[@eoinoconnell185]

Meh. You're kind of splitting hairs on definitions. Simple fact is, until recently, Saudi only sold oil in dollars. Then it slowly began accepting other currencies. Now it's actively accepting other currencies. Whichever way you look at it, this is a net negative for the dollar, as it reduces global demand. It is also a net negative for America as a lower demand makes printing dollars less effective.

[@arglebargle5531]

...no, as the video notes, Saudi also had long-standing Sterling sales that continued after the point of the supposed petrodollar

[@silentwitness536]

@@arglebargle5531 In amounts so small it makes your sterling angle, irrelevent. Oh and the last time the Saudis accepted the sterling as payment was way back in 1974 lol

[@cottonkong1358]

Dudes been lifting Neck thicker than the US debt

[@admiralrusty9359]

great video, I was confused when I saw these videos pop-up and immediately checked the value of the dollar as that surely should see some negative impact. But nope, all was good even days afterwards. Additionally, I didn't know the Saudi Riyal was pegged to the dollar which makes sense that there is no need for them to really want to move away from USD. Also, all these videos did indeed include a advertisement (usually a long story I skipped) about investing in gold.

[@DK-ev9dg]

Another arrogant guy. That means USA should keep exploiting the world?

[@mwase7782]

"checked the value" 😂😂😂

[@averagegeek3957]

@@mwase7782 Do you know what exchange rates are?

[@news26boom]

You left out the fact that the petrodollar agreement came into being shortly after the USA was forced off the gold standard. The gold standard is what gave its dominance to begin with.

[@steviewonder417]

There is no agreement and less dollar credit being created by foreign banks to buy goods globally is good for US citizens who’s purchasing power will decline less rapidly.

[@A_page_a_day]

Thank you for your hard work on this and your other videos. I truly appreciate it.

[@Latiosx123]

Thanks for filtering all the noise for us.. Is crazy out there.

[@TheRealMcCoyAndChipsAhoy]

LOL he's feeding you delusions silly

[@Username_CC_]

By 2030 we will be buying tickets to PLAIN BAGEL VS ZEROHEDGE BOXING MATCH

[@KGTiberius]

Knowledge is power.

[@zzzanon]

I was fooled. Thanks!

[@willemidaho]

This is why I am subscribed.

[@georgesos]

Saudi Arabian army is based on US weapons. There is no way they d risk their defense and policing by cutting ties with the US. After all,this is what USA depends it's growth on,the defense industrial complex, not production of goods or serviceslike all others.(the only in the world). That's the reason dollar is what it is,it is backed by the mighty US army/navy/airforce and CIA. So at present, noone can ditch the dollar without risking annihilation

[@grecko8762]

Plain Bagel at its best - thank you for clarifying this, because there is alot of fear porn out there on this topic. Question for the community: what is your opinion on gold/ silver bonds? (bonds whose interest is payable in metals)

[@James-lp6yg]

Man, I feel like you mussed a golden oportunity to partner with Ground News at the end there

[@mattbenz99]

A Loonie hasn't been backed a Double Double in over a decade. It is now like 3 Loonies for each Double Double.

[@titussteenhuisen8864]

It is logic to use less US$ less clipping of the ticket by the banks between countries.

[@davianoinglesias5030]

😂Richard : Destroying fake news since 1850

[@zeroedout]

A lot of people saying USD is gonna collapse, yet it is currently perfoming the highest vs other currencies.

[@uglyewok6715]

It didn’t ditch it? Yes… they are now selling oil in currencies other than strictly the dollar.

[@pyeac]

So why the lies about agreements?

[@steviewonder417]

They never said they wouldn’t lol 😂

[@farooqrizvi6078]

Saudi is not ditching the usd, Saudi will also accept other currencies

[@DataRae-AIEngineer]

Thank you SO MUCH for making this video, Richard. So crazy that every media outlet picked up on news that was fake. thank you so much for doing this research and presenting it for free. Geez I love KZbin for that. Happy Canada Day.

[@ChianTheContrarian]

So long as trade in oil accelerates in trend to be done in other currencies, it’s bad news for the usd.

[@ReekyCheeks]

Its not accelerating, and even if it was wouldn't matter. Every county is actively phasing out the oil, demand keeps falling, production is now also very diverse.

[@mat3714]

This would obviously lessen tensions around the world, it's like a puppy clip, who could get mad speaking about trading loonies??

[@ameerahmed6623]

0:37 they sold oil in dollars now that is not necessary. You can buy oil in yen. Countries dont need to keep dollars in their account. It is as simple as that. Dollar will lose its importance but it will be a major currency.

[@user-ue5ro2xd7j]

We should not forget that some people are looking for exciting news, so that’s why they circulate false news for their own purposes.

[@zintothemoon1135]

When selling something priced in dollars you can use whatever currency to buy the thing priced in dolllars. You were focused on the use of the dollars to buy things but in reality its used to price things. Petro dollar is about pricing oil in dollars not forcing purchasing to be done in dollars

[@steviewonder417]

Correct it isn’t even clear the dollar credit in foreign banks (Eurodollar) used to buy goods in dollars globally, is even beneficial to the dollar economy especially domestically, considering the glut of dollar credit that is created lowers the dollar in forex.

[@D64nz]

Wrong. They were specifically forced to use USD for the trade.

[@EMan-cu5zo]

I can’t believe anything people say anymore. No matter who says it I would say nobody fully understands any of it.

[@prashanthb6521]

This is a perfect case study in Universities studying crowd psychology.

[@wisam188]

Thank you The first true KZbin video about the petrodollar

[@stealthhumor]

According to my AI: Key points of the 1974 agreement include: Oil Pricing in USD: Saudi Arabia would sell its oil only in US dollars. Investment in US Debt: Saudi Arabia agreed to invest surplus oil revenues in US Treasury securities. Military Protection: The United States would provide military protection to Saudi Arabia. Economic and Military Assistance: The US would assist Saudi Arabia with economic development and military aid. This agreement solidified the relationship between the US and Saudi Arabia and ensured a stable demand for the US dollar globally. So there.

[@pmorton7960]

Having lived in that region for years, most of their currencies have been set at a point for decades and propped up by the dollar all the way. Check out how much the dinar to dollar rate in Bahrain has changed over the last 20 years...

[@Gumbii9]

If you get get bored sometime I’d very much appreciate a video on the functional mechanics of the mBridge system!

[@TonyAllen-kx4nu]

you continue to be by far my favorite finance KZbin channel. I wish more fin-tubers would be less clickbait-y and do more research. Thanks for all you do for the space!

[@kirbyone]

"Given the country's perceived stability..." 🤔

[@emperorarima3225]

I was wondering why all of a sudden "The Petrodollar" was over.

[@ChineseKiwi]

12:22 - the Canadian and Australian dollars - RESOURCE MINING COMPANIES GO BRRRRRRRRRRRRRRRRRRRRRRRRR

[@Hasanaljadid]

No,Canadian economy is a lot more diverse then Australias

[@marc-alexandrelaroche6632]

Not by a whole lot​@@Hasanaljadid

[@NeostormXLMAX]

@@Hasanaljadidif canada was smart they should have invested more in manufacturing and using its natural resources rather than a service industry

[@tylerclayton6081]

@@NeostormXLMAXevery country has to develop into a service based economy if they ever want to be rich. Canada is the 4th largest producer of oil and gas in the world. We exploit our natural resources as much as we can

[@ForcefighterX2]

Interesting video, but you should definitely research Henry Kissinger's petro dollar backroom deals he closed, as by the order of his role model and very close friend Rockefeller. James Corbett's Corbettreport is a great start.

[@makoarios5250]

It's not that the dollar is being ditched, it's that other currencies can be used where the dollar was once exclusive. Once upon a time there were more 100$ bills in other individual nations than the United States, read it again if you have to. I think many of us remember growing up watching various presidents hold hands and kissing King Abdullah of Saudi Arabia specifically because we were so grateful for this agreement. We blunder with Saudi Arabian relations, we are too bellicose and arrogant when it comes to Russia and their Pipeline was destroyed. The rest of the world has worked around us and now have their own deal going because we weaponized the dollar too much. This is a slow bleed, definitely knocked us down several pegs.

[@winsonip4447]

Talking about the petrodollar without mentioning the end of the Bretton Woods system will give you a completely different view on why Kissinger had to go make a deal with Saudi Arabia in 1974 in the first place.

[@Nabrolo]

Damn. I spread this misinformation on a major social media that many people saw. I was skeptical initially when only obscure sites were carrying this story but i was convinced when i saw MSN also carry the story. Now i know better to trust them.

[@AbdulHamid-mx6ks]

this is a great video. If you want to go deeper into the rabbit hole, look at what preceded this. The 1973 Oil Crisis when King Faisal of Saudi Arabia stopped oil exports to the US. Basically that happens, then the 1974 agreement between US and KSA followed by the assassination of King Faisal in 1975.