So this is huge. Saudi arabia considers accepting yuan instead of dollars for chinese oil sales. If this is true, if this is true, this is huge. This is potentially the end of the us dollars the world's reserve currency.

This is a cataclysmic event, so the bottom line is this is not happening. There's literally zero percent of this happening, and let me explain why the first thing you need to understand if this happens. This is pretty much the end of the relationship between the us and saudi as far as the relationship they have right now and the relationship they have right now is intertwined with one another. In fact, i would argue that saudi arabia cannot exist without the u.s backing it up.

In its current configuration it's located in a very nasty part of the world. It is surrounded by neighbors who hate it and neighbors that have a lot of guns and they want their money or they just hate them like iran and the us is there to keep them safe. If they start doing this, they risk a lot, basically existential risk, which i don't think they're willing to take. This is a leverage play because mohammed bin salman knows that if he does that he loses u.s funding for the economy, makeover they're trying to do in the 2030 economy makeover, because you know they're running out of oil, so they're trying to reform economy.

There's a lot of u.s money involved. They lose engineering power on the ground, human resources on the ground. A lot of u.s companies are basically heavily involved there. It's going to be a problem.

They can't give that up, not to mention the fact that the saudis are like 90 exports and the us is a huge client. So, politically speaking, militarily speaking, look saudi arabia is not superpower militarily, they're, literally surrounded by people who, who wants to kill them and the us is there to protect them. So this whole thing absolutely makes no sense. Now.

Why is this happening despite the fact that the saudis have absolutely no sense, and i think this is saudi's way - to create some leverage where they don't have one, because they need this administration to back off, to not be so hard on them on human rights? To not be so lenient on iran, and mainly that's the most important part, mainly to keep them safe right. Now, that's not what's going on. They have a story going on with the reporter in the turkish embassy. They have the yemenites.

They give afghanistan away to taliban. Iran is now champion with the us so right now, muhammad bin, salman and saudi is feeling left out it's a very different relationship than what he had with trump and they're lashing out right now, putting it out in the newspaper just to show the us hey, be Careful i mean you can't do this to us. You have to start treating us with respect a little bit, so this is basically a flex from saudi to get biden and his team to back off and help them a little bit cooperate with them. Now here's the thing: why does china do it and that's the more interesting part, so china is playing along with this as well, but even before china don't discount the fact that mohammed bin salman is basically doing to buy it in something that you know just to Show him he can with this as well, because this thing in the newspapers really helps biden's adversaries, whoever they may be, either in the midterms or in the next presidential elections, and let's say that trump actually runs again.

This would be a really nice headline to keep pumping out into the world that if you really wanted to kind of hurt biden - and you know help trump, this might not be a bad headline. So maybe he's trying to meddle in with the u.s kind of process and give biden a little bit of a kick in the nuts and you know maybe promote trump. I don't know, but he can keep doing this for a long time. He doesn't need to sign the deal with the chinese for this to be effective.

All he needs is every few weeks a new headline needs to come out how they thinking they're thinking they're, considering they're thinking they they're leaning towards they. He needs to pump this up to keep the pressure on and even though in the us, the bright administration knows that this is, and they can't really do it. The impact on the public, the pr damage, is going to be done so the by the administration, despite knowing that this is can't afford. It can't afford the pr hit, because it's going to cause panic in the u.s people are going to really be legitimately afraid that the u.s is going to basically get banished from the reserve currency status and assuming they'll, make a few concessions walking towards mohammed bin.

Salman and saudi, to give them some lollipops to work this out now. Here's the interesting part, china, is also doing this for a reason, china is not interested in this deal right now. Absolutely not. China wants to be the world's second or alternative, or even the only reserve currency at some point, 10.

15 years. They don't want it now, they're, not ready. The currency is not stable enough. The government is stable enough.

They need to reform the entire political system in the country, but mainly china holds a lot of u.s debt. China, at least for now needs the u.s to be able to repay its debt, crushing the dollar. Now, when china is holding all the debt is a big problem for china. You know the joke, but if you owe a bank a million dollars, it's your problem.

If you owe the bank 100 million problems, it's the bank's problem, so china in this example, is the bank. They have a lot of u.s debt. They absolutely do not want to get the dollar off the reserve currency status now, because they're going to hurt their own debt. China has a long-term goal with that, but not right now.

So why is china doing this? We know why saudi's doing it right, they're, trying to get biden and his you know more kind of liberal side to back off to be more aggressive towards iran, etc, etc. But why are the chinese doing this? Well? Because china is in a very peculiar situation here and i'll explain, china is right now dealing with the very weird cluster freak with russia. They don't want to help russia. Russia keeps asking for their help so far, they've remained neutral, but as of today, we heard direct threats from the us to china.

Saying hey. If you help russia so help me, god we're gon na sanction. You, too, you know if you do some dirty stuff with russia. There's gon na be some dirt on your shoes.

Don't think you're gon na be staying clean, we're gon na sanction, you pretty much, that's what they're saying so. Don't help russia. So this is china's way. Just a day later, look at this a day goes by and china claps back saying: hey.

We got leverage too, if you're going to threaten us we're going to threaten you and just the mere threat of this in the newspaper is going to send shock through your economy, your stock market and your people. So you know don't mess with us, yet we're not gon na mess with your, and this is just to show you that we can so that's kind of the chinese way to potentially, you know, get some concessions from the us. As far as you know, the stuff we talked about, maybe in the kind of trade aspect of it, get better trade terms, there's a lot of things that china can get here, but both china and saudi arabia have no interest in this to happen right now. So the status of the us dollar is the petro dollar, as the world's reserve currency is not going anywhere.

It's just. You know it's just a piece in the newspaper for strategic leverage for saudi against the usa and for china against usa, but here's the sad and scary part, even though this is complete and there's zero percent of this happening. The fact is that this was in the newspapers, and this is blasphemous 10 years ago, putting out an article like this in the newspaper. This would be unthinkable for a leader of saudi and now they're doing it, which means the deterrent force of the u.s is not, as scary, was their testing device to see what they can tolerate and it's not a good sign.

It means that they see weakness. So i don't hate me for saying this: it's just something that i see and i call out if you don't like what i'm saying just unsubscribe no problem, but i think there's a reason when you know when you're getting tested it means that people are saying. Well, i'm not sure that you as strong as we thought initially you are, and if you want one more reason why saudi can never get off the dollars like this is, if they make this deal, it will literally break apart opec because opec is going to stay On the dollars they're going to do this deal so once opec falls apart because of a deal like that, potentially that basically ruins the cartel and everybody loses money, mainly the main players which is saudi and uae. So the combination of these factors basically shows me.

One thing this headline serves as a strategic battering ram for saudi against the biting tradition for china against the us as far as potential backlash from russian sanctions, and it's not more than that, but the mere threat can continue for a long time all mbs mohammed bin. Salman needs to do for the past few months and for the next few years he's not even signed this. He just keeps saying that he's considering yeah, i'm considering it, i'm considering it i'm thinking about it. Every time he's going to say that there's been more pressure applied against this initiation, so he doesn't have to cite it.

You just have to keep entertaining it to keep the pressure on now. I do want to thank before the end of this video, because i think the valuable information here was really important to get out. I want to thank my good friend, sachin sharma, from sachin vats. He has a phenomenal youtube channel.

He helped me with this research and understanding the inner workings of these relationships and the geopolitics of the energy business he's an energy expert, so huge shout out to him. I'm gon na put a link to his own personal channel in the description below. I think it's really phenomenal the guy's legit go check him out. Thank you so much.

Let me know below what you think about my theory and how this thing plays out. If you agree, if you disagree, but you know, for me the bottom line is simple. Petrodollars are not going away. This headline is just a nice little bluff and whether it works or not.

This is where the box stops. Not more hey, see you soon.