Well, the world is freaking out over the idea that the US dollar Supremacy is being faded away, that the U.S is going to get pushed into a corner and China is going to take over the world after all, China not only just established a partnership with Saudi Arabia to start trading and settling oil in Chinese Yuan Renminbi instead of the US dollar aka the Petro dollar, the U.S currency is the world's Reserve currency. Everybody buys oil in dollars and therefore the dollar stays strong and America remains relevant until it's not like the Chinese partnership between Saudi Arabia and China to trade oil in Chinese money and a now newly reported Uh release of information via Reuters that now the Chinese Nash, National Oil Company, C-n-o-ook and France's Total Energies have completed China's first Yuan settled liquefied natural gas trade through not United States markets, but instead the Shanghai Petroleum and Natural Gas Exchange. According to the exchange on Tuesday, approximately 65 000 tons of liquefied natural gas gas imported from the United Arab Emirates traded hands in this via the Chinese currency, not the American dollar and this is leading a lot of folks to wonder. Holy hell is this the beginning of the end for America Because as we've talked about over the last few days, we've made an end of America video discussing how our politics are becoming so divisive.

People care less about their Community patriotism and they care less about having children. The only thing people seem to care about that's been a change over time over the last 30 years is money. That is community patriotism. Children all down in interest, But money? Uh, at the same time.

Now we're seeing the Petro dollar be faded away. While we also talked yesterday about the weakening of America's military in the Middle East, how we're potentially becoming Irrelevant in the Middle East That out of 78 times Americans were attacked in the Middle East Since we withdrew from Afghanistan, the United States military has only responded three times. That's it. That's embarrassing leading to more and more attacks because militants in the Middle East just don't care because why would they if they have basically a five percent chance of actually getting attacked back? It's pretty embarrassing.

So it's leading a lot of folks to really be concerned about the Petro dollar and the potential that the United States will lose its status as the world's Reserve currency. What could that do to America What could be bad? If the dollar becomes less relevant then other countries will be less likely to want to hold treasuries. When other countries hold treasuries, They actually lower borrowing costs in America Because they lower rates. They make it cheaper for us to do business.

They make it cheaper for our government to finance policies whether it's stemi checks or new parks in your neighborhood. They keep our car rates down, our credit card rates down our mortgage rates down. They make it easier for us to trade with foreign countries. They make it easier for us to travel to foreign countries and spend money more easily.

The US dollar is also a powerful tool for military efforts throughout the world. People want to be nice to America because we got the Dallas We got power. Sanctions, Power International power. We have power everywhere.

So what is the Petro dollar? Well, the Petro dollar is just basically a fancy way of saying any dollars that are used for the trade of oil and the Petro dollar is really important because I want you to I want you to know the reality of what's going on here and that's always what I try to accomplish on my channel. Obviously I'm a licensed financial advisor I don't give you personalized Financial advice, but I get financial advice Uh I run an ETF I have courses on building your wealth I have a real estate startup I have affiliate links for life insurance and some free stocks linked down below. You already know that, but let me give you my POV on the Petro dollar. So first some background.

In 1973, the United States made a deal with Saudi Arabia that all oil sold by OPEC that is sort of your organization of petroleum exporting countries mostly in the Middle East and Africa All of that oil would be priced in U.S dollars and in exchange, the U.S promised to protect Saudi Arabian oil fields from attacks. So think about it, we'll send our guns you trade oil in Dallas This deal created the Petro dollar system it may Aid and it helped make and maintain the US dollar as the world's Reserve currency and it allowed the U.S to guess what? Print more money without causing inflation because the more people use the dollar, the more people trust the dollar even though we're inflating the crap out of it. The Petro dollar also gave the US enormous economic and geopolitical power as countries around the world, as I've mentioned, needed to hold dollars to buy oil. and every country needs oil.

Losing the petrol dollar would be an incredible hit to the strength of the dollar, and it could make products substantially more expensive around the world, causing something known as imported inflation. So in addition to rates going up like I've just talked about, you could also see imported inflation. Imported inflation is the last thing we want. Higher inflation would mean more financial Strife in America so that would be very bad.

Now keep in mind, the easy way to think about a strong dollar right now is: think about an iPad if an iPad sells for 700 Euros in uh, France that iPad sends basically eight hundred twenty dollars of US Dollars back to America. But what if uh, the dollar is super super strong. Well, that weakens money that we get from other countries. Right when the dollar was actually stronger than the Euro, we get less dollars back.

So it hurts companies that actually sell stuff in other countries and send the money back. But for us as buyers, we love it because if I could go buy a 700 Euro iPad and it only cost me 680 versus 820 I Save money as an individual, right? So that just gives you another example. So the strong dollar helps individuals and people who sell stuff in America But in recent years there's been a big push to create an alternative to the Petrodollar system. and it's this is sort of.

Especially now because of these deals between China and other countries. and a lot of it has started because we kicked Russia out of the Swift system. Now Swift is the society for World bank, interbank finance uh, and Telecommunications. It's basically a Communications tool for transferring money between different countries.

The US has used Swift to four sanctions against other countries like Iran and North Korea. But China is like we don't know if we want America to have this much power. So China created Sips, which is the China international payment system as an alternative and so they're really trying to hit us on both ends. Not only are they trying to get rid of the petrol dollar and use the Yuan dollar, but they're also trying to get rid of our banking communication system as China tries to be as their Prime uh, as their Premier who actually just spoke yesterday says a World's Force for stability So they're trying to basically eliminate America's power.

This is how the end of America begins. Now, when we talk about the Petrodollar, it's important to remember that OPEC controls about 40 percent of the world's oil supply. and right now they use the dollar. So that's a big part of the oil supply that uses the dollar.

And we've been using the Petrodollar system since. Really, like I mentioned the early 70s And the way to think about the Petrodollar I think is, in comparison to other uses of Dollars around the world, there's something known as the Euro Dollar. The Euro dollar is kind of like a Petrodollar. It's it's not a Euro not to be confused at all with the Euro.

It's basically just dollars held by other countries outside of the United States or even within the United States at embassies. And what I like to do is I like to compare the petrodollar strength to the strength of the Euro dollar to show you how much you should actually be concerned about the loss of the Petro dollar. So here's the way to look at it. The Petro dollar trades by the amount of about 3.5 trillion dollars per year.

This is the Petro dollar right here. Okay, the Euro dollar system trades to the tune of about 12.4 trillion dollars. I'm gonna call it the E dollar not to confuse people with the Euro because it's still the US dollar. So the Petro dollar is actually about one-fourth as important as other countries using dollars to buy treasuries and have dollars in their reserves outside of the Petro dollar.

So, as scary as it initially seems that we might lose the Petro dollar when we actually look at the volume of trade in the Petro dollar system. it's significantly smaller than the dollar strength outside of the oil and natural gas sector. so as nice as it would be to maintain the Petro dollar, some losing of the Petro dollar strength to China probably isn't as big of a deal as it seems now. Other countries in the past have tried to de-dollarize Venezuela in the 90s and again, in 2017 tried to de-dollarize And what did the U.S do? the U.S basically imposed massive sanctions on Venezuela and helped them create a massive distrust for the Venezuela's for Venezuela's own currency, which led to inflation in Venezuela.

That was one million percent in 2018. and it fell all the way to nineteen thousand percent in 2020. Venezuela had so much inflation after trying to get away from the Petrodollar system that they actually tried to create a crypto called the Petro, which the U.S basically called a scam. So it's obvious like trying to get away from the dollar system has been tried before, but it's actually surprisingly sticky and even if we lost the Petro dollar, it's a drop in the bucket relative to E dollars.

Call them E Dollars, not to confuse them with Euros. So the point is losing the Petrodollar probably isn't that big of a deal and it's actually really, really sticky just because we hear of some of these trades outside of the Petrodollar system. We've literally been hearing about that for decades. But here's how I really want you to put to express the fud around losing the Petro dollar? You ready for this? This is my take on how you get rid of the fud for losing the Petro dollar.

We've other countries have been trying to get out of the Petrodollar for 30 years. Even if we lost 100 of the petrol dollar today, it wouldn't be that big of a deal even though there are fears it would be when we look at it actually as sort of along like the global banking system scale. it's a drop in the bucket. Petrodollar 3.5 trillion The global banking systems like 100 over 100 trillion dollars.

Like it's not that big of a deal. But anyway, even if we lost 100 today, it's not a big deal. but it's not good. We're not going to lose 100 today.

It's gonna probably take 30 years in my opinion to actually kill the Petro dollar. What do you think is going to be less relevant in 30 years oil? I Hate to say it. but as the Petro dollar which is let's say supremely relevant right here as the Petro dollar, let's that might be 2008 where it was most relevant as the Petro dollar loses relevance. and maybe it's totally gone, the Petro dollar dominance is totally gone, and I don't know.

20 55. let's just make that example: what's gonna happen between now and that? Well, Petro AKA oil. Is it gonna be relevant anymore? Anyway, Instead, we'll probably be a lot more focused on like the end phase dollar who controls the micro inverters for solar or the EV dollar or some form of other, Or the the self-driving in Autonomy dollar or the AI dollar. So really this this fear around the Petrodoll around the the Chinese working with the French and the Chinese working with Saudi Arabia.

Yes, to some degree it's a sign that oil or America is losing relevance. Yes, to some degree it's a sign that America and American exceptionalism is being worn away. Our exceptionalism is wearing away. There's no question about that.

Is this something that is going to change tomorrow and cause massive issues? No. Is this something that China would love to go away? Of course, I mean keep in mind what helped create and prop up the Petrodollar system. Nothing other than the military industrial complex. The U.S spends more on its military than the next 10 countries combined.

The military-industrial complex has a vested interest in keeping the dollar strong. That makes a lot of sense. And so of course, a country like China wants to slowly start mining away the importance of the US dollar. But e even though we might not trust currencies, and Trust Fiat there is no currency that is trusted more than the American dollar.

And you can see that just by comparing the E-dollar space, euro dollar space relative being three times the size of the bachelor dollar space and how important is the petrol Now really in the very interesting things: I Mean yeah, it's useful. Maybe maybe it provides some form of global stability at least at this point, but by the time it actually matters I Don't think oil will matter anymore. So do I really care? Bottom line: Bottom line: of all it do I really care that China Is you know, playing you know, with liquefied natural gas with rants? No. So the next time somebody asks me about the Petrodoll or ask you about the Petrodollar, make sure to send them to this particular video because I think we provide a realistic perspective on how the reality is.

This isn't going to affect your daily life. There's a lot of fun around what it could do. The reality is it's gonna be such a slow burning candle, it probably won't matter, but if for some reason it still gives you anxiety, get life insurance in as little as five minutes by going to Metcaven.com life that is a paid promo mobile ship. Make sure to also go to Metcaven.com free to get 12 free Stocks by a Weeble and check out the programs foreign.