Well I think it's a long post I made, but I think it's important to discuss.
Over the decades, the dollar has earned the status of a Global reserve currency. But the dominance of the dollar has been dropping since 1971. For decades, America has enjoyed privileges. The currency is used as the Global reserve currency. The reason is that before 1971 the dollar was a stable currency because it was guaranteed to be converted by gold. So for example, if Arabs want to sell oil to Malaysia. For example, instead of using the currency of each country which is volatile, it is better to use the more stable dollar currency. This was reinforced by the Bretton woods agreement signed by 44 countries. So how does it work, each bank in each country opens an account at an American bank and has a dollar deposit at an American bank. So when there is a transaction, for example Malaysia and Saudi Arabia. Then the Malaysia user will send funds through a bank in Malaysia that has an account at an American bank. So, this bank then sent a message that sent the funds to a Saudi Arabian bank that had a bank account in America. Only then did the bank send a message to withdraw funds to a bank in Saudi Arabia and it was received by the Saudis. This system is called Swift. And as time goes by, this system is actually no longer relevant because it is slow and expensive. So the point is, America has the privilege of saving foreign exchange funds from countries. So if America collapses, then perhaps there could be a global bank run. Well, this almost happened in 1971. That's why President Nixon took the dollar off the gold standard.
Converting dollars to fiat currency and practicing fractional reserve banking to finance America's various budgets. From development to military. I learned that the FED keeps other countries' reserves in the form of gold. Now I also learn and want to give a learn that not only gold but foreign exchange or foreign exchange is also stored there. So if God forbid, if America falls, the whole world will fall with it. Chaos that never happened in human history. So, because there was trade, the foreign exchange or foreign exchange in the American bank was a surplus. Especially for Middle East countries. Well, we call it the Petro Dollar. So, for us there is another alternative to the traditional banking system, namely DeFi. For example BISWAP is my favorite DeFi or DEX. Where we can maximize crypto assets through farming with high APY, multi-reward pools, fix staking, and much more. BISWAP is the DEX with the lowest fees in DeFi. AMM BISWAP Fee 3 is also in progress according to the road map. All information about BISWAP is in the description column, friends. Petro Dollar is a set of agreements signed by President Nixon and the Saudi Arabian king Abdul Aziz Al Saud in 1971. The content is that America supplies military equipment to the kingdom of Saudi Arabia. Also protects oil fields. Where America also has interests there. And Saudi Arabia agreed to use the dollar in the oil purchase agreement. Either with America or with other countries using dollars. Long story short, Everyone Is Happy.
America gets oil. Saudi Arabia got military equipment and got rich. Until the foreign exchange savings in America become a surplus, even overflowing. And America then saw opportunity again. In 1974, America sent Treasury secretary William Simon to Saudi Arabia. The goal is to persuade Saudi Arabia. The framework is very simple. In essence, Saudi Arabia wants to reinvest its profits from the oil trade. Where to invest? Invested in American Treasuries through debentures. Well, this system is called Petro Dollar. Oil prices are denominated in dollars and oil exporting countries reinvest their profits by buying US debt. America won double only from political strategies. So, let's try to build a petro dollar political lobbying strategy.
The first, confiscating the gold of all Americans in 1933 through the Gold Standard Act. Second, translating the dollar into a global reserve currency through Bretton woods. Gold is obtained from the people and countries that deposit gold because America has its banking framework. Third, persuade oil exporting countries to use dollars. And in return, they provide war equipment and protect the oil fields of oil exporting countries because there are American interests there. Fourth, the whole world must be willing to buy dollars if it wants to import or export oil. Well, for countries that export, it causes the Oil Exporting Countries' Savings to become a surplus in American banks. And don't forget that America previously removed the dollar signs from gold. That's why America has a fifth strategy. That is, the surplus savings of oil exporting countries were also taken by America. Namely in the form of buying American bonds by surplus countries with various political lobbies.
Sixth, the whole world is in America's death grip. The whole world lives and dies depending on America and its central bank. And America has made the dollar its political weapon. For example, countries that don't want to comply with America have their bank accounts frozen. Like Russia and some other countries. The term is sanctioned or embargoed. But this dollar hegemony is threatened because there is a new petro, namely the Petro Yuan. In December 1978, President Carter opened formal trade relations with China for the first time. And since then president Carter has awakened the sleeping dragon. If Petro Dollar is oil denominated in dollars, Petro Yuan is oil denominated in yuan. So an oil exporting country can accept Yuan or Chinese currency in an oil sale and purchase agreement. Well, is the petro Yuan an attack on the Petro Dollar? Well, let's see the condition first. America lobbied Saudi Arabia to use the dollar and protect the oil fields with its military. The problem in this Biden administration, Joe Biden withdrew his troops from Afghanistan. Leaving a tremendous mess in the area there. The Joe Biden administration is also more interested in the war in Ukraine than in the Middle East. America prints money and sends military equipment to help the war in Ukraine. And there is a Power vacuum in the Middle East. Middle Eastern countries like Saudi Arabia, which used to feel safe because their oil fields were guarded by the US military, now have to find their own protection.
And their solution was, OK, we'll sell our oil to China with Yuan. Well, this is interesting. We all know Iran and Saudi Arabia have been enemies for a long time. But in early April 2023, representatives of Iran and Saudi Arabia met mediated by the Chinese foreign minister. Mind blowing right? So in my opinion, it's not because the dollar is being attacked, but because there is a Power Vacuum that must be filled automatically. In 2021, Iran signs a 25-year long-term agreement with China. Finally, Afghanistan has also signed agreements with China for oil exploration with Chinese companies. France is also stepping up cooperation with China. Not only trade agreements, but also military cooperation. Brazil signed an agreement with China. Joining a new block, namely BRICS. And encourage other countries to leave the dollar. In March 2019, China launched the Shanghai International energy exchange. The launch of the oil futures contract in Shanghai was well received and many called it the Petro Yuan. A Framework for Yuan adoption in international markets. Saudi Arabia, when this video was made, still had not really decided on a position. Well, when Saudi Arabia determines its position. This will be a game changer. At the Golf corporation council meeting in Riyadh in December 2022. Xi Jinping made an offer, China will continue to buy crude oil and LNG, Shanghai Petroleum and America's National gas exchange will fully utilize the use of yuan for transaction settlement. And China will also develop a digital currency to bypass the dollar system. So, what's interesting is the potential to reach the new gold standard. In this video, we have discussed that China is buying up gold and reducing US debt. What's the matter? Well, this is in my opinion a political communication to inform the other Central Banks that China will slowly dedollarize back to gold and will internationalize its currency. One of the strategies is from Petro Yuan which is backed up by gold. Without gold, China will not be able to fight the dollar. Yes, of course the Petroyuan will not replace the Petro Dollar in a short time. But China's strategy of backing up Renminbi or Yuan with gold was the initial foundation upon which to build the Petro Yuan system. This system allows oil exporters who use Renminbi to exchange it for gold and feel safer holding Chinese currency, rather than dollars. From Fiat Money Back To Hard money even though there are restrictions. So, now let's reframe. Not Pedro dollar, earlier we have discussed the Petro Dollar strategy. We outline the Petroyuan strategy as far as we understand. The first is the One Belt One Road Project. This is a massive scale project funded by the Chinese government with much cheaper interest than European countries. If the Petro Dollar is utilized by the dollar and replaced by the supply of military equipment, the Petroyuan is also backed up by infrastructure projects, not by the military. Known as One Belt One Road. In total there are 215 projects and 149 countries participating in the One Road belt. Some countries can meet their debt payments. Unfortunately, countries that cannot pay their debts have to renegotiate again with China.
Well, this renegotiation is said to include a discount if they pay their debts in yuan. Western media called it a Chinese debt trap. Even though in my personal opinion, it's not the debt that traps. But those who initiated it, those who approved it, were involved in the country. For example, we are offered cheap loan debt. But it's us who execute it ourselves. What do we want to use for ourselves too? The problem with a country that defaults on debt is not because of debt, but because of the corruption of its own people. Those who take Fees, who broker, who broker this foreign debt. The second strategy is to back up the Renminbi oil trade with gold. Third, military equipment that may not be as sophisticated as America's. And for now China may be losing on chips. So, will the petrodollar collapse? Napoleon once said when China wakes up, the world will shake. Xi Jinping picked up on that quote in 2014 and said today the lion is awake but in peace, friendly and civilized. Well, if the petrodollar collapses. If yes, if. Because not necessarily. If the Petro dollar collapses, what's the reason? The first is the desire of many countries to reduce dependence on the dollar or de-dollarization. Because the dollar is now not only a Fiat currency but also used as a weapon by America. Second, to avoid sanctions. For example, like Russia and Iran. Even Russia Now is considering accepting Bitcoin for oil and natural gas payments. Third, there is a much bigger market, namely China and maybe the BRICS countries. The fourth is that there are more attractive currencies backed up by gold besides the dollar. Fifth, Middle Eastern countries are starting to realize that America's interference in the Middle East has actually put the Middle East in chaos. So, it will be a game changer if Saudi Arabia as the leader of the OPEC country opens its doors to China and uses Chinese currency in its oil trade because the OPEC country is the largest oil producing country in the world. Well, now so many questions arise in my mind. Was the Ukrainian war initiated by Russia just a decoy. Only for America to print money again, then Russia and China both have an alliance to open the world's eyes as if they want to say, this is the result if you use the dollar system. Because the dollar is used as a weapon by America. Or maybe Ukraine is a Trojan horse. Because Ukraine wins or loses, it's still Putin who wins. Imagine, that sophisticated American military equipment was brought to Ukraine and could be investigated by Russia and China. Is it possible that this is the time for world civilization to return to Asia, instead of being westernized. So,What do you think friends?
