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Jan. 17, 2016 - Jim Bakker Show
05:09
End of the Petrodollar?
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Time Text
Dollar Dominance Declining? 00:05:09
What are they saying about the finances?
How long can they keep building a platform under?
I mean, the stock market will go down and it will supernaturally come back.
Yes.
I don't understand that.
You must have found it.
No.
All the people I'm interviewing are saying they are confounded.
They're perplexed because nothing is happening the way the laws of the marketplace would dictate.
And the experts I'm interviewing are saying that they never expected the, let's call them the banksters, the people that are running the financial system.
They never thought that they would go this far with the printing of trillions of dollars and all of the intervention in the markets.
They just never envisioned that anybody would go this far.
And so they don't know how many more tricks that they've got to pull out of their bag.
But here's one thing to keep an eye on in 2016.
Saudi Arabia.
Saudi Arabia is in financial trouble.
What?
Yes.
Because of oil?
Because of oil.
Is that bad?
Yes.
Saudi Arabia is borrowing.
That's a rich country.
They're borrowing hundreds of billions of dollars.
Wow.
Saudi Arabia.
Hundreds of billions?
Hundreds of billions to keep the Saudi government going.
Did they talk about that?
You'll read it in the Will Street Journal and the Financial Times and some of the major papers, but the general public doesn't know about it.
But here's why this is really important.
The U.S. dollar, we have what's called the petrodollar.
Okay, here's the brief history of the petrodollar.
After World War II, world leaders convened in Bretton Woods, New Hampshire.
They had the Bretton Woods agreement for the world financial system.
This is where we got the World Bank and the IMF.
And the U.S. dollar was chosen to be the world reserve currency.
At that time, we were gold-backed.
And so the world leaders of the West said, we're going to recognize the U.S. dollar as the global currency.
Trading will be done in the dollar because it's backed by gold.
But in 1971, Richard Nixon ended the gold standard of the U.S. dollar.
By 73, between 71 and 1973, President Nixon and Henry Kissinger orchestrated, negotiated this agreement with Saudi Arabia that is now known as the Petrodollar Agreement.
They had to come up with something to replace gold because the only thing that was holding up the U.S. dollar was our gold.
And they took the dollar off the gold standard because up until then, you could still take your dollar and go get gold.
And they wanted to end that.
And so President Nixon and Henry Kissinger cut a deal with the former, the deceased king of Saudi Arabia that all oil sales in the world would be denominated in U.S. dollars.
And all of the Arab nations agreed to this plan.
In return, the United States promised to supply weapons and to militarily protect Saudi Arabia and the other oil-producing countries, the United Arab Emirates and Qatar and all those countries.
And so since 1973, the world has been on the petrodollar standard Because of the crash in oil prices, Saudi Arabia's economy is collapsing.
And the London Times has published several articles in recent weeks about the dangerous phase that we're in, that Saudi Arabia may, in early 2016, de-peg from the U.S. dollar.
That they can no longer keep their currency, the real, pegged to the U.S. dollar.
If this happens, Jim, the petrodollar ends.
China wants this anyway, doesn't it?
Yeah.
So Saudi Arabia could go with China or Russia.
They may cut another deal with another alliance of nations.
But when it happens, the U.S. dollar is toast.
It's over.
It's finished.
Wow.
Because the world will no longer be doing their oil trading.
And once the oil trading has ended, the world won't be doing any trading in the dollars.
And the IMF put the Chinese currency, the yuan, into the basket of currencies at the end of 2015.
So the Chinese currency is being elevated up.
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