Jim Bakker Show - End of the Petrodollar?
Aired: 2016-01-17
Duration: 05:09


=== Dollar Dominance Declining? (05:09) ===

[00:00:00]  What are they saying about the finances?
[00:00:03]  How long can they keep building a platform under?
[00:00:09]  I mean, the stock market will go down and it will supernaturally come back.
[00:00:14]  Yes.
[00:00:15]  I don't understand that.
[00:00:16]  You must have found it.
[00:00:18]  No.
[00:00:19]  All the people I'm interviewing are saying they are confounded.
[00:00:23]  They're perplexed because nothing is happening the way the laws of the marketplace would dictate.
[00:00:34]  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.
[00:00:47]  They never thought that they would go this far with the printing of trillions of dollars and all of the intervention in the markets.
[00:00:56]  They just never envisioned that anybody would go this far.
[00:00:59]  And so they don't know how many more tricks that they've got to pull out of their bag.
[00:01:04]  But here's one thing to keep an eye on in 2016.
[00:01:08]  Saudi Arabia.
[00:01:10]  Saudi Arabia is in financial trouble.
[00:01:14]  What?
[00:01:14]  Yes.
[00:01:16]  Because of oil?
[00:01:17]  Because of oil.
[00:01:19]  Is that bad?
[00:01:20]  Yes.
[00:01:21]  Saudi Arabia is borrowing.
[00:01:23]  That's a rich country.
[00:01:24]  They're borrowing hundreds of billions of dollars.
[00:01:29]  Wow.
[00:01:29]  Saudi Arabia.
[00:01:30]  Hundreds of billions?
[00:01:32]  Hundreds of billions to keep the Saudi government going.
[00:01:36]  Did they talk about that?
[00:01:38]  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.
[00:01:46]  But here's why this is really important.
[00:01:50]  The U.S. dollar, we have what's called the petrodollar.
[00:01:55]  Okay, here's the brief history of the petrodollar.
[00:02:00]  After World War II, world leaders convened in Bretton Woods, New Hampshire.
[00:02:05]  They had the Bretton Woods agreement for the world financial system.
[00:02:11]  This is where we got the World Bank and the IMF.
[00:02:14]  And the U.S. dollar was chosen to be the world reserve currency.
[00:02:19]  At that time, we were gold-backed.
[00:02:22]  And so the world leaders of the West said, we're going to recognize the U.S. dollar as the global currency.
[00:02:28]  Trading will be done in the dollar because it's backed by gold.
[00:02:32]  But in 1971, Richard Nixon ended the gold standard of the U.S. dollar.
[00:02:39]  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.
[00:02:56]  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.
[00:03:04]  And they took the dollar off the gold standard because up until then, you could still take your dollar and go get gold.
[00:03:12]  And they wanted to end that.
[00:03:14]  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.
[00:03:31]  And all of the Arab nations agreed to this plan.
[00:03:35]  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.
[00:03:51]  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.
[00:04:04]  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.
[00:04:20]  That they can no longer keep their currency, the real, pegged to the U.S. dollar.
[00:04:27]  If this happens, Jim, the petrodollar ends.
[00:04:31]  China wants this anyway, doesn't it?
[00:04:33]  Yeah.
[00:04:34]  So Saudi Arabia could go with China or Russia.
[00:04:38]  They may cut another deal with another alliance of nations.
[00:04:43]  But when it happens, the U.S. dollar is toast.
[00:04:46]  It's over.
[00:04:46]  It's finished.
[00:04:47]  Wow.
[00:04:49]  Because the world will no longer be doing their oil trading.
[00:04:53]  And once the oil trading has ended, the world won't be doing any trading in the dollars.
[00:04:59]  And the IMF put the Chinese currency, the yuan, into the basket of currencies at the end of 2015.
[00:05:07]  So the Chinese currency is being elevated up.