by now you must have heard that Saudi Arabia is leaving the US dollar and the Petro dollar agreement I mean I did a whole video on it but what you probably don't know is what they've just signed up to use right now I know it's not the Chinese Yuan it's actually something much more dystopian and scary it's something I've been keeping you up on over the last year I'm talking about cbdcs and specifically I'm talking about project from the bis called project mbridge but there's been some major changes and there's been some advancements since last covered it that you need to know right now so in this video I'm going to break down what project mbridge actually is I'm going to talk about the recent advancements that have been made why Saudi Arabia is choosing this over the dollar and most importantly what this means to you and I right now in the longer term now by the end of this video you're going to understand exactly what project mbridge is and more importantly you're going to be able to form your own opinions on whether you think it's good or bad more importantly what your plans are for dealing with this now if you're new to the channel my name is Mark Moss I've been making these educational Financial videos for over 5 years now I've been an investor for over 20 years I have lots of experience doing that I've been writing an investment newsletter for over seven years that consistently beats the market I'm a partner in a Bitcoin focused hedge fund and I speak at many of the largest financial conferences in the world and I made this channel to deliver that exact same information directly to you so let's go all right so we're jumping right into this and we're talking about Saudi Arabia did what now lots of videos lots of blogs websites Etc talking about Saudi Arabia ditching the Petro dollar agreement not renewing the Petro dollar agreement ending the Petro dollar agreement whatever you want to call it then there's a whole lot of videos and websites and blogs talking about that that's fake news and they didn't actually do that well there's actually some truth in both the thing is there's Nuance first I want to break down a little bit of the Nuance for you but more importantly what I want to talk about is what they're really going to do and how it's going to impact us but let's just break some of this uh for you some of this Nuance so you see headlines like this no Saudi Arabia is not ending their Petra Dollar Deal they're not so people contradicting that but then we see plenty of other ones saying that they are so what's the truth well the truth is is that there was an actual agreement in 1974 Saudi Arabia and the US agreed on Mutual cooperation and basically what happened is it was signed on June 8th 1974 and the USA and Saudi Arabia was about exclusiv PR was not about exclusively pricing oil and dollars so that's where the miscommunication or the Nuance is that's not exactly what this was about it was a bigger agreement that was formed but basically it was about enabling Saudi Arabia to use its money its dollars from oil and put them into the US economy all right so it was a bigger agreement that allowed for this cooperation where the US would provide weapons and assistance and technology and then they would allow Saudi Arabia to put the dollars back into the US Financial system that's what didn't get renewed so it didn't get renewed it's just not exactly what people think so there's kind of Truth to both of those so I just kind want to dispel that for you a little bit now what people are saying is that's fake news it didn't really happen and the dollar is not going down which again if you watched my previous video where I talked about this I've said the same thing this doesn't mean it's inevitable it doesn't mean the dollar is going to crash tomorrow and it's going to be over but what it does mean is that it's going to continue the trend that it's on and so what we can see right here is we can see the US Dollar in blue here as a percentage of global trade and these are other currencies the Chinese RI Japanese Yen British pound Euro the other big currency to the world now what we can see I put this arrow on the screen is the trend line is going down okay so we were at almost 80% here back in 2000 and now we're down below 60% here now okay so yeah we haven't plunged we're not going off of a cliff but the trend is going down and what happens is it's sort of the gradually then suddenly this is the trend that we're on that's why I show you charts all the time so you can see the trend the direction that we're going and this starts to accelerate like this when certain catalysts are forming like I'm about to break down for you I do wanted to show you one quick note here this is the Chinese Yuan which hadn't been used and now all a sudden you can see that starting to gain traction okay so these things don't happen in an instant they happen over time as I always say it's a process not an event now just to kind of show you some other charts you can get an idea idea this is also the US dollar um uh and other currencies US dollar the blue is the Euro and then we have the CNY and what we can see is that the US dollar is continuing to go down this is from 2004 to 2022 and we can see it's dropped about 19% at the same time the Euro's gone up just a little bit it's sort of on this trend line but the CNY China is coming up okay so it's the trend it's the direction but again there's certain things that happen around technology that speed them up and that's what I want to break down to you uh just one more chart so you can kind of see this i' like to show you the charts and graphs so you can see the size and the speed of these moves so here we are this is uh in 2014 so is much more recent here we are at 66% and you can see today here you know here we are about uh 60% so that's sort of the direction that's what's going on but let's take a look at what's bigger a bigger story and that is that Saudi Arabia which had this agreement with the United States for Mutual cooperation like I said exchange for protection weapons Tech technology and they had recycled those dollars back in the US now Saudi made a deal with the bis and not just the bis the bis in China okay now you might be asking yourself what the heck is the bis which is a pretty good question to ask because most people don't really know about the bank of international settlements all right I want to explain this I've broken it down a couple times so if you're a regular viewer of the channel then you're probably aware of the bis and if you're not a regular viewer then you should be click that subscribe button right now if you don't mind okay so so we want to talk about joining the bis so right here we have this uh you can see the news headline Saudi Arabia joins the bis and a China Le China Le Central Bank digital currency project okay so it was on the US and the US Le dollar network of the dollar is a lot of things but really the dollar is the currency sure like a paper dollar the dollar that we send digitally but also it's a payment Network so you can send a dollar anywhere in the world it's the largest payment Network in the world and so they've been on the US dollar payment Network and now they're joining China and the China Leed Central Bank digital currency project it's a pretty big deal we're going to break this down for you but I want to show you a couple excerpts here so here we see um this is June 5th just came out Saudi Arabia has joined the China dominated Central Bank digital currency announced by the bis Bank of international settlements um and it'll see Saudi Central Bank as a full participant the reason why that's important full participant is because this um bis chined Central Bank digital currency project has been under development for a long time it's been under testing phase what we call an MVP minimum viable product again I've talked about this for over a year but now they're past the testing phase and they become a full participant of this project mbridge so that's the key project inridge again you might have heard me talking about that before but um just for a real quick who is the bis you might have seen this chart before from me using it people love it when I pulled this chart out so what am i showing here so what we have at the very top of the Heap right here this is like an or chart for your company is the bis this is the Bank of international settlements and so in the world of policy makers decision makers like uh who are they we have the bis sitting at the top of that stack below the bis is the central banks so all the central banks are under the bis it's sort of like the central bank for central banks we sort of have the IMF in here as well then below that we have the policy makers and really all of these are policy makers this the world economic Forum the we the CFR the club of Rome chat mouth Rockefellers so all of these people are the ones that make the policies and uh then we have the United Nations the UN the IMF ipcc World Bank World Health Organization The Who Etc they distribute these policies down down to who down to your government down to your country that would be the United States uh Europe Etc these are the policy enforcers okay then it goes down to the policy propagandists which are of course mainstream media fact Checkers things like that and eventually it gets to you and I down here at the bottom the policy subjects uh the public and so this is the way the world works with the bis sit up at the top of that it's important to understand that because now we're talking about a new bis China technology that Saudi Arabia just went over to join and it's not just Saudi Arabia join it I'm going to break down everybody else who's joined it and there's a couple that are going to really surprise you okay now real quickly we can see that it's not just countries joining it but we have 15 news cases and 22 heavyweight participants including Goldman Sachs one of the largest investment banks in the world a US Bank HSBC right China's biggest state-owned banks they're all part of this project so this is not some small little Backwater deal this is a really big deal as a matter of fact here's a list of most of these companies or countries and Banks here's as of June of 2024 so this is a current list observing members there's more that I want to read out here but I'll read out a couple notable ones the Asian infrastructure Investment Bank uh Indonesian Bank bank of France Bank of Israel Bank of Italy Bank of Korea I mean they got some big players on here Central Bank of Chile Bank of Egypt Central Bank of Jordan again some big big countries that are sort of in the news right now Central Bank of Norway Central Bank of Republic of Turkey the ECB the European Central Bank the IMF the international monetary fund we have the and here in purple I put the New York Innovation Center the New York which is the Hub of the American banking system the Federal Reserve Bank of New York is on there Reserve Bank of Australia South Africa Reserve Bank and the World Bank not some little small Backwater deal this is what history books are written about this is world changing sort of like an 1944 when the brettonwoods agreement was put forth we're living through this right now that's why it's important that you understand this all right now I want to just talk about this real quickly this is a what I call a leap frogging event and that's what technology does so basically what happens is we have these technologies that come out and they Leap Frogs so for example in the United States we had a wired telephone system it spread out throughout the country had been out there for about a 100 years when the internet rolled out in the United States it rolled out very quickly because it went over the phone line if you're old enough to remember remember those old phone modems uh with that weird sound that happened so basically we had this wired phone system and so we could roll out the internet very quickly but in countries like Africa for example they didn't have wired telephone system so they didn't get the internet as fast as the United States did but what happened is Africa never did they never had a wired system so they never had wired internet either they Leap Frog past that and went straight to wireless why is this an important point it's an important point because as I said the US dollar is the largest payment Network in the world and so many people who think this is nonsense this is a big nothing Burger are going to say there's no one that can replace the dollar Network the Swift system because the US dollar has the deepest bond market it has the correspondent banking Network and it has the Swift system all right so those three things you can't just go replace it I mean you could but it's going to take a long time and nobody has that right now that's what they're going to tell you but the thing is that's sort of like saying Africa could never have the internet because they didn't have wired telephones but Africa found out they didn't need wired telephones to have the internet and that's exactly what this Leapfrog moment is so turns out the world doesn't need to have the Swift payment system in the correspondent Banks they can leap frog past and use new technology which is Project inridge or the CBD system that we're talking about all right let's talk about mbridge specifically you can understand what's going on I this looks like it's the new Financial system you should know about it sooner than later let's break this down okay so this is directly from the bis website you can go there and read about it on your own project IMBD is connecting economies through cbdc Central Bank digital currencies I'm not going to go super deep into this I've talked about it extensively as Central Bank digital currency it's basically digital money but more than that most of our money is digital anyway more than that it's programmable money so that means that they can program into it what you can and can't do with it what you can and can't buy what you can and can't spend for example you've uh gone over allotment of carbon in this cycle so you can't buy meat or buy gas right now or um you know these things aren't healthy for you so you can't buy them anymore um if you don't spend your money by Friday it comes back to us so there's all types of things that could be put in very orwellian a lot of control that can be baked in it gets worse than that but I'm not going to go deep into that but this is exactly what's going into place right now uh for a little bit more context here's directly from the bis website and we can see that what they're saying is the payment system under pending the cross border so sending money from country to country has not kept pace with the rapid growth in global economic integration so what they're saying is we have global trade globalization we're all trading with each other which is great the problem is that the payment system of how we pay each other it hasn't kept up it hasn't actually hasn't really gotten any better at all the global network of correspondent Banks I just mentioned that that facilitates International payments is hindered it's hindered by what by high costs by low speed and by transparency we just don't trust that system anymore uh like uh Russia getting their bank account seized because of the Swift system they don't trust that system anymore they want a new system and operational complexities so there's lots of problems with that old system they want a new one um it leaves many participants uh notably emerging markets and developing economies without affordable access to the Global Financial system so the US dictates who gets to be on the financial system like Russia you don't get to be on the financial system uh Iran you don't get to be on the financial system if you happen to be a teenager that happen to be born in one of those countries you don't get access to the financial system so they're talking about that and they're talking about multiple cbdcs Arrangements that directly connect these different jurisdictions these countries offer significant potential to improve the current system yeah current system sucks there's are lots of ways that we can improve it uh of course there's a much easier better way to improve it we'll come back back to the end the BS Innovation Hub Hong Kong Center Hong Kong monetary Authority Bank of Thailand these are the people that have been working on the PE the Bank of China Etc has been working on this to build a multi- cbdc platform known as embridge so that's the what and the how let me show you kind of how this thing works here's an illustration I pulled off the bis website so basically how this works is you have these different central banks here so here's Hong Kong um here's uh China's Bank here's Thailand's Bank uh the UAE has been in this for a long time so the Middle East the UAE oil producing Nations Saudi Arabia they've been in this so we sort of have the the banks here and they can each have their own currency right so Pro like the bricks they all want to have their own currency but the problem is is like how does it work with all these different currencies it makes it very messy every time I go somewhere I have to exchange I have to trade so they don't they want to fix that problem and so they'll create this bridge right here where the currency can come in and this currency can come in and they can swap for each other and get sent back out so it's basically it's a hub that allows each Curr to use their own and this Hub will then be the the single uh money changer of the world if you will right they'll exchange everything here's another uh picture that I got directly off of the website so you can kind of see how this works so you have a central bank right here this might be like the Federal Reserve of the United States and then you have the commercial Banks out here this might be like Wells Fargo JP Morgan City Bank Etc so you have the Federal Reserve or the Central Bank of each country and then each of these individual Banks all coming into this Middle where all of them can be exchanged in real time so that's how they want this to work now what's a little bit scary though is here's another image that I pulled off there is that what we can see here is we have a central bank here so Central Bank number one here's Central Bank number two China India whatever put whatever you want there and they talk about going to a private sector bank right here and then all of these are the different things you can have cash credit cards a bank account electronic money Etc right but what they show is that each one of these connects down to the central bank not to the mean Commercial Bank now the problem with that is that we centralized the banking system right now the banking system is still somewhat decentralized and as we centralization as I say centralization always leads to manipulation so this is a big danger I'm not going to go deep into that but that's a pretty scary graph if uh you know what I'm talking about okay if you want me to make a whole another video on that let me know in the comments down below I'll go deep into that subject so you might be asking yourself so what so what does this mean so Saudi Arabia didn't really ditch the Petro dollar agreement because there wasn't really one there I mean they're still going to use the dollars right but yeah they'll use other currencies um so what well here's what this means here's why this matters we are living through history right now we're literally watching the international monetary system be rebuilt from the ground up right now and what we're going to see what I predict is that the dollar dominance will continue its path what path am I talking about it's not like oh my gosh the dollars in your bank are worthless tomorrow it's not that it's not that like in 6 months or 12 months Boom the Dollar's gone it's not that it's that it just continues the path that it's on right now I told I showed you another chart we had gone from about 80% down to about 60% of global share of trade and then we'll continue to be 50% and then 40% and then 30% and then 20% and it will just continue like that for a long period of time so I believe it's a process not event so so what what does that mean well what it means is that if less countries are using those dollars see because the US is able to print dollars and ship them off to the world when those dollars stay out there in those other nations that inflation stays over there if those dollars come back to roost in the United States that inflation comes back with it so the US I live in the US anybody else who lives in the US has a has a good benefit right we don't have to deal with that high inflation other nations have because we have that currency but the problem is as the currency gets weaker at inflation goes up so they work like so prices going up does doesn't really mean things are getting more valuable they're not going the prices aren't going higher it's that the dollars to buy them are getting weaker and weaker so it looks like this here's the Consumer Price Index CPI so CPI the price of goods and services is going higher and higher and higher over here is the purchasing power of the dollar so it's not so much that prices are getting higher it's that it takes more dollars to buy those things right so it works like this so as we continue this trend going from 80 to to 70 to 60 to 50 to 40 this will continue to get higher and higher and higher faster and faster and faster so what does that mean well that means for you and I well and anyone else in the world the cost of living will continue to go up it's going to continue to go up faster than the rate of what your pay is which means the quality of your life is going to continue to go down that's what this means so that doesn't sound very good so the problem is that we are going of have to learn how to beat this debasement that's what we call it debasing the currency now right now this is a chart showing the S&P 500 and Global liquidity so the black line is the S&P 500 the orange line is the global liquidity I've shown you this chart a couple times so you look at the S&P 500 and go oh my gosh I'm getting rich it's going up by eight n% per year um look at at some point I'm going to have a million dollars in my S&P 500 account well not really because what this is showing is that the S&P 500 is basically moving up at the rate of the money supply increasing it's keeping up with the basement which is great at least you're not going underwater at least you're keeping your nose above water but you're not getting ahead all right so your purchasing power isn't growing it's just kind of staying the same but here's the problem if the money supply is increasing at about 8% and then we have Consumer Price inflation of I don't know call it three call it 4% then what we really have is 12% what we call a hurdle rate that means you need to grow your wealth by at least 12% to actually be staying ahead that's the real number that you have to watch out for not the phony 3 4% inflation number that the government want to tell you this is the number that you have to deal with and it's only going to accelerate as this project andridge as more countries continue to move this and we continue to move into a new system and leave the old system behind now again it's a gradually then suddenly So eventually there's a switch sort of like when the dollar took over from the pound sterling about 100 years ago it took about a 30 to 40e process and then the world sort of got together and said okay we're going to switch over now so it was about a 30 year 30 to 40 year event and then it happened okay so if you want to know more about this and you want to know where are the international monetary system not just the us or China but where the whole monetary system is going and why and why this is ultimately going to fail I got another video right here you should go watch otherwise give me some likes if you like this video if not you can give me thumbs down that's okay at least leave me a comment and tell me why that's what I got to your success I'm out