China and Russia are Trying to Break The US Dollar

 

I want to give you the situation you have China and Russia trying to break the US dollar, and then you have the brics countries they're offering an alternative to the US dollar , so the big question is a lot of people are asking this they want to know will they be successful in dethroning the US dollar as the world's Reserve currency ? so I covered this topic about 10 months ago so that article was a history lesson of the dollar and Reserve currency status and so I included my predictions on how this would all unravel , and this is my updates about 10 months later ,so let's just jump right into this people are saying that the US dollar is losing power to other Fiat currencies to cryptocurrency people are stacking silver and gold among other things , so here's the situation Russia has vowed to de-dollarize their economy , and that's what they've been doing China is on a mission to ditch the dollar and we're seeing that in action they're offloading their treasuries they're dealing enough they're dealing more heavily in other currencies and they want to get away from the Greenback , okay so, the question is  why is this happening ?why do they want this just ?why in general the primary reason is that you have the US dollar as the world's Reserve currency that is a big advantage to the US, it comes with this drawbacks too but I would say that the benefits heavily outweigh the costs obviously China is trying to contend with the us as the world's leading superpower so China does not want the US.

To have this unfair Advantage, so I want to give a few examples, the first one is the more extreme one when Russia invaded you saw what happened there are dollars that their dollars that they held they were frozen not just within the us but within Allied countries as well they try to get those dollars to sell them off but they couldn't they didn't have access they were frozen , so the other example is the other example of the weaponization of the dollar is through through sanctions so for example if China doesn't play by our rules then.

we can weapon that we can weaponize the dollar and we can Implement sanctions , so yes the U.S can be a financial bully in this sense and when you take a look at sanctions we're using them more and more, so it's basically like you better play by our rules or you better do what we say or otherwise we're going to sanction you and we're gonna hurt you economically so George W averaged 435 sanctions a year Obama 533 Trump 1027 Biden 1688.

so just so you know sanctions they have been trending hashtag, sanctions a quarter of the world suffers from sanctions and yes other countries are getting upset ,so you have the brics countries offering an alternative so bricks that's Brazil Russia India China, and South Africa now they're saying that they have several more countries that are interested in joining brics and they're looking forward to adding those countries and adding those letters to their name, I don't know what acronym that they're going to come up with but I'll give you the letters down below and let's see what people come up with in the comments down below ,so the letters are a a b c e i n n r s s u so that alphabet soup will be made up of countries that are all against the unfair practice and treatments of US dollar domination, but I want to give you an honest description of bricks because within bricks you have Russia and China they're trying to actively Dethrone the US dollar their motive is to become stronger as World superpowers the other countries Brazil India South Africa they don't they don't really care about that that's not what that's not what they're trying to achieve in all honesty they don't care if the dollar is king or not those countries

 what they're more interested in is getting the best deal possible for their economies, and so that's what they're truly going after they're essentially just looking for the best terms now the question is is bricks or the the other acronym a real threat to the US dollar I would say that it can be because 40 of the global population resides in countries within brics and imagine you know how much more it would be if you add in the other countries however until now Brix has not gained they have not gained enough traction to actually threaten US dollar dominance but they're trying but don't I mean don't underestimate it because I would say that Rome was not built in one day Rome did not fall in one day but it's happening where they're trying to have they're trying to have ,it happen and it's happening right under

our noses so China is using their currency in more of their commodity trades with their trading partners China and Brazil ,they finalized a trade deal in their own currencies and they've bypassed the US dollar Brazil and Argentina they're trying to create a common currency where hearing more threats of the Petra dollar losing its grip on the oil trade we've already seen Russia they're doing their they're doing their thing their gas for rubles Russia additionally announced that brics is developing a new currency to compete against the US dollar and they're saying that it's going to be one unified currency ,so it's not going to be a basket of their individual currencies so rumor on the street is that bricks is coming up with a cryptocurrency and word on the streets is that this cryptocurrency will be backed by a physical good and it's it's The Usual Suspects is gold or Rare Earth elements ,so if you look at all those countries on bricks they all have rare earth metals, so I don't think it's going to be oil, yes Russia has oil Brazil has oil ,but I doubt that it would be oil because China is a net importer of oil ,so they would be taking the lead or at least alongside with Russia so I doubt that it would be oil if they do back it with something in my opinion it would probably be gold okay so D dollarization is a nightmare scenario that is a huge problem for the US governments and for the country the US.

the reason why the US government can get away with massive budget deficits and continue piling on debts that will never be paid back in terms of real terms is because it's the world's Reserve currency , there is demand for dollars if that demand Falls then the value of the dollar will fall in that scenario the dollar weakens and when the dollar weakens that means dollars will be worth less, so it's going to take more dollars to buy stuff right that means that there's going to be crazy high inflation even hyperinflation and the worst case scenario is that the the dollar would collapse now, okay, fair warning, I want to give you my opinion and this is totally my opinion you can you can disagree with me if you want maybe you agree, okay ,so here it is in the next few years , so I'm talking about within this decade, I doubt that the US dollar will be dethroned however the dollar is in danger of seeing some serious weakening and that could be enough and that could just just the just the weakening part of it that could be enough to cause some serious instability or even chaos all right ,

so here's the thing, so I want to address this argument the US dollar is losing ground in 2001 Global Currency reserves were 73 in U.S dollars today it has fallen to approximately 58 percent, so you might think ,okay ,oh no on that trajectory we're doomed 73 to 58 in 20 about 20 years however I want you to know that, so this is very important ,I want you to know that these percentages they fluctuate in the 1960s we were at 45, now we're back at 58 so you could argue that over the past 60 years ,more people are actually using dollars that the US dollar is growing stronger ,so it depends on your time Horizon ,so do it depends on your time Horizon don't let people cherry pick the data and and trick you like that so I just want you to know that I am not here to spread fear those are the statistics those are the facts and you can interpret them however you wish the other fact is that there are no Alternatives good alternatives to the US dollar so I know what people are thinking people are going to have a snap reaction Bitcoin like Dogecoin, you know read the white papers Brian ,so listen I hear you I get it ,but I'm talking about other silly Fiat currencies as alternatives well, okay, you look at China, you can't have China they're the Chinese r b you can't have them because they have Capital controls ,so what are you going to do with Chinese RMB that you can't even spend or even get out of the country, it's simply not freely convertible which is what you need in a reserve currency and the Chinese RMB.

they're having a difficult they're having a very difficult time gaining traction because in 2022 that's just last year only two percent of global trade was done in RMB when you take a look at the Euro that is a no-go the bond markets in Europe ,they're fragmented they cannot provide the liquidity that is required with a you know as necessary with a global Reserve currency ,so the dollar is still King nearly 60 percent of reserves still held in USD 70 of exports are invoiced in USD and that is not likely to change anytime soon and I want to tell you this part ,so this is my feelings I don't know how you feel about this but this is how I feel I feel that fiat currency is a bunch of BS and I don't know where you want to say that things took a turn for the worse when it comes to US dollar ,you know with the US dollar I don't know what if you want to say that it took a turn for the worse recently with all this excess spending the massive budget deficits I don't know if you want to see it happen, you know it started with Nixon

or World War II or the Great Depression but one thing I do want to say is I disagree with most people because a lot most people say that the US dollar is backed by nothing I don't I don't believe that's true, I think that that US dollar is backed by the U.S military the most crucial branch of the military in the defense of the dollar I'd say is the Navy and the US,

okay, U.S naval superiority it is incomparable ,but when it comes to actual money rather than currency ,I prefer real assets hard assets I'm talking about gold silver Etc because personally to me it's a moral thing because this is all a sick game if you think about it the central banks and their Fiat currencies they are oppressing other countries but not only that they're oppressing people within their own countries so it's an unfair game that we're all being forced to play, and the people that have control of the printing presses they have all the concentrated power and the closer you are to those people if you're friends with them if you're family with them if you're Associates with them you're gonna have a bigger Advantage so this is the game of fiat currency ,but here's the thing this is something that I want you to note because this is not going to be easy there's a dilemma because if you want change then ,you're damned if you do and you're damned if you don't if nothing changes then this whole charade is going to keep going on ,but if you want change if you want the dollar to be dethroned there's going to be a lot of pain and suffering the transition will be chaotic so I'm gonna be honest with you at this in this point in my life, I am not fully prepared for that so I'm banking that the US dollar does not lose its Reserve currency status until at least the 2030s you know just hold on for just a little bit longer because I need some more time to prepare and I'm going to be honest with you I don't think that's going to happen this decade but you never know we'll see how this all unravels if you enjoy this content please be sure to subscribe I thank you for all the support and wish a very nice day please take care.