If anybody wants to discard their stacks of worthless US Dollars, I am setting up a Dollar recycling service, and would be glad to collect them up. I just thought I'd put that out there. lol
To whoever made the Reserve Currency Graphs, a tip that I would expect to be lesson 1: don't put indistinguishable colours next to each other, it is very difficult to differentiate between Japanese Yen and Other on the graphs.
lmao I didn't even think about that but yeah, I'm tired of hearing about BRICS. Stop trying to make BRICS a thing, its never going to happen. The idea that a coalition of nations that shoot at eachother, lack functioning democracies, and have minimal international influence will ever be a dominating force is an absolute joke.
Three years ago, it was impossible to anticipate the current condition of the U.S. dollar. The United States persists in repeating the same errors responsible for the dollar's current predicament. Consequently, there's no certainty that the dollar's future will be as promising as anticipated.
These are the conditions in which life-changing money is made by those who remain calm, patients, and take controlled risks. Volatility goes both ways, the bigger the red candles, the bigger the green ones.
The dollar had a long and robust life. The U.S citizens are asking for close borders and less international interference, the World is tired of the "The U.S problem is the World problem; the World problem is the World problem" basically. After the pandemic everyone survived and learned. Almost everyone. So, the U.S should give to the citizens what they want. No more imports, no more exports, as far as I saw, many citizens agree they don't need other countries. So, close up, the world will keep spinning. Win/Win The U.S will be happy, the world will be better. Sounds like a dream to me honestly
Fun fact, the Byzantine currency was the longest stable currency in history. From 330 ac to its first devaluation at 11th century was almost for 700 years the US dollar of its era.
and that great currency falls apart when you need to inflate it by 10,000,000% to be able to cover all the demand for it. the US dollar is already inflated to a level to cover all the worlds demand for it.
@@wraithcat76 ye, I mean, the entirety of the Byzantine empire's wealth valuation in over 500 years can be covered by someone like Elon Musk alone. I mean, just Lockheed Martin's r&d expenses in 5 years itself cover all of Byzantine's 500+ years worth of wealth lol
I interpret for a Vietnamese company a few weeks ago. They deal with wheels balancers and tire-rimming machine imported from China. Vietnam and China have a massive ammount of trade going on, shares a land border and have similar culture so it would be easy to quote the prices in yuan or VND right? Wrong. Everything is in US dollars and from talking with the Vietnamese company, dealing with Yuan is super difficult and rare, like 1% of deals they have. If the partners say it must be yuan the Vietnamese company have to use under the table means to settle the transaction. Same thing with the PC components industry. You barely see yuan uses here in Vietnam.
@@StrangerHappened Nah as long as Vietnam and China is still an net export nation and export most of its stuff to the US then Vietnam and China would still have a ton of USD on hand. It would still be more convenient that way.
Thank god someone has a Brain, people who think the DeDollarization is going to happen haven't actually looked into these other "competitive currencies"
Yes and I can't believe some people think RMB will replace it. Surely the Euro would be a better option even though it similarly is unlikely to ever replace the USD.
A perfect storm is brewing in the United States. Housing prices, Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund which has been sitting duck since forever with zero to no gains.
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I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
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Except, the world is falling apart outside of the US. People are now starving to death inside of China. Lebanon, Argentina, Brazil, Turkiye just to name a few countries now have over 78% hyperinflation. Their currencies are crashing around the world the Japanese currency has crashed and they have a good economy. You are ignoring the fact the global south is suffering.
@@mwinsattAh yes, talking about global currency transactions is the hottest take out there. Nothing gets more views than a guy talking about the history of currency trading. Lmao. What a dumbass
I'd like to add that India actually trades with certain countries using the rupee, where it is cheaper. However we continue to trade with most counties in the dollar. Also I believe that the US is India's largest trading partner. Edit- India also said they won't support the BRICS currency.
That's fascinating, I would have thought that China still would be number one for India. I just looked it up, India exports more to the United States than it does to any other country, but it imports more from China than any other country.
@@musa7606 the sudden oil imports were too large and russia accepted rupees just to avoid USDs, but they dont import much from India so essentially they just have ton of rupee reserves
In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65. how can a young man with 200K survive?
Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan...
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $121k ROI, and this does not include capital gain.
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We also have to take note of the sheer size of the US economy as an independent nation. US Dollars are PUMPED in and out of other countries for goods and services. As stated in the video, it would take an absolutely massive and catastrophic event to dethrone the US dollar. An event so big, that the US would be just a shell of it's former self or even (dare I say) obsolete.
yyes but no, for another currency to be used it would just need to be easier and more reliable than the dollar, that doesnt mean that the dollar has to dissapear or for the US to be in ruin, just that theres an easier option. look at the euro, the eurozone is great and super rich and productive, but the dollar is more convenient. but that doesnt mean that the euro sucks.
@@sergeigen1 US has enjoyed higher salaries because of fiat currency reserve. It isn't pegged to commodities and the trade can happen without US. US doesn't produce anything and only consumes what the world exports. The economy is around 26 trillion but the debt is even higher at around 31 trillion. It will collapse sooner or later. The BRICS nations can do without having US as a country on the map. There's no real value that US is adding. The services and IT sectors are over valued
yes, practically impossible. You literally need China govt approval for every single transaction. I was in a top-dozen bank and when we wanted US$1billion worth of RMB around 2010 to invest in China we had to submit our entire company bona fides, balance sheets, P&L for five years, and wait months for permission for that single transaction.
Yup, because every time they open it up they get massive flows out of the country. The people with power and money within China don't even want the Yuan.
@@sinoroman > if only China had their own version of Bretton Woods Agreement after a massive victory over a war Winning a war isn't sufficient. You also need an open society and open economy. The US has had an open economy since the US's founding (and the colonies before that). China has no such thing.
Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420,000 losing value because of high inflation. Where else can we keep our money?
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An important thing not mentioned here is that there are countries, such as Saudi Arabia, UAE, and others that want to join BRICS, a list that could grow bigger the more successful the block becomes, and if that happens, that could really strengthen a BRICS currency. Still, as a Brazilian, I don't see the BRICS currency dethroning the US dollar any time soon, it's more of a second option to circumvent dollar dependency, like what recently happened in Argentina when they ran out of dollars.
Brics coruncy will never happen. India and China hte eachother and don't trust each other. I as an Indian know that most of us whould protest against it. We just don't trust those chig chogs.
There is really no BRICS, Brazil hovers above bankruptcy for maybe 30 years now. Their currency is pretty much worthless and exists in a small volume. Russian does not have economy or currency. India and China compete and are more likely to end up in war with each other than accept each other currency. China has two currencies, remimbi that can be used only by Chinese and in China. Cannot be exported or swapped, then Juan, which is centralised pseudo-currency of small volume and cannot used without prior approval from CCP representative. BRICS is not really a thing, it's from a paper from 1980 from a London econmist, it means nothing
Also an attempt to take away the dollar as a form of economic leverage. e.g. sanctions against countries. Not that any alternative wouldn't do the same.
In reality it is much less because many currencies have a tied, fixed rate exchange rate. For example many European countries that don't use the Euro have a never changing exchange rate with the Euro. On a much smaller scale the Falkland Islands Pound is always worth the same as a British Pound.
If USD falls, then the Euro has a massive head start on any new BRICS currency. Most of Europe uses it, and the European countries that don't use it will exchange it because their trading partners use it.
The Euro is also used in South America, in France, specifically French Guiana, which isn't a colony, or overseas territory, but a literal part of France.
Good point, just because BRICS takes the USD down doesn't mean they'll be the one to replace it. I think more countries would be comfortable switching to the Euro since the EU is much more stable than BRICS, plus there's more countries in that organization so the power is spread out a little bit more. Not to mention the US, despite losing their crown, would still be one of the top economies and would likely support the EU over anything else.
China on it's own is bigger than the EU economically and is more likely to get the gulf states over the EU so trade in oil would be in Chinese yuan over Euro's.
Yeahhh, no this just isn't true. This is an ignorant westerners' dream, if the Dollar-centric world we live in falls, in the world we live in right now, China wins by default. Currency matters specifically because it's one of the few ways China can topple the US global dominance without something more drastic taking place, like war or overt conflict. China has most of Africa bought and paid for. China controls 45% of global manufacturing. China has the entire ME and Gulf onboard because the US backs Israel, and occasionally comes and invades countries without provocation, and most of the Gulf isn't down with that. China's military, political, and economical might wipes the floor with the EU The only saving grace is what was referenced in the video. Chinese supremacy is limited to China because that's how they built their country, from the inside out, so quickly. Conversely, US supremach is defined by it's influence and control of the world outside it. The US loses that power practically overnight if it chooses to abuse it, which makes it a moot "trump card" to hold. And if China truly does find a way to weaponize its currency without shaking its powerbase internally, there is no country, or "Union" on earth that is standing against it. Today, on a de-facto basis, if the US isn't the US anymore, China wins. Nobody else can compete. The EU will very quickly bow down because it's nation states are dependent on Chinese imports.
@hecktorrhyanm146 europe only has the most trade is you count inter-EU trade, which isn't all that impressive, us or china would be larger if you count their inter-state or inter-providence trade too. more importantly, the EU is seen as a merely extension of the us, more so now that they basically do whatever the us wants since the russian invasion of Ukraine. so why buy the currency of a us poodle, when you can just buy dollars.
Great video, just wanted to add that some of the jurisdictional links that the US employs to exert its authority upon foreign transactions are highly contested under international law and rejected by the vast majority of the international community of states (in particular currency-based jurisdiction).
Lol, common currency of BRICS backed by Gold and other precious metals and backed by manufacturing power of China, abundant resources of Russia and Independent and Transparency of India can easily cut through this claims.
@@Spider-Man-2099gullible or hopeful. No way of knowing that with any certainty. However, our history does point to somebody will find a way to exploit anything.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $350K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
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If anyone is interested in a deeper dive into the topic, Patrick Boyle and Plain Bagel are both finance professionals and both have great videos on the topic. TLDW of which is no, dollar as a world reserve currency is not getting replaced by yuan or any other currency anytime soon.
It’s not getting replaced by it’s not going to hold the share it did as the world reserve. The goal is to create an alternative not overthrow it(something like the euro).
As of 2007, the mortgage backed security as an investment vehicle was not going to be undermined anytime soon. And as of 2021, inflation was transitory and would be dissipating shortly, and banks were completely solvent. You see, history always happens very slowly, then all at once. And "experts" are always faking it til they make it. Broken clocks and all.
Pretty much. The world runs on Western technology, computer chips, etc. Shut literally any country out of that, they're suddenly irrelevant in five years. Or in China's case, they'd just starve as they desperately need world trade/imports to even feed their own people, let alone run a manufacturing conglomerate. If say, NATO were to break up that would be different, but until that happens the Western countries can just shut out others from trade and watch them fall well behind the rest of the world very fast.
@@jonc4403pretty damn smart if you ask me. Russia and China alone have a larger population than the US and Canada easily- why stay a victim to fluctuating US debt at 32 TRILLION when those Brics can remove themselves from the US ability to weaponise the dollar?
It's also worth noting, that even in the highly unlikely event that the USD is credibly challenged, whether by a hypothetical BRICS currency, or more likely by a traditional currency, that the British pound remained the global reserve currency long after Britain stopped being the worlds strongest economy. It's as much a product of inertia as anything else, which was only really stopped by Britain being nigh bankruipted by two world wars. So not only does an economy have to become much larger than the USA. It also has permit transactions without crippling capital controls, unlike China who is currently the only real contender. After all, you can't be the global reserve if the globe can't reserve you. But it also has to stay that way for damn near 100 years. Or it has to wait for the USA to suffer an economic collapse, which as you note would almost certainly mean a global economic collapse.
A regulatory climate for credit expansion and exchange controls, and enforcement mechanisms require time to put in place. Any contender is imitating the US at this point.
Britsh pound was THE strongest powerhouse until WW1. Then the dollar surpassed because it was actually backed by gold up to 1933, but there wasn't an easy substitute back then, even FORD tried to create a private one to no avail.
"It also has permit transactions without crippling capital controls". Yes , the currently demented USA government is crippling the Dollar with capital controls A.K.A Sanctions.
@@pcopeland15China's currency would only get to this point if the Chinese Communist Party falls...at that point I do believe China would outstrip the US, but with the CCP in charge it won't
Well it's time for the BRICS- New World Order to come up with a default reserve currency or simply go back to gold as the reserve. It will be too chaotic for each country to trade in their respective currencies with the daily change in exchange rates.
All big corps are just a cohort of centralised system working together, and any damage to one can have a dangerous ripple effect on every other one. I learned a long time ago to not trust corporations. Most of my money is in the stock market and my businesses. I keep only what I need to spend in my checking account.
@@Karagoldberg7 Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The mar-ket looks very shaky. The bigger the red candles, the bigger the green ones. I have made over 280k in the last 4 months by invest-ing through my FA.
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None one would use BRICS currency as they are not stable. Lebanon is in crisis and they switched to USD they would not think of CNY, USD will take many years to fall.
To become the global reserve currency it’s generally assumed you need to satisfy 2 practical requirements for a good period of time. 1. You must be one of if not the largest buying of goods on earth. 2. You must have one of the if not the highest net imports. This allows you to force anyone who wants to sell the main customer goods to accept that customers currency. There is almost no other practical way to force a majority of the worlds suppliers to use your currency, thus becoming the global reserve.
@@alexm7023 that currency also has to be stable. Crypto is worthless on a global scale BECAUSE of the fact that it's decentralized. Not having it tied to a specific currency is what makes it unuseable.
I think it's wrong to say that Euro won't challenge the Dollar just because adoption plateaued. The global currency needs to be trustworthy, and you build trust over years and years. Therefore, more accurate statement would be "euro didn't have the miraculous performance everyone expected"
Didn't the Euro replace the dollar in Europe and it's vicinity? Perhaps that is the possible future: not a single global currencies, but several regional currencies.
It also is just more untenable because the ECB policy has to deal with a wide variation in local economies. The Fed can just act alone without too much worry about anything but the US economy
Bretton Woods established the current monetary system. The Euro, Yen, etc. are all intricately linked with the USD because of the debt situation after WW2. The Euro, in essence, is just another extension of the United States Dollarization
USA kills its currency every day with the stupid nonstop money printing press. It’s your own fault if your money dies out of lack of confidence. Euro and BRICS money will take the dollar place.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
I'm sure the idea of an invstment-Adviser might sound controversial to a few but based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 580k within 16-months from an initially stagnant Portf0lio worth 105k.
@@MarkSlavin1 How did you achieve it? I been trying to stick with index funds. I feel this new interest rates hikes could crash this economy. I'm looking out for a better investing strategy, I have a lump sum that inflation is steady eating up.
@@DarleneMurphy774 Laura Marie Ray is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up
I'm an econ student, and I'm taking global economic history as an elective next year. To understand what is going on, I truly believe that we need to understand how we got here.
It's misleading in a sense though. Globalism wasn't a thing before WW2. So these strong currencies shown in the graphs are more like indications of strong global powers dominating by sheer trade volumes basically rather than the reserve currencies of US Dollar today.
I recommend to you the book "The World That Trade Created: Society, Culture and the World Economy, 1400 to the Present" by Kenneth Pomeranz, it's a lot more detailed than the brief history lesson here.
😂🤣Nice video but you killed it when you said (at 18:43) that "The majority of the world agrees with the US action.." 😇🙃 🙂You brought in a Western Perspective!
The vast majority of the world's MONEY (economy) agrees with the US action. As far as the rest of the world, they are too weak to not be officially neutral.
Ikrr 😂 that's such a western thing to say. As if the rest of the western world other than the US has a choice to oppose. And even then western countries are not only the rest of the world.
@@ramanabharathi376 I assume most of the world's PEOPLE do not support Russia invading its neighbors - raping and killing innocent people. Their authoritarian governments are a different story however. Dictators support the "right" of other dictators to dictate. The people have little influence. Other countries, mostly weak countries, will choose to take advantage of the suffering of the Ukrainian (and Russian) people for their own economic gain, or at least try not to piss off either side.
@@CleverAccountName303 yeah most of the people don't support the Russian invasian. I was alluding to the fact that the US had so many mistakes in Vietnam, Iraq, Syria and the world didn't care as it didn't impact them. Or even if they did, they didn't really have a choice in not agreeing with the actions of the US.
I... hadn't realized that currencies had to actually change (proverbial) hands during an exchange. I figured they were directly transmuted somehow. But on second thought, banks and nations probably want to limit who can create and destroy currency at will.
It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately $350k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?
That’s right! Downturns provide plenty of opportunities for regular people to build wealth from the scratch. However, you may need to get some professional advice from an Invest-ment planner if you need an aggressive return.
Money and macro (a economist teacher) also has a great video on the subject. He concluded China still has a long way to go due to ease to obtain loans, trade imbalance, (importing more than exporting) and large free markets
If I had to pick a currency to be the global currency, I think I’d pick the Euro. It’s a proven model of different countries sharing the the same currency. I wouldn’t want any singular country’s currency dictate the global economy.
Until I can easily get my money out of China same day, it won't happen. No business wants to have large sums of cash locked up and held hostage in a banking system ruled by a totalitarian regime that changes its mind on things on a whim
@@lordhoden having a reserve currency means you import more than you export as you can no longer determine your saving rate of your nation at a macro level as demand of nation creates reason opposing nation would need said currency in the first place. not mentioned in this video is the pro's and con's of having a reserve currency as that's where things start getting highly complicated.
@@lordhodenChina and Japan are large exporters, they have massive USD foreign currency reserves (mostly in Treasury bills) because of this to "park" their trade surplus. This reinforces the USD reserve currency status.
One important thing not mentioned is the amount of global debt denominated in USD. Whatever currency comes around will need to be exchanged for USD for service/repayment. It would take a generation for this debt to be unwound and to be issued in a new currency.
It is not. It is displayed in USD as per conversions for US news for ease of understand. Likewise you will be told about the size of a Cricket stadium in New Zealand in feets instead of meters. Also, the biggest creditor of the debt is China which deals in Yuan
@@rockcliff1930No, you are severely misunderstanding. A lot of unstable economies issue debt in USD because that's what investors trust in, they don't want to buy a 20% coupon Argentine bond only to be hit by 100% annual devaluation. Thus, 55% of Argentina's debt is denominated in USD.
I dont think its ultimately necessary for them to *replace* the dollar. So long as there exists an alternative to the dollar, that alone immensely diminishes the effect of sanctions and its teeth. Countries get a lot more leverage to develop their markets to better suit their own domestic needs over international ones
@@snoopysnoops007 They been doing that since 2007 yet still hasn’t achieved a single thing even during the great recession of the US. India is trading with the U.S. in dollars, china trades with US in dollars, guess who runs chinas economy the US. Also the russian ruble just crashed 🤣
I think ultimately we have yet to reckon appropriately with the consequences of BOTH fiatisation and the nationalisation of wealth and trade. which none of these things are _bad_ per se… but it is lot more complicated then weighing pallets of gold. I think in the least, both by virtue of BRICS members being adequately incentivised and the multilateral setting being most appropriate, i’m happy we get the chance to look like this again from first principles. that’s my take 🤷🏾
The problem is that for this to work, China would have to fairly value their currency, something they desperately don't want to do. Also, Russia is like a hollowed out diseased tree, just waiting to collapse and South Africa is an economic basket case on the verge of collapse.
Will China wait to remove some devaluation after most of belt and road is done? When the world is so addicted to its efficient supply line that they don't care that prices jump 15% as that is closer to the true value of Yuan. It would also making all Chinese people 15% richer overnight, but Vietnam and India would be 15% cheaper to outsource to, so a tricky balance.
Actually, dollarization is only getting stronger. It seems a lot of countries are even worse than the US at managing their economy and currency so their one currencies are bad and their people have no faith in it and accumulate dollars. Places like China actually have problems due to their trade surplus because they suck out far more money from countries than they give, therefore their currency is not in circulation.
I wonder if many of the countries that appear to be terrible at managing their economies are actually just being crushed by crippling sanctions I don't claim to be an expert so I don't know but it's something to think about
@@adamvose2651 the countries that are sanctioned are not angels. They are like Russia, who is currently invading Ukraine, or Iran supplying terrorists attacking the U.S. or attacking Israel and other U.S. Allies in the Middle East.
I saw somewhere else in this comment section that the reason the Euro did not become the default global reserve is because it never federalized. I take this to mean there is no singular economic policy maker like the federal reserve in Europe. Decisions made in economic policy within the EU have multiple nations, each with their own share of often competing interests. If a group of nations which largely border each other and have strong historical, cultural and political ties cannot come together on a currency, I have a suspicion a BRICS currency would have even more trouble. This is why the USD is so powerful and stable, there is only one party dictating policy so only one interest is considered. If we are talking about the dominant global reserve currency, the reason the USD is in that role is because the US is the largest economy in the world. Almost every nation on Earth does business with it in some way. BRICS economies all together barely exceed the nominal GDP of the US and adding those others like the UAE, Saudi Arabia, Uruguay, Argentina etc would barely move that needle.
It is crucial to differentiate between fiscal and monetary policy. Europe does have separate fiscal policies, aka governments collecting their own revenue and spending it at their own discretion. But Europe does not have a separate monetary policy, the European Central Bank controls interest rates, open market operations just as the Federal Reserve in the US. Depending on how you look at it, Europe is closer to the US than one might think.
Even if the US weren't the dominant power in the world, people would still use the Dollar as the reserve currency (at least for a while). People still used the Pound for quite some time after Britain had been eclipsed by the USA in terms of economic output. The only nation which really threatens US hegemony is China, and people don't trust Yuan since it's heavily manipulated, so it's not like people are going to swap to Yuan the second they officially eclipse the USA.
Well, the importance ofSaudi Arabia and UAE is not their GDP but their oil exports. We all know the demand for dollar is high as the oil is traded with it and if it quits being necessary to trade oil, well, it will devalue pretty fast.
@@ttuliorancaoseems like no one is taking into consideration of Oil rich countries moving away from the dollar will be massive..and Saudi Arabia and UAE wants to join BRICS including Iran also
Totally randomest observation: The B-roll shot at 1:39 is (most likely) of the Paris La Defense area. It's not one of the most striking areas in Paris, especially as it doesn't have the Eiffel in view. But I recognize it cos of the less striking Grand Arche in the middle of the shot.
Until there is a currency that can buy anything, anywhere, at anytime, while maintaining its value( at least relative to other currencies), and being available in volume the US Dollar will remain. Also any country that replaces the dollar will have to be able to deal with massive trade deficits. It always struck me as weird that people worried about the trade deficit since that was how dollars entered the international market. e.g. China needs to sell more to the US than it buys in order to have dollars to buy oil from Saudi Arabia who then needs those dollars to import food, weapons, and the like from the US among others. If the US has no trade deficit the dollar cannot be the world's currency as there'd be no way for most countries to acquire it other than buying bonds( which you need dollars in the first place to buy) or exchanging gold or other resources with US institutions for dollars.
@@bubbledoubletrouble Well debt, and other liabilities are a problem for any entity, households or businesses that have to be concerned with making a profit, maintaining cashflow, and whatnot. They aren't a state, which can snap their fingers and magically create more money in an instant through the power of monetary inflation to buy whatever they want, or just raise taxes. Could you imagine what household finances would look like if people could tax or print currency?
Great summary of possibilities! I agree with the ultimate conclusion though. The USD isn't going anywhere and the media always tries to hype sensational stories like this. Remember in 2008-2009 when the media narrative was that the US financial system was done for?
The question is if the USD will still be the main world currency in 50, 100, 150 years time. Nothing lasts forever. The Spanish imperial currency was used as the world currency for hundreds of years. There was a time when people considered that currency to last forever
@@boilingwateronthestovewhy is that question there? The planet could be destroyed by a comet in a 150 years and you’re worried about dollar being the reserve currency?
I mean yeah but in every huge catastrophic financial event the US bails out corporations and banks so it’s hard to say how many times more they can afford to before it collapses for good… not desiring it myself, I don’t want suffering for any person in any country, but I’m skeptical that bailing out huge risky institutions every time they overdo it is a strategy that can work long term.
18:42 minority of nations? China (Second largest economy, Most populous country, largest manufacturing sector on earth, largest standing land army, second largest navy, monopoly on rare earth minerals etc etc), India, (3/4/5/ depends how you count it largest economy on the planet, 2nd largest standing army 3/4/5/ largest navy, one of the 10 largest manufacturing establishment on earth etc etc) russia (one of the: top 10 largest army, top 10 largest navy, top 10 largest manufacturing sectors on earth, ultra high specialty on space programs, and nuclear tech, one of the largest resource and energy bases on the whole world), South africa the richest country in African continent (one of the largest player in precious stones and precious metals market, most advanced army on african continent, etc) Brazil (largest south american nation, one of the largest economies in the world, massive natural wealth, etc etc) not to mention BRICS+ Minority of nations!! i guess for a colonial mindset, us as a people will never be anything than a minority. Too bad your days of sullen supremacy are numbered.
That's a big resume that basically says nothing. BRICS isn't making a new currency, they're just streamlining their current ones to maintain economic self-sufficiency. Half the members don't even get along
16:16 have you noticed that when someone likes a policy they call it "open" but when they dislike it they call it "deregulated"? In reality there are actually millions of regulations surrounding literally everything in the economy, but yeah ... Interesting.
The issue with other smaller currency bases is they are easier to manipulate. Further the US does not directly manipulate the currency like China or Russia. Further the size of backed currency is large enough to provide trade. The real reason China wants Yuan to be the global currency, they can decided the value.
"the majority of the worlds economies agrees that the weaponization of dolar is primarily being done for good" yeah, gonna go ahead and call a "citation needed" on that one, mate
I grew up in a Pacific Northwestern town wherein for some reason many kids and young adults adopted Ducat as a slang term for money, except we pronounced it such that it rhymed with bucket and used it almost exclusively in the plural. If one were to say, he's got ducats, that meant he has a lot of money.
One thing I didn’t hear you mention is a big reason the US dollar is a leading reserve currency is because the US is a huge net importer. Goods sold here are paid for in US dollars and that sends US dollars abroad which means other nations will almost inherently have a reserve of them. This makes many of the currencies you mentioned unsuitable as a reserve, among other reasons like pegs, lack of robustness of financial institutions, etc.
" the US is a huge net importer" but they only have that privilege as seignorage on the issue of dollars sent abroad that get converted into profitable USD-denominated, interest- bearing bonds. De-dollarisation means less demand for USD, so the issuance of future dollars to pay the interest on, and term- redemption of current bonds becomes untenable. Then the edifice becomes unsustainable and the USD as global reserve collapses. Current US policy is to use military force to uphold dominance of the dollar by destroying challengers. This policy worked with Iraq (proposed to sell oil in Euros) and Libya (proposed pan-African trade in African Gold Dinars) but has failed in Ukraine because BRICS are too big economically and too powerful militarily to be smashed like Saddam and Gadaffi,
The best argument that wasn't used in this video is that USA is a massive importer, both because of the number of people and the relatively high income. So, dedolarisation is just impractical, since trade with USA is really beneficial for any country
Only because they keep paying interest on the bonds that those exporting countries buy with the spare dollars that they don't need to buy stuff from the US (which doesn't produce anything that you can't get better & cheaper elsewhere in the world now). As the demand for new dollars dries up, they won't have funds to pay the interest and redemption on maturing bonds. Then the whole Ponzi comes crashing down.
Some corrections: (1) The collapse of trade with Iran was because the US threatened companies with secondary sanctions. And faced with losing either the US or the Iranian market. Most chose the latter. The currency was not the main problem. (2) most of the assets seized from Russia were seized by Europe and Japan, not the US. (3) Swift is a European not a US-system. The US has of course some authority over the USD-trades in Swift though. (4) reserve currencies usually are the currency of a trusted debtor. Europe and Asia simply generate too much surplus for it to even make sense.
This is so western centric... When the florin and ducat were dominat in the West, in Asia, the Song dynasties and in india, they were much bigger economies...
Then go watch eastern centric videos. I get that it would have been interesting but ultimately we needed to get to the dollar and they are limited in time
This documentary has a huge hole in it. Nowhere is Bitcoin or Crypto mentioned even though it is fast becoming the go to standard for international purchases. My company has been importing Chinese made goods since 2017 and the overwhelming preference amongst Chinese companies is for payment using either Bitcoin, Litecoin or Ethereum. They don't seem to want US dollars as payment because of the difficulty receiving US dollar wire transfers and they don't want to take credit cards because of the high fees.
You should have mentioned Tolar (Tahler). This silver currency minted in bohemia became the international standard due to high abundance. Gold coins held too high value for most trades (like 12 cows = 1 ducat).
What about crowns? Weren’t they an international currency at some point or am I wrong? I’m just going off of all the international trade that happened in the middle ages and renaissance.
this coin is called the _Maria Theresa thaler_ and this coin remains popular in North Africa and the Middle East to this day in its original form: a silver coin with a portrait of the ruler on the front and the Habsburg Double Eagle on the back
The other option that wasn't mentioned is the possibility of a tie of the exchange notes to a portion of gold convertibility. BRICS nations are large players in international gold markets. The convertibility creates a link that reduces the incentive to inflate the value and central banks for the countries could easily exchange gold for energy commodities to re-balance the accounts. There's no need to physically exchange gold, you just simply credit other things the governments trade against the imbalance.
There is nowhere near enough gold on the planet to ever make such a system workable. This has been the problem with the gold standard for the last century, and what led to its collapse.
@@PhysicsGamer Absolutely none of that is true. There's no "amount of gold needed". By definition prices are relative. You can price things in anything, in any amount. A barrel of oil could be worth a grain of gold or 5000 kilos of gold. It doesn't matter. Only the relationship. There used to be one good objection to a gold standard, but it's no longer relavent. What "broke" the gold standard was politicians who did not want their spending constrained. They wanted to be free to inflate the currency and hide the resulting devaluation. And no, the neo-Keynesian / MMT economist you're going to want to cite is wrong. Those branches of "economics" are completely bankrupt, as evidenced by their inability to have any predictive value from their theories. It's equivalent to citing scripture to explain how rivers are formed.
@@johnblaker2454 A barrel of oil can only be "worth a grain of gold" if you can find someone willing to give you a barrel of oil in exchange for that grain of gold. Same thing in the other direction - a barrel of oil can only be worth "5000 kilos of gold" if you can find someone willing to give you 5000kg of gold in exchange for a barrel of oil. In reality, nobody wants gold badly enough for the world's supply of gold to be enough to express the value of global trade. Hence, it's not a suitable choice for a currency you expect to use for global trade.
@@PhysicsGamer You just described pricing in terms of anything. Clearly you don't understand the basic aspects of what makes a currency develop. Currencies exist in the absence of governments for a reason. Once you understand that, you'll get why nothing you've said makes sense in terms of basic monetary theory.
@@johnblaker2454 Basic monetary theory is incapable of truly modeling a complex modern economy. Which is why it is only _basic_ monetary theory. In reality, if you need enough currency to express a quantity of economic activity worth X but the amount of gold in the world is below that value... then a genuine gold standard is impossible. The only meaningful compromise is a horrible combination of fractional reserve banking and a gold standard, where each unit of currency is somehow only worth some fraction of its face value in gold, presumably with a floating rate based on market forces. And congratulations, at that point you've reinvented the gold market with fiat currency, just with extra steps. This isn't a new idea. It's been brought up a number of times, especially around when we abandoned the gold standard - a lot of people were very invested in hanging onto at least a semblance of it. Every time it gets laughed out of the room, because it really doesn't accomplish anything except make more paperwork for everyone.
Weaponizing a currency makes it unpopular, printing money for war is dangerous too. People normally borrow to invest and make a return. What if America had borrow to invest in infrastructure, and education their Bridges would not be collapsing. The Dollar is backed by nothing, and are forced to wage wars against nations, who have done nothing to America.
0:38 it is not the first time that I notice stock footage from Riga is used when speaking of Scandinavia, makes me kinda proud of my home country Latvia 🇱🇻 😅
0:00: 🌍 Currency exchange depends on trade relationships between countries. 6:05: ! The pound sterling became a global reserve currency due to its reach, steady value, and convenience. 09:24: 💰 The US implemented massive financial penalties against Russia, seizing billions of dollars in Russian money and assets. 12:10: 🌍 BRICS countries are discussing the potential of creating a new international currency for dollar-free trade, posing a challenge to the dollar's reign. 15:18: 💰 The yuan has potential as China continues its march towards world's largest economy status, but the country's economic system makes it incompatible for further integration with much of the rest of the world. 18:20: 🌍 The majority of the world's economy agrees that the weaponization of the dollar is primarily being done for good, and the US can only use its economic weapon so much because it is granted by the rest of the world. Recap by Tammy AI
The BRICS currancy is not about removing the dollar complily, it is about having an option for the dollar. I don't think it would be the strongest currency but if the BRICS currency removes 30%-40% of dollar transaction will be already a massive success
This glosses over, misses or hides a lot of nuance. Up until quite recently, the currency had very little in common with modern currency. Yes, people were trading in Florins and Ducats, the the value was in the precious metals inside the coins, the states minting them were only a guarantor of the purity and weight. The coins were effectively mini gold bars with a state seal for legitimacy, merely a convenient package so traders would not need scales to measure the value. Modern currency is fiat, it is essentially national debt and rests entirely on the trust in the nation's government and its ability to pay its debt.
It would take an extraordinarily event like WW3 to BRICS currency to displace USD any time soon. The world economy is so dependent and interlinked now it will take a while to rewire the system with a different currency.
It's not about replacing the dollar, it's about having an alternative. Using CNY in Argentina has helped us greatly with the MASSIVE IMF debt our US-backed president acquired.
"extraordinarily event" Actually most likely a new American Civil War IMO. It beggars belief that the US public put up with the craven idiots they are invited to vote for. Though, to be fair, all that 'pledging allegiance' and 'flag saluting' is such a pernicious contributor to 'brain-rot' that descent into slavery to the Oligarchs of Wall Street is probably inevitable.
Nobody abroad is going to forget that US gov can confiscate your reserve in dollars whenever they want, whanever you are a friend or an enemy. That's a powerful motive to dump the dollar even if it takes 20 more years
Yet any currency created by a nation in the role of a global reserve currency is vulnerable to this same problem. Trading in the yuan exposes you to the same problem, this time with the CCP instead of the U.S Federal Government. Meanwhile, internationally created currencies are at the same time less stable, and prone to being used as tools to influence the smaller nations in that international sphere. This is why a BRICS currency doesn't work. China would be given too much power over the other nations in the BRICS forum. While they all have the economic interests to do it, their rivalries with one another would quickly tear the value of the currency to shreds. China has eyes on both Russian and Indian territory, while Brazil, Russia, and South Africa are all unstable commodity exporters. The value of their economies depends almost completely on the international demand of their respective export resources. For South Africa, that's mineral wealth, for Russia, that's oil/gas, and for Brazil, that's coffee. The thing about shared international currencies is that they require stability in the economies who use them. 3/5's of the economies in the BRICS forum depend completely on international demand for their export products, so guess what happens when demand for that export product dips? Well, you need only ask Venezuela. There's simply no way China would willingly give up its extremely powerful economic sovereignty to share it with such unstable economic partners, and potential nations that they may soon come into conflict with. The Euro only works because the European Countries who use it are willing to give up some of their economic sovereignty to each other in codependence and cooperation. This isn't born out of fear our out of mutual distaste for some common cause, but because the countries that use the Euro genuinely want to cooperate with each other for the benefits. Dedollarization might happen, but it only will happen if the U.S rampantly abuses its power too much, and the dollar will only remain so long as the U.S remains a relevant global power.
BRICs has said their goal is to replace the world currency which is the dollar. They don't want to make a new currency but make it so they can trade in their own money. If this happens it is all over for the USA. Remember, Sadam wanted to use Euros to sell oil and see what happened to him. Libya also wanted to do this. BRICs is too powerful and huge for the USA to use military means and sanctions won't work either and both India and China are huge exporters of resources and produces. Russia also has a ton of natural resources the world needs. Idk what the USA and Trump will do but it will be bad .
This is a really cool video about a topic that I didn't know much about before, but now i have another question: how did the global economy operate through the cold war, where I assume similar financial tactics would have been used?
Two parallel systems, Western one pretty much the same as it is now and weird bs in Soviet Union and its colonies. Exchange was Barter like, Soviets sold oil and metals in exchange for food or machines.
Due to Lend-lease, the Marshall-plan, its holding of gold, and other economic aid and commerce the US provided to win WWII, the world became became dependent on the dollar over the British pound. This led to the Bretton-Woods Conference and subsequent agreement in 1944 where all 44 Allied nations, including the Soviet Union, met to set the global financial system for the post-WWII era. This established the IMF and emphasized free trade but the part that angered the USSR was the US Dollar was to becoming an international standard for exchange rates as well as gold. Their delegates ultimately signed the agreement but the USSR never ratified it by contributing to the IMF. But because the Soviet Union usually focused on self-sustainability and only had usually less that 5 percent of its GDP resulting from foreign trade, it didn't impact foreign markets that much.
Deciding that you want to be a free and independent nation does not qualify as a provocation. NATO continues to exist and expand because the actions of the Russian Federation leave no other option. If you are an actual human, you need to seek other sources of information.
Spends more than a minute talking about Ducats but can't be bothered looking up the pronunciation, and none of your editors picked up the error. This is the production quality we've come to expect from Wendover.
This was a very good video on this topic. Thank you. Many of these videos on this subject are basically clickbait or hype/hyperbole, and extremely unreliable. You managed to lay out all of the facts and go through many of the iterations, as well as give a short but good explanation of how reserve currencies work and their history. You also actually discussed, accurately, where BRICS is and the factors that make it unlikely they will ever even adopt a group currency, let alone that it will challenge the dollar.
How is it reliable when he didn't mention how the US forced countries to use the dollar? It's a rather important fact to be left out, particularly because it means certain countries would be eager to leave their abusers.
I'm trying to imagine an extra-national currency governed by consensus beyond the direct control of governments. I wonder if such a thing could ever exist. It would certainly have interesting attributes.
There's already a basis for such a thing - the IMFs Special Drawing Rights (SDRs). If a major world crisis were to occur that required the world to shift from the dollar but there wasn't a ready alternative, one could very well be created. And its rules for the issuing international agency could be codified such that its constitutionally prohibited from being weaponized like dollars can be.
That's what crypto is always touted as. Decentralized, no one can stop it if they wanted to. It would take a global issue and a global effort that everyone has to agree on for it to be ended, which is just literally impossible. Like, Bitcoin can now never go idt, because someone will always see worth in it, even if that worth is purely historical-based at some point in the distant future; it's value would be DUE to the fact that's it's old and rare, like coin collection.
The main problem of an extra-national currency is the lack of the final backstop: if everything goes down, is there still someone who would still accept it exclusively regardless? National currencies derive their value because you can only pay national taxes and pay for government services using the national currency.
In 2003 a downtown condo in Toronto ran for $200,000 CAD. A common office worker pay was about $35K/year in 2003. In 2023, a similar condo will run for $800,000 CAD. $50K/year (same position as before). Do you see the problem with run-away inflation?
the problem in toronto is that it's the economic capital of canada and the liberals have decided to increase immigration to 1 million per year . most of those people go to toronto. inflation is not even in the room. it's supply and demand.
@@limones0 He is right tho - Ray Dalio is a stock trader who at the time of writing his book was over extended in Chinese markets. By publishing his book saying China is the next super power of whatever, he is hoping "the street" starts buying up all the China investments he is trying to get out of. He wrote the book to get media attention to amplify the message to be bullish on China -- most firms just follow what big investors do so he is using his influence to put out a false signal on how he wants the market to go to help him with his positions. There is a lot of money to be made, no expert is going to give it for cheap in their 20-30 dollar book.
On your point about the declining share of reserves held as dollars - this is partially true BUT (a) global reserves have greatly increased in absolute terms over time, and (b) when you look at which currencies have increased (euro, yen, franc etc) its those whose central bank have swap lines with the Fed, meaning they can rapidly be swapped for dollars, meaning people are rly looking for the next best thing to dollars. The outlier is ofc RNB but thats to be expected given the massive increase in chinese trade.
The PetroDollar underpinned USD, But since Saudi and other oil states joined BRICS+, they already control >80% of oil exports. The dollar will be replaced by an BRICS+ asset backed StableCoin, to be announced by Russia at the BRICS+ conference in Moscow August 2024
the US gov is spending crazy amount of dollars every year, that crazy over spending is actually what drives people to move away from the US Dollar. because if you trade with the dollar, then the US gov can just print massive amount of US Dollar money out of "thin air" and buy "Really Stuff"(food, goods, labor, resource, companies.. etc.) away from you. buying some tangibles with this massive amount of thin air dollar, is at the heart of the advantage of having a reserve currency. but the US gov might be printing this advantage too much and too thin.
because this youtube entertainer that's disguised as a guy with facts twists his words carefully that only western supporters can blindly believe, echoing through their chamber. It is laughable :)
If anybody wants to discard their stacks of worthless US Dollars, I am setting up a Dollar recycling service, and would be glad to collect them up. I just thought I'd put that out there. lol
You are going to have a lot of work in 5 years.
If you have limited storage space I'm also willing to offer customers room in my house, happy to hold onto the dollars
@@1Surge Said since 1970s
I can help in my area
Well in a few it would probably be worthless even though it's not worthless now.
To whoever made the Reserve Currency Graphs, a tip that I would expect to be lesson 1: don't put indistinguishable colours next to each other, it is very difficult to differentiate between Japanese Yen and Other on the graphs.
Whoever made it got a D in their graphics design class
The person who made the graphic must be color blind
@@BnORailFan Color blinds still know the similar color. Their notation of color is just off from majority..
Few things in life bug me more than non-contrasting reference colors on a graph.
Exactly, I was stumped by this too.
You get roped in for 10 minutes before you find out Sam has bamboozled you into watching another video about bricks.
Guess who sponsored this video 📹
Best comment right here
lmao I didn't even think about that but yeah, I'm tired of hearing about BRICS. Stop trying to make BRICS a thing, its never going to happen. The idea that a coalition of nations that shoot at eachother, lack functioning democracies, and have minimal international influence will ever be a dominating force is an absolute joke.
The speaker is so stupid. LOL. I certainly sure that he is an American. The way he thinks confirms that.
That was obvious from the title
Three years ago, it was impossible to anticipate the current condition of the U.S. dollar. The United States persists in repeating the same errors responsible for the dollar's current predicament. Consequently, there's no certainty that the dollar's future will be as promising as anticipated.
These are the conditions in which life-changing money is made by those who remain calm, patients, and take controlled risks. Volatility goes both ways, the bigger the red candles, the bigger the green ones.
The dollar had a long and robust life.
The U.S citizens are asking for close borders and less international interference, the World is tired of the "The U.S problem is the World problem; the World problem is the World problem" basically.
After the pandemic everyone survived and learned. Almost everyone.
So, the U.S should give to the citizens what they want. No more imports, no more exports, as far as I saw, many citizens agree they don't need other countries. So, close up, the world will keep spinning.
Win/Win
The U.S will be happy, the world will be better.
Sounds like a dream to me honestly
What I like about Stacy is that THIS IS A BOT CHAIN, IT IS A SCAM, DO NOT TRUST THESE ACCOUNTS.
@EthertonFOReverBot
I don’t think it’s accidental at all. It seems to be on purpose.
Fun fact, the Byzantine currency was the longest stable currency in history. From 330 ac to its first devaluation at 11th century was almost for 700 years the US dollar of its era.
Lool. "The US dollar of its era". Thats like describing Messi as the Jack Grealish of Argentina".
@@dennohnjogu4028 Nice comparison
@@dennohnjogu4028 wait which country is messi in this football reference then?
and that great currency falls apart when you need to inflate it by 10,000,000% to be able to cover all the demand for it. the US dollar is already inflated to a level to cover all the worlds demand for it.
@@wraithcat76 ye, I mean, the entirety of the Byzantine empire's wealth valuation in over 500 years can be covered by someone like Elon Musk alone. I mean, just Lockheed Martin's r&d expenses in 5 years itself cover all of Byzantine's 500+ years worth of wealth lol
I interpret for a Vietnamese company a few weeks ago. They deal with wheels balancers and tire-rimming machine imported from China. Vietnam and China have a massive ammount of trade going on, shares a land border and have similar culture so it would be easy to quote the prices in yuan or VND right? Wrong. Everything is in US dollars and from talking with the Vietnamese company, dealing with Yuan is super difficult and rare, like 1% of deals they have. If the partners say it must be yuan the Vietnamese company have to use under the table means to settle the transaction. Same thing with the PC components industry. You barely see yuan uses here in Vietnam.
Not for long, thankfully. The trade is rapidly getting rid of the USD.
Is this why PC components are cheaper in the U.S than anywhere else even the UK and stuff?
@@StrangerHappened Nah as long as Vietnam and China is still an net export nation and export most of its stuff to the US then Vietnam and China would still have a ton of USD on hand. It would still be more convenient that way.
@@AMD_Fan_98 Higher VAT and taxes rather than currency tricks is the main reason I think.
Thank god someone has a Brain, people who think the DeDollarization is going to happen haven't actually looked into these other "competitive currencies"
If I had a dollar every time somebody predicted the collapse of the dollar, I’d have a lot of dollars.
If I had a rupee every time somebody mentions this in comments, I'd have a lot of Rupee.
Yes and I can't believe some people think RMB will replace it. Surely the Euro would be a better option even though it similarly is unlikely to ever replace the USD.
A Yank still in denial
lol. wait for the change in regime. What's so great about Rome these days?
@@RC-eb5hbiNcLuSiViTy and dIvErSiTy 😂😂
A perfect storm is brewing in the United States. Housing prices, Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund which has been sitting duck since forever with zero to no gains.
There are lot of ways to make a killing right now, but such high-volume near impeccable trades can only be carried out by real-time experts with ISDA Agreement. An agreement that lets investors sit at the “big boy table” and make high level trades not available to amateurs. Trying to be a high stakes trader without an ISDA is like trying to win the Indy 500 riding a llama.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
“Sonya Lee Mitchell” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Except, the world is falling apart outside of the US. People are now starving to death inside of China. Lebanon, Argentina, Brazil, Turkiye just to name a few countries now have over 78% hyperinflation. Their currencies are crashing around the world the Japanese currency has crashed and they have a good economy. You are ignoring the fact the global south is suffering.
I can only imagine how happy Sam was when he found out the organization was called Brics.
Usa has strategic partner in brics ,India
India and China are enemies
It’s looking more and more likely the name will change to BICS.
@@MarcosElMalo2 If Russia is pushed out, maybe Rwanda can be invited into the group just to keep the acronym intact!😜
briCs
@@commandertaco1762 BRIcS
Funniest thing is that shots you've fetched for Sweden, showing Swedbank is actually from Kipsala in Riga, Latvia.
Mistakes like this make me think of this video as entertainment and not an actual documentary
@@harrisonmendes7505 Yeah that mistake is really important of course
Yeah, honestly this dude is not very good at portraying factual information. Hot takes to generate views with too much conviction with his words.
@@mwinsatt i’m sorry if this is stupid question but i can’t tell if ur joking
@@mwinsattAh yes, talking about global currency transactions is the hottest take out there. Nothing gets more views than a guy talking about the history of currency trading. Lmao. What a dumbass
I'd like to add that India actually trades with certain countries using the rupee, where it is cheaper. However we continue to trade with most counties in the dollar. Also I believe that the US is India's largest trading partner.
Edit- India also said they won't support the BRICS currency.
That's fascinating, I would have thought that China still would be number one for India. I just looked it up, India exports more to the United States than it does to any other country, but it imports more from China than any other country.
@@musa7606they’re worthless unless they buy something from india. Countries just won’t accept them.
@@musa7606 the sudden oil imports were too large and russia accepted rupees just to avoid USDs, but they dont import much from India so essentially they just have ton of rupee reserves
@@raghavendrasingh5077 You saying russians cannot redeem the rupees?
@@Six_Gorillionthey can always buy other currencies with that rupee but they wont get rupee to rupee because they got to pay a vig on the transaction
In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65. how can a young man with 200K survive?
Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan...
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $121k ROI, and this does not include capital gain.
Mind if I ask you to recommend how to reach this particular coach you using their service? Seems you've figured it all out unlike the rest of us.
-Have you heard of Kate Elizabeth Amdall"? She gets featured regularly on CNBC. I myself use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about....
I just checked her out and I have sent her an email. I hope she gets back to me soon.
We also have to take note of the sheer size of the US economy as an independent nation. US Dollars are PUMPED in and out of other countries for goods and services. As stated in the video, it would take an absolutely massive and catastrophic event to dethrone the US dollar. An event so big, that the US would be just a shell of it's former self or even (dare I say) obsolete.
Or slow decay, as it happened to other empires and currencies.
yyes but no, for another currency to be used it would just need to be easier and more reliable than the dollar, that doesnt mean that the dollar has to dissapear or for the US to be in ruin, just that theres an easier option.
look at the euro, the eurozone is great and super rich and productive, but the dollar is more convenient. but that doesnt mean that the euro sucks.
its former self not it's (=it is)
@@VeteranVandal
The signs of which are very visible nowadays.
@@sergeigen1 US has enjoyed higher salaries because of fiat currency reserve. It isn't pegged to commodities and the trade can happen without US. US doesn't produce anything and only consumes what the world exports. The economy is around 26 trillion but the debt is even higher at around 31 trillion. It will collapse sooner or later. The BRICS nations can do without having US as a country on the map. There's no real value that US is adding. The services and IT sectors are over valued
The 13 colonies using the Spanish Real for exchange even after becoming the United States is BLOWING MY MIND 😂
I'm pretty sure each "state" or colony at the time was still just trading in local currency.
Lmao
People used the peso and real domestically in the U.S. into the 1850s. The NYSE was denominated in eighths of a dollar (i.e. reales) until 1997.
What? Spain helped us gain our independence. We were just helping a homie out.
Why spend all the time and money making new coins when you don't have to?
Fact: The Chinese RMB has a significant capital flow control and currency exchange control, it is not easy to use and trade with internationally.
yes, practically impossible. You literally need China govt approval for every single transaction. I was in a top-dozen bank and when we wanted US$1billion worth of RMB around 2010 to invest in China we had to submit our entire company bona fides, balance sheets, P&L for five years, and wait months for permission for that single transaction.
Yup, because every time they open it up they get massive flows out of the country. The people with power and money within China don't even want the Yuan.
@@lqr824Exactly. If it was that easy to move money, Jack Ma would have been an American citizen by now. Haha
if only China had their own version of Bretton Woods Agreement after a massive victory over a war
@@sinoroman > if only China had their own version of Bretton Woods Agreement after a massive victory over a war
Winning a war isn't sufficient. You also need an open society and open economy. The US has had an open economy since the US's founding (and the colonies before that). China has no such thing.
Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420,000 losing value because of high inflation. Where else can we keep our money?
Well I recommend you make a diversification plan because it's been harder to build a good financial portfolio since COVID. My colleague suggested I hire an advisor, and I've actually made over $120K with their help during this market crash. They used defensive strategies to protect my portfolio and make profits despite the ups and downs.
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Please tell us who's turning to the usa dollar. Not South America . Not Africa. Not China and Russia. You better brush up on the BRICS
You should buy gold bonds from your trusted government as the money is stored in gold weight and you receive 2% intrest on it.
@@pervfoxtrusted govt lmfao
An important thing not mentioned here is that there are countries, such as Saudi Arabia, UAE, and others that want to join BRICS, a list that could grow bigger the more successful the block becomes, and if that happens, that could really strengthen a BRICS currency. Still, as a Brazilian, I don't see the BRICS currency dethroning the US dollar any time soon, it's more of a second option to circumvent dollar dependency, like what recently happened in Argentina when they ran out of dollars.
Brics coruncy will never happen. India and China hte eachother and don't trust each other. I as an Indian know that most of us whould protest against it. We just don't trust those chig chogs.
Completely ignore the fact that Saudis currency is pegged to the USD.
There is really no BRICS, Brazil hovers above bankruptcy for maybe 30 years now. Their currency is pretty much worthless and exists in a small volume. Russian does not have economy or currency. India and China compete and are more likely to end up in war with each other than accept each other currency. China has two currencies, remimbi that can be used only by Chinese and in China. Cannot be exported or swapped, then Juan, which is centralised pseudo-currency of small volume and cannot used without prior approval from CCP representative.
BRICS is not really a thing, it's from a paper from 1980 from a London econmist, it means nothing
Also an attempt to take away the dollar as a form of economic leverage. e.g. sanctions against countries. Not that any alternative wouldn't do the same.
Before any BRICS currency can ever even happen China first has to discard its two currency system, then get both China and India to agree on something
1:25 In case anyone's wondering, 180 different currencies means 16,110 different currency pairs.
In reality it is much less because many currencies have a tied, fixed rate exchange rate. For example many European countries that don't use the Euro have a never changing exchange rate with the Euro. On a much smaller scale the Falkland Islands Pound is always worth the same as a British Pound.
@@Dave_Sisson That doesn't really change the number. It just means that certain exchange rates change very little.
If USD falls, then the Euro has a massive head start on any new BRICS currency. Most of Europe uses it, and the European countries that don't use it will exchange it because their trading partners use it.
The Euro is also used in South America, in France, specifically French Guiana, which isn't a colony, or overseas territory, but a literal part of France.
Good point, just because BRICS takes the USD down doesn't mean they'll be the one to replace it. I think more countries would be comfortable switching to the Euro since the EU is much more stable than BRICS, plus there's more countries in that organization so the power is spread out a little bit more. Not to mention the US, despite losing their crown, would still be one of the top economies and would likely support the EU over anything else.
China on it's own is bigger than the EU economically and is more likely to get the gulf states over the EU so trade in oil would be in Chinese yuan over Euro's.
Yeahhh, no this just isn't true.
This is an ignorant westerners' dream, if the Dollar-centric world we live in falls, in the world we live in right now, China wins by default. Currency matters specifically because it's one of the few ways China can topple the US global dominance without something more drastic taking place, like war or overt conflict.
China has most of Africa bought and paid for. China controls 45% of global manufacturing. China has the entire ME and Gulf onboard because the US backs Israel, and occasionally comes and invades countries without provocation, and most of the Gulf isn't down with that.
China's military, political, and economical might wipes the floor with the EU
The only saving grace is what was referenced in the video. Chinese supremacy is limited to China because that's how they built their country, from the inside out, so quickly. Conversely, US supremach is defined by it's influence and control of the world outside it.
The US loses that power practically overnight if it chooses to abuse it, which makes it a moot "trump card" to hold. And if China truly does find a way to weaponize its currency without shaking its powerbase internally, there is no country, or "Union" on earth that is standing against it.
Today, on a de-facto basis, if the US isn't the US anymore, China wins. Nobody else can compete. The EU will very quickly bow down because it's nation states are dependent on Chinese imports.
@hecktorrhyanm146 europe only has the most trade is you count inter-EU trade, which isn't all that impressive, us or china would be larger if you count their inter-state or inter-providence trade too.
more importantly, the EU is seen as a merely extension of the us, more so now that they basically do whatever the us wants since the russian invasion of Ukraine. so why buy the currency of a us poodle, when you can just buy dollars.
Great video, just wanted to add that some of the jurisdictional links that the US employs to exert its authority upon foreign transactions are highly contested under international law and rejected by the vast majority of the international community of states (in particular currency-based jurisdiction).
Anyone who dethrones the dollar will just end up doing the same thing... power is always abused.
If another fiat currency takes over sure but if a physical commodity or a currency with a fixed supply replaces USD then no it won't
@@Spider-Man-2099 ElonDogecoin., To the Moon!!!
Lol, common currency of BRICS backed by Gold and other precious metals and backed by manufacturing power of China, abundant resources of Russia and Independent and Transparency of India can easily cut through this claims.
@@Spider-Man-2099gullible or hopeful. No way of knowing that with any certainty. However, our history does point to somebody will find a way to exploit anything.
I think that's because the sort of person who feels the need to rule over everybody is exactly the sort of person you don't want ruling everybody.
I'm a numismatist so this was fun to watch. Foreign coins like the Spanish reale (called a pillar dollar by Americans) were legal tender til thr 1850s
Wait, what? What mummies have to do with it? 🤔
@@nerenahd In the words of pulp fiction, English motherfucker do you speak it? Nobody said the word mummy
@@nerenahd A numismatist is someone who studies coins or medals
@@Time12366 Oh, damn. I misread it.
@@souventudubanned 😎
it's crazy how money is real. i'm trying to go live in the trees
money does not grow on tree, so you will not be bothered.
Go eat up that OF man
L
You'll be back.
you can live in a tree, until the money follows you and cuts it down.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
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@@mikeroper353 why does this convo feel very scripted and fake lol 😂
@@hanu6158because it is.
If anyone is interested in a deeper dive into the topic, Patrick Boyle and Plain Bagel are both finance professionals and both have great videos on the topic. TLDW of which is no, dollar as a world reserve currency is not getting replaced by yuan or any other currency anytime soon.
It’s not getting replaced by it’s not going to hold the share it did as the world reserve.
The goal is to create an alternative not overthrow it(something like the euro).
As of 2007, the mortgage backed security as an investment vehicle was not going to be undermined anytime soon. And as of 2021, inflation was transitory and would be dissipating shortly, and banks were completely solvent. You see, history always happens very slowly, then all at once. And "experts" are always faking it til they make it. Broken clocks and all.
Pretty much. The world runs on Western technology, computer chips, etc. Shut literally any country out of that, they're suddenly irrelevant in five years. Or in China's case, they'd just starve as they desperately need world trade/imports to even feed their own people, let alone run a manufacturing conglomerate. If say, NATO were to break up that would be different, but until that happens the Western countries can just shut out others from trade and watch them fall well behind the rest of the world very fast.
It need to be to over throw white supremacy
@@sharwama992 The $EUR continues to lose value against the $USD.
Sam always finds a way to mention bricks in any video...!
@@paul.1337How dare you? Kazakhstan is well on its way to a spot in the top 5 economies. 😤
@@KLRH23 Nah, it's bricks. Because the entire concept is dumb as a brick.
Planks
@@jonc4403 denial
@@jonc4403pretty damn smart if you ask me.
Russia and China alone have a larger population than the US and Canada easily- why stay a victim to fluctuating US debt at 32 TRILLION when those Brics can remove themselves from the US ability to weaponise the dollar?
It's also worth noting, that even in the highly unlikely event that the USD is credibly challenged, whether by a hypothetical BRICS currency, or more likely by a traditional currency, that the British pound remained the global reserve currency long after Britain stopped being the worlds strongest economy. It's as much a product of inertia as anything else, which was only really stopped by Britain being nigh bankruipted by two world wars.
So not only does an economy have to become much larger than the USA. It also has permit transactions without crippling capital controls, unlike China who is currently the only real contender. After all, you can't be the global reserve if the globe can't reserve you. But it also has to stay that way for damn near 100 years. Or it has to wait for the USA to suffer an economic collapse, which as you note would almost certainly mean a global economic collapse.
A regulatory climate for credit expansion and exchange controls, and enforcement mechanisms require time to put in place. Any contender is imitating the US at this point.
Not to say this won't happen.
Britsh pound was THE strongest powerhouse until WW1. Then the dollar surpassed because it was actually backed by gold up to 1933, but there wasn't an easy substitute back then, even FORD tried to create a private one to no avail.
"It also has permit transactions without crippling capital controls". Yes , the currently demented USA government is crippling the Dollar with capital controls A.K.A Sanctions.
@@pcopeland15China's currency would only get to this point if the Chinese Communist Party falls...at that point I do believe China would outstrip the US, but with the CCP in charge it won't
Well it's time for the BRICS- New World Order to come up with a default reserve currency or simply go back to gold as the reserve. It will be too chaotic for each country to trade in their respective currencies with the daily change in exchange rates.
All big corps are just a cohort of centralised system working together, and any damage to one can have a dangerous ripple effect on every other one. I learned a long time ago to not trust corporations. Most of my money is in the stock market and my businesses. I keep only what I need to spend in my checking account.
@@Karagoldberg7 Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The mar-ket looks very shaky. The bigger the red candles, the bigger the green ones. I have made over 280k in the last 4 months by invest-ing through my FA.
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@@LeeWalton6 I personally work with “Colleen Janie Towe, she covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
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The dollar isn't going anywhere when you consider the capital restrictions imposed by many BRICS nations.
None one would use BRICS currency as they are not stable. Lebanon is in crisis and they switched to USD they would not think of CNY, USD will take many years to fall.
Bidens error in going after Russia's assets will be what crushes the dollar. BRICS is gaining and will continue to
Wouldnt be a problem even if the dollar were replaced
@@grimaffiliations3671 it would be a problem. What would you do with all the debt
@@desperado914 we can still service any debt denominated in dollars
To become the global reserve currency it’s generally assumed you need to satisfy 2 practical requirements for a good period of time.
1. You must be one of if not the largest buying of goods on earth.
2. You must have one of the if not the highest net imports.
This allows you to force anyone who wants to sell the main customer goods to accept that customers currency. There is almost no other practical way to force a majority of the worlds suppliers to use your currency, thus becoming the global reserve.
crypto?
@@alexm7023 crypto is a security so it cant become a reserve currency. ;P
Countries don't like crypto whatsoever
@@alexm7023 that currency also has to be stable. Crypto is worthless on a global scale BECAUSE of the fact that it's decentralized. Not having it tied to a specific currency is what makes it unuseable.
@@alexm7023cryptocurrency is actually deflationary and you can't just make more of it
I think it's wrong to say that Euro won't challenge the Dollar just because adoption plateaued. The global currency needs to be trustworthy, and you build trust over years and years. Therefore, more accurate statement would be "euro didn't have the miraculous performance everyone expected"
Looking at Europe right now being a leftie shitshow we can rest assured that "challenge" isn't coming.
Didn't the Euro replace the dollar in Europe and it's vicinity? Perhaps that is the possible future: not a single global currencies, but several regional currencies.
It also is just more untenable because the ECB policy has to deal with a wide variation in local economies. The Fed can just act alone without too much worry about anything but the US economy
Bretton Woods established the current monetary system. The Euro, Yen, etc. are all intricately linked with the USD because of the debt situation after WW2.
The Euro, in essence, is just another extension of the United States Dollarization
USA kills its currency every day with the stupid nonstop money printing press. It’s your own fault if your money dies out of lack of confidence.
Euro and BRICS money will take the dollar place.
A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.
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Can I just say I really enjoyed the history lesson? Didn't realize that historical economics was so interesting
I'm an econ student, and I'm taking global economic history as an elective next year. To understand what is going on, I truly believe that we need to understand how we got here.
It's misleading in a sense though. Globalism wasn't a thing before WW2. So these strong currencies shown in the graphs are more like indications of strong global powers dominating by sheer trade volumes basically rather than the reserve currencies of US Dollar today.
word of advice, get your economic lessons from actual reputable sources/channels about economics and not this guy
@@kennyofbaja It doesn't take an expert to explain first year economics lessons
I recommend to you the book "The World That Trade Created: Society, Culture and the World Economy, 1400 to the Present" by Kenneth Pomeranz, it's a lot more detailed than the brief history lesson here.
😂🤣Nice video but you killed it when you said (at 18:43) that "The majority of the world agrees with the US action.." 😇🙃
🙂You brought in a Western Perspective!
The vast majority of the world's MONEY (economy) agrees with the US action.
As far as the rest of the world, they are too weak to not be officially neutral.
Ikrr 😂 that's such a western thing to say. As if the rest of the western world other than the US has a choice to oppose. And even then western countries are not only the rest of the world.
@@ramanabharathi376 I assume most of the world's PEOPLE do not support Russia invading its neighbors - raping and killing innocent people. Their authoritarian governments are a different story however. Dictators support the "right" of other dictators to dictate. The people have little influence.
Other countries, mostly weak countries, will choose to take advantage of the suffering of the Ukrainian (and Russian) people for their own economic gain, or at least try not to piss off either side.
@@CleverAccountName303United States do the same things
@@CleverAccountName303 yeah most of the people don't support the Russian invasian. I was alluding to the fact that the US had so many mistakes in Vietnam, Iraq, Syria and the world didn't care as it didn't impact them. Or even if they did, they didn't really have a choice in not agreeing with the actions of the US.
I... hadn't realized that currencies had to actually change (proverbial) hands during an exchange. I figured they were directly transmuted somehow. But on second thought, banks and nations probably want to limit who can create and destroy currency at will.
They don't. It's all on ledger that's settled once per week.
It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately $350k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?
That’s right! Downturns provide plenty of opportunities for regular people to build wealth from the scratch. However, you may need to get some professional advice from an Invest-ment planner if you need an aggressive return.
I Researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
Us bonds are currently really high I’d recommend looking into them
Money and macro (a economist teacher) also has a great video on the subject. He concluded China still has a long way to go due to ease to obtain loans, trade imbalance, (importing more than exporting) and large free markets
If I had to pick a currency to be the global currency, I think I’d pick the Euro. It’s a proven model of different countries sharing the the same currency. I wouldn’t want any singular country’s currency dictate the global economy.
Until I can easily get my money out of China same day, it won't happen. No business wants to have large sums of cash locked up and held hostage in a banking system ruled by a totalitarian regime that changes its mind on things on a whim
Im sorry but you had to have misunderstood something since in what worlds does China import more than it exports. Or i misinterpreted what you said
@@lordhoden having a reserve currency means you import more than you export as you can no longer determine your saving rate of your nation at a macro level as demand of nation creates reason opposing nation would need said currency in the first place. not mentioned in this video is the pro's and con's of having a reserve currency as that's where things start getting highly complicated.
@@lordhodenChina and Japan are large exporters, they have massive USD foreign currency reserves (mostly in Treasury bills) because of this to "park" their trade surplus. This reinforces the USD reserve currency status.
One important thing not mentioned is the amount of global debt denominated in USD. Whatever currency comes around will need to be exchanged for USD for service/repayment. It would take a generation for this debt to be unwound and to be issued in a new currency.
It is not. It is displayed in USD as per conversions for US news for ease of understand. Likewise you will be told about the size of a Cricket stadium in New Zealand in feets instead of meters.
Also, the biggest creditor of the debt is China which deals in Yuan
@@rockcliff1930No, you are severely misunderstanding. A lot of unstable economies issue debt in USD because that's what investors trust in, they don't want to buy a 20% coupon Argentine bond only to be hit by 100% annual devaluation.
Thus, 55% of Argentina's debt is denominated in USD.
@@strilight Youre absolutely wrong! 😊
I dont think its ultimately necessary for them to *replace* the dollar. So long as there exists an alternative to the dollar, that alone immensely diminishes the effect of sanctions and its teeth. Countries get a lot more leverage to develop their markets to better suit their own domestic needs over international ones
Yes, that's true
Countries already have alternative to he dollars, they just CHOOSE to use the dollar like europe.
@@snoopysnoops007 They been doing that since 2007 yet still hasn’t achieved a single thing even during the great recession of the US.
India is trading with the U.S. in dollars, china trades with US in dollars, guess who runs chinas economy the US. Also the russian ruble just crashed 🤣
I believe we call this alternative currency the “Euro”, not the BRICS currency.
I think ultimately we have yet to reckon appropriately with the consequences of BOTH fiatisation and the nationalisation of wealth and trade. which none of these things are _bad_ per se… but it is lot more complicated then weighing pallets of gold. I think in the least, both by virtue of BRICS members being adequately incentivised and the multilateral setting being most appropriate, i’m happy we get the chance to look like this again from first principles. that’s my take 🤷🏾
The first two minutes so neatly explained and summarized why the US dollar is such a big deal! I never really got that before.
Read about the bretton woods agreement. You will thank me later.
Explaining why the dollar plays an important role in foreign currency exchange kinda sounded like "the dollar is the money of money".
This is the best fucking quote
The problem is that for this to work, China would have to fairly value their currency, something they desperately don't want to do. Also, Russia is like a hollowed out diseased tree, just waiting to collapse and South Africa is an economic basket case on the verge of collapse.
Will China wait to remove some devaluation after most of belt and road is done?
When the world is so addicted to its efficient supply line that they don't care that prices jump 15% as that is closer to the true value of Yuan.
It would also making all Chinese people 15% richer overnight, but Vietnam and India would be 15% cheaper to outsource to, so a tricky balance.
Er.. BRICS currency is based on basket of resource not monetary money, news keep saying China, in reality China is just a part of BRICS.
Actually, dollarization is only getting stronger. It seems a lot of countries are even worse than the US at managing their economy and currency so their one currencies are bad and their people have no faith in it and accumulate dollars. Places like China actually have problems due to their trade surplus because they suck out far more money from countries than they give, therefore their currency is not in circulation.
I wonder if many of the countries that appear to be terrible at managing their economies are actually just being crushed by crippling sanctions I don't claim to be an expert so I don't know but it's something to think about
@@adamvose2651it may be so but as citizen in a sub-saharan country our management and those of our neighbours are really poor😢.
@@adamvose2651 the countries that are sanctioned are not angels. They are like Russia, who is currently invading Ukraine, or Iran supplying terrorists attacking the U.S. or attacking Israel and other U.S. Allies in the Middle East.
@@adamvose2651tbf if you go against the major world power without a plan b you're kinda bad at managing your econonony.
@@adamvose2651 If we are talking about places like Iran, Cuba, and Venezuela, yeah for sure. Other places not so much for that reason.
Didn’t realise this video was so old….so much progress has been made in dedollarisation since
I'm pretty sure 0:37 - 0:38 is Riga, Latvia, not Sweden, we just happen to have a big Swedbank building xD
Yep, riga just has a big swedbank building LMAO
I saw somewhere else in this comment section that the reason the Euro did not become the default global reserve is because it never federalized. I take this to mean there is no singular economic policy maker like the federal reserve in Europe. Decisions made in economic policy within the EU have multiple nations, each with their own share of often competing interests. If a group of nations which largely border each other and have strong historical, cultural and political ties cannot come together on a currency, I have a suspicion a BRICS currency would have even more trouble. This is why the USD is so powerful and stable, there is only one party dictating policy so only one interest is considered.
If we are talking about the dominant global reserve currency, the reason the USD is in that role is because the US is the largest economy in the world. Almost every nation on Earth does business with it in some way. BRICS economies all together barely exceed the nominal GDP of the US and adding those others like the UAE, Saudi Arabia, Uruguay, Argentina etc would barely move that needle.
It is crucial to differentiate between fiscal and monetary policy. Europe does have separate fiscal policies, aka governments collecting their own revenue and spending it at their own discretion. But Europe does not have a separate monetary policy, the European Central Bank controls interest rates, open market operations just as the Federal Reserve in the US.
Depending on how you look at it, Europe is closer to the US than one might think.
Even if the US weren't the dominant power in the world, people would still use the Dollar as the reserve currency (at least for a while). People still used the Pound for quite some time after Britain had been eclipsed by the USA in terms of economic output. The only nation which really threatens US hegemony is China, and people don't trust Yuan since it's heavily manipulated, so it's not like people are going to swap to Yuan the second they officially eclipse the USA.
Well, the importance ofSaudi Arabia and UAE is not their GDP but their oil exports. We all know the demand for dollar is high as the oil is traded with it and if it quits being necessary to trade oil, well, it will devalue pretty fast.
The euro is just a derivative of the dollar. it does not exist separately from the American financial system.
@@ttuliorancaoseems like no one is taking into consideration of Oil rich countries moving away from the dollar will be massive..and Saudi Arabia and UAE wants to join BRICS including Iran also
Did you know there are more $100 dollar bills, than $1s or $20s; but they mostly exist outside the USA.
Totally randomest observation: The B-roll shot at 1:39 is (most likely) of the Paris La Defense area. It's not one of the most striking areas in Paris, especially as it doesn't have the Eiffel in view. But I recognize it cos of the less striking Grand Arche in the middle of the shot.
its very beautiful! not as classic, but still very nice
Until there is a currency that can buy anything, anywhere, at anytime, while maintaining its value( at least relative to other currencies), and being available in volume the US Dollar will remain.
Also any country that replaces the dollar will have to be able to deal with massive trade deficits. It always struck me as weird that people worried about the trade deficit since that was how dollars entered the international market. e.g. China needs to sell more to the US than it buys in order to have dollars to buy oil from Saudi Arabia who then needs those dollars to import food, weapons, and the like from the US among others. If the US has no trade deficit the dollar cannot be the world's currency as there'd be no way for most countries to acquire it other than buying bonds( which you need dollars in the first place to buy) or exchanging gold or other resources with US institutions for dollars.
Because people are too used to household-level finance concept of “debt bad”.
@@bubbledoubletrouble Well debt, and other liabilities are a problem for any entity, households or businesses that have to be concerned with making a profit, maintaining cashflow, and whatnot. They aren't a state, which can snap their fingers and magically create more money in an instant through the power of monetary inflation to buy whatever they want, or just raise taxes. Could you imagine what household finances would look like if people could tax or print currency?
Bs. America did really well with trade surplus.
Learn your history
Thanks so much!
7:12 How can the Euro be on the chart in 1980 when it didn't even exist until 1999?
Great summary of possibilities! I agree with the ultimate conclusion though. The USD isn't going anywhere and the media always tries to hype sensational stories like this. Remember in 2008-2009 when the media narrative was that the US financial system was done for?
Of course, but that's because it was intentionally stopped from happening after the media cried wolf
The question is if the USD will still be the main world currency in 50, 100, 150 years time. Nothing lasts forever. The Spanish imperial currency was used as the world currency for hundreds of years. There was a time when people considered that currency to last forever
@@boilingwateronthestovewhy is that question there? The planet could be destroyed by a comet in a 150 years and you’re worried about dollar being the reserve currency?
we can still try anyways of course it will fail the question is when but more importantly it is up to us to make it happen in any way we can
I mean yeah but in every huge catastrophic financial event the US bails out corporations and banks so it’s hard to say how many times more they can afford to before it collapses for good… not desiring it myself, I don’t want suffering for any person in any country, but I’m skeptical that bailing out huge risky institutions every time they overdo it is a strategy that can work long term.
18:42 minority of nations? China (Second largest economy, Most populous country, largest manufacturing sector on earth, largest standing land army, second largest navy, monopoly on rare earth minerals etc etc), India, (3/4/5/ depends how you count it largest economy on the planet, 2nd largest standing army 3/4/5/ largest navy, one of the 10 largest manufacturing establishment on earth etc etc) russia (one of the: top 10 largest army, top 10 largest navy, top 10 largest manufacturing sectors on earth, ultra high specialty on space programs, and nuclear tech, one of the largest resource and energy bases on the whole world), South africa the richest country in African continent (one of the largest player in precious stones and precious metals market, most advanced army on african continent, etc) Brazil (largest south american nation, one of the largest economies in the world, massive natural wealth, etc etc)
not to mention BRICS+
Minority of nations!!
i guess for a colonial mindset, us as a people will never be anything than a minority. Too bad your days of sullen supremacy are numbered.
Isn't Nigeria the richest on the continent ? Not South Africa
That's a big resume that basically says nothing. BRICS isn't making a new currency, they're just streamlining their current ones to maintain economic self-sufficiency. Half the members don't even get along
The Federal Reserve has been printing 40% of all US dollars ever printed in the last 12 months, which is a significant increase in the money supply.
16:16 have you noticed that when someone likes a policy they call it "open" but when they dislike it they call it "deregulated"? In reality there are actually millions of regulations surrounding literally everything in the economy, but yeah ... Interesting.
The issue with other smaller currency bases is they are easier to manipulate. Further the US does not directly manipulate the currency like China or Russia. Further the size of backed currency is large enough to provide trade. The real reason China wants Yuan to be the global currency, they can decided the value.
"the majority of the worlds economies agrees that the weaponization of dolar is primarily being done for good" yeah, gonna go ahead and call a "citation needed" on that one, mate
you skipped the most important thing that props up the dollar: oil. the move to renewable energy will make the dollar fade in time.
I grew up in a Pacific Northwestern town wherein for some reason many kids and young adults adopted Ducat as a slang term for money, except we pronounced it such that it rhymed with bucket and used it almost exclusively in the plural. If one were to say, he's got ducats, that meant he has a lot of money.
It is actually a somewhat widely used slang for money. Or at least widely used at one time.
What town in what state lol?
Rhyming with Bucket is actually the pronunciation used in English. He hypercorrected here.
@@bossmicky9256 I lived at your mom's house.
One thing I didn’t hear you mention is a big reason the US dollar is a leading reserve currency is because the US is a huge net importer. Goods sold here are paid for in US dollars and that sends US dollars abroad which means other nations will almost inherently have a reserve of them.
This makes many of the currencies you mentioned unsuitable as a reserve, among other reasons like pegs, lack of robustness of financial institutions, etc.
" the US is a huge net importer" but they only have that privilege as seignorage on the issue of dollars sent abroad that get converted into profitable USD-denominated, interest- bearing bonds. De-dollarisation means less demand for USD, so the issuance of future dollars to pay the interest on, and term- redemption of current bonds becomes untenable. Then the edifice becomes unsustainable and the USD as global reserve collapses. Current US policy is to use military force to uphold dominance of the dollar by destroying challengers. This policy worked with Iraq (proposed to sell oil in Euros) and Libya (proposed pan-African trade in African Gold Dinars) but has failed in Ukraine because BRICS are too big economically and too powerful militarily to be smashed like Saddam and Gadaffi,
The best argument that wasn't used in this video is that USA is a massive importer, both because of the number of people and the relatively high income. So, dedolarisation is just impractical, since trade with USA is really beneficial for any country
Lol. Bullshit. Why should the rest of the world toil for a bunch of paper?
Only because they keep paying interest on the bonds that those exporting countries buy with the spare dollars that they don't need to buy stuff from the US (which doesn't produce anything that you can't get better & cheaper elsewhere in the world now). As the demand for new dollars dries up, they won't have funds to pay the interest and redemption on maturing bonds. Then the whole Ponzi comes crashing down.
4:19 “Stumble on silver mountains in bolivia” is a very nice way of saying: rapping, enslaving, and committed genocide to steal foreign resources.
Yeah, but don't expect political nuance in this channel, it's just US propaganda.
Some corrections:
(1) The collapse of trade with Iran was because the US threatened companies with secondary sanctions. And faced with losing either the US or the Iranian market. Most chose the latter. The currency was not the main problem.
(2) most of the assets seized from Russia were seized by Europe and Japan, not the US.
(3) Swift is a European not a US-system. The US has of course some authority over the USD-trades in Swift though.
(4) reserve currencies usually are the currency of a trusted debtor. Europe and Asia simply generate too much surplus for it to even make sense.
This video shows what we really liked about these geopolitics videos and why a lot of other channels just seem like nerdy documentaries
This is so western centric... When the florin and ducat were dominat in the West, in Asia, the Song dynasties and in india, they were much bigger economies...
Then go watch eastern centric videos. I get that it would have been interesting but ultimately we needed to get to the dollar and they are limited in time
This documentary has a huge hole in it. Nowhere is Bitcoin or Crypto mentioned even though it is fast becoming the go to standard for international purchases. My company has been importing Chinese made goods since 2017 and the overwhelming preference amongst Chinese companies is for payment using either Bitcoin, Litecoin or Ethereum. They don't seem to want US dollars as payment because of the difficulty receiving US dollar wire transfers and they don't want to take credit cards because of the high fees.
Hahaha, hope they aren't still holding any of that crypto today!
Wait? Dutch Guilders are no longer the universal reserve currency? Why did everyone forgot to tell me
You should have mentioned Tolar (Tahler). This silver currency minted in bohemia became the international standard due to high abundance. Gold coins held too high value for most trades (like 12 cows = 1 ducat).
ok
What about crowns? Weren’t they an international currency at some point or am I wrong? I’m just going off of all the international trade that happened in the middle ages and renaissance.
this coin is called the _Maria Theresa thaler_ and this coin remains popular in North Africa and the Middle East to this day in its original form: a silver coin with a portrait of the ruler on the front and the Habsburg Double Eagle on the back
The other option that wasn't mentioned is the possibility of a tie of the exchange notes to a portion of gold convertibility. BRICS nations are large players in international gold markets. The convertibility creates a link that reduces the incentive to inflate the value and central banks for the countries could easily exchange gold for energy commodities to re-balance the accounts. There's no need to physically exchange gold, you just simply credit other things the governments trade against the imbalance.
There is nowhere near enough gold on the planet to ever make such a system workable. This has been the problem with the gold standard for the last century, and what led to its collapse.
@@PhysicsGamer Absolutely none of that is true. There's no "amount of gold needed". By definition prices are relative. You can price things in anything, in any amount. A barrel of oil could be worth a grain of gold or 5000 kilos of gold. It doesn't matter. Only the relationship. There used to be one good objection to a gold standard, but it's no longer relavent.
What "broke" the gold standard was politicians who did not want their spending constrained. They wanted to be free to inflate the currency and hide the resulting devaluation. And no, the neo-Keynesian / MMT economist you're going to want to cite is wrong. Those branches of "economics" are completely bankrupt, as evidenced by their inability to have any predictive value from their theories. It's equivalent to citing scripture to explain how rivers are formed.
@@johnblaker2454 A barrel of oil can only be "worth a grain of gold" if you can find someone willing to give you a barrel of oil in exchange for that grain of gold. Same thing in the other direction - a barrel of oil can only be worth "5000 kilos of gold" if you can find someone willing to give you 5000kg of gold in exchange for a barrel of oil.
In reality, nobody wants gold badly enough for the world's supply of gold to be enough to express the value of global trade. Hence, it's not a suitable choice for a currency you expect to use for global trade.
@@PhysicsGamer You just described pricing in terms of anything. Clearly you don't understand the basic aspects of what makes a currency develop. Currencies exist in the absence of governments for a reason. Once you understand that, you'll get why nothing you've said makes sense in terms of basic monetary theory.
@@johnblaker2454 Basic monetary theory is incapable of truly modeling a complex modern economy. Which is why it is only _basic_ monetary theory.
In reality, if you need enough currency to express a quantity of economic activity worth X but the amount of gold in the world is below that value... then a genuine gold standard is impossible.
The only meaningful compromise is a horrible combination of fractional reserve banking and a gold standard, where each unit of currency is somehow only worth some fraction of its face value in gold, presumably with a floating rate based on market forces. And congratulations, at that point you've reinvented the gold market with fiat currency, just with extra steps.
This isn't a new idea. It's been brought up a number of times, especially around when we abandoned the gold standard - a lot of people were very invested in hanging onto at least a semblance of it. Every time it gets laughed out of the room, because it really doesn't accomplish anything except make more paperwork for everyone.
Weaponizing a currency makes it unpopular, printing money for war is dangerous too. People normally borrow to invest and make a return. What if America had borrow to invest in infrastructure, and education their Bridges would not be collapsing. The Dollar is backed by nothing, and are forced to wage wars against nations, who have done nothing to America.
Your every day is the opposite day, right?
0:38 it is not the first time that I notice stock footage from Riga is used when speaking of Scandinavia, makes me kinda proud of my home country Latvia 🇱🇻 😅
Because swedbank does money laundering in the baltic states
“Unprovoked invasion” LMAO
Is it any surprise at this point that Wendover is US propaganda? lol
0:00: 🌍 Currency exchange depends on trade relationships between countries.
6:05: ! The pound sterling became a global reserve currency due to its reach, steady value, and convenience.
09:24: 💰 The US implemented massive financial penalties against Russia, seizing billions of dollars in Russian money and assets.
12:10: 🌍 BRICS countries are discussing the potential of creating a new international currency for dollar-free trade, posing a challenge to the dollar's reign.
15:18: 💰 The yuan has potential as China continues its march towards world's largest economy status, but the country's economic system makes it incompatible for further integration with much of the rest of the world.
18:20: 🌍 The majority of the world's economy agrees that the weaponization of the dollar is primarily being done for good, and the US can only use its economic weapon so much because it is granted by the rest of the world.
Recap by Tammy AI
Incidentally, the view at 0:40 ish is actually not in Sweden. That's the Swedbank building in Rīga, Latvia
B-roll of the Swedbank building is in Riga LT not anywhere in Sweden😅
The BRICS currancy is not about removing the dollar complily, it is about having an option for the dollar. I don't think it would be the strongest currency but if the BRICS currency removes 30%-40% of dollar transaction will be already a massive success
If it was possible to a dictatorship as Rússia and China have a world currency, takes 30% of the dollar market would Kill the U.S imediately.
If you’re here in 2024 after Saudi Arabia said they’re not using the dollar for oil trade anymore hit that like!
What are they gonna do with all that oil, drink it?
What you meant to say is that the Saudis have decided against renewing the petrol dollar contract with the U S. It is a big body blow. !!!!
This glosses over, misses or hides a lot of nuance.
Up until quite recently, the currency had very little in common with modern currency. Yes, people were trading in Florins and Ducats, the the value was in the precious metals inside the coins, the states minting them were only a guarantor of the purity and weight. The coins were effectively mini gold bars with a state seal for legitimacy, merely a convenient package so traders would not need scales to measure the value. Modern currency is fiat, it is essentially national debt and rests entirely on the trust in the nation's government and its ability to pay its debt.
And he forgot to mention how the US forced many many countries to use the US dollar.
It would take an extraordinarily event like WW3 to BRICS currency to displace USD any time soon. The world economy is so dependent and interlinked now it will take a while to rewire the system with a different currency.
That's right, as it took WW2 to make the US dollar the current king of currencies
It's not about replacing the dollar, it's about having an alternative. Using CNY in Argentina has helped us greatly with the MASSIVE IMF debt our US-backed president acquired.
"extraordinarily event" Actually most likely a new American Civil War IMO. It beggars belief that the US public put up with the craven idiots they are invited to vote for. Though, to be fair, all that 'pledging allegiance' and 'flag saluting' is such a pernicious contributor to 'brain-rot' that descent into slavery to the Oligarchs of Wall Street is probably inevitable.
Major hurdle for BRICS currency is conflict between India and China.
As India is causing problems in BRICS, I can foresee that it will be turfed out in doe course.
Nobody abroad is going to forget that US gov can confiscate your reserve in dollars whenever they want, whanever you are a friend or an enemy. That's a powerful motive to dump the dollar even if it takes 20 more years
Yet any currency created by a nation in the role of a global reserve currency is vulnerable to this same problem. Trading in the yuan exposes you to the same problem, this time with the CCP instead of the U.S Federal Government.
Meanwhile, internationally created currencies are at the same time less stable, and prone to being used as tools to influence the smaller nations in that international sphere. This is why a BRICS currency doesn't work. China would be given too much power over the other nations in the BRICS forum. While they all have the economic interests to do it, their rivalries with one another would quickly tear the value of the currency to shreds. China has eyes on both Russian and Indian territory, while Brazil, Russia, and South Africa are all unstable commodity exporters. The value of their economies depends almost completely on the international demand of their respective export resources. For South Africa, that's mineral wealth, for Russia, that's oil/gas, and for Brazil, that's coffee. The thing about shared international currencies is that they require stability in the economies who use them. 3/5's of the economies in the BRICS forum depend completely on international demand for their export products, so guess what happens when demand for that export product dips? Well, you need only ask Venezuela. There's simply no way China would willingly give up its extremely powerful economic sovereignty to share it with such unstable economic partners, and potential nations that they may soon come into conflict with.
The Euro only works because the European Countries who use it are willing to give up some of their economic sovereignty to each other in codependence and cooperation. This isn't born out of fear our out of mutual distaste for some common cause, but because the countries that use the Euro genuinely want to cooperate with each other for the benefits.
Dedollarization might happen, but it only will happen if the U.S rampantly abuses its power too much, and the dollar will only remain so long as the U.S remains a relevant global power.
BRICs has said their goal is to replace the world currency which is the dollar. They don't want to make a new currency but make it so they can trade in their own money. If this happens it is all over for the USA. Remember, Sadam wanted to use Euros to sell oil and see what happened to him. Libya also wanted to do this. BRICs is too powerful and huge for the USA to use military means and sanctions won't work either and both India and China are huge exporters of resources and produces. Russia also has a ton of natural resources the world needs. Idk what the USA and Trump will do but it will be bad .
the only thing I learned from comments is
Americans always overestimate themselves
but this time the world is changed :)
This is a really cool video about a topic that I didn't know much about before, but now i have another question: how did the global economy operate through the cold war, where I assume similar financial tactics would have been used?
Two parallel systems, Western one pretty much the same as it is now and weird bs in Soviet Union and its colonies. Exchange was Barter like, Soviets sold oil and metals in exchange for food or machines.
Due to Lend-lease, the Marshall-plan, its holding of gold, and other economic aid and commerce the US provided to win WWII, the world became became dependent on the dollar over the British pound. This led to the Bretton-Woods Conference and subsequent agreement in 1944 where all 44 Allied nations, including the Soviet Union, met to set the global financial system for the post-WWII era. This established the IMF and emphasized free trade but the part that angered the USSR was the US Dollar was to becoming an international standard for exchange rates as well as gold. Their delegates ultimately signed the agreement but the USSR never ratified it by contributing to the IMF. But because the Soviet Union usually focused on self-sustainability and only had usually less that 5 percent of its GDP resulting from foreign trade, it didn't impact foreign markets that much.
7:49 are you seriously calling the invasion “UNPROVOKED”?🤡
yes, it is unprovoked
Deciding that you want to be a free and independent nation does not qualify as a provocation. NATO continues to exist and expand because the actions of the Russian Federation leave no other option. If you are an actual human, you need to seek other sources of information.
Yes, bozo, it WAS unprovoked!
Spends more than a minute talking about Ducats but can't be bothered looking up the pronunciation, and none of your editors picked up the error. This is the production quality we've come to expect from Wendover.
This was a very good video on this topic. Thank you. Many of these videos on this subject are basically clickbait or hype/hyperbole, and extremely unreliable. You managed to lay out all of the facts and go through many of the iterations, as well as give a short but good explanation of how reserve currencies work and their history. You also actually discussed, accurately, where BRICS is and the factors that make it unlikely they will ever even adopt a group currency, let alone that it will challenge the dollar.
How is it reliable when he didn't mention how the US forced countries to use the dollar? It's a rather important fact to be left out, particularly because it means certain countries would be eager to leave their abusers.
@@noticiasinmundicias The lack of fictions like that makes the video more reliable, not less.
Is this too much power for one country? Yes. How did they get all this power? We gave it to them. People will give anything for convenience.
I'm trying to imagine an extra-national currency governed by consensus beyond the direct control of governments. I wonder if such a thing could ever exist. It would certainly have interesting attributes.
There's already a basis for such a thing - the IMFs Special Drawing Rights (SDRs). If a major world crisis were to occur that required the world to shift from the dollar but there wasn't a ready alternative, one could very well be created. And its rules for the issuing international agency could be codified such that its constitutionally prohibited from being weaponized like dollars can be.
That's what crypto is always touted as. Decentralized, no one can stop it if they wanted to. It would take a global issue and a global effort that everyone has to agree on for it to be ended, which is just literally impossible. Like, Bitcoin can now never go idt, because someone will always see worth in it, even if that worth is purely historical-based at some point in the distant future; it's value would be DUE to the fact that's it's old and rare, like coin collection.
The main problem of an extra-national currency is the lack of the final backstop: if everything goes down, is there still someone who would still accept it exclusively regardless?
National currencies derive their value because you can only pay national taxes and pay for government services using the national currency.
@@kindlinbut crypto doesn't have stable value, a key property of a useful international currency.
@@BillHarris1 Nothing has inherent stable value, only the systems in place behind the thing make it behave/start to act like a stable system.
In 2003 a downtown condo in Toronto ran for $200,000 CAD. A common office worker pay was about $35K/year in 2003.
In 2023, a similar condo will run for $800,000 CAD. $50K/year (same position as before).
Do you see the problem with run-away inflation?
the problem in toronto is that it's the economic capital of canada and the liberals have decided to increase immigration to 1 million per year . most of those people go to toronto. inflation is not even in the room. it's supply and demand.
Ray Dalio's book 'The Changing World Order' covers all of this in really amazing detail - well worth a read
Not really, an analysis by an amateur
@@thetaomega7816 Have you read the book?
Ray Dalio's an old man who has been predicting that forever! He's not even a good investor. Has all most of his money in EFTs
@@alexnhan8527 lmaooo
@@limones0 He is right tho - Ray Dalio is a stock trader who at the time of writing his book was over extended in Chinese markets. By publishing his book saying China is the next super power of whatever, he is hoping "the street" starts buying up all the China investments he is trying to get out of. He wrote the book to get media attention to amplify the message to be bullish on China -- most firms just follow what big investors do so he is using his influence to put out a false signal on how he wants the market to go to help him with his positions. There is a lot of money to be made, no expert is going to give it for cheap in their 20-30 dollar book.
The part where you called the pound Stirling a stable currency really killed me
It was when it was backed by gold. Same as the US Dollar.
On your point about the declining share of reserves held as dollars - this is partially true BUT (a) global reserves have greatly increased in absolute terms over time, and (b) when you look at which currencies have increased (euro, yen, franc etc) its those whose central bank have swap lines with the Fed, meaning they can rapidly be swapped for dollars, meaning people are rly looking for the next best thing to dollars. The outlier is ofc RNB but thats to be expected given the massive increase in chinese trade.
Absolute terms are useless when you consider inflation.
@@noticiasinmundicias but we're not?? The point is people are still holding the same amount of dollars, and adding dollar equivalents to an extent
The PetroDollar underpinned USD,
But since Saudi and other oil states joined BRICS+, they already control >80% of oil exports.
The dollar will be replaced by an BRICS+ asset backed StableCoin, to be announced by Russia at the BRICS+ conference in Moscow August 2024
13:20 There seems to be an error in your graph. The Euro was first introduced in 1999. So, how can it be a global reserve currency in the 80s and 90s?
Sum of pre-Eurozone currencies maybe?
Most likely counts the European Currency Unit before 1999
Extremely well made video. Loved the history part of it. Learned so much about something i thought i knew really well. Thank you
bad bot
“International consensus “ when it’s just g7 and parts of the west 😂😂😂
the US gov is spending crazy amount of dollars every year, that crazy over spending is actually what drives people to move away from the US Dollar. because if you trade with the dollar, then the US gov can just print massive amount of US Dollar money out of "thin air" and buy "Really Stuff"(food, goods, labor, resource, companies.. etc.) away from you. buying some tangibles with this massive amount of thin air dollar, is at the heart of the advantage of having a reserve currency. but the US gov might be printing this advantage too much and too thin.
Are you aware of extreme union-busting practices of Hello Fresh?
“A minority of nations” is an understated way of saying “40% of the world’s population.”
But only 25% of world GDP, and most of that population is just China and India, who are bitter rivals.
but they ARE a minority of nations, they're only five, we don't speak about population here.
@@micahbonewell5994 And most of that GDP is just China, the others account for less than 10% of world GDP.
because this youtube entertainer that's disguised as a guy with facts twists his words carefully that only western supporters can blindly believe, echoing through their chamber. It is laughable :)