It’s Over: China Just Broke The US Dollar
Published: 2023-03-31
Status:
Available
|
Analyzed
Published: 2023-03-31
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Historical precedent suggests a shift in global reserve currencies approximately every 100 years, with transitions lasting 10-20 years.
"Reserve currencies have never lasted forever and about every hundred years they change in a transition that lasts between 10 and 20 years."
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China's economy is projected to surpass the US economy by the year 2030, potentially impacting the US dollar's reserve status.
"China's economy is supposed to outpace the US by 2030."
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There is a possibility within the viewers' lifetime that the US dollar will no longer be the world's reserve currency.
"at some point possibly In Our Lifetime the US is not going to be the world's Reserve currency"
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The US dollar is experiencing a decrease in trading volume and facing increasing competition from other countries, trends expected to persist.
"the US dollar is being traded less there is more competition between countries and that's not going away anytime soon"
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Elon Musk believes the US dollar's position is a serious issue, citing heavy-handed US policy and excessive government spending as reasons for countries to abandon the dollar and absorb US inflation.
"Elon Musk tweeting that this is a serious issue U.S policy has been too heavy-handed making countries want to ditch the dollar combined with excess government spending which forces other countries to absorb a significant part of our inflation"
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Foreign currency reserves held by other countries in US dollars have reached a 25-year low, according to CNBC.
"as CNBC reports were now at the lowest level that we've seen in 25 years"
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China and Brazil have agreed to conduct trade using their respective currencies, bypassing the US dollar.
"China and Brazil struck a deal to trade in their own currencies ditching the US dollar as an intermediary"
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An estimated $150 billion in annual transactions between China and Brazil will no longer involve the US dollar.
"they currently transact around 150 billion dollars every single year that's no longer going through the U.S"
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The BRICS nations (China, Russia, Brazil, India, South Africa) have established a mechanism to transact in their own reserve currency, independent of the US dollar.
"China Russia Brazil India and South Africa have already joined forces to transact in their own Reserve currency that's separate from our dollars referred to as bricks"
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Ray Dalio's theory of economic cycles identifies three phases: rise, top, and decline.
"Ray dalio points out that this could be summarized into three categories the rise the top and the decline"
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Loss of faith in a reserve currency, leading to selling rather than reinvesting, marks a tipping point in its decline.
"the Tipping Point though comes when people lose faith in the reserve currency they refuse to buy it and would rather sell than reinvest the profits"
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Demand for 10-year US Treasury notes reflects investment in a 10-year loan to the government.
"the demand for 10-year treasury notes is essentially just a 10-year loan to the government"
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The US dollar's value has been experiencing a gradual decline since 2020.
"the value of the US dollar has been gradually weakening since 2020."
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Despite recent decreases, the US dollar's current value is higher than its average over the past two decades.
"the US dollar is more recently higher than it's been throughout the last 20 years despite the recent drop"
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The value of the US dollar has been appreciating in correlation with rising interest rates.
"in terms of our own currency though the value of the US dollar has been actually going up alongside with interest rates"
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