China’s Plan to Destroy the Dollar (And It’s Kind of Working)

"And that's how you get two separate economic systems or two world reserve currencies. Now, we're not there yet, but every move we make from here on out matters a lot."

"And they have to refinance $9 trillion worth of debt in 2025 at this super high interest rate."

"So the next big question is what happens if China keeps selling US treasuries and a few things could happen and none of them are really good."

"And the worst case scenario is a full-blown financial decoupling where the US and China stop trusting each other's money completely. And that's how you get two separate economic systems or two world reserve currencies."

"And that's how you get two separate economic systems or two world reserve currencies."

"The US and China are in a race against time, with China's treasury sales impacting US yields and interest rates."

"So, if this is really Scott Besson's strategy, he's trying to engineer a situation where China is under so much pressure. every move they make just creates more problems with the goal that both countries come together to negotiate something more favorable for both of them."

"Now, if China weakens the yuan, that would be good because it would make exports cheaper and help offset the impact of President Trump's tariffs, but it could also trigger a panic inside of China because that would create inflation and investors might rush to move their money out of the country."

"US interest rates could go up making mortgages, credit cards and of course car loans a lot more expensive."

"I'll keep dollar cost averaging into Bitcoin."

"And on weeks like the one we just had, I'll buy a little bit of extra, which is what I just did, at a discount."

"I'll keep doing the only thing I know how to do, which is to dollar cost average into the stock market and keep buying VTI, Vanguard's ETF, which is what I have been doing."

"So, the Federal Reserve might have to step in and start buying US treasuries to stabilize the bond market. It's basically quantitative easing all over again, QE 2.0."

"And the US is thinking the exact same thing. How long can the US allow their bond market to be so high and to have this high interest rate before their own economy unwinds, goes into a recession, and they have to refinance $9 trillion worth of debt in 2025 at this super high interest rate."

"Now, if China weakens the yuan, that would be good because it would make exports cheaper and help offset the impact of President Trump's tariffs, but it could also trigger a panic inside of China because that would create inflation and investors might rush to move their money out of the country."

"First, US interest rates could go up making mortgages, credit cards and of course car loans a lot more expensive."

"First, US interest rates could go up making mortgages, credit cards and of course car loans a lot more expensive. So, the Federal Reserve might have to step in and start buying US treasuries to stabilize the bond market. It's basically quantitative easing all over again, QE 2.0. And we've seen what happens when the Fed prints money. Any day now, we could see the Fed step in to do this. But the worst case scenario is a full-blown financial decoupling where the US and China stop trusting each other's money completely. And that's how you get two separate economic systems or two world reserve currencies."

"And with over $30 trillion in national debt, that's not good. And if interest rates get too high too fast, it can break parts of the US economy and force it to delever."

"And that's how China is fighting back. It's dumping US treasuries, which forces interest rates upward and breaks part of the US economy. That's why the Fed might have no choice but to drop rates."

"And if interest rates get too high too fast, it can break parts of the US economy and force it to delever."