China trying to Break the Dollar & Spike Gold?

So if you want to get over fear to get Over anxiety you need to know what's Getting to you psychologists and even Yoda will tell you that you need to name Your fear in order to overcome it well In this one I'm going to help you figure out that Name [Music] We're going to start this one up Where we left off on the last one and That's with this idea that if you plan You don't need to work Focus your Attention on what you can actually Control you don't lose time worrying About the things you can't Life's Too Short in part one I covered the Possibility of the US dollar losing its Status as the world's Reserve currency What that might mean to the dollar I Think what we'd find is that there are a Lot of potential impacts but this is not About ending up in the streets huddled Around a flaming garbage can trading Mercury dimes for soup it's about a Gradual decline in what we might be able To do about it Uh where we were going with the last one Is that the Dollar's dominant role as a World Reserve currency can fade long Before it's replaced the near-term Threat is more about the loss of Political influence resource rights and Trade deals those trade Deals they can

Bypass the use of the dollar and we're Already seeing that today the rest is Happening as well now if we're going to Talk about the possible end of the US Dollars dominance We need to talk about who's challenging It now if I was following the popular Narrative around here I'd just dive into The thread of the brics group to China Russia India Brazil and South Africa That is a strategic Alliance and it's a Strategic Alliance under the actual Threat here we're going to come back to Bricks later the important letter in That group the one to focus on is the C And one of the happy misconceptions I Think that I've had until more recently Is that China needs the us too much to Risk any kind of Fallout economic or Otherwise the United States is Far and Away China's largest export partner with 15 percent of China's total exports go Into the United States how many times Have you seen a made in China label it's Everywhere and it goes both ways United States outsources manufacturing to China Saves costs it sends about the same Percentage of its total exports to China Those two countries there are far more Interdependent than the stories would Have you believe and we've all heard That China is the US's largest debt Holder they hold just under 12 of all Foreign U.S debt so if you'd like to

Think of the us as an investment I mean Why not China is a significant Stakeholder So this does relate to gold in a lot of Ways I'm going to get to it but I need To get through some of the plot here to Explain last year shortly after the Ukraine Invasion a market expert made a Comment to me about how China would cut Off Russia at the drop of a hat if it Was going to affect their import export Ties with United States and it made a Lot of sense the U.S GDP is something Like 14 times greater than Russia's so The U.S is a much bigger part of the Chinese economy but if you look closely At the manner of support China is giving To Russia you'll see that they have not Provided any Military Support to Russia Like the U.S and NATO countries are Supplying to Ukraine they've only Provided solutions to their liquidity Issues and that's important there's no Direct conflict between the U.S and China it's a proxy conflict what we're Seeing instead is China brokering trade Alliances and at the end of the conflict In Ukraine there's a very good chance That we're going to see that China gets Some amount of credit for brokering a Peace deal all without ever having been In direct conflict with the U.S Now that specific case seems pretty on Brand for China China's moves are part

Of a much longer strategy they don't Operate like Russia not even like the US They play long games and to explain that We're going to look at China's belt and Road initiative now that is a video In and of itself but we're going to just Scratch the surface of it if you've Never heard of China's belt and Road Initiative well maybe that's just Further proof of how good they are at The long game planning because it is Enormous and most people have never Heard of it Xi Jinping kicked off the Initiative in 2013. I think initially it Was called The Silk Road economic belt But the goal of the initiative is to Develop infrastructure that would open Up trade routes leading into and out of China it becomes a projects inside the Initiative would be things like roads And bridges airports seaports railroads Dams power stations and this all started In East Asia and Europe initially it was In former Soviet Republic countries Primarily but now it has moved into Africa Oceana Latin America primarily We're talking about developing countries And to date more than 150 countries have Signed on to Bri projects those Countries represent 75 five percent of The world's population So who cares right China's helping some Developing countries build some roads Build some airports good on them well

The infrastructure that China is helping To create it supplies jobs creates more Efficient trade routes that allows them To import resources explore products and It gets them political influence and Much of that infrastructure lines up With Chinese mining interests they're Cornering markets on Cobalt on copper Gold lithium and uranium and I don't Know how I thought I was going to be Able to get through this in a single Video I feel part three coming because We need to focus on that a lot more too I'll just say here that as the world Moves to further electrification those Critical minerals Rare Earth elements That I can't even pronounce become Increasingly important and I didn't pick Those Metals randomly they're Specifically called out in independent Reports we've got Cobalt copper gold Lithium and uranium and which one of These is not like the others it's gold Gold does not fit into electrification So China clearly has other uses for it So much for gold being a barbarous relic So let's bring this back to the west and To the United States in particular the U.S does very little domestic mining but It's at the Forefront of the green Movement pushing electrification Initiative so as the United States and Other Western countries move to Alternative fuel needs guess where that

Comes from You guessed right it comes from China China not only has a trade deals The Mining rights and the infrastructure to Import and Export they refine a huge Percentage of these resources setting Themselves up to be really the only Viable source to power this new clean Energy Revolution Now China is also responsible for 55 to 70 percent depending on where you look Of rare earth Mining and up to 90 Percent of the processing those are Global figures and if you don't know Much about Rare Earth elements well Probably get into that more in the next One I'll just say here that they're used In electric vehicles and phones and Laptops and in military equipment a Little bit for everyone there we'll come Back to that If I was putting together a doom video I'd wrap it up right there we're all Screwed time to tuck and run but hold up For one minute because here's how the Bri operates China rolls into a poor Country in Asia Eastern Europe Africa Oceania Latin America I think I got them all and they offer a Killer deal on needed infrastructure Projects Chinese Banks arrange the Financing Chinese contractors complete The projects and Chinese operators Manage the projects once they're

Complete now if the host country Defaults China takes ownership but either way These countries end up indebted to China One Way or Another in many of the Projects haven't gone the way they were Supposed to they don't have a large Enough return to pay off their costs and Those countries are stuck now with bad Loans and no good way out The World Bank estimates that 60 of the Bri loans involve countries in what they Call financial distress so now you have Chinese Banks potentially on the hook For bad loans and the political Influence that China was expecting to Gain could back fire so the next decade Is going to be a multi-part race between The U.S and China for resources for Trade deals for political popularity and For all the advantages that come along With having the dominant Reserve Currency and if you think the US dollar Is on its last legs well look at the Other horses in the glue factory they Are all worse and there's no reason to Think that China would be okay with the New currency made up of all the brics Nation currencies that basket of Currencies we hear about I think you'd Be underestimating their plans if you Thought that was likely particularly if You start to look at the new applicant Nations that we keep hearing about many

Of those countries have been in direct Conflict with each other for decades So the gradual decline of the dollar That I'm planning for personally is more About uh resource race against China Soft power race between the East and the West now if those trade deals continue To advance and to bypass the US dollar Well some of the benefits that the U.S Reaps by having a constant demand for Its currency because those dollars are Needed for international trade well that Would give away over time and that of Course leads to Greater inflation which Means your dollars are worth less and This is not a new issue it's one that's Actually been around for a long time if You were to go back to administrations Look into the pivot to Asia policy You'll see details of the trans-pacific Partnership the last Administration Stumped on China how many times did we Hear about that but the US is wrapped up In political division in a way that one Party would never be caught dead Supporting policy that the other party Introduced and that inability to focus On a common enemy is something that I personally think it's a problem when I See what the country seems to be Focusing on these days and once again I'm not going to get political I just Think it's smart to put away some Savings in cool really for two reasons

First there's this guess that the US Dollar will gradually decline in value And I think that I put together at least A few valid reasons in this video that It will and then second the focus on Goal that we've seen coming from China And other Eastern aligned countries it Appears to be part of the plan Wow this feels like a marathon at this Point and look I said in the last one if You plan ahead for these things well you Don't have to worry as much I'm focusing On things I can control like putting Away some gold each month as it's Convenient I'm not going to worry about Political nonsense now because this one Was getting long again I'm gonna break Out some specific things that I'm Working toward into one more take on This topic and I hope to get that one Posted early this week So if you came into this one without Seeing part one I'm going to leave a Link in the description and then keep an Eye open for part three coming soon We're gonna look a little bit closer at The resource race and I'll give some Specifics on what I'm doing with gold But in the meantime I'd love to see what You think on the topic this one is not About politics just about planning for The near future and for the long term Without that hype without that fear let Us know what you're up to and while

You're in the comments be sure to hit That like button if you found any of This interesting be sure you're Subscribed with notifications turned on If you'd like to see more on the topic And if you're still here Thanks again for watching I always Appreciate your time Take care [Music] Foreign [Music]