China’s Dollar Rebellion Has Gone Global | Why The World Is Breaking Away

The dollar is facing a global rebellion And China is leading this push for the Dollarization they are doing everything They can to return the dollar because That is the real power behind the U.S Economy now China's aim has always Revolved around economic growth and Winning through global trade but one big Obstacle has been standing India away For decades it's America's Ultimate Weapon the U.S dollar and because the Dollars the reserve currency all other Currencies are traded against it the Euro the Yuan the British pound every Currency of planet Earth is valued Against the Greenback and because of This China has a big vulnerability yeah An export Giant and to remain Number One China has to keep their currency cheap China has to buy and hold a ton of U.S Dollars to keep the Chinese Yuan Suppressed he has even reached a point Where China is the second biggest holder Of U.S treasuries just behind Japan if We look at their debt Holdings China is Clearly the dollarizing they are Reducing Dr Bond Holdings month after Month but they still hold nearly 860 Billion dollars of American debt they Have no choice because the dollar is the Primary currency for global trade if you Want to buy Commodities like oil wheat And gold the world still demands dollars For the majority of their exports and

According to the bank for international Settlements the dollar was one side of 88 of All Foreign Exchange trades and This means for every 100 Forex trades The dollar was involved 88 times plus According to the fed's own estimates the Greenback accounted for over 70 percent Of global trade invoicing especially in The Asia Pacific region and that is a Monstrous amount of trade that is under The Dollar's control and this is why Beijing they are raising hell for the Dollar they are tired of funding their Arrival they are tired of buying and Selling stuff in green bags but unless They break out from the reserve currency They will forever be buying dollar Assets and this means indirectly helping To fund America's own efforts to move Against China it just doesn't make sense So what gives the US dollar its power Today and why is this addiction so hard To break and let's understand what is Holding up the dollar as the world Reserve currency and a lot of us we like To focus just on a petrol dollar system And if you're new to this term it's Basically an agreement broke up by the United States with Saudi Arabia way back In the 1970s and because of this oil in The world today is now priced in US Dollars and this means there's now an Organic demand for dollars in the world If you want the most important commodity

Which is oil to keep your economy Functioning you need dollars but that's Only one half of the story the real System that is keeping the Greenback on The throne is in fact the euro dollar System because for decades global trade Is priced more and more in dollars the World decided to stockpile more of it if You can see that even though the world Is moving away from the dollar it is Still nearly 60 percent of global Reserves countries still keep a ton of It because they have to it goes beyond Just importing oil from the Middle East You see it all has to do with the global Bond market countries and companies Around the world all have to raise money And they do it by issuing that Nations Issue government bonds to raise money to Run the country while companies also Issue bonds to raise Capital to expand Their business they borrow money to fund Their operations and this is how the Modern world works today it all revolves Around credit and to attract the most Investors in the world they issue their Debt in US Dollars investors like it Because the dollar is considered the Most stable currency due to its Global Demand for example the car maker Nissan In Japan issued 8 billion dollars in Dollar denominator debt back in 2020 Countries like turkey also price Dr Government bonds in US dollars as well

They raised 1.5 billion dollars just Last year and because Global debt in US Dollars keeps growing it creates an Enormous incentive to acquire and hold Even more dollars but it also becomes a Trap and let's say you are a company and You issue debt in dollars when it comes Time for the interest payments or when The bond matures you need to pay back Your investors in U.S dollars and unless You default There's No Escape you need To find a way to get the reserve Currency and this is why breaking the Dollar is just so difficult it's a Monumental task because of the petrol Dollar system and the euro dollar this Creates a self-fulfilling prophecy it's Keeping the green bag on top of the World and that's why we see China taking Steps to rock the pillars that are Holding the system up on one hand they Are trying to break the link between oil And a dollar and on the other they are Trying to shift global trade away from The reserve currency and we have China Buying Russian oil gas using the Chinese Yuan and this is setting a precedent for The world that hey if you want energy You can buy without using dollars and This only gets stronger with Putin Vowing to promote the wider use of the Chinese Yuan as an international Currency and during his meeting with President XI in Moscow putting this

Pivotal statement we support using the Chinese Yuan intersections between Russia and its Partners in Asia Africa And Latin America and chances are he's Going to start pricing Russian energy in Yuan very soon and this is the first Pillar that China is chipping away at They are moving to remove the link Between energy and the dollar and they Are making aggressive moves to make this A reality and just recently China Completed its first LNG trade settled in Yuan a French oil company to tell Energies sold 65 000 tons of LNG Imported from the UAE to China and they Priced it using the Chinese Yuan and This is groundbreaking because it shows The world there are alternatives to the Energy trade outside of the dollar and This trade didn't involve Russia or any Of the bricks Nations the oil came from The Middle East and was sold by a major French company and this tells us that at The end of the day Nations and companies Will always act in their best interests And this is China's first step in Breaking the petrol dollar system they Can't tell the world to stop issuing Debt in dollars or forced countries to Embrace the Yuan the free market doesn't Work that way China can only show the World that it is in their best interest To break away and transact in other Currencies and as we mentioned it's

Going to be a Monumental task and the Dollarization will not happen overnight But here's the reality more and more Countries they are beginning to shift Away from the dollar they are talking About finding Alternatives away from U.S Financial hegemony and most recently we Had Finance ministers and central banks From Southeast Asia meeting together to Discuss more bilateral trade with each Other and a key topic was how to break Away from their heavy dependence on the US dollar they agreed to use more local Currencies for their trade settlements They want to reduce their risk to Major Currencies like the dollar or the Euro And according to Indonesia's Central Banker the more the country uses local Currencies the better we can withstand Global financial crisis we also have Malaysia discussing with China to form An Asian monetary fund they want to Reduce their dependence on their dollar Their leader Anwar told the world There's no reason for Malaysia to Continue depending on the dollar but why Are countries turning away from the Dollar is not really because they love China but because the threat posed by The US dollar is just so great which Brings us to the Federal Reserve and how It controls the world economy because The dollar is the world Reserve currency And countries hold so much of it the

Federal Reserve is effectively the Central Bank of the world whatever the FED does affects the global economy and No country can escape its effects Central banks around the world they are All reactionary to the fed and let's use An extreme example here if the Federal Reserve tomorrow hikes interest rates to 10 percent this will cost another Currency crisis for the rest of the World even other Reserve currencies like The Euro crash against the dollar when The FED height rates last year it will Be 2022 all over again when money flows To the United States to chase higher Yields and this outflow will cause a Wave of currency depreciations while the US dollar appreciates and this makes U.S Imports cheaper because remember Everything is priced in dollars so Inflation in the United States comes Down at the expense of other countries Similarly if the Federal Reserve they Print 10 trillion dollars tomorrow these Will devalu the whole stash of US Dollars the US now has 10 trillion Dollars more to beat up the prices of Global Commodities and unleash another Inflation held purchasing power outside Of America will just plummet but if Another country decides to do the same The effects will be very different and Let's use Argentina for example if Argentina decides to print 10 trillion

Dollars they will just unleash High Point inflation back home that's because The majority of the world doesn't hold The Argentine peso in any significant Amount and this is why the US dollar is More than just a reserve currency it can Be a weapon of financial destruction but Guess what China is getting a helping Hand to the dollarize the world and it's Coming from the United States themselves And if this was a football match a Soccer match the United States have Scored multiple goals on their own team They have torpedo The credibility of the US dollar especially in 2022 and that is Leaving the way open for China to make The moves we are seeing today and the First is obvious we are talking about The sanctions on Russia and that Includes seizing Dr Central Bank Reserves and the price cap on Russian Oil and if those events didn't happen China wouldn't have the perfect excuse To detolorize the world and just listen To what Marco Ruby or a U.S senator said About the threat to the U.S dollar and This came after Brazil announced their Trade deal with China to bypass the Greenback and he said we won't have to Talk about sanctions in five years Because there will be so many countries Transacting in currencies other than the Dollar that we won't have the ability to Sanction them and this is exactly why so

Many countries are afraid of holding on To too much U.S dollars sanctioning a Country's assets to ban them to your Will isn't a smart move it only hurts The reserve status of the dollar and the Second is just as bad which is the Tremendous deficit spending of the United States we have the U.S moving Towards another potential default as the Debt ceiling crisis grows closer we have Wall Street now pricing in the two Percent of a U.S government debt default That's a five-fold increase since the Start of January but here's the truth we Know Chances Are Congress will raise the Debt ceiling again and kick the cans Down the road the U.S will continue to Borrow more money to service the debt But the world is getting tired of all This excessive borrowing doing because This is only going to lead to an Outright default one day or borrowing Even more money to pay your bondholders They might just inflate the debt away And this obviously can't continue Forever according to the Congressional Budget office the interest payments on The national debt alone is becoming Unsustainable the net interest costs Will account for almost 40 percent of Federal revenues by 2053 and what Happens when it reaches 50 percent or 60 Percent will the U.S default then or Borrow even more and this is a very big

Realization that the world is waking up To and this is why more and more Countries are accepting China's advances To move away from the dollar and there's No better call to action that China Telling the world that they are buying Gold because gold is priced in dollars When you buy the yellow metal you are Effectively selling away dollars and Since last November China has been Buying gold for four months in a row They are breaking their tradition of Silence and we have to pay attention and This is is basically them announcing to The market we have something big planned With gold we are giving you a heads up That gold could be playing a big role in Tomorrow's monetary system because if You think about it gold is the ultimate Asset for the dollarization countries Can dump their dollars for gold with Possible deniability and if they start Selling treasuries for the Yuan the United States definitely won't be happy But if they buy gold it is a neutral Asset it has been a store of value for Thousands of years and guess what 2022 Was a record year for Central Bank gold Buying they bought over 1100 tons but Here's something fascinating if we dive Deep into the details we can see this Unreported gold buying of 741 tons there Are countries out there secretly Hoarding gold because they know the

Dollar is getting the base and we have To watch the gold markets because if China truly wants to challenge the Dollar they need to convince the world That their currency is stable and There's no better way to guarantee it Than to pack that Yuan to go or at least A percentage of it part of it even the US dollar was backed by gold to give it Credibility before becoming the world Reserve currency so let me know what you Think in the comments below will China Succeed in the Dollar Rising the world Or is it impossible to break away from The dollar let me know in the comments Below stay safe be sure to smash the Like button and subscribe as we navigate Through these crazy times