Is This The End Of The US Dollar? | What You NEED To Know

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Hey everybody welcome back to whiteboard Finance my name is Marco and I'm here to Help you master your money and prepare For the changing of the economic guard Uh so we're going to be talking about is This the potential death of the US Dollar or the Petro dollar as we know it Today uh so I've been talking about the Petro Dollar on this channel for a long Long time I've been studying it since Basically I was in college and then what We have are the bricks which formed Basically my sophomore year this was in 2009 so if you guys haven't been Following this I highly suggest you pay Attention and watch this video Until the End yes it'll probably be a little bit Longer but this is stuff that could Affect our economy for many generations To come so this is this is going to be Titled a little bit inflammatory it's Obviously not going to be the death of The dollar but what I mean more by this Is the brick countries so your Brazil's Russia's indias China's South Africa's Saudi Arabia's Pakistan for example and The Petro Yuan versus the US dollar so So what this is going to be is basically Just a quick overview of what the bric Countries are and then also what's Happening and why they're starting to Get off the dollar more and more so this Is the brick countries so this includes Brazil Russia India China and South

Africa this was an alliance that was Started in 2009 and represents four of The world's 10 most populous countries And four of the 15 biggest economies so The bricks are responsible for 31.5 of Global GDP if you don't know what GDP is That just means gross domestic product It's basically the sum and total of all Of your country's economic output so Basically all goods and services Combined you know what do you produce What do you export that kind of a thing So 31.5 of global GDP while the G7 share Has fallen to 30 percent uh so basically You can see where these two lines Converge the blue one or the GDP of the G7 the red one or the bricks and they Basically converged about a year and a Half ago if you can see that from this Chart so they're expected to contribute Over 50 percent of global GDP by 2030 so This reflects a transformation in the Global economy with the center of Gravity gradually moving away from Traditional Western Powers into Emerging Markets so this shift is driven by rapid Change in an industrialization Urbanization growing middle class Growing populations and advancements in Technology so the brics bank challenging Western dominance so how are they Challenging Western dominance so the Bricks account for 42 percent of the World's population but they have less

Than 15 percent of voting rights in the IMF and the World Bank so what this does Is it challenges the dominance of the West as it counter is the dominance of The IMF and the World Bank because for Those of you that don't understand IMF Stands for international monetary fund I'm more old school I follow a lot of People that call the IMF the International Mafia fund because Basically what it is it's it's making Loans that a lot of countries can't pay Back and what countries used to do Through arms through Wars and fighting They now do through Finance okay so if You think of like the bailout of Greece Uh why did everyone in Greece start Speaking German right because they got Bailed out in euros and they wanted to Move abroad and they need to go over the Economics are stronger right so it's a Big brain drain so this is basically the West dominance when it comes to money so What they created was the new Development bank so the NDB this was Established in 2014 by the bricks and to Address the infrastructure and Sustainable development financing Gap And emerging economies so the governance Structure of the IMF and World Bank is Heavily influenced by the economic and Political power of the West this is why You can't just look at military even Though it all boils down to military a

Lot of this stuff today is done with Financial means you'll see this later in The presentation so if we look at the US Dollar it begins its dominance in 1944 Why is that I've talked about this on The channel before we explained Bretton Woods basically after World War II Bretton Woods was a global monetary System with fixed exchange rates Anchored and pegged to the dollar this Is when the dollar was still pegged to Gold as you can see in the charts the Right here you have gold as the base Layer pegged at 35 dollars an ounce you Have the US dollar attached to it and Then you have the British pound German Mark French franc it's all uh pegged to The US dollar at par value so this led To the creation of the IMF to ensure Stability and the World Bank to fund Post-war reconstruction and development Projects this system actually I don't Want to say collapse maybe that's an Oversight of my editing but basically Nixon suspended the gold standard in 1971 and if you want to see an Interesting site full of interesting Charts go to WTF happened in in 1971 That's when that's when we decoupled the Dollar from the gold standard and it Became fiat currency so what is backing Or what is the benefits of being the Global Reserve currency right now which The United States is so the US dollar is

Supported by trust in the U.S economy Political stability and strong financial Institutions I have a couple other Things to add with tweets which you'll See uh most likely in a slide or two Here but this basically allows the US to Borrow at lower interest rates reducing The cost of financing public debt in Supporting government spending this also Gives us more control over international Trade and finance strengthening its Geopolitical Authority again what Countries used to do through arms they Do through Finance why would a Manufacturer let's say for example in Colombia borrow in the local currency at Seven or eight percent interest rates When they can borrow at a month in Dollars at a much cheaper rate right it Just makes business sense so the United States's biggest export is inflation and In dollars okay if you know you know so The dominant petrol dollar and emerging Challenges so the agreement between the US and Saudis in the 70s the price oil Exclusively in dollars this is what we Call the Petro dollar if you don't know What the petrol dollar is you truly Don't understand how the world works you Don't understand what the wars of the Last 30 40 years you don't understand Finance I'm not saying that to be mean It's just you'd have to be naive to Think uh that everything is priced the

Way it is and the dollar strength is Based on everything it is just based on The economy that's not true it's because We've had a monopoly on oil essentially So this petrodollar system ensured a Consistent demand for U.S dollars as Countries needed to hold dollars to Purchase oil if you look at any other Country that tried to get off the Petro Dollar standard you can see what Happened to them Libya is one of them so But things are changing there are no Issues with discussing how we settle our Trade agreements this is what the Saudi Finance Minister said but these are my Tweets I've been I've been guys I've Been playing into finance and Geopolitics since I was like 19 years Old okay I'm 36 now I'm about to be 36. So these are my tweets from uh 2021 uh The US Dollars back by the military the Petrodollar system the international Demand don't at me bro uh April 21 even Though I've been saying this since I was 19. Um and then also this came out right Here January 17th of 23 before everyone Was making these videos Um Saudi Arabia Arabia says they're open To settling trade and currencies other Than the US dollar and I tweeted the Petro dollar right now and it's that Famous GIF of uh key and peel uh Sweating pretty profusely so what is

Going on right now so the rise of the Rivals the US Dollars uncertain Futures So the US dollar has historically Dominated the Global Financial system Due to Bretton Woods the US dollar makes Up approximately 59 percent of global Foreign exchange reserves this Highlights its significant role in the World economy so what now so the US Dollars dominance may be challenged as Emerging countries get more powerful Leading to increased competition among Reserve currencies so let's take a look At some ongoing Trends but before that Let's get into today's sponsor policy Genius if you have a family you know how Much your loved ones depend on you in a Worst case scenario you wouldn't want Them to worry about money a good life Insurance plan can give you peace of Mind that if something happens to you Your family will have a safety net to Cover mortgage payments College costs or Other expenses so they can get back on Their feet and focus on what's most Important my wife and I personally use Policy genius to find the right term Insurance for ourselves and our family After our daughter was born policy Genius was built to modernize the life Insurance industry their technology Makes it easy to compare life insurance Quotes from America's Top insurers in Just a few clicks to find your lowest

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Russia's national wealth fund has Switched primarily from holding U.S Dollars Euros to gold and Chinese Yuan So sorry for the smaller image here I Wish I could zoom in but I can't based On the format of the slide but basically You can see here the the x-axis is 08 All the way to 2023 the y-axis is Billions of dollars so you can see here Uh US dollar is white Um or the ruble this is kind of hard to Explain because it's showing that the Ruble is white and the US dollar is White so I'm not sure what that means For this area right here but you can see Uh what clearly is magenta or purple Depending on the color of your screen You can see right here and basically uh Halfway through 2021 that's when they Started adopting uh Yuan and more gold Right around here okay so they're Basically dumping the dollar and adding More gold and Yuan here So the ongoing Trends continued we can See over the past 20 years the share of Dollars in global Central Bank Reserves Has dropped from roughly 70 percent to Less than 60. so again this just goes Back to the talking points of the Monopoly that we've had Um but you can see here is actually very Low in the early 90s you can see it was Almost 50 percent this is U.S dollar and Chinese Renminbi as a percent of total

Global foreign reserves Um you can see that it was almost at its Peak in the early 2000s the 70-something Percent Mark that we're referencing and Then it goes all the way down to 2021 uh We're seeing it closer to 60 percent if You look at December 16th through September 2022 you can see it go from The sources Bloomberg IMF U.S Global Investors you can see going from just Above one percent all the way up to Almost three right here and then you can See the currency composition this is Non-traditional currencies have played a Larger role in global foreign exchange Reserves in recent years goes from 70 Percent to roughly 59 which we talked About Slide the Euro has roughly been Flat at 21 or so and then you can see The red line other is starting to creep Up steadily over time so over time is The key is the key in this entire video You guys a lot of other YouTubers are Making this out to be something like oh This is going to happen tomorrow right I've been following this for 20 years Almost okay this is something that will Happen over the course of decades as you Look at the decline of Empires I truly Believe we're in late stage Empire in The United States but that's just my Opinion once you see other emerging Empires taking over there's always a Crossover in transitions so when you had

Spanish Empire Dutch Empire British Empire American Empire there's always a Transition period right after that ours Was pretty much after World War II okay And by us I mean United States so um Then you see the decline in the British Empire rise of the American Empire I Think we're starting to see decline of American Empire rise of Chinese Empire But that's just my opinion I'm American I was born here but I'm just speaking on What I'm observing so if we go back to This you can see the emerging economies Increase gold purchases to hedge against Currency risks you can see central banks Shift to net gold buying after Financial Crises Russia and China are the top the Top U.S Rivals led to Gold buying to Diversify reserves and reduce dollar Reliance so um you can see basically Here in the 90s to 2008 central banks Sold gold during the late 90s and Generally good macro conditions and Prolonged dip and gold prices you can See after 2008 after a great financial Crisis you can see how its net purchases So Green net sales gold net purchases So China Brazil strike deal to ditch Dollar for trade uh this was March 29 2023 uh Brazil and Argentina discussed Creation of common currency the United Arab Emirates in India are in talks to Use Rupees to trade non-oil Commodities And shift away from U.S dollars So This

Is the big one this is what a lot of People are talking about uh most people Talking about this learned about the Petrodollar two weeks ago okay uh They're not subject matter experts for The most part be very careful who get This information from a lot of Sensationalism a lot of Doom and Gloom Again this is something in my opinion That will take decades to happen not Literally overnight but you gotta Ride The Click bait waves of YouTube to get Views right so anyway uh China and Saudi Arabia enters a historic new phase of Relations so Saudi Arabia signs Agreement with Huawei on cloud computing And building high-tech complexes in Saudi cities these are 34 deals 34 deals Worth 30 billion dollars okay So Saudi Arabia is an active talks with Beijing to price some of its oil and Sales in China in Yuan this is what the Whole video is about this is all still Very early again don't just jump on the Headlines don't panic but if this does Happen Um you know my biggest fear I guess is Seeing the S P 500 become flat for Decades like we saw in Japan right so This signifies China and Saudi Arabia's Mutual interest in increasing economic Ties so the dollar hangs in the balance So what's going on the US dollar faces The risk of losing its Reserve currency

Status as countries like Saudi Arabia Consider pricing their exports in other Countries how serious is this I don't Know at the end of the day do you think The rest of the world is going to accept Uh Yuan right Um as a global Reserve currency I don't Know I don't think so but who knows I Mean China is a net exporter of goods And a lot of countries a lot of Continents rely on their stuff from China so however this isn't a major Immediate risk 80 percent of global oil Sales are currently in US dollar dollars So what happens now so if the countries Continue moving away from the dollar as The reserve currency the U.S may Experience increased inflation Higher Living costs reduce Global influence This is the big one and strain Government finances So potential Market changes of D Dollarization occurs do I think this is Going to happen tomorrow absolutely not Do I think it will happen over time of Course if you follow any Cycles or Stages of an Empire it's plain as day to See that we are in late stage Empire This is not a controversial point or a Controversial topic Dedolarization could increase the cost Of financing US Government debt which We're already seeing uh check out my Previous videos of being in a debt

Spiral we already can't we don't have Enough receipts to actually pay for the Debt spiral that we're in and it's only Going to get worse and worse so again my Channel is not fear-mongering but this Is just stuff that's happening you guys I'm just making you more intelligent Investors uh in the big picture you need To understand macro uh Global stuff That's going on in the world not just You know what's going on in your world Or your life as you know it you need to Understand the global picture so Increased interest and alternative Assets such as gold Bitcoin or other Currencies such as the Euro or Yuan how You can position your yourself if you Believe this trend will continue big Caveat here again not Doom and Gloom not Trying to sell you gold on the 800 Number not trying to sell you a course I'm not trying to teach you to dig gold In your backyard and put your cash in Your in your drywall at home I'm just Saying if you believe this trend will Continue what can you do so you can Diversify your currency exposure you can Hold a portion of your investments in Non-dollar denominated assets assets Excuse me foreign stocks bonds Currencies or you can go into Alternative assets considering Allocating a part of your portfolio test It's like gold or cryptocurrencies I

Don't like the word cryptocurrencies I Should have edited this I apologize I Only like Bitcoin for this use case I Want to make that very clear before all The web 3 Guys saying oh well my token Allows you to summon a a taxi to the North Pole and drive you I don't care About that I'm talking about the hardest Form of money ever created in my Personal opinion I've been studying Money for a very long time is Bitcoin Okay and if you don't understand that Yet read these three books in order The bullish case for Bitcoin inventing Bitcoin the Bitcoin standard that's all You need to read and then number three Is focus on inflation resistant Investments invest in assets that tend To perform well during periods of Inflation such as real estate inflation Link bonds or stocks and sectors less Sensitive to currency fluctuations so Let's get into my thoughts So my thoughts could be another 30 Minute video right but I'm trying to Make this very very very very concise so My thoughts this will happen over a long Period of time when the Empire starts to Crumble you'll see much more spending on Military which we've been doing forever But expanding ourselves look at what Happens the Roman Empire look at what Happened to the Ottoman Empire look at What happened to the Byzantine Empire

Look at what happened in the Russian Empire look at what happened to any of These Empires over time they expand too Much and a lot of the resources go to Funding Wars overseas kind of like What's happening right now okay so what I'm trying to say is Um From a monetary standpoint I'm Diversified completely I own a little Bit of Collectibles I own a little bit Of Bitcoin I own a little bit of stocks I own a little bit of real estate I own A little bit of bonds in my opinion when You look at uh parts of the world that Don't have retirement accounts or Roth IRAs or 401ks they don't even know what A Roth IRA is okay and what I mean by That is these are parts of the world That have gone through huge currency Devaluations and huge currency Fluctuations over time a perfect example Of South America look at how many Countries have had ridiculous inflation In South America look at Argentina their Inflation is up 100 when you start the Meal your stake may be X when you end The meal your steak May cost a different Price it's not an exaggeration so what Do people do in those kinds of parts of The world they save in real estate they They pay off real estate and they pass It down to their kids that's how people Preserve wealth and those kinds of

Economies since we're in a more I don't Want to say Advanced economy but one With you know uh more stable I guess you Could say even though Some of this could be perceived as a House of cards but it's perceived to be Stable is what I'm trying to say when we Have things like Roth IRAs and 401ks and Dividend investing and things like that Yes you can lean on that for a few Decades right now am I starting to doubt Some of my purchases and you know ten Thousand dollars of schd and this and That of course because I'm plugged in All the time I've been plugged into this Stuff for 20 years you guys okay that's An exaggeration more like 15 but my Point is is that once you start Following all these macro Trends going On in the world it can either lead to Two like a fork in the road two paths in The road say you're a product of 2008 or The Greek debt crisis or the Cypress Bailins or whatever you know someone Farted in China it affects your stock Portfolio in North America right let's Pretend that's the case you can either Choose to invest in other things where You think you have more control or do Have more control it could be real Estate for example that's fine a small All business maybe that's fine Lending money private lending that's Fine you can do that if you have enough

Money or you can stay the course and Look at what the results have been over The past you know 50 60 70 years or so Through a lifetime if you will the stock Market has only done one thing up and to The right yes there have been lost Decades yes there have been significant Drops uh 30 40 50 60 percent yes all Those things have happened but where Have we ended up up and to the right Okay do I think this will continue I Don't know I don't have a crystal ball If I told you anything other than that Then unsubscribe for my channel because Then I just become one of these YouTube Charlatans trying to sell you something Okay so this is a real talk something That a lot of people need to hear don't Listen to YouTubers half of them have no Idea what they're talking about me Included Um I don't know what I'm doing I haven't Been studying this for 15 years I Haven't been investing my entire life my Entire adult life don't listen to me I'm Just the guy on YouTube right but if you Do find someone who you do like know and Trust Okay who has your best interest in hand Then maybe you can you know take their Viewpoints and use it to shape your Investing that way so my big takeaway is I'm going to continue the dollar cost Average because I don't have a crystal

Ball however you need to be cognizant of Other things going on in the world again I mentioned a couple times this video do I think America is in its uh infancy or At its late stage Empire Um I definitely think if it's a bell Curve we're definitely on the right hand Side of the bell curve for sure and all You have to do is study stages of an Empire throughout history to find out Where we are so is this to scare you no Because I'm putting my money where my Mouth is I'm still investing every week And I continue to do so but you may want To look into other things like real Estate and Bitcoin if you truly want to Preserve wealth because we all know what Can happen to stocks in a very short Period of time it's not to say that Can't happen with real estate it's not To say they can't happen with Bitcoin It's not to say they can't happen with Gold but this is a good time to really Take a step back take a magnifying glass To your portfolio And figure out you know what percentage Of what asset you really want to own so As always I hope this video was helpful If you liked it uh share it give it a Like share the videos Um you know distribute it on social Media send it to a friend who needs to Hear this okay thank you so much for Watching and have a prosperous day


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