What Will Be the New World Reserve Currency

We have the greatest military the world has ever seen. In my opinion, we would rather go to World War III than let go of world reserve currency status. That's how important the US dollar is. Boom, people! Welcome back to the show. Today we're going to talk about BRICS nations versus the US dollar. We're going to talk about what is happening right now with interest rates, how the national debt plays into this, the BRICS nations that met just last, I guess, week, week and a half ago, something like that, that invited 6 new countries to join the BRICS nations, and how this global stage is heating up. If you guys have not seen previously on YouTube, I put a full video breakdown of where the dollar's at and since Bretton Woods all till today. If you want more depth on like this whole history, you can go watch that video on YouTube. It's amazing. This is kind of going to be an update as of, let's call it August, end of August 2023. All right. So first thing, BRICS nations. What even the BRICS nations are? That is originally it is Brazil, Russia, India, China, and South Africa. Okay. Those are the BRICS nations. Now they met together in Johannesburg just last week and they invited 6 other countries to join. Those countries are— now you got Argentina, Egypt, Ethiopia, Iran, which aren't major players, but then Saudi Arabia and the United Arab Emirates, which are 2 massive pieces because they're very oil and resource-rich countries. The BRICS nations have expected to account for about 32.1% of global GDP this year, while the G7, which is where the United States, United Kingdom, Canada, France, Japan, and Germany are part of, and Italy, account for about 29.9%. So almost In part, some people point BRICS as a little bit above, depends on who's calculating which countries are combining it. Now, this is obviously a rising threat. Ray Dalio talks about this in his book, World Changing Order, about these rising threats that are happening around the world. And they are all combined really, in my opinion, the whole combination of the BRICS nations is their hatred for the United States system. Okay, since— and back to Bretton Woods, back in the 1940s, we set the Bretton Woods Agreement and slowly became the dominant power with the world reserve currency where we pay for a navy to go out. We have 11 supercarriers that go out and protect all the shipping lanes around the world with one promise of, oh, you'll just trade in our currency. Just recently, as of just a week and a half ago, India did their first large major oil deal using rupees, not using the US dollar. Additionally, Saudi Arabia has been talking about getting off the dollar to do large oil transactions. Now you look at this place, I'm going to take you back a little bit. Let's just talk oil for a minute here. President Biden gets into office. The United States is energy independent. He cancels the Keystone Pipeline, which was a major pipeline coming from Alberta, Canada, down the middle of the center of the country. It was going to bring a lot of oil and create us even more energy independent. Biden closes the pipeline. Why? That seems like that would hurt America. But I started to wonder, like, why would they do that? Why would they do that? Why did they do that? And I thought, aha, if we're energy independent customers, like we're customers of Saudi Arabia and Saudi Arabia uses US dollars for all oil transactions on Earth and we park an aircraft carrier and we have 5,000 troops that are housed in Saudi Arabia to protect all their lands and borders. And if they're not going to use the US dollar to trade in oil, then why would we protect them? You know, we have 5,000 troops. Why would we have an aircraft carrier? We don't have to pay for all that stuff. Iran has attacked them a bunch to— they've been doing all this crazy stuff to attack them. And so this is what I put in my previous video. Now, updates on that. Iran is one of the companies that has now joined BRICS along with Saudi Arabia, allegedly saying they're allies. These guys have been enemies for years. But again, back to the Keystone Pipeline. If you shut the Keystone Pipeline off, it creates— we have to now buy from Saudi Arabia. And if we buy from Saudi Arabia, that means we are their biggest customer and we can demand things as their customer. If we're not a customer, then they don't need us anymore. Now, this is a big move though with Saudi Arabia and UAE moving away to the BRICS nations. Now, so far they haven't announced anything about dollars and using different currencies. A lot of people allege that the BRICS are going to announce a gold-backed currency. It's maybe a central bank digital currency. They haven't said anything yet. But the interesting thing about the BRICS nations, they're really only aligned on their hatred. Let's call it maybe hatred's a strong word, but their opposition to the United States Western system. These countries naturally are not trading partners. They're naturally not friends. Most of these countries actually in the past, they have very different political and social systems. They have different views on how economies work. Some are very communist. Some are very liberal. Liberal countries, but they're all in opposition to the United States system, and they are not natural trading partners. But they're just coming together. And you look at the European Union to create the euro; it took them 20 years to create the euro. Now maybe these guys can learn some things to launch a new currency, but it seems to me I think it's a big nothing burger as of right now. Now I'm a contrarian person. I know people in the comments are gonna say, Bridger, you're an idiot because of all these reasons. I'm telling you that whoever is pulling the strings behind the Fed, let me just give you a few scenarios to back up my opinion. First off, they're raising rates. What if the goal of raising rates? Yeah, I know it's unemployment, and they have their mandates from Congress. But really, they're they're True job is to protect the greatest export the United States has ever had, which is the U.S. dollar. So what if they are raising rates? Yeah, it's going to hurt the U.S. economy, but it is on a compounded effect drastically affecting other economies around the world. Recent reports coming out of China that their economy is getting obliterated. They stayed in lockdowns only until less than a year ago, and all the companies—Apple is a great example—has have moved away from China to India or Indonesia or Vietnam, other countries, because the factories were just closed. Sorry, China, we can't work with you because you're. Your factories are closed. You have that going on. These, these, this ripple effect of affecting other countries as we raise rates. Now, the other thing that's crazy is people keep saying the dollar's— I go on Twitter, the dollar's dead, it's dying, we're done. Really? The dollar is up 11% over the last 3 years. You can pull it up right now. Go to the dollar index. Go to the 3-year chart. 3 years. But I thought we had record-high inflation. It always comes back to compared to what? Well, yeah, the US dollar might not be— you maybe don't like the US dollar. That's fine. But compared to what? Compared to rubles, it's doing really well. Compared to yuan, it's doing really well. Compared to euros, it's doing really well. Compared to bitcoins, it's doing really well. So compared to what? What if the dollar just died tomorrow? Let's say everyone's right on Twitter. The dollar's going to die. They read Ray Dalio's book for 5 seconds. They go, the dollar's going to die. China has to take about a trillion-dollar loss on their dollars. The $30 trillion is not owed back in rupees or euros or yuan. It's owed back in dollars. Oh, and by the way, when we pay interest payments, guess what those are paid in? Dollars. They have to receive dollars and get dollars to pay back and we have to use the dollar. If you were the world reserve currency, you would want as much debt as possible denominated in your currency in the hands of other countries. Why? Because they have to, you or them, whoever holds the debt has to be paid back not in bitcoins, not in barrels of oil. It's paid back in what? US dollars. And you can print and create US dollars and manipulate your currency as much as you want. I'm curious what will happen to Saudi Arabia, UAE over the next 6 months now that they've decided to join BRICS. I mean, every time a country decides to kind of go against the US, the US dollar, US systems, bad things end up happening to those countries. Just, I don't know. I don't know. I'm not saying anything. I'm just saying bad things might happen when you pull away 5,000 troops and our aircraft carrier from Saudi Arabia. And all of a sudden, maybe we reopen our pipeline, the Keystone Pipeline. So you know what? We're energy independent. We don't need you. Or maybe we double down and we move to their competitors and just buy oil from other places on the earth. I'm not sure what they'll do. There might be bombs. I don't know. Bombs will go off. I don't know. I have no idea what'll happen. But just typically when people move away from the US system, bad things end up happening to them. We spend $800 billion $1 trillion a year on defense. We have the greatest military the world has ever seen. And we, in my opinion, we would rather go to World War III than let go of world reserve currency status. That's how important the US dollar is. And the reason I say that is because we've done that for the last 5 or 6 decades. Every war you can look at with Afghanistan, I mean, you can look through every single conflict, not even war, conflict the United States has been in, you can derive it all the way back to dollars and/or oil. Now I understand it's a Ponzi scheme. I know it's a Ponzi scheme. I was born into the Ponzi scheme. I get that it's a Ponzi scheme, but it's the best thing we got. Again, Compared to what? Compared to the Chinese yuan, I kind of like the US dollar. Compared to the rupee or the euro, I kind of like US dollars better. And so because of that, it's the best system we got. All of our institutions, financial systems, everything we work on, your house, your mortgage, your salary is all denominated based off the US dollar and where it's at. In my opinion, the Fed, the number one mandate is to protect the US dollar. And they are raising rates right now and doing quantitative tightening to make a very strong dollar. Great book by Peter Zeihan. Go look him up, Accidental Superpower. He's got great YouTube videos, talks about North America in general. People think China, we're going to be in this trade war, we're so dependent on China. No, we aren't. We import from China, it's about 19% to 20% of our imports. Don't quote me on that, but right around there. 68% of our total imports and exports are with North America. With Canada and Mexico are our 2 largest trading partners by like a magnitude of 4 or 5. Compared to China. Yeah, we still get some cool stuff from China, but it's not as big as we think. And China depends way more on us than we do on them. China imports about 70% of its oil and about 80% of its calories. Very dependent on the rest of the world where the US in a lot of ways has been or can be energy and calorie independent. This is kind of my update on BRICS. We will see what happens. Love you guys' thoughts. Comment, message me online. Send me your info. Go check out our other videos on YouTube. What's going on there? I'd love to hear more of you guys, what you're thinking. We'll see you guys in the next video. Peace.