Matt Ryder and Pat discuss why the US dollar became the world's reserve currency and what that means for inflation. They cover the historical shift after World War II and how it shapes the economy today.
Hey, guys, what's up? Welcome to the episode of Coffee is for Closers.
Hello, it's Matt and Pat.
We're back.
Roll the intro or whatever happens.
Ex Special Forces sniper turned entrepreneur, I've scaled numerous businesses to eight figures. My name is Matt Ryder. This is my podcast, and I'm telling you to put that coffee down.
Is it still an intro?
I think so. Anyway, I don't watch this podcast sucks.
Don't talk down to your audience.
I've listened to Joe Rogan.
Yeah.
So I have. I said, oh, my. My cold punch gets here this week.
Oh, snapadoo.
Oh, baby.
Gonna put on a little bit of Andrew Huberman. Have you athletic greens?
Have you been in a cold plunge? So to clarify, what did you spend?
Ah, it's not important.
Okay. So a large amount of money.
I think it was. I think it was over $10,000.
Okay. So more than $10,000 on a plunge, never having been in a cold.
But I mean, like, I don't need to get slapped in the face to know I don't like it.
Yeah.
I'm not gonna enjoy it, but I'm gonna do it.
Okay.
At least once.
At least one time.
Yeah.
I mean, one time for sure.
Yeah. Yeah, I'm gonna do it.
Okay.
I do the sauna.
Yeah.
Like that.
Every day.
Every day.
Every day.
I like it.
Yep.
So, I mean, I'm trying to live forever.
Yeah.
With my high level of income and advanced amount of sciences.
Yeah.
It's 234, 240.
It's not unreasonable to think you could reach that.
Not unreasonable. So interesting thing happened today.
Yeah.
This last couple days, China has said they're not going to use the US Dollar as their reserve currency anymore.
What does that mean?
So reserve currency, Pat, I'm glad you asked. Is the currency that everybody agrees is the underlying currency of choice for international trade. So it was the gold standard, like, for a while, and then we got rid of the gold standard and then we had.
When did that happen? That was like a 70s thing, wasn't it?
No. So the gold standard was for oil for a long time, but, like, the. Like, the reserve currency was the pound.
Right. Okay.
Until 1945. 46.
Right.
So shortly after, like, us came in and sort of established themselves as a global superpower.
Yeah.
So it was. For a long time. It was the. It was the pound for about 100 years. It was that. I don't know what it was before that, but. But I did some research into it, so it's interesting. So every 100 years it changes.
Right? Okay.
And you can literally, it's been going. Doing that for like a thousand years, right? And you can watch the events unfold. Same events every time.
Really?
Yeah. So it's like, there's a book on it. I'll try and remember what the book was. But basically what happens is that they start. Governments have two options when they get into debt, right? They can either default or print more money. Obviously they print more money because defaulting sucks. So as soon as they start to do that, then the underlying asset becomes less, less valuable, less. And then other countries start to eat the inflation because now they're having to spend more US dollar, but the US dollar doesn't necessarily massively go down in value and compared to theirs. So, like, it stops. People like me and you wanting to buy from US websites because we're paying just way over. Even though the US used to be cheaper, when you go to the US and you can buy stuff now, it's like, oh, I'm better off buying this at home. Yeah, you go Lululemon, it's 80 bucks US for some tights. You go here, it's 90 bucks Australian for tights. You're like, well, might as well just buy it from Australia. Like, there's no benefit to me anymore.
Yeah.
So that starts to happen and then from there, like the reserves of all the countries.
