China Russia and others are moving aggressively to kill the US Dollar and its World Reserve status. OPEC has decided to aggressively cut the production of oil in order to bolster prices and dogs are running around without lesions. Needless to say, all three of these things are equal disasters and so we've got a lot to talk about. You better pay attention and you better buckle up.

Let's go ahead and start with the demise of the USD right now Russia China Brazil UAE India Saudi Arabia and other countries are doing everything in their power to completely remove the World Reserve status from the holy USD If that happens, that could mean the repatriation of trillions upon trillions of USD greenbacks into the national economy. All of these greenbacks flowing right into the United States where they were originally printed and that's going to be a big stinking problem. A big reason that Congress and our Central Bank have gotten away with bad policy making for decades is because of the belief that other countries have held in the currency or at least the lack of better Alternatives which has resulted in consistent transactions of trade all around the world being done in USD and central banks holding clean tons and tons of USD as reserves. If that comes to an end, which make no mistake, many countries would love to see this come to an end.

Well, that's going to be a big disaster. Former Assistant Secretary For Public Affairs for the U.S Department of the Treasury Monica Crowley has warned of catastrophic consequences if the U.S dollar loses its status as the world's Reserve currency, that would mean the end of the US dollar. She said, predicting that there would be a complete implosion of the global economic system. You go and you look at Central Bank Reserves Today, 59 percent of Central Bank Reserves as of Q2 of 2022 are held in U.S dollars.

If just a fraction, just a fraction of that was repatriated to the U.S That would be a disaster that would cause hyperinflation everywhere. That would mean me dollars that you have in your bank. Well, they're just another dollar out of trillions and trillions of new dollars that are just back into the system. And that means all that extra money is going to go.

And Chase all the goods it's going to fortify other currencies at the expense of our currency. Now that has some benefits in that our trade is going to be more competitive. but it does has a lot of negative negative aspects to it, and that if this actually happens, we're going to very quickly lose our world. Reserve Currency and all the accompanying benefits World Reserve Currency status has very, very clear benefits such as: reduced transaction costs, ease of trade, reduced borrowing costs.

it's very, very easy to get Capital if you're the holder of the world Reserve currency, the ability to print endless amounts of a currency that other countries use as their Reserve which means that they're basically picking up the tab and you're deporting. You're exporting a lot of the inflation abroad, and of course the easy access to investor Capital. These are all things that are a benefit to the US because it has a world Reserve currency. If it no longer has that and it starts losing its influence, which make no mistake, they're trying to force through, well, guess what? those benefits are going to go against us? Let's go through a brief history of how we got here.

In 1920, the dollar began to replace the pound as an international Reserve currency. This was after World War One. By 1944, International Trade became conducted under the US dollar under the Breton Woods agreement. Under the agreement, gold was the basis for the U.S Dollar and other currencies were pegged the US Dollar's value.

They figured, hey, you know the US It's a pretty trustworthy system. It's the most reliable we have on planet Earth and they're pegging their currency to the gold, so we might as well just transact in USD because it's as good as gold. If Only They Had known Tricky Dick was coming in 1971. Of course, Tricky Dick took us off the gold standard.

Then you had Decades of hyperinflation, but the USD was still the currency of first choice for people that were trading for people that had reserves. Because again, even without the gold standard, I mean it was still better than most other currencies. Sure, over the decades, there were tons and tons of different moves from geopolitical adversaries who were trying to de-dollarize but none of them really hit any traction. None of them had any real traction.

Well, at least until now now, they're getting a lot of traction. China has been aggressively pushing its you won and replacing a lot of its trades from using the USD to Now using the Yuan and it's causing a lot of those countries that it's trading with to start thinking, hey, maybe we should use the Yuan Maybe the USD isn't in our favor anymore more, and China's given some pretty aggressive incentives to incentivize these countries to convert as well, which means a lot more likely going to go on board. Obviously, this is starting most aggressively in countries that already don't like us and want to get away from our currency. But make no mistake, it's happening everywhere starting with Russia Here, though from Bloomberg, China's Yuan has replaced the US dollar as the most traded currency in Russia.

A year after the invasion of Ukraine led to a slew of Western sanctions against Moscow and you can see February and March, the Chinese currency surpassed the U.S currency and transactions in Russia. And of course, this is no surprise given the current state of U.S Russia relations. But like I said, they are making huge headways in terms of converting other countries to the Yuan as well. European Conservative reports several days ago: China The primary rival to the United States is global economic hegemony, and Brazil which has Latin America's largest economy, reached a deal to dump the US dollar as an intermediary currency when carrying out trade and financial transactions.

Bitcoin.com reports the Brazil China deal allows the two countries to exchange goods using the Chinese Yuan and the Brazilian Real that expect is that this deal will ease the transactions between the two countries, reducing costs and promoting even greater bilateral trade and facilitating investment according to the Brazilian Trade and Investment Promotion Agency. So China is basically saying everything here that you would expect somebody that's trying to adopt their currency as the global Reserve currency. to say you're going to save on transaction costs, you're likely going to get more trade from us, you're probably going to get better borrowing costs, and you're going to facilitate a lot more investment from China into Brazil. We're gonna have a much deeper trade relation that's going to be very, very lucrative for you if you just simply adopt our currency for this trade relation in definitely down the road a lot more trade relations and then all of a sudden they start leaving that USD right because all of a sudden they have all these incentives.

China is putting this big carrot in front of lots of countries that say Hey if you just simply transact using the one, well all of a sudden you're going to get a lot of benefits and what is that doing at the same time? Well, it's weakening the USD, which is going to create a self-fulfilling prophecy which means that more and more countries are going to be incentivized to jump to another currency. the Yuan or something else that maybe is more politically in their favor. Beijing has similar currency deals with of course Russia Turkey, Pakistan and several other countries, and it continues to expand that list of countries. In February 2022, members of the China-led Shanghai Corporation organization, the Sco, a block that consists of China Russia, India, Pakistan, Uzbekistan, Kazakhstan, Tajikistan and Kyrgyzstan agree to increase the use of their National currencies and trade between the countries.

So this is exactly how it works, folks. First China pushes their fiat currency onto their geopolitical allies and then their neutral partners. and then once they've gotten enough influence and they've gained status of an up-and-coming World Reserve currency. That's when they go in for the bite.

That's when all of a sudden you start seeing a lot of their geopolitical Frenemies start converting over to the Yuan and that's when you really start seeing the rug pulled on the USD which becomes more and more useless on a global stage. That is the game plan here. and if this comes true, not only is the USD going to be useless on a global stage, but we're likely going to see huge hyperinflation here at home. and the more essentially worthless USD that gets converted and pushed back into the US economy, the more other banks are going to be incentivized to do the same.

And of course, bigger picture, the more that our interest rates are going to have to go up in order to stop the hyperinflation. which means our borrowing costs are going to go through the roof, which is going to really complicate our ability to continue to borrow our way through success as a country. The next story today is that OPEC has decided to do their latest money grab. AKA Another production cut: Fox Business reports the Coalition of oil producing countries led by Russia and Saudi Arabia known collectively as OPEC Plus pledged on Sunday to cut production by 1.15 million barrels per day.

The move Shock: Traders Because OPEC plus delegates signaled in recent weeks, they intended to stick with the existing output policy. Even as the banking crisis sent prices plummeting, the voluntary and precautionary cuts that are intended to support the stability of the oil. Market will begin in May and continue through the end of 2023. Saudi Arabia Said said in a statement this is in addition to Cuts they did in October.

So OPEC is playing this fun little game where they go and they aggressively cut production in order to preemptively hedge against any kind of price decreases. Down The Road God forbid people buy oil for a little bit cheaper. and this is problematic because a big reason that inflation has had smidgens of success is because well oil prices have dropped. and now that they're doing everything in their power to keep oil prices up, well, you could expect inflation to heat up again as well.

And you have to understand what OPEC is looking at. OPEC is looking at this chart of oil prices at eighty dollars and they are thinking, hey, we don't want it at eighty dollars, We want this at a hundred, We want this at 110. A lot of analysts have made the claim that because of becoming economic slowdown, well, you can expect oil prices to go back below pre-pandemic levels and that's going to cause inflation to turn into disinflation. But folks, OPEC is making sure that that won't happen.

They are making sure that regardless of how slow the economy is, you're still paying top dollar for your oil. and accordingly, Goldman Sachs The sacks of Goldman just lifted their forecast for Oil is following the cuts projecting in an analyst Note that Brent could hit 95 dollars a barrel by December 2023 and 100 a barrel by December 2024.. this is expected to bring the average price per gallon of gasoline back above four dollars, and perhaps even closer to the five dollar region nationally. which actually sounds pretty cheap to me because I'm here in Los Angeles and the average price is somewhere around four eight, five dollars already.

But the point is, what they are signaling here is that they are going to do everything in their power to make sure that oil prices stay as high as they possibly can be. It doesn't matter if there's an economy or no economy, they want to make sure that they're getting their top dollar. Charlie Wait a second, Are you dumb? The US has more than enough oil capacity to completely stick it completely. Stick it to OPEC And their little plus sign no Folks Energy Policy here in the US is all about virtue signaling about how we can cut production to as low as possible so that we can save the environment while at the same time emboldening.

OPEC Plus countries that don't give a hoot about the environment and use the extra capital and power to of course destroy the environment. And OPEC plus those countries there are on a different planet, so we don't have to worry about their pollution. We just feel good here at home while at the same time paying top dollar for globally benchmarked prices. The fact of the matter is democrat or republican.

You might have your own opinions on this matter, but in 2020 Biden Ran on a campaign to end fossil fuel and you may be for or against that and you can have your own opinion. I'm not going to be offended by your opinion, but but there are ramifications to that. He promised quote no ability for the oil industry to continue to drill a period ends number one Biden Went on to cancel the Keystone XL pipeline and Implement a moratorium on new gas leases within days of taking office. move that preceded a record high spike in gas prices in June 2022, the average price for a gallon of gas in the U.S hit five dollars for the first time ever.

Now obviously the invasion was mid this increase, but the fact of the matter is that when you discourage oil production, you tell the industry that we're going to do everything we can in the next 10 to 15 years to Sunset You well people aren't going to want to invest in those companies, Those companies aren't going to want to invest in costly infrastructure to drill And all of a sudden you're getting to be giving a massive massive handout to OPEC plus member countries. And obviously, we can feel good here at home because it's polluting less. But these OPEC plus countries are picking up where we're leaving off and they're using their power to just rake in insane levels of profits. And Biden has repeatedly gone over to OPEC and begged them to increase production.

But OPEC knows that they can do whatever the hell they want and walk over us again and again and again and we're just gonna smile on their face. Free Beacon Just reported that Biden abandoned his pledge to punish OPEC last time OPEC Cut Biden went and said some mean words and said there's going to be ramifications. Of course, there were no ramifications and so here we are again and look folks. I Guess we can feel virtuous that we stop some production of oil and some resulting pollution here in the U.S But I Promise you that the extra power and money that we're giving to OPEC Plus is going to be used to net destroy the environment much more than any pollution that we saved here at home.

And on the broad scheme of things, it's the same. Planet So when you pollute and you're worried about global climate change, well, it doesn't really help if you're just emboldening them versus emboldening us. If you doubt that, just look up the list of the OPEC Plus member countries and ask yourself what have those countries specifically countries like Russia been using their oil gains the last few years To do have those actions been good for the environment or bad for the environment? If they've been bad and you care about the environment, maybe maybe support more production here at home. Have a great rest of your day and we'll see you in the next video.