Valuetainment - Will The U.S. Dollar Collapse As a Reserve Currency？ - History of World Currency Explained

00:00:00.120 Will the U.S. dollar collapse?

00:00:01.920 It's a question a lot of people are asking.

00:00:03.540 A lot of videos are going viral on Instagram, TikTok.

00:00:05.940 Oh my God, what would happen if the U.S. dollar

00:00:08.480 as a currency, world currency,

00:00:10.300 is replaced with somebody else?

00:00:11.580 Because what's going on with BRICS? 1.00

00:00:12.900 You're seeing China and Russia become best friends.

00:00:14.640 You're seeing a potential peace deal,

00:00:16.100 Iran and Saudi Arabia.

00:00:17.380 Brazil is there with Lula, with these guys.

00:00:19.220 What would happen if they start buying oil through one

00:00:22.220 and this is gonna be bad for America?

00:00:24.100 I'm telling you, this is what we have to worry about.

00:00:25.800 Well, who's right, who's wrong?

00:00:27.140 We don't know.

00:00:28.120 Here's what we do know.

00:00:28.860 Since 1450, there's only been six different world currencies.

00:00:33.380 And when you find the data,

00:00:34.780 you can easily make the argument

00:00:36.220 why the U.S. dollar will be replaced

00:00:37.860 or you can also make the argument to say,

00:00:40.080 not anytime soon.

00:00:40.980 Let's get right into it.

00:00:50.840 Okay, so if you get value from this video,

00:00:52.500 give it a thumbs up and subscribe to the channel.

00:00:54.300 Let's get right into it.

00:00:55.100 A couple of different things.

00:00:55.960 What is a world reserve currency?

00:00:58.140 When you hear about this, what does this really mean?

00:01:00.460 What that is, is it's the currency

00:01:02.520 that is held in significant quantities

00:01:04.640 by governments, institutions,

00:01:05.820 as a means of international payments,

00:01:08.200 foreign exchange reserves, and investments.

00:01:10.160 So in other words, it's the most liquid capital

00:01:12.700 that's available in the international market

00:01:15.120 for people to use in exchange for whatever it may be.

00:01:18.180 And that happens to be today, the U.S. dollar.

00:01:20.180 So you know this whole thing about currency,

00:01:21.420 like what happens if the U.S. dollar collapses

00:01:23.200 and we're using a different currency,

00:01:24.780 what's going to maintain their value?

00:01:26.860 Anything that's a non-duplicatable asset,

00:01:29.140 such as what?

00:01:30.260 Alternative investments, right?

00:01:31.640 Such as art.

00:01:32.580 Because when you look at art last year,

00:01:34.880 did you know last year,

00:01:35.740 the three auction houses had a record-breaking year

00:01:38.120 of $18 billion of art sold last year.

00:01:42.380 And so many companies like Goldman, Morgan,

00:01:45.380 all these other companies are sitting there

00:01:47.220 recommending their clients

00:01:48.860 to look at alternative investments,

00:01:50.760 specifically within the art space.

00:01:52.360 And the one company that's disrupting this industry

00:01:54.480 right now is Masterworks.

00:01:55.700 And here's how they're doing it.

00:01:56.800 The average person cannot go buy a Picasso,

00:01:58.940 cannot go buy a Banksy or a Warhol

00:02:00.760 and say, oh my God, I can't buy something like that.

00:02:02.640 That's $3 million.

00:02:03.460 I can't buy something like that.

00:02:04.600 It's $2.8 million.

00:02:06.400 But anybody can go buy a share of it.

00:02:08.440 And that's what happens with Masterworks.

00:02:09.820 They now have over 700,000 users

00:02:12.400 that are part of Masterworks

00:02:14.700 and anybody can go buy a share.

00:02:16.620 And it's just like stock you're buying within a company.

00:02:19.320 It's all regulated.

00:02:20.500 It's all through SEC.

00:02:21.960 And by the way, two things you need to talk about Masterworks.

00:02:23.580 Every single piece of art that they sold,

00:02:25.300 they provided net profits to investors.

00:02:27.560 And last year, in 2022,

00:02:28.860 they paid $25 million to their investors.

00:02:30.700 So if you want to participate

00:02:31.640 with what Masterworks has gone on,

00:02:33.900 click on a link below,

00:02:35.260 go get registered, learn for yourself.

00:02:37.740 And if you're comfortable,

00:02:39.220 start diversifying by investing

00:02:41.120 in alternative assets with Masterworks.

00:02:43.840 Okay, so let's take a look

00:02:44.920 at the six major world currencies

00:02:46.640 we've had since 1850.

00:02:48.360 Believe it or not,

00:02:49.020 the first one was Portugal.

00:02:50.460 From 1450 to 5030,

00:02:52.340 lasted 80 years.

00:02:53.160 This is during the age of exploration.

00:02:54.840 Portugal created a dominant global empire.

00:02:57.460 Ottoman Empire closed off

00:02:58.840 the traditional trade route to Asia,

00:03:00.580 forced innovation through advanced

00:03:02.260 and navigational technology.

00:03:04.060 The Portuguese were able to reach Africa,

00:03:06.680 Asia, and the New World.

00:03:08.240 Portuguese currency became the primary currency

00:03:10.020 used in global trade,

00:03:11.000 and it established military outposts

00:03:12.940 along the coasts of Africa, India,

00:03:14.960 Malaysia, Japan, and China.

00:03:16.380 They became overextended.

00:03:17.720 The empire eventually declined

00:03:19.060 due to attacks and competition

00:03:20.680 from other countries,

00:03:21.800 mainly the Dutch, British, and the French.

00:03:23.700 You would have never guessed Portugal,

00:03:24.860 would you have?

00:03:25.500 But they were the first.

00:03:26.140 Second is Spain,

00:03:26.920 which by the way,

00:03:27.440 lasted the longest, 110 years.

00:03:29.140 From 1530 to 1640,

00:03:31.140 combined forces with Portugal

00:03:32.900 to form the Iberian Union.

00:03:34.740 Spanish silver coins

00:03:35.840 were the first global reserve currency

00:03:37.700 recognized in Europe, Asia, and Americas.

00:03:40.280 And this happened due to abundant silver supplies

00:03:42.800 from Spanish South America.

00:03:44.500 Eventually, they collapsed through wars

00:03:46.120 and revolutions by the mid-1600s.

00:03:48.520 Next one is Netherlands,

00:03:49.540 which lasts 80 years.

00:03:50.600 From 1640 to 720,

00:03:52.500 they had their rise to global power

00:03:53.880 resulted from creation

00:03:54.960 of the Dutch East India Company,

00:03:57.060 first publicly traded

00:03:57.980 multi-international corporation in the world,

00:04:00.560 founded to protect that state spice trade

00:04:03.180 in the Indian Ocean

00:04:04.400 and to assist in the Dutch War of Independence

00:04:06.620 from Spain.

00:04:07.220 The Dutch defeated Portugal and Spain economically 0.82

00:04:09.940 by positioning themselves

00:04:11.500 to profit from European demands for spices.

00:04:14.120 France and England started 0.85

00:04:15.140 their own spice trading companies

00:04:16.620 and went to war with the Dutch.

00:04:18.180 Saturated spice market

00:04:19.580 and the costly wars destroyed the Dutch

00:04:21.960 as a global currency.

00:04:23.500 Next is France,

00:04:24.380 which lasted 95 years.

00:04:25.780 From 1720 to 1815,

00:04:27.560 France was best positioned

00:04:28.660 to be the next reserve currency,

00:04:30.540 achieve European dominance

00:04:31.780 under Louis XIV,

00:04:33.140 but he put France in massive debt

00:04:35.500 caused by war

00:04:36.860 and extravagant parties

00:04:39.040 implemented heavy taxes,

00:04:40.880 something we're similar

00:04:41.560 with here in the States.

00:04:42.720 The 1789 French Revolution

00:04:44.340 was caused by an economic turmoil

00:04:45.920 and public outrage.

00:04:47.000 After a decade of civil war,

00:04:48.960 Napoleon takes over.

00:04:50.280 So this guy Napoleon liked a lot of wars.

00:04:52.000 Obviously we know about that,

00:04:52.920 but it lasted from 1803 to 1815,

00:04:55.280 conquered a lot of territory,

00:04:56.820 eventually overextended himself

00:04:58.560 and now comes a new currency.

00:05:00.340 Great Britain.

00:05:01.180 Next one,

00:05:01.920 the financial capital of the world,

00:05:03.340 London,

00:05:03.900 105 years from 1815 to 1920,

00:05:06.640 after Napoleon's defeat

00:05:08.080 at the Battle of Waterloo in 1815,

00:05:10.120 England dominates global trade.

00:05:11.980 For 105 years,

00:05:12.880 Industrial Revolution

00:05:13.760 combined with advanced

00:05:14.820 shipbuilding capabilities

00:05:16.400 to being an island nation

00:05:18.540 made them the most dominant navy

00:05:20.380 in the world.

00:05:21.000 Dominant navy equals

00:05:22.340 dominant global trade.

00:05:24.160 The sun never set on Great Britain

00:05:25.960 was a saying they said

00:05:27.060 for decades during that time.

00:05:28.780 And then eventually,

00:05:29.600 World War I

00:05:30.200 destroyed Great Britain's economy

00:05:31.820 and position as a reserve currency

00:05:33.200 took on a massive amount of debt

00:05:34.640 to win the war.

00:05:35.560 The U.S. benefited massively

00:05:36.840 from World War I

00:05:37.740 and every country

00:05:38.960 from both sides

00:05:40.080 of World War I

00:05:41.180 were borrowing money

00:05:42.060 from the U.S.

00:05:42.740 to pay the U.S.

00:05:43.660 to build things for them.

00:05:45.420 And during World War I,

00:05:46.420 the U.S. started transitioning

00:05:47.960 from a under-industrialized

00:05:50.040 agricultural economy

00:05:51.640 to the industrial manufacturing powerhouse

00:05:54.580 it eventually became.

00:05:55.600 So then comes the United States,

00:05:57.600 which is kind of tricky

00:05:58.520 because some say

00:05:59.300 it started in 19...

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00:06:22.900 1920, which means

00:06:25.400 the U.S. currency

00:06:26.300 has been the world currency

00:06:27.420 for 103 years.

00:06:28.680 But some say it happened in 45,

00:06:30.740 which is only 78 years.

00:06:31.960 Let me tell you why.

00:06:32.700 You know, those that say

00:06:33.600 it became the world currency

00:06:34.600 in 1920,

00:06:35.360 well, it was because

00:06:35.860 we had the healthiest economy

00:06:37.420 in the world

00:06:38.040 during the World War I

00:06:39.180 that was taking place.

00:06:40.120 So automatically it's like,

00:06:41.180 well, we think the U.S. dollar

00:06:42.220 is going to be the currency.

00:06:43.480 However, technically,

00:06:44.640 the dollar did not become

00:06:45.780 the official reserve currency

00:06:47.780 until the post-1944

00:06:49.500 Bretton Woods Agreement.

00:06:51.180 And after World War II,

00:06:52.260 the U.S. basically

00:06:53.580 had all the gold

00:06:54.700 in the world.

00:06:55.360 And because of that,

00:06:56.140 countries around the world

00:06:57.020 agreed to treat the U.S. dollar

00:06:58.380 as an equivalent to gold

00:07:00.340 and the dollar

00:07:01.000 was redeemable in gold

00:07:02.620 until 1971,

00:07:04.560 which kind of changed the game.

00:07:05.560 And that's why a lot of people

00:07:06.340 are saying,

00:07:06.760 what is the dollar

00:07:07.380 backed by today?

00:07:08.160 At least in 1970,

00:07:09.260 it was a dollar

00:07:09.820 was backed by gold.

00:07:10.900 But how about today?

00:07:11.760 It's more risky.

00:07:12.680 It's more fragile.

00:07:13.440 It is a very good argument

00:07:14.440 a lot of people make.

00:07:15.260 The dollar has been

00:07:16.160 the reserve currency

00:07:16.860 now for either 102 years

00:07:18.140 or 79 years,

00:07:19.360 depending on how you look

00:07:20.320 at the start date.

00:07:21.060 So for the people that say

00:07:22.340 this will never happen

00:07:22.980 to the dollar,

00:07:23.540 what makes the dollar

00:07:24.180 so much more powerful

00:07:25.240 that it'll never happen to this?

00:07:26.460 They'll say,

00:07:27.060 well, the infrastructure

00:07:27.780 that we've spent decades building

00:07:29.220 or we have the most money circulating

00:07:31.440 or most goods

00:07:33.060 are priced out

00:07:34.040 by the U.S. dollar

00:07:35.120 or the fact that

00:07:35.980 we've had a lot of momentum

00:07:36.780 and all these momentum

00:07:37.840 year after year after year

00:07:38.980 and it's a habitual thing

00:07:39.960 that we've been doing.

00:07:40.640 It's like, listen,

00:07:41.060 I'm just using the U.S. dollar.

00:07:42.480 It's going to be so hard

00:07:43.160 to get away from it.

00:07:44.120 But as we know

00:07:44.980 how innovation works,

00:07:45.900 think about an app

00:07:46.660 used five years ago.

00:07:47.660 You're not even thinking

00:07:48.240 about it today.

00:07:48.860 Groupon, let's just say.

00:07:50.080 You know, everybody was on Snapchat

00:07:51.220 and then everybody was using us.

00:07:53.840 The change is so quick

00:07:55.660 with technology.

00:07:56.480 So what needs to happen

00:07:57.520 for us to move on

00:07:58.700 to a new currency?

00:07:59.940 So you would need

00:08:00.800 a currency capable

00:08:01.960 of handling trillions

00:08:02.800 of dollars of trade

00:08:03.800 per day,

00:08:04.660 several hundred thousand

00:08:05.520 transactions per second,

00:08:07.200 and even bigger than that,

00:08:08.340 a government

00:08:08.940 that others would trust.

00:08:10.680 So if you're,

00:08:11.260 oh, we're going to go to one.

00:08:12.120 Do you trust China?

00:08:12.880 We're going to have

00:08:13.280 a new world currency

00:08:14.640 that everyone's going to be using.

00:08:15.640 Do you trust

00:08:16.420 or all governments

00:08:17.500 coming to get it to use one?

00:08:19.180 Is the trust level high

00:08:20.400 for somebody

00:08:20.880 who want to do that? 1.00

00:08:21.640 By the way,

00:08:22.260 one of the things

00:08:23.100 that we did think about

00:08:24.080 for those that say

00:08:25.260 it'll never happen.

00:08:26.220 It's not going to happen

00:08:26.760 during my lifetime.

00:08:27.560 I'm only 28 years old.

00:08:28.760 It'll happen seven years from now,

00:08:30.080 maybe, but not right now.

00:08:31.180 Okay.

00:08:31.580 What did we learn during COVID?

00:08:33.680 We learned how much

00:08:35.100 we relied on Taiwan for chips.

00:08:37.240 We learned how much

00:08:38.680 we relied on China

00:08:39.860 for our pharmaceuticals,

00:08:41.420 manufacturing China.

00:08:42.900 If there was anything

00:08:44.380 that happened during COVID,

00:08:45.860 it was a big commercial

00:08:47.260 to the world to say,

00:08:48.460 you rely on China.

00:08:50.220 Okay.

00:08:50.900 We all felt it.

00:08:51.840 And they stood up tall

00:08:52.740 and said,

00:08:53.120 hey, you need us.

00:08:54.760 You made a mistake years ago

00:08:56.360 doing all this stuff for us

00:08:57.800 and we were winning

00:08:58.480 on the backs of US.

00:09:00.440 But too late now

00:09:01.460 because now you need us.

00:09:02.880 It's like,

00:09:03.360 hey, Apple's moving away

00:09:04.940 from China to go to India.

00:09:06.500 Well, there's some reliability.

00:09:08.820 We're leaning on China 1.00

00:09:10.120 for some of this stuff.

00:09:10.840 So again,

00:09:11.220 whether that causes

00:09:12.000 anything or not is irrelevant.

00:09:13.760 But one has to be paranoid

00:09:15.280 to think that there is

00:09:16.620 a possibility

00:09:17.260 because during COVID,

00:09:18.380 we were definitely

00:09:19.000 relying on China a lot.

00:09:20.300 I may have just convinced you

00:09:21.260 to say,

00:09:21.580 well, Pat,

00:09:22.060 if that's the case,

00:09:22.980 we're definitely going

00:09:23.460 to go to one.

00:09:24.080 Well, let's argue myself

00:09:25.660 on what is the global

00:09:26.760 one reserves worldwide

00:09:28.340 comparable to

00:09:29.280 the US dollar reserve worldwide.

00:09:32.560 This is what it's looking like.

00:09:33.800 So if you look at

00:09:34.280 the global reserve currency,

00:09:35.260 you'll see US dollar

00:09:36.060 all the way at the top

00:09:37.160 at around 60%.

00:09:38.140 Then you have the euro,

00:09:39.420 then you got the yen

00:09:40.320 and all the way at the bottom.

00:09:42.000 Do you see what that is?

00:09:42.700 Renminbi, RMB,

00:09:44.120 it's what the yuan is.

00:09:45.280 For China,

00:09:46.140 it's not even close.

00:09:47.240 So for that to happen,

00:09:48.540 a lot would need to change.

00:09:50.520 But some people say,

00:09:51.300 well, Pat,

00:09:51.760 the US dollar share

00:09:52.920 of global central bank reserve

00:09:55.040 is the lowest we've had

00:09:55.920 in 30 years.

00:09:56.560 We can look at that as well.

00:09:57.760 And if you see this chart

00:09:59.000 with a lot of the panic

00:10:00.080 of where we are today,

00:10:01.120 you would see

00:10:02.100 that from 1979 to 1996,

00:10:05.060 it was lower

00:10:06.720 than what it is today.

00:10:08.320 But if we go back

00:10:09.140 and think about

00:10:09.680 when we were the strongest,

00:10:10.660 it's all the way back

00:10:12.080 from 70 to around 78

00:10:14.100 until this president,

00:10:15.440 the guy named Jimmy Carter

00:10:16.360 showed up,

00:10:16.980 which the closest president

00:10:17.800 we've ever had to Jimmy Carter

00:10:18.880 is a guy named Joe Biden.

00:10:20.060 So that's another fear

00:10:20.820 a lot of people are having

00:10:21.520 on what's going to happen

00:10:22.080 to our currency.

00:10:22.900 I want to show you

00:10:23.420 these two charts

00:10:24.060 just for you to look at,

00:10:25.060 see on what the dollar,

00:10:26.060 the power of the dollar

00:10:26.820 is today.

00:10:27.400 If you look at this one here,

00:10:28.440 it shows the share

00:10:29.780 of over-the-counter

00:10:30.520 foreign exchange transactions.

00:10:32.500 You see the blue?

00:10:33.560 That's US.

00:10:34.720 Look what percentage

00:10:35.640 of it is blue,

00:10:36.940 US.

00:10:37.540 Orange is euro.

00:10:38.880 Then you have the pound,

00:10:39.780 which is green.

00:10:40.800 Then the light blue

00:10:41.660 is the yen.

00:10:42.880 The pink is other.

00:10:44.480 You see that small

00:10:45.520 little yellow right there?

00:10:47.100 That's the Chinese one. 1.00

00:10:48.520 See how small it is?

00:10:49.320 It ain't that big.

00:10:50.120 Then look at this other chart

00:10:51.300 when it comes down

00:10:52.360 to share of export invoicing.

00:10:54.920 In America, 0.65

00:10:56.000 it's pretty much

00:10:56.680 the US dollar.

00:10:57.640 In Asia Pacific,

00:10:58.740 it's again,

00:10:59.540 pretty much the US dollar

00:11:00.520 70 something percent

00:11:01.540 of the time.

00:11:02.200 A small percentage

00:11:02.940 is euro.

00:11:03.640 Pink is other.

00:11:04.540 In Europe,

00:11:05.100 they pretty much

00:11:05.580 use the euro.

00:11:06.380 Orange is euro.

00:11:06.980 But if you look at also

00:11:08.020 the rest of the world,

00:11:08.960 80% of the time

00:11:09.920 is the US dollar.

00:11:10.900 So the US dollar

00:11:11.460 as of today,

00:11:12.420 it's still the main currency

00:11:14.580 that everybody uses.

00:11:15.700 Closing thoughts.

00:11:16.420 Henry Kissinger

00:11:17.200 once said the following,

00:11:18.540 who controls the food supply

00:11:19.960 controls the people.

00:11:21.180 Who controls the energy

00:11:22.260 can control the whole continent.

00:11:23.840 Who controls money

00:11:25.060 can control the whole world.

00:11:27.000 And you know

00:11:27.340 who controls money?

00:11:28.620 US controls money.

00:11:30.540 Now,

00:11:31.180 sometimes

00:11:31.960 when you have a lot of power

00:11:33.260 and it's been around

00:11:33.940 for a while,

00:11:34.640 you become entitled.

00:11:35.400 You become arrogant.

00:11:36.880 You become soft.

00:11:37.980 You create blind spots.

00:11:39.200 You start looking at the outside

00:11:40.520 as the enemies.

00:11:42.060 Vanderbilt's

00:11:42.540 had a lot of money.

00:11:43.760 All their money.

00:11:44.640 You know how long it lasted?

00:11:45.660 Two generations.

00:11:46.520 You know why?

00:11:47.320 Because one of the sons,

00:11:48.660 all he wanted to do

00:11:49.380 was spend the money and party.

00:11:50.720 And US right now

00:11:51.700 is spending money

00:11:52.660 as if we have money forever.

00:11:54.940 And if I,

00:11:56.140 the enemy,

00:11:56.680 is looking at US,

00:11:57.860 if there's ever

00:11:58.840 been an opportunity

00:12:00.540 to go in there

00:12:01.540 in a creative way,

00:12:02.520 whether it's global CBDC,

00:12:03.720 whether it's buying

00:12:04.860 some US politicians

00:12:05.860 and leaders,

00:12:06.580 whether it's dividing

00:12:07.420 America internally,

00:12:08.860 whether it's any of those

00:12:10.080 manipulative ways

00:12:11.020 to hurt America, 0.69

00:12:12.260 this is a great season for it.

00:12:13.960 Am I saying it can happen

00:12:14.840 next 12 months,

00:12:15.720 24 months,

00:12:16.360 36 months,

00:12:17.000 5 years,

00:12:17.460 10 years?

00:12:18.160 No.

00:12:18.840 But can it happen

00:12:19.520 next 10,

00:12:20.160 15,

00:12:20.500 20 years?

00:12:21.280 Yes.

00:12:21.980 If the US gets

00:12:23.740 too cocky

00:12:24.680 and comfortable, 0.97

00:12:25.680 somebody else can come

00:12:26.900 and take our lunch

00:12:28.680 and then all of a sudden

00:12:29.340 everyone's looking around

00:12:29.980 saying,

00:12:30.200 what happened to the US?

00:12:31.200 It can happen that quickly

00:12:32.100 because technology moves

00:12:33.100 very quickly.

00:12:34.520 Having said that,

00:12:35.500 if you got value

00:12:36.140 from this video,

00:12:36.740 give it a thumbs up

00:12:37.340 and subscribe to the channel.

00:12:38.420 I got another video

00:12:39.060 I want you to watch

00:12:39.740 about CBDC.

00:12:41.080 If you've never seen it,

00:12:42.140 click here to watch it.

00:12:42.860 Take care, everybody.

00:12:43.580 Bye-bye, bye-bye.

00:12:44.040 Bye-bye.

Valuetainment - May 12, 2023

Will The U.S. Dollar Collapse As a Reserve Currency？ - History of World Currency Explained

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