➡ The article discusses the impact of low interest rates on global debt expansion, the financial crises of 2008 and 2020, and the subsequent increase in public debt and monetary inflation. It also covers the currency wars between the US and Asian countries, particularly China, which aims to make its currency, the Yuan, the primary currency of Asia. However, despite China’s efforts, the US dollar remains dominant due to its network effects and global acceptance. The article concludes that the US dollar is not losing its status, with evidence showing high net inflows into the dollar and its continued premium ratings globally.

➡ The central banks, especially in China, are injecting a lot of money into the system, which is increasing the value of assets like gold, copper, and bitcoin. The dollar isn’t dying compared to other currencies, but it is losing value against these real assets. This means that while the dollar remains stable among other currencies, it’s buying power is decreasing when it comes to tangible assets. Therefore, it’s advisable to invest in these hard assets to maintain your wealth.

The death of the dollar is either the biggest financial story of our lifetime or the biggest exaggeration. Today I’m going to show you what I found when digging through the actual data and the answer it’s going to surprise you. So let’s go. All right we are talking about the death of the United States dollar and of course if you’re on YouTube or Twitter or X or whatever there’s no shortage of conversations about this. It’s mostly of course by the gold bugs right the doomers and the question is is it imminent? Is it something that is going to happen at any moment we have to be prepared for or is it greatly exaggerated or is there some truth in the middle and ultimately what should we watch and more importantly what should we do? Okay so the US dollar obviously gets its strength from having the US dollar the world reserve currency status of it and so number one the United States still leads the world in innovation.

Number two of course the US has the world’s largest military and of course number three what it really has is network effects. Network effects are very hard to break. Now the world’s been trying to break them for a long time as a matter of fact we know that China and Russia have been actively de-dollarizing since about 2013 so they’ve been trying to get off the dollar trying to kick the drug habit for a long time de-dollarization is 95% of the trade between China and Russia didn’t use the US dollar so between them they’re trying to figure out what they can do off of the dollar but they’ve been trying to do this for well over a decade and they still haven’t figured that out.

We know that the BRICS nations you hear about it all the time some of my friends in the industry in the gold space are constantly telling you the BRICS nations Brazil, Russia, India, China, South Africa and all the other start their own currency it’s going to be a goldback currency it’s going to be something like that you see it all over YouTube the news etc how would a new BRICS currency affect the US dollar. As a matter of fact Donald Trump when he was coming back in for his second term he saw news he saw chatter about the BRICS doing their own currency and he said hey if you launch your own currency then 100% tariffs

against you right so he didn’t like that so we have lots and lots of talks about that we also have talks of the BIS the central bank of central banks the bank of international settlements and China working on a CBDC type of project it’s called Project Inbridge if you’re a regular viewer of the channel you know I’ve been talking about this for a while Project Inbridge revolutionizing cross-border payments with multi CBDC technology so multiple countries have their own CBDC and they do trade that’s also death of the dollar right we know that also a point that the gold bugs make all the time is that central banks are buying record

amounts of gold so we can see in the chart right here that we can go back all the way here to 2014 right here and you can see that the amount of gold buying has gone up and so for the last several years a lot of gold buying has been happening so they’re buying more gold and it’s no wonder China and Russia has been trying to get off the dollar for a long time we know that when Russia and Ukraine when that situation erupted we know that the United States and NATO basically moved to unilaterally seize Russia’s bank accounts now to put that into comparison into some understanding Russia is one of three superpowers in the

world with nuclear weapons if they have their bank accounts seized what hope does any other nation in the world have and of course they don’t which is why all of the world is trying to figure out what’s next which is why everyone’s warning you of the death of the most of them are gold people trying to sell you gold so what is really going on and is this something imminent or exaggerated well to understand this we have to look at a couple things so number one we have to understand that currencies exchange foreign currencies fx exchange and how they adjust and we’re going to look through three periods in time so you can

understand this but first of all liquidity imbalances adjust so depending on how much money credit available you have liquid it adjusts the real exchange rates so what the exchange rates are between the two different currencies the exchange rates are driven by productivity and capital so as some countries become more productive create more than they consume right and then they acquire more capital then it starts to change the exchange rates and this causes rises and falls in asset prices supply and demand let’s just break all this down 101 supply and demand is basically what this is saying so if i have more supply if i’ve

created more supply because i’m more efficient i have better capital i have more supply prices rise and fall based off of that and the central banks determine the strength of each of these through the channels that they have so for example we tighten right tighten monetary policy we loosen monetary policy we mainly

do that by raising or lowering rates if we make money cheaper more people use it if we make money expensive less people use it right so those are the channels that they have so now that you understand that we can dig in a little bit to the next level let’s look through the three distinct phases of histories you can start to understand how this works so first of all i don’t have this phase we’ll go back to 1944 this is the Bretton Woods agreement the world pretty much the entire world got together and agreed that the United States dollar would be the reserve currency of the world it would be backed by gold 35 would equal one ounce of gold and the currencies of the world would peg to the US dollar that was the Bretton Woods agreement it was still a semi-quase goldback system because the dollar was backed by gold currencies were backed by the dollar we’re going to jump ahead to 1971 and the reason why this is a post Bretton Woods

agreement this is now fiat so we’re off of the gold standard 1971 Richard Nixon thank you very much remove the United States i say that sarcastically remove the United States off of the gold system the gold standard and now we have just free-floating fiat currencies and this period is from 1971 to 1990 so post Bretton Woods we’ve ended that system now when when Nixon did that ripped the dollar off the gold system all the other currencies of the world got taken off the gold system right so everything’s free-floating we saw Japan and Germany’s rise after World War II right so they had been rising post Bretton Woods we also saw the rise of OPEC so the oil producing nations in the Middle East so we started to see that the trade imbalances the liquidity the capital accounts were starting to change around the world we started to get massive inflation right that’s what happens when you come off of a sound monetary standard you go to a

debt monetary status we had massive inflation into the 70s and into the 80s president Ronald Reagan and his fed chair Paul Volcker we tell stories about them all the time because massive inflation and Paul Volcker fed chair at the time raised interest rates at the record rate that we’ve never seen again since he did that in order to to slow things down to tamper inflation and what it is it strengthened the US dollar made the dollar stronger when it made the dollar stronger because they raised rates right they tighten the money supply it basically ended up contributing to the end of the USSR the Soviet Union collapsed because of

that so when you tighten your monetary supply it puts the screws to other nations this is the battle this is the currency wars that we’re in you’ll notice as we get to phase two and phase three okay so now post 1990 we’re into phase two 1998 to 2009 1998 was a very pivotal year 1999 and 2000 right around the dot com boom so we had two things the productivity gains of but it’s also when China was admitted into the WTO that’s the world trade organization so it took them from a bunch of rice farmers to now making most of the world’s factories right there make most of the world’s goods through their factories and so China was in it

entered into the WTO and that started to offset Japan’s decline so all of that money started going over into Asia right offshoring America started offshoring all this manufacturing global private debt started to rise from 117 percent to 138 percent of global GDP it’s a massive increase that’s a percentage the amount of debt to the amount of production so debt was rising faster than production and low policy rates keeping interest rates low fueled this debt expansion because remember when debt is cheap people use more of it when debt is expensive people use less of it and so that was phase two we saw that happening and then

we went into phase three which is from 2009 to 2025 which brings us to current time now you probably remember that we’ve had two major disasters in that time period we saw public debt and monetary inflation from this entire period we had first the great financial crash 2008 not just in America the great financial crash the global financial crash and so all the central banks of the world had to just basically print unlimited amounts of quantitative easing print money if you will give it to the banks and then we had covid 2020 right and again we had to print trillions and trillions tens of trillions of dollars and pump it into the system

pumping up the debt world public debt exploded during those two phases went from 60 percent to 104 percent of GDP almost doubling the amount of debt was growing faster than the productivity of the world by almost double the rate during that period now because of that the US disrupted the 2016 Shanghai Accords what was happening is the dollar was getting weaker weaker weaker and Asian currencies were getting stronger stronger stronger and it was starting to mess up the equilibrium of the world and they had to intervene there was a what’s called the Shanghai Accord you might recognize that because we’ve been

talking about the Mar-a-Lago Accords which is where Trump again took office in the second term and we’ve been walking through that and that the Mar-a-Lago Accords are sort of modeled off of the Shanghai Accord from 2016 when the whole world or maybe the top five countries agreed to strengthen the dollar and weaken the Asian currencies weaken the end what this did though is it forced China to also follow suit and they had to weaken their currency so these are currency wars so the dollar was getting weaker weaker weaker they were getting stronger stronger stronger but as their currencies were getting stronger it made it

harder for the imports and exports to work which is why the agreement was for the dollar to weaken or the dollar to get stronger and those to weaken all right so now that you start to understand how that works let’s look at this now the US dollar has real trade now what we can see let me pull up this chart here real quick is we can see how this has been working now over this time period from 1965 you can see the dollar’s trade balance trending down it was getting weaker weaker weaker now it had a couple good pumps here and right here around 2016 around the plaza court you can see the trend line of how it gets stronger

and stronger and stronger and so this reflects the underlying productivity changes between the countries this is it adds the capital inflows and the outflows you start to see the differences as the manufacturing started to move over to Asia and the real dollar basket was trending lower as i just showed you over that period like i said it was rebounding during that period but now you can see how it’s starting to go up and the trend line is going up but China doesn’t like this China has big ambitions China wants to be the global superpower of the world they want their currency to be a reserve currency they have big ambitions as a

matter of fact i have this quote right here from Major Lang 2015 he says right here China aims to make the Yuan their own currency China aims to make the Yuan Asia’s primary currency we want to be the top dog forget America and their benefit of having the US dollar we want to have that we want to be the primary Asian currency countering countering the US dominance this is their proclamation 2015 we should promote the renminbi to be the primary currency of Asia let me cycle that primary currency that’s what we want to be every globalization was initiated by a rising empire so what they’re saying is the the global reserve

currency has changed throughout time the US dollar hasn’t always been that before it it was was the pound right we’ve seen it go from Portugal to Spain to France to England to the United States and what’s next and what China is saying is that globalization always initiated was initiated by the rising power so whoever was the biggest the baddest the most powerful the most productive typically had the reserve currency and so what he’s saying is that well we are now the rising power we are now the most productive so we should have the reserve currency of the world and he’s saying because of what they’re doing with the one belt

one road initiative which is basically trying to connect the whole world to do global trade and he says again it is a counter measure to the US it’s a currency war right it’s a currency war counter measures now this is what they want the problem is that they want to make them at Asia’s main currency through their strategy but the problem is that whenever they try to make it stronger by tightening the policy they get a bump but then it starts coming down again they tighten it and they bump it again and so the global war isn’t working out so well for them and the reason why is back to the US dollar and it’s because of America’s counter so as much as China wants to become the next currency as much as they try to manipulate their own currencies to do that America has the counter not only again as I started the beginning because of the innovation because of the military but because of the network effects the world uses the dollar and so the

world has agreed to allow the US to continue to have that again back to the 2016 Shanghai Accord when they all agreed to allow this to happen by strengthening the dollar and weakening the Asian currencies weakening the end that forced the Asian currencies at the time to drop between 12 to 15 percent of their value post 2022 and when that happened China couldn’t sustain the liquidity squeeze let’s look at a chart of this so what we can see here is this is the Asian euro and you can see here the drop this is the Shanghai Accord in this period right here and then you can see another drop and now it’s stabilizing in potentially Shanghai Accord part two we’ll see the future’s yet to be seen but this is similar to what happened to the Soviet Union when the US tightened up the other countries couldn’t maintain the liquidity squeeze so back to the dollar is the dollar’s death imminent is it happening tomorrow or at the end of this year or the next

two to three years is it imminent like all the gold people on tv want to tell you so you buy gold well no it’s not happening the dollar is not losing status as a matter of fact we have lots of evidence evidence is that the USD is not losing its safe haven status we can see that net inflows into the US dollars are at current record highs let’s take a look at this chart right here inflows into the dollar net inflows into the US dollar and we can see here all the way back it was down we hit a high here in 2015 kind of came back down after the plaza accord and now look at how high net inflows are into the dollar right now money is rushing in it’s not rushing out as all the tumors would like to have you say another way we can look at that is what’s called a convenience yield on treasuries and so again we can see that as many people want to tell you that everyone’s selling us treasuries the data shows us the difference the convenience yield is the difference the

yield the spread between treasuries versus corporate bonds and we can see this is at pretty much all timelines so the data tells us something different than the doomers want us to believe and we can see this through the data right here it’s increasing not decreasing capital flows is still flowing to the US it’s still the best place for money the US retains its premium ratings globally now what does all this mean because mark i’ve seen you make videos on youtube talking about the dollar dying and the dollar losing power and all these things so what are you telling me here well i’m going to answer that but first let’s go back to china for a

second because china doesn’t like this but unfortunately for china they’re in a much worse situation back to when the united states tightened the belt under volker and reagan and put the screws to the soviet union again this is what we’re seeing happening to china right now and what we can see is that china is right now absolutely exploding their liquidity they’re blowing up this is what’s happening we can see this in the chart we can see they’ve added the rmb 10 trillion they’ve added 10 trillion in just the last six months alone the yuan to gold price the exchange rate there is catapulting higher and we can see that this is driving

commodity prices all right let’s just take a look at the start here so here we have the 28 day rolling liquidity injections so this is the central bank injecting liquidity into the system right and look at this absolute explosion of liquidity they have to inject now we look at global liquidity you know if you watch this channel on a regular basis i talk about it’s not just what the fed is doing we want to look at the global liquidity and while the fed has been sort of like him and hon uh obviously that’s why trump and pal are fighting right now the ecb still sort of on the fence a lot of countries like china are in massive easing right now massive massively

injecting liquidity into the system and of course this drives global assets like gold like copper and like bitcoin all right that’s why we’ve been seeing those assets pump because global liquidity is going up so what is all this telling us is the dollar dying tell me the answer mark well yes and no it’s dying and it’s not dying what do i mean by that uh against other fiat currencies no it’s not dying the dollar looks like it is not going anywhere anytime soon however we call it the cleanest shirt in the dirty laundry it doesn’t mean it’s good it just means that all the other currencies are much worse and they’re all going to eventually die before the

dollar however at the same time it is dying yes against real assets yes so it is continuing to lose value when you price it against real things the dollar is going to out less of the currencies but other currencies are losing to hard assets so here’s an example you can see an illustration of what the dollar has done when compared to hard assets and it’s lost about 90 percent of its purchasing power when compared to gold or the smp 500 and of course to bitcoin other assets so the answer is yes and no it’s not going to be losing to other currencies you don’t need to worry about rushing out and getting all the money out of the bank

because it’s going to die tomorrow like a lot of people on youtube would have you believe you don’t have to go put your life savings into bitcoin however at the same time the dollar shouldn’t be used to save because it’s going to continue to lose value it’s going to continue to have a decreasing purchasing power and so you need to buy hard assets like bitcoin or like gold or other assets to protect your value now if you want to see how far this is going to go down based off of what the trump administration is doing with the u.s dollar and the genius act you probably want to watch this video right here and i’ll see you over there[tr:trw].

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.