on the lease of concert or russian state narrative, as one of the most sense community best, most all sense and up the in the 6595 and speed. what else calls question about this? even though we will then in the european union, the kremlin media mission, the state on the rush to day and split the ortiz full, even our video agency, roughly all the band on youtube, the senior said this was a request for chance. the

there was a, a growing attack about whether the dollar could soon be displaced by rival currency, both as a reserved currency and central banks around the world, as well as the current to used in an overflowing percentage of global trade. i'm sure i know he used on this edition of $360.00 view, we're going to look at one of the top rivals to the us dollar and how this is affecting the already promoters relationship between united states and china. let's get started. the, historically, the us dollar has been a strong currency and has been widely used in international trade in finance. however, recent times, the power of the chinese you are also known as the rent, min b has been growing steadily as china's economy has continued to expand and become more integrated with

a global economy. chinese government has taken steps to liberalize you on and open up china's capital markets to, for an investors or foreign companies to assure you on denominated bonds and promoting the use of you on in cross border trade settlement. the response by the powers seems to produce the desired results and the chinese efforts have not been in bank. at the end of last month, china and brazil reached a deal to trade in their own current streets, ditching the us dollar as intermediary. china also has similar deals with russia, pakistan, and several other countries. in february, the central bank of the rack announced the plans to allow trade with china to be settled directly in the u on currency for the 1st time to improve its access to foreign currency. those who defend the dollar and say, rumors of its dest are greatly exaggerated. point out the greenback is an entrenched incumbent and widely trusted as a safe haven. but it's a confidence based on the past, give

a false confidence regarding the us dollars future. joining me out to discuss it, geo political end market analyst, as well as the publisher of the gold goats and guns newsletter and a blog tom lou long ago. tom, thank you so much for joining me. thank you for having. so i had to ask, is the dominance of the us dollar at risk, and who would we consider the major competitors to the us dollar currently as well? it is, there are a lot of risk as you pointed down your opening. but at the same time, those risk in the near term are more mean than reality. right? uh, global the dollar sol settles, 90 percent of global trade. most funds are sold denominated and you know, buying a, the triple a rated. that's such like the, the, the, the, the, the us treasury and whatnot. there's a lot of money that wants to get out from underneath the dollar system. but it's going to take a long time for that to happen. and we're seeing all these steps being taken today

. and they're laying the foundations for it, but it's not necessarily a thing that's, you know, going to change tomorrow. and this is, i think, one of the, the, the, the issues that we have, the kind of the big disconnects we have to rectify, in our, in our thinking here, a long term. i'm a dollar bare short term. i'm a dollar bull. it all depends on what timeframe you're talking about. well, and time is obviously very important. it all depends on current events and what is happening in, in the relationships between the various countries. but currently the u on seems to be the most popular currently being talked about to compete with a dollar from other countries. and why do you think this is as well just because trying to has the most vibrant economy outside of the united states. right. and they have the balance sheet room at the people's bank of china to expand the currency and expand the use of its currency through the disney. i will do the selling of, of you on backbones and whatnot. denominator bonds in order to facilitate

a growing a global trade, settled in new one. and then as long as the chinese act trustworthy with their trade partners, then they're going to be willing to hold those bonds as foreign exchange. you know, in the foreign exchange reserves, as they build up, we are trade depositions being i was a build a trade with them. this is the way is this, the system is going to build up exactly the same way. the dollar replaced the british pound of interest so much well, but it's interesting because a lot of people feel like they might have more confidence in the u on based on the fact of what it's backed up by. so what exactly is it backed up by and is it actually hurt the dollar for several decades is supposed to be backed up by gold, which we know is more of a fantasy than actual reality as well. the chinese are span in the gold reserves. i think they play fast and loose with how much go back. so they have, i think they, they, they use that they use announcements of how much go backs. we have back in the one in the foreign exchange reserves as a political and geopolitical tool. and so far as actually been to the dollars

advantage, to be honest with you, because i think there are massively under stating their goals, research, in order to keep their currency and or rate and on an exchange rate that they want it to be. i don't really believe at this point. i think it was some, one of the things as kind of under being that's an undercurrent to this discussion is whether the chinese care about the us dollar chinese. you want exchange rate as much as they care about the chinese one versus all of their other emerging trade partners, such as the all the entire 5 like the top, the tie bought the malaysian ring. it the single board dollar, right. those are very important currency. so the trainings and 4 years the chinese have been really managing their ext, the exchange rate of do you want the real effect of sure. exchange rate, what's known as the rear, and you can look this up on the st. louis spends dot data on this and they manage that far more costly than they managed the dollar. you want. great, i think honestly there's a divorce coming that is desired by both sides,

but the us and china as far as how much we have either a coupling of our economies. and that divorce is the terms of divorce are being discussed right now. well, the thing, i think you bring up that divorce, but i just liked with any divorce is always the children that stuff for the most. so what happens if the child lives in the united states economy is do have this divorce do what happens if we have a diversified, a simple recurrent say that can, there is no longer a civil currency. they both when, what is the rest of world to have to deal with? well, is that what has to happen that is that the, that the united states is this free it's balance sheet, right? this is part of the reason why the fed as raising interest rates. it's part of the reason why that that is engaging in aggressive. i said it's, i think it's freaking their balance sheet allowing the stock of us prices that they own to run off their balance sheet and to try and do you leverage the us balance sheets such that there aren't so many dollars boarding around the world such that as this divorce takes place, we don't see

a dramatic collapse in the dollar. and again, i think this speaks to the way the chinese have been handling this change and they've been handling it and what it looks like to me, a very responsible way. they, they, and they have to, because they are dependent upon global, afraid to continue there just as we are, dependent upon the dollar to continue to flow around the world. so this is a, it's a game of, it's not a game of chicken. that's a game of pushing pull, right? they're going to d dollar eyes, the sum of age, some of africa. and by the same token, we're going to be dollar, we're going to, except that the dollars extra, at least the bed is. and we're going, it's except that the dollars ation and we're going to try and we're talk, retire some of these dollar denominated debt to 1000, to the demand that's out there. and you know this, the system won't, the system will change, and it will have re, we'll have a regional courtesy box, which is an asymptote to, frankly, the global us that run by the administration. and that's the source of attention,

which is part of the reason why we see so many people at the leadership level in the united states pushing for more we're trying. well, it's interesting to bring that up because there's also like you said, geo political implications. and all of this trying to hasn't aggressively purchasing gold recently, whether they're telling us completely. but you see this as countries like china and others actually trying to protect their economies from sanctions, which are possibly could be put in place by the us in the future. because they're looking at the past and this threat that the u. s. and e u constantly gives to other countries of sanctions. they all agreed of good. completely, the, the, the seizure of $300000000.00 of brushes, foreign exchange assets in february or march of 2020, to the opening of the russian ukraine. conflict was a watershed moment in human history. and to make no about about no big make no doubt about it. like this was a watershed moment where everybody around the world said, wow, okay, it's one thing to go after venezuela or ron. they are not the officers and they are

not major players in the world economy. the russians are the supplier of the marginal barrel of oil and the marginal storm of gas and the marginal single work unit of u, radium, and a pound of tungsten and pounded titanium ends in many ways, aluminum in the world. these are the commodities and grain even now. great. these are the commodities on which the entire world economy runs and operates. and you just sees $300000000000.00 worth of their foreign exchange, as you just invalidated the entire post, bretton woods world of we can have competing currencies that based currencies holding each other's dep is reserves. you're just using balance that entire system . so of course there's now a fundamental change in the way people are thinking about how they do business with us. we've made the dollar now a weapon to use against the people who say, you know what, we disagree with you. and there are now other powers in the world. it was that was

fine when we were the effectively the uta power super power. with open capital markets, the only one with really a superpower, with open capital markets, the ussr did not have an open capital market, whereas china, today is now a wible. and that was that sense and has allies, the most notable of which are russian, ron? because of their massive producers of vital commodities that will power the breed of the onboarding of their middle class of their people into the middle class. thereby changing the dynamic of how commodities flow around the world. and ultimately, it's the trade in commodities. that is what governs what currencies are going to be dominant and what that people are going to be willing to hold. and that's the issue . and so it's, i think it's right that jerome powell is trying to shrink the balance sheet and clean up our our clamp things on the monetary side. and of course, congress needs to do their job and the fiscal side. and in many ways that's,

that's 90 percent of what's good in n g complaint about to where you from militarism. so it's like once you back off, once you back off of the monetary, right, all angle on this, then all of a sudden the military angle becomes a lot less threatening to everybody. and we can negotiate the terms as divorce without a world war. well, tom, you bring up some great points, hold on, because i want to follow those up after the break. also after the break, we're going to continue this conversation and look at the effect this is having on the relationship between china and united states. the, at the end of the 19th century, africa was divided between european empires,

which mercilessly oppressed the indigenous population. modern day tends and he used to be a german colony. the germans levied heavy taxes on local drives, and use them as free labor on cotton plantations. so pheasants protest turned into an uprising against the colonial list under the banner of the religious movement of the z, my z. it was led by a man named kinsey to the rebels use guerrilla tactics, because they did not have the power to rush the german army in head on confrontation. but the germans were not able to suppress the resistance of the guerrillas either. so the invaders decided to starve that population to day one of the commanders of the german troops. captain wagon time wrote only anger and one can lead to final submission. military actions alone will remain more or less

a drop in the ocean. the blasphemous land work. the invaders burned villages and fields. in 2 years, germany deliberately starved up to 300000 people, did that later. the monstrous experience of the 2nd right in tanzania was copied by the 3rd, right, led by the nazis in order to ext or pay the peebles of europe. the . the welcome back. we're talking today with tom longo, who is a financial analyst and a blogger about the potential fall of the us dollar. and what is going to replace it, welcome back. com. you know,

i want to continue with this conversation that we were talking about. obviously, the geo political assets that are happening in this debate, you know, is this debate about the dollar versus the u on having globally causing tensions between united states and china, and possibly the united states and other countries who are deciding to do trade with china. not in the us dollar won't certainly, and it's always been that way. i mean it, the, one of the critiques of us foreign policy is that anybody who decides they want to get off of the dollar reserve standard. i've in either oil, the oil trade or, you know, threaten to back, they're going to see what the goals or whatever seems, getting bated with an extra 6 right month. right. that. and then that's when going going on, since clint administration is nothing new. the question now is whether or not that system still has the same level of efficacy that it had then right? and because today the world is a lot different, we now have china with when you, when you think about g, d, p, and purchasing power parity times not in namo terms in purchasing power parity.

what that g d p. what that spending buys you, you, you have a completely different view of the world, then you current, then we currently have the number. the big one is that the russians are, have a bigger economy than the germans. right? so that's a big, that's a big one. the so do brushes not versus the economy is not the size of texas, but it's not, it's might, it's more like 20 percent larger than might be germany is. so, and the same thing was with the chinese and their, their economy. today we have a different world, and so sadly, the same people who are in charge for the old policy are continuing to try and take that same policy and push it into the 21st century. and the only other option now is to continue to escalate. because small complex and small threats like freezing the russians risk of foreign exchange, us assets didn't work to cow the saudis,

for example. so these things are all constantly happening and these are the skirmishes between east and west for proxies are constantly going on. most notably, now ukraine, so you don't want me when you ask a question like that. it's like of course it's about the currency. it's about the, the settlements of trade. it's about the ability of the west to continue to use dollars or dollars substitutes as the means by which to enslaved through the use of debt or whatever smart, whatever country they want through that that and do effectively neo colonial process of, of the i m f in the world bank, that is the thing that everybody's trying to protect, frankly, and we're starting to see the chinese and the russians. and the ronnie as well as for accent, challenge that in places like egypt, south sedan, and others, and most notably now even pakistan. so now there's a fight between the civilian and military and the institutions in pakistan,

which is a very important part of china strategy to united central asia under a new you know, a new you won base standard, which is interesting that you bring up the fact that it's to grow a strength of these other countries that are actually allowing this debate to happen about getting away from the us dollar. but a large part of this also has to do with opec. how is this going to affect opec and where does opec stand looking for? what is in opec's best interest? uh, what's the best best interest to stop using the dollar? it's really just that simple. and they're doing the saudis are making noise about, you know, taking other currencies and they will, the iranians have used the, i've used the rubel and gold through the surface banks. and now the wan, in order to get around, you know, using the dollar in order to pretty energy into the central country that needs who's all of their financial instability. and targeted comes from the fact that they don't produce much in the way of their own energy. and it's the same. india is

got the same problem, right? and so now you know, india and russia are working out terms of, of how to do business outside of the dollar. india is always buck this. even going back to the obama administration, when obama kicked around out of swift in 2012, you know, india and iran were doing trade in among beans and washing machines and the rest of it in order to get oil into india and oil out of ron. and you know, spare parts and whatnot, but they need to have dinner on that india provided for them. so this is coming. and when you get to a point where it's either you knuckle under or you die and you don't really have another option. and, but if you now it's time to then make a big change. and so the chinese and the russians are, and, and to us are said, the iranians are really the, the, the, the driving forces here. they are the ones saying, we have a framework that will help you move away. and opec absolutely is saying we're tired of taking your nothing. you your data for our something our oil do.

again, that's the world that, that's the, the big thing and with the saudis telling biden's and no one sanctioned. it's again another one of these watershed po, geopolitical. that's very, very important. so opec's run by the china, the, by the russians and the saudis, together effectively, it's not opec plus even, you know, where that, that, that they stand. and they're not gonna let the, the americans and the british and the europeans bomb, the price of oil in the futures market. and, you know, try and destroy their budgets. so then what happens to the rest of the production, right, and we'll raise prices. well, that's the thing, what happens the us dollar when that happens to the american economy, if the way in not even with when the us dollar loses its reserve currency status? well, it's usually it's reserved currency satisfy the death of a 1000 cuts, right? when i 1st started looking at this stuff 1012 years ago when i was arguing my living room with my marxist friends,

it was after we were 71 percent. right. when i 1st went to work for new snacks and 2013, i was, i may, i brought this up to my, my subscribers and we were at like 67 percent of foreign exchange reserves were us drivers today is 59 percent. right. and actually a friend of mine owes me a bottle of whiskey because by 2020 i said it'd be below 60 percent and i would write it all by quarter. so i get to be right about that. but the, so yeah, he does deals me a bottle of them for 15 year mccallum, which i'll never collect on that, that, that's why so the, when you, it's going to be slow because no one wants this process to be disorderly. no one wants it to be dramatic. okay. the chinese don't want just disorderly. institutional collapse of the united states. any more than we do. there's and who are they gonna sell their stuff to? right. i mean, the russians don't want it because then they have to then deal with the europeans, were proving themselves to be just as vicious towards them,

if not more so than the americans. so the russians don't want to do this either. they can see the, the, the, the way the geo political map works out, every body has an interest and effectively, let's dismantle the us empire and the vestiges of the british empire that operate within the us political circles. let us dismantle that slowly and organized manner . and guess who's saying no to that, the old colonial powers within the european, british and american establishment. right. and that's why we're dealing with today . and all these other issues are just kind of side issues that show our emanations or, or shock waves ripples or pod of that big or fine. so are there any other currencies that could prove to be strong? i'm the rubel or the ruby, for instance. the monday the russians are going to, in trying to internationalize that rule as much as possible. cuz i do think that they're serious about putting together some kind of multinational version of the, the of the, i'm at that's the,

are the breaks coined or whatever you want. to call it and everybody who's currencies are and now they're all kind of jockeying for position for waiting within that system like we have the us dollar index, which it'll a weighted index of, you know, the euro, the, the, and the pound. those are the ones that dominate, right? the interesting way, the chinese you, one is not in the us dollar and that's what i find whole areas. so there, you know, when you listen to people, i swear to god, you're having the others talk about this kind of thing. what they're all now. john q 4 is how much their economies and had their currencies are gonna be weighted within that. so the rubel will be a strong player, and that's simply because the russians are so strong commodity exports. but i don't think that they have the capital markets or the capital market capacity to be a dom, be the dominant player. and i think the chinese are definitely going to be the dominant player in that and the russians will be happy to, you know, not play 2nd fiddle, but to support that compliment system because they are at the end of the day,

you know, in many ways the world's commodity markets are gonna say, so do you think will actually end up with one dominant currency, no matter what, or can we do this multi polar world and be able to find. and i do, i believe minimal. i believe the multiple words as possible. i believe the people who are against the multi color world are the very ones who's to pain the most advantage over the current uniform world. so of course you would expect them to fight tooth and nail for that, which they currently have, like people who have power are definitely afraid of losing it. so, you know, that's the, that's you, that's the 1st stage of your, of your blue chart of what you expect their behavior to be. right? so that's why, that's what, that's what i see. that's where we are. and the, the, the thing that worries me the most is, of course, that they're willing to, you know, start kinetic war with 2 nuclear power. and on the other side of it, you know, i'm also worried that their attacks, that the counter attacks from them and others are to disable as the united states

politically and socially and economically such that we just send to know some kind of some of the or the stop that include the larger war. so then a, what kind of what kind of pops is choices that are american when, when there's clearly a 3rd option, which is the do neither of these things. but tom, i don't think we need the outside. interject the, i think internally america is doing it good. you're going to have jobs delete itself to that type of divisiveness. but them also scratch my head is often at this aggressive stance that america is taking towards china. so it might be just 5, some might not, but do you think ultimately this really is about taking into you on down and do you think it will succeed? does it all come down to the mighty dollar? as it does is some ways it really comes out. i don't really think it's about the dollar. i mean i, i firmly believe that what's really driving this is this desire on the part of old european money to get everybody else to fight amongst themselves. and so europe can bike wind up on scale and then they can run the world after

a we're all done by us beating each other over the head. right? that's what i honestly see is as the goal here, if i were like, if i were the sick man of europe, which i'm not. but if i work, i will be looking at my inability to grow my own food, of, of provide my own energy and electricity and everything else and all the basics, right? the europeans don't produce enough to support the economy. they have to bring that stuff in. well, who's so, who's the ones that are that are pushing the hardest for climate change controls on the global economy? europe. so how are you going to get out of that? when you have a fundamental structural deficit and an economic level, what do you do? the way you get everybody else is better than you to find only some sales. mean, if i'm sitting at the one sitting at the, at the, at the, at the poker table, i'm trying to get the 2 big stacks to beat each other up. wives live, you know, fight for money off of the like, that's the way you play that yet. it's a natural outcome or natural, or you're outgrowth of looking at it from

a multi you know, not as a multi color, but of a multi act or not, or factional perspective. and so they, europe is the only one who benefits from this policy. the united states has not been with us in this. china doesn't benefit from the russians, certainly don't benefit from it. the global south, as in the rest of the global south doesn't benefit from the only you're the, the only europe. and that's why i keep coming back to it's about your more than it is about trying to and that we're being joslet, it's a believing that there's not a there's not a, a negotiation that we can't have like are you all top and just like cargo for world like we campus, 2nd you all the is part of the world. we go, it will, you're on your way. i'll go mine and we're all good. like we can do that, but we don't have the people in charge because those people are, we don't have donald trump in charge. donald trump would make that deal in a heartbeat. but he has many deposition as a person is a president, but he understands this part of the game. right. okay,

joe biden doesn't understand what you have for breakfast this morning. he answers, i'll put him in power and on that note where he will leave the scrambled eggs and toast and say thank your talent, go for such a great insight into what is going on on in the global economy. thank you tom. thank you. the so protecting the future value of any currency is difficult and can be impacted by a wide range of factors, some natural and others under man's control. this debate as one united states could have avoided if they would have been more fiscally responsible over the last 3 decades, and not have the nation's debt growing larger than its gross domestic product. but is it you are responsible as united states has been with its monetary policy? it's foreign relations policy has as much to blame. united states has started to draw all lines in the sand with china. and as long as the dollar is the reserve currency, economic sanctions, it can be as dangerous to a country as a military weapon. i'm sky now here's, and this has been your 360 view of the news which affects you. i still watch

the i think the other ones, the jersey, all you trans sleep will actually reconcile, reconcile themselves to based on the system of the, you know, hostage by any analysis of my phone. i would try to do the actual type. i will

resist any kind of compromise, any pressure any, any, will any last thoughts are low season and that reminds me to mix up. we also succeed. you members collect the on the defensive, the, to any of the host country of the nato summit coming up that suggested the law sets off military bases, along with brushes and borders. also head on the program today marks of 18 years since the bullying must occur. tens of thousands of polls were killed by youth printing. industrialists group p as no celebrates as heroes between.