on what timeframe you're talking about. well, and time is obviously very important. 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 currency being talked about to compete with a dollar from other countries. and why do you think this is? well, just because china 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'll do the selling of, of you on backbones and whatnot. dominated bonds in order to facilitate a growing a global trade. settled a new one and then as long as the chinese ac 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, bay and i was able to trade with them. this is the ways 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 heard the dollar for several decades is supposed to be backed up by gold, which we know is more of a fantasy than actual reality to mount the china. these are spanning the gold reserves. i think they play fast. so what's what, how much go the actually have? i think they, they, they use that they use analysis 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 they're a massively understanding 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 on some one of the things as kind of under being uh, 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 ology, entire 5, like the top, the tie bought the malaysian ring, it the single board dollar, right? those are very important currencies to the trying each and 4 years. the chinese have been really managing their ex, the exchange rate of do you want the real effect of the sure exchange rate, what's known as the rear. and you can look this up on the st. louis spends data on this that they manage that far more costly than they managed, the dollar e one trade. 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 couple of our economies. and that divorce is the terms of divorce are being discussed right now. what's interesting, i think you bring up that divorce, but just like with any divorce is always the children that set for the most. so what happens if the child lives in the united states economies do have this divorce

do what happens if we have a diversified central the currency that can, there's no longer central currency, they both when, what is the rest of the world? we have to deal with as well, is it that what has to happen that is that the, that the united states is a free gets balance sheet, right? this is part of the reason why the fed as raising interest rates. it's part of the reason why the fed as engaging and aggressive quantitative finding each ranking 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 co ops and 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 paul, right? they're going to d dollar eyes, the sum of age of some of africa. and by the same token, we're going to be dollar. we're going to accept that the dollars ation the least the bed is. and we're going to accept that the dollars ation and we're going to try and we're talk or hire 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 runs 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 you, radium and a pound of tungsten, and then pound to titanium. and in many ways, aluminum in the world. these are the commodities and grain even now rate. these are

the commodities on which the entire world economy runs and operates, and you just ceased $300000000.00 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 validated that entire system. so of course, there's now a fundamental change in the way people are thinking about how they do business because 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 due to power super power with open capital markets, the only one with really a super power with open capital markets. the us, as our did not have an open capital market, whereas china today is no arrival. 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's jerome powell is trying to freight 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 what that's 90 percent of what the n g complaint about where you start from militarism. so it's like once you back off, once you back off 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 of the 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 in the united states. the what they really and not of course ago we used and i made a gift salem, but as a new child support knowledge and was focusing more on the green. so keep a key or do more of a quote, as of course, the thing the, the information now to me is i have too many, can i take it? but as for you kind of throw this up here, but i just think of going, you know, all the key, for example, plastic, watts's inch key or there. fortunately, they were much, but i zip zip books. kind of what you sent me about. a

gamble for, for that key, cold. and i want them only for me do not go outside until a gene. yeah. add on for my dad, the village. drastic consciously to do kind of the game be both human. all good sounds for us to nick is off. but as long as it came, the way to waste has to buy 5 of your chairs i'm. i was only saw of in the children's pro quarter loosely samples, they see that blue here, assuming the model is single to take a fresh look around as a life kaleidoscopic isn't just

a shifted reality distortion by power to division with no real opinions fixtures, design to simplify will confuse really once a better wills, and is it just as a chosen few fractured images presented to this, but can you see through their illusion going underground? can the welcome back. we're talking today with tom long ago, he was 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 wanna continue 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 happening globally causing tensions between the united states and china and possibly the united states and the other countries who are deciding to do trade with china, not in the us dollar certainly. and it's always been that way. 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'm in either with the oil trade or you know, threaten to back the currency with gold or whatever seems to getting bated when the next success, 6 or 8 months right on 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 been 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 them. we currently have a 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, where proxies are constantly going on, most notably now you crane. 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. it's 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 except 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 trying to strategy to united central asia under

a new you know, new you won based saturday, which is interesting that you bring up the fact that it's the growing 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, uh, what's the next 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 tigers banks. and now the one in order to get around, you know, using the dollar in order to pretty energy into the central country that needs to see all of their financial instability and targeting 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 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're the ones say, we have a framework that will help you move away. and opec absolutely is saying we're tired of taking your nothing, 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 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 is that the.