Where to exchange chinese yuan in us
The Currency War Escalates as China Seeks to Dethrone the Dollar
what's up everybody welcome to heresy
financial my name is Joe Brown just a
few days ago the president of the
Shanghai Gold Exchange called for a new
currency to replace the dollar as the
reserve currency of the world now not in
retaliation to that specifically but in
retaliation to the whole coronavirus
situation in general there are rumors
that President Trump and his
administration is looking at ways to
potentially try and default on the
Treasury debt that China specifically
holds pairing these two facts together
looks like we are entering into further
stages of the currency war which trade
wars usually lead to currency wars so in
light of everything that is happening
right now for the past couple of years
with China's growth threatening the
global dominance of the United States of
America it is no surprise that we are
entering into this stage of the fight
what are the implications of China
pushing for a new global reserve
currency and what would the implications
be of the United States actually
defaulting on the over trillion dollars
of Treasury debt that China holds let's
dive in so Reuters recently reported
that the president of the Shanghai Gold
Exchange as the biggest gold exchange in
the world located in Shanghai China he
spoke about how it is very
disadvantageous to everyone in the world
except for the United States of America
for the dollar to hold such a preeminent
spot as the global reserve currency the
fact is that the United States can and
has for decades used the dollar global
reserve currency status as a weapon to
force countries to play by its rules it
can do this because the United States
dollar is what futures contracts for
commodities are denominated in so
dollars make up the other side of pretty
much every global transaction and all
payments are routed through the Swift
system which United States controls and
so when you hear the word sanctions like
Iran or Venezuela or any countries that
the United States looks at and says hey
you're not playing by our rules you're
doing something we don't want you to do
they can impose
sanctions on that country all that means
is that we're gonna lock you out from
being able to use the dollar you're not
going to be able to use the swift system
to be able to transact and it
essentially locks a country out from
being able to do any business with any
other countries so it puts a huge heavy
toll on that country because they can't
buy or sell things from other countries
that are also playing by America's rules
now the United States has used this and
abused this power for so long that many
countries have been looking for ways to
get around this for a long time over the
past year there have been new
infrastructure set in place that at the
right time could be used to displace
Swift as the Global payment routing
system countries throughout Europe
Russia China and the Middle East have
coordinated to making a new system
called Instax now it's not currently in
use or in play right now to get around
sanctions by the US Trump has been very
outspoken about the fact that there will
be heavy consequences late on any
country that uses it to get around US
sanctions but the infrastructure is
there and waiting to be put into place
as soon as the right moment comes it's
no coincidence at least to me that it's
the president of the Shanghai Gold
Exchange in China that is proposing this
China has been loading up on their gold
reserves and stockpiling gold and Russia
as well there are many countries many
central banks all over the world that
have been dumping Treasuries over the
last couple of years and buying gold
instead and this is simply because
nobody can outright manipulate or
fraudulently control the supply of gold
yes you can mine new gold but the mining
of new gold is directly tied to the cost
of labor associated with extracting it
from the earth it's not something like
the dollar that you can just print
larger and larger denominated bills or
digitally assign new dollars to primary
dealer and bank accounts and the
president of the Shanghai Gold Exchange
directly commented on the fact that the
Federal Reserve in conjunction with the
federal government have embarked on a
path of extreme fiscal and monetary
irresponsibility in order to deal with
the coronavirus crisis he basically
acknowledged that everything they're
doing will have a long
effect on the dollar to severely impact
its purchasing power and its value over
time and so he said look it's not it's
not in anybody's best interest except
for the USA to continue to use the
dollar as the global reserve currency
because it hurts everybody else
now his proposed solution was to have a
currency that is not controlled by any
single country so that cannot be
manipulated to the advantage of any
single country and he mentioned yes gold
for thousands of years has performed
this role and the Reuters article that
is talking about this makes a comment
and says hey look gold has its
limitations it's not conducive to
international trade that's not true it's
the false gold exchange standards that
were set in place in Bretton Woods that
were not conducive to global trade and
global exchange those were still set to
the advantage of the United States of
America but for thousands of years when
money was actually gold and the word
dollar and the word pound and the word
Frank were actually just defined as
weights of gold certain ounces or grains
of gold that meant there was one global
currency that nobody controlled those
were just different words that meant
different weights of gold so you could
take any gold minted by anyone in the
world and that was good payment there
were no currency exchanges anywhere in
the world and it was extremely difficult
for any one country to gain advantage
over another country in terms of
currency manipulation because quite
frankly the only way you could do that
was to debase the amount of gold or
silver in your coin now if you haven't
followed the rise of China over the last
couple of decades I would highly
recommend a book it's called destined
for war can America and China escape
Thucydides trap lucidity z' was a
historian an Athenian historian who
documented the Peloponnesian War between
the Spartans and the Athenians and in
one of the most famous and often quoted
quotes throughout all of history
he wrote it was the rise of Athens and
the fear that that instilled in Sparta
that made war inevitable Ray Dalio also
talks about this dynamic a lot that the
reigning power of the USA and the rising
power of China puts great tension on the
world because of the chain
changing dynamics in global power and
the same thing has happened dozens of
times throughout history and even in the
last 500 years it's happened about 16
times with the rise of China's influence
all over especially the eastern
hemisphere especially in Asia it's no
surprise that them saying things like
this and performing certain actions are
at the slightest getting on the nerves
of American politicians in response to
potentially a lot more than even what
we're discussing here in the video the
Trump administration there are rumors
that they're talking about basically
placing reparations on China for their
coronavirus and they would do so by
potentially defaulting on some or all of
the Treasuries that China currently owns
which is over a trillion dollars worth
now even them just talking about this
could spark a sell-off in Treasuries and
Treasuries have been getting sold off
ever since the crisis really started to
hit the markets back in February that is
why the Federal Reserve so quickly
opened up so many facilities and
programs in order to accept Treasuries
for dollars because everybody was
selling Treasuries so fast that it was
making yields spike and they cannot
allow yields on Treasuries to spike or
else the government just defaults
because they can't afford that the
interest on their current debt load
because so much of their debt is
short-term dated and so they're
continually having to roll it over so as
they have to roll it over they'd have to
get new debt with a higher interest rate
and so the Federals are the Federal
Reserve is putting a floor underneath
all the selling fight buy all the
central banks all around the world by
buying it with printed dollars and so
talking about the fact that you might
default on a trillion dollars worth of
your debt on purpose as an act of
retribution against a country who is was
more and more becoming a global rival to
your own supreme dominance that doesn't
speak confidence in your currency and in
your global leadership and so it's very
possible that even the rumors that they
might do this might spark even more of a
sell-off in Treasuries and especially if
they actually do it nobody would want to
get caught in the crosshairs of holding
Treasuries that might be worth
absolutely nothing instead of just worth
a lot less from all the inflation and so
this could cause a tsunami of the rest
of the Treasuries that the world is
holding being sold off in exchange for
dollars and in case you're wondering why
does that matter
if country is central banking in Europe
or in Asia dumps their Treasuries they
get dollars instead well it's highly
inflationary because if you don't want
Treasuries that are basically dollars
that pay you interest you're not going
to want dollars that don't pay you
interest you're going to get rid of
those but if everybody's getting rid of
Treasuries and then everybody's getting
rid of dollars the only place that those
dollars can go is back to United States
of America where people and businesses
are required to accept them by law and
the way that the dollars come back home
is by purchasing US assets and products
and goods that are located in the United
States of America and this is the exact
same dynamic that you see that has
happened in many countries all over the
world all throughout history whenever
there is a crisis in the confidence of a
currency because of monetary expansion
there's a crack up boom where everything
gets more expensive because all of the
dollars or all of the units of currency
flood back in from foreigners in order
to dump it and get products at least
something that will retain some of its
value instead of being wiped out and so
the United States is currently in this
in this pattern where they're trying to
stop basically the implosion of their
currency but everything that they're
doing to try and stop that is only
accelerating it so judging by what's
happened in the past decades the past
few years and then what's going on right
now it looks like these kind of things
will continue looks like these kind of
things will escalate the trade war
currency war between US and China and
then the rest of the world as they try
and position themselves so that the rest
of the world so that they're not at the
mercy of the United States and the
dollar those kind of things are only
going to continue thank you so much for
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