Debt Will Collapse Global Economy... Will The U.S. Survive? Brent Johnson - Dollar Milkshake Theory
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- เผยแพร่เมื่อ 24 พ.ย. 2023
- Debt is affecting the global economy! Will the U.S. dollar collapse? And when? Listen as @MilkshakesPod, Brent Johnson of Santiago Capital provides insight to the global debt crisis.
#housingmarket #usrecession #useconomy
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This is the best person you have ever had in your program. No BS and sensationalism. Only facts. Thank you.
It can't be said better he's spot on
"You will own nothing and be happy" Klaus Schwab
A man worth millions says such nonsense ..Who is Klaus Schwab net worth?
Klaus Schwab Net Worth
Net Worth $170 million
Annual Income $25 Million
Inheritance $100 Million
Nationality Swiss, German
Wife Hilde Schwab
Sep 2, 2023🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
Come and take it Schwab?
Let’s see how that works out for you???
Well, Claus, I may not own much, but one thing I do own....
.....is a pitchfork.
You missed out the "or else".
They use coercion bro get the what they want... The return of serfdom.
I will leave you 9ne guess who will be the aristocrats and who the serfs.
Few young people today can afford to buy a house or pay off their student loans etc.
The landlord class will profit from the poverty of generations!
He has the tax authorities, the health authorities, the environmental authorities, the Police, the army, the media etc
They will paint any resistance as extremism and use any of the too l s to get us!
They got Al Capone on income tax, look at what they are doing to Trump. Surprised he has not been charged with littering.
I studied economics up to graduate level, but never have I had anybody explain these complicated concepts so simply. This guest is so good. Thanks to everyone that made this possible. Thanks to the guest too - above all..
A One world currency soon. You'll have to get a number to be economically viable. - 😂Revelations 📜📖
I read and listen A LOT about these subjects. This is one of the best explanations of money and markets I have ever heard in an hour or so. Bravo. Great interview!
The education system is deliberately designed not to teach such things.
@@luemmel1202 We could go on and on about the deficiencies of the education system, but I agree. No kid should graduate HS without knowing something about the time value of money, at the very least.
Yes, I'll need to listen again to better absorb the content.
Brent is one of the best, and he explains things so well while remaining humble and truthful. You asked him some great questions and the history since the 1970's was nice to hear.
A very intelligent and calm interview, thanks for not interrupting Brent's flow.
Brent is one of a handful of people that understands the financial system. Great interview
Thanks Luke for watching. I agree 100%.
@@SachsRealty my opinion there will be no collapse😊 it's basically Doom and Gloom will be fine everything's good the economy is booming the markets are up😊😊😊😊😊😊😊
@@Noworries-PU7ye I appreciate your opinion. Only time will tell. 🙏
Volcker via milkshake theory outsourced American inflation. America feeds itself on the corpse of the world economy
@@Noworries-PU7ye I think a lot of people are grossly underestimating the economic disaster in China. Countries like Germany, Singapore, South Korea etc. that are heavily trade dependent on China are already or in the process of going into a recession. Too many big U.S. asset managers like Blackrock, Blackstone, Goldman Sacs, etc. are too invested into China for the U.S. not to be impacted. Like Brent said, the U.S. economy will probably make out better than most of the other countries but we won't come out unscathed.
Brace yourself, Winter is coming!
I used to work in finance, so even though I’ve know the economic history and the debt problems worldwide, I still very much enjoy Brent’s sharing. Brent has talked about so much in this 1-hour interview, which is amazing.
“No-reverse gear” is a key takeaway today for me.
Thank you, Brent and Sachs Realty.
The answer is war, How did the USA get out of the great depression in 1929? Thanks to WW2
If you really needed someone to say "no reverse gear" while "knowing the economic history and the debt problems worldwide" then no bud....you don't understand anything about the economy as it's economics 101 on debt based economy....you simply have to keep growing debt AND paying it off with interest to keep the financial momentum "velocity" of an economy.....when debts are defaulted on then of course no economy can keep thriving when the interest due on the loans PLUS the loan amount itself isn't paid to the one that loaned the money.....and there's no "reverse gear" that "undoes" that reality...so duh dude......
Brent Johnson did one of the best "simple" explanations on macro and worrld economics. Wonderful analogies.
Agree.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
AND CORPORATIONS! Banks AND CORPORATIONS. Everyone pours out their work energy not for themselves and their families, but for the very CORPORATIONS that seek to plunder and destroy them. Banks AND CORPORATIONS.
@@ryanwhitley9789 And hedge funds
@@ryanwhitley9789corporations are just businesses, without free markets business you have Communism. The real problem is Govt. As the Overton Window has moved left over the last 40 years everything has gone to sh&@.
There's no documentation to attribute that quote to T. Jefferson. These kind of quotes from dead people suspiciously appearing to be relevant to the current situation it's quite a clue that the quote has been "misattributed." So, yes I looked it up. I do believe the quote makes sense but it's not quite from T. Jefferson.
@@ryanwhitley9789 You left out the biggest culprit in this mess, the GOVERNMENT. Failed central planning, greed and corruption of the GOVERNMENT led us down this path. The GOVERNMENT got in bed with the banks and corporations instead of representing the will of the people. The GOVERNMENT allowed American jobs to be shipped overseas to countries like China that wants us to fail. The GOVERNMENT borrowed and spent frivolously beyond redemption. This is exactly why we need to go back to the roots of the constitution and form a smaller, limited government.
The man never disappoints. Great get to have Brett Johnson, love that he always holds open "you may be right" that might happen" or vise versa. Admitting he doesn't always know, even at his accomplishment level he is a humble man and always generous with his knowledge. Thank you for having him on Todd, it's been time well spent.
Lol, keeps primping up the dollar when the globe is beginning to reject it.
@@willyD200 what do you think will replace the dollar? We are obviously headed to something unpleasant it seems.
Not one word on brics Giving a limited view Russia india China has gold?
This is such a great interview. Finally, someone explained the dynamics of the US dollar to other foreign currencies that made sense, and I could understand.
Thank you for this information.
One of the best financial / economic interviews I have watched this year. Thank you,
One of your best shows yet! I am a Broker at a firm in Atlanta (GA), working the 100% commission life. Thank you for sharing. Glad to be part of your podcast community.
0:16: 📈 The CEO of Santiago Capital, Brent Johnson, discusses the potential collapse of the US dollar and advises Americans on how to prepare for a potential collapse of the middle class.
4:36: 📉 The speaker discusses building an investing business during a crisis and the current state of the economy.
10:00: 🏭 The speaker discusses the decline of manufacturing jobs in the US and its impact on wage growth and housing prices.
14:43: 📈 Saudi Arabia's alliance with the US and the backing of oil with dollars solidified the country's position as one of the most advanced societies and cemented the dollar as the global reserve currency.
19:58: 😬 The US debt crisis is a serious problem that is not unique to America, and the dollar plays a central role in it.
24:00: 💰 The monetary system works by using base money and reserves to create loans, resulting in a leverage ratio of 400%.
28:56: ! The speaker believes that there is an 'everything bubble' and the people in power are not necessarily stupid but may be misguided or wrong.
34:02: 💰 The caller suggests buying gold as the dollar is going to crash, but the speaker believes the dollar will remain strong.
38:21: 💰 The speaker predicts a currency and debt crisis in the future, with the US dollar being debased less than foreign currencies.
42:59: 💥 The speaker believes that the economy is not doing well due to debt and other problems, and predicts an impending implosion.
47:28: 💰 The video discusses the potential debt crisis due to rising interest rates and the impact on the bond market.
52:00: 💰 The speaker discusses the limitations of bailouts and the impact on individuals' mindset and housing conditions.
56:57: 💰 Having a cash reserve and owning gold are important during a crisis, and having some money in the stock market can be beneficial in times of inflation.
Recapped using Tammy AI
Brent is very smart but Brent makes a mistake that many American commentators make..... Confusing command economies or state socialism with the word communism which was originally called anarchism or libertarianism.
I studied 19th century political history and most USA people use the wrong terminology. Communism by practice is Pro free association and Pro free markets...... It is dictatorships like China and Russia that have falsely claimed to be communist where the problem starts
Ty
Game of thrones indeed
Brent's theory is primarily that the dollar won't be collapsing anytime soon. Other currencies will collapse first. Still a long ways away
Thank you for your concise summary, very helpful
I don't usually add comments when watching these types of videos, however on this occasion i think i learnt more in this one hour presentation than in the last six months watching videos on economics, money, politics etc etc. The guest has a deep knowledge and experience base, and as he attests, brings simple analogies to the table to illustrate his points and the scenarios.
Brent Johnson is SO good at explaining the madness of the financial system !!!
Something ive been doing personally to hedge against money collapse is developing practical skills. Theres gotta be value in all the services I can provide if people will barter
If people _can_ barter. Most will have nothing.
This was great, and really interesting. One thing that was not discussed much is how for years, Congress has largely shirked its responsibility to control the budget, not forced the government to operate within its means. It should be a requirement that Congress forces the Administration to cut budgets, and establishes an effective but fair system for collection of adequate revenue for the Treasury, in order to fund the government. A balanced budget amendment is needed!
Let's start with social security!! What have old people done for us anyway???
@@wnose Let’s start there. The gov’t “borrowed” money from it 3 times, and never paid it back. Reagan gave the rich tax breaks, funded by such a “loan”.
I've seen many videos of Brent Johnson and this interview is by far the best. His thoughts have been extracted and crysallized into clarity. My take is that it's a giant poker game. Sooner or later the winner wants to leave the table and cash in his chips.
A really good interview with my favorite economist. You let him speak freealy and he used the opportunity to get down to basic before ending up in complex outcome. Thank's!
This is the best Brent Johnson interview ever. Really a valuable piece of content. Thank You.
th-cam.com/video/tbE4VVlXg-0/w-d-xo.html
This is a very resourceful session. Much better than all the fear mongering by other TH-camrs. Backed by sound logics and facts.
5:55 Better geo-eco background from Michael Hudson, Jeffery Sachs, Ben Norton or even maneco64 😮
Fear ? This is one mans opinion , couple of holes in his theory , they didnt address the fact that the petro dollar doesnt exist anymore and that all BRICS nations are no longer using dollars , maybe Im wrong but it wasnt even addressed
@@dempsey3.. all BRICS nation are no longer using Dollar. REALLY??? The US Dollar is by far the largest trade currency! Even China uses far more Dollar in its international trade relations than it uses Yuan! The BRICS announced that they WANT to mutually trade amongst them in their own currencies, but usually one side in these trades either doesn’t want the other‘s currency which is usually not again accepted by third parties or they exchange the respective other currency immediately into … Dollars
Its still fear mongering nonsense.
I don't have his tiny bit of hope, if we DO GET OUT OF THIS, it will be because of God.
Excellent interview. Very informative. Thank you!
Thank you both. I very much appreciate your willingness to talk through all these nested layers of complexity with the economy of simple "layman" language. It is much easier to digest this way. Happy Trails, Gents!
My 5.00 Milkshake Theory, A milkshake averages 4.97 now days. A movie called Pulp Fiction back in 1995 had a scene that expressed the absurdity of a 5.00 milkshake, even at a fancy 50's themed restaurant. Well, seems we have reached the absurd level.
They also serve french fries with mayonnaise in Holland, that was already absurd even
back then.
The Pulp Fiction movie was set in California, even in the 90s, the living expenses were much hire there.
I interviewed for a job out in Irvine back in 97, at first I thought it sounded great because the were going to pay me quite a bit more than I was making at the time.
When I started looking into renting a place out there (and the cost of living), I found that I would be in the same boat that I was in back east.
Brent is great. Keep in mind that the Chinese labor to American labor rate was about 40:1 when businesses began moving production out of the US. This allowed China to capture dollars used in world trade. This labor arbitrage is over. We need to milk another nation's labor to keep our standard of living.
Lot of stuff from India, Vietnam, Mexico ... still come from China.
@@mikes.2471 Its called De-industrializations of the US economy during the 1990's and 2000's when US companies decided to OUTSOURSE all of America's manufacturing jobs to China and Taiwan in the name of cheaper labor, cheaper overhead costs, higher corporate profits, high CEO salaries, and higher stock prices, and lower prices for the American consumers to pay at the stores. But guess what - YOU ALSO NO LONGER HAVE A JOB to pay for these lower cost goods SUCKERS !!!! Have a nice evening y'all.
@@robertko5425 Pam Ho - War of the Worlds: The New Class (look it up). The best 30 minute read of your life when it comes to understanding how the current planet is being run. It trumps anything you find on you-tube or anyone else analyzing current world events.
@@NYCHairguru i think they still have the same work ethic, the employers don't pay enough to make working more worth it than not working, and it doesn't even need to be all in money, just they need some kind of reasonable compensation, and it's up to the cost of living, not up to the employee or employer... if employers want to pay their employees less, then they need to figure out how to lower the cost of living.
@AKATenn @nychairguru
I think the truth is usually somewhere in the middle. CEO pay vs. the regular worker pay is far too far apart. I've worked with many executives, and many aren't innovative, just in a position of control to keep things as is in a growing economy. When credit contracts, they'll be truly tested. On the opposite side, many people don't work hard.
If Mexico, India, etc, choose to sell their products in their own currency, they'll be rewarded, as demand for their currency will increase. It's because the US struck deals to have foreign transactions done in dollars, that these foreign nations accumulate dollars. Saving in dollars requires that they buy US debt, financing our spending, assuming the risk of default, whether that be by inflation or formal default.
Thank you for hosting Brent Johnson.
Enjoyed this discussion because neither acted like they had all the answers; also it was discussed in a simplistic manner where the average person could understand what each was saying. Very good program.
This was one Of the best interviews I have Ever seen, and I am an experienced and long-time TH-camr. Brent explains clearly, and succintly his points Of view, in plain English. More interviews like this one. Well done !
He’s great. Really opened my eyes a few years back. You may also like Doomberg.
Thanks for this--I can't overestimate how much I learned on this one. The mark of a true master of a subject is to be able to explain it to someone who knows very little about it (i.e., me) in plain language and make me understand it. You're knocking it out of the park with your guests lately! Time to go add Brent's podcast to my rotation!
Read my comments above and forget you ever heard the nonsense, preached in the video. Trust me, to be better off.
@@nwchrista Can't find it, could you copy & paste please?
@@nwchrista😅0
It’s what he’s not saying he’s keeping you in ignorant
@@terryl858 Such as? Thanks
Thank you for this excellent interview. Here in the Bahamas, where I live, on the island of Eleuthera, there is a very nice upward trend in real estate, coming from American investors and expats, that have discovered this piece of paradise close to their home
Easy to understand, common sense conversation. I appreciate this guest very much. Thank you.
The United States lost millions of manufacturing jobs during the NAFTA era starting in 1994.
My uncle said that was the end of America...
I enjoyed the video. I appreciate his humility; he didn't pretend to have all the answers yet his thoughts seemed sound and well balanced. He contributed to the dialog which is what we all need to do. Thank you.
I’m a subscriber to this channel and I always learned something new when listening to these interviews but today’s interview with Brent Johnson was phenomenal. I enjoyed every single topic discussed on the program today and I absolutely appreciated the questions that were asked and the explanations as Brent would discus the ever interesting topics along while answering the questions.
Great great vid.. keep them coming
And Thank you both.
... country boy here....WE WILL SURVIVE..... and.... THRIVE
I love Brent Johnson. He makes so much sense. You did a great job also asking the question for a Main Street people. I would love to see Brent, Kyle Bass & Jim Rickards to make an educated guess on when this whole debt-based monetary economy will finally end; just for fun. Keep up the good work.
It doesn't make sense to plan for it now - it's years and years away, and other countries will collapse first. The US will rise over that period before it falls
Brent is correct and I'm already prepared. 30% in physical gold, 30% in treasury bills, 30% in dividend paying stocks and 10% in USD cash.
me too, i got $47.00 in my left front pocket.
prepared for what, if the SHTF, the Us currency goes hyperbolic and loses all its power, gold will be seized like before, and all those other assets fall to zero range. So no, unless you can live off the land, farm, raise animals, be surrounded by a community that has known you for decades, etc.. You aren't prepared.. None of us are. The life skills our great grandparents had have been lost.
hope you have at least a half a percent in BTC as a flier. I'm no crypto-bro but the asymmetry of risk/reward on BTC is too big to sleep on.
@@Gamesso1slO0l Farming, physical gold and silver is the best way.
What do you do with gold when shit hits the fan? Give me a coin for a chicken?
Informative and and excellent insight into what's happening...look for more of this type of programing....keep up the great work
Yk.. i started playing this video for a background effect as i was making notes for economics exam. Turns out his 10 mins explanation is much better than the 100 hour lecture i sat through. Well done.
Loved Brent's explanation of monetary expansion of the past 30 years
Your in-person interviews are great!
This was one of the best interviews that I've heard in months. Thank you. Please keep it up!!!
🎯 Key Takeaways for quick navigation:
00:00 🌐 *Brent Johnson discusses the inflexibility of the U.S. monetary system and its global influence, highlighting the lack of a 'reverse gear' in economic policies.*
00:27 💥 *He predicts significant economic crises stemming from artificially created economic bubbles like the housing market.*
00:42 💹 *Despite an anticipated currency collapse, Johnson believes in the short-term strengthening of the U.S. dollar against other currencies.*
01:40 🏘️ *Discussing his role in the housing market, Johnson expresses concerns about current economic challenges.*
02:08 🗣️ *His approach involves simplifying complex financial concepts for a general audience.*
03:17 💼 *Johnson shares his background in finance, including his experience during the 2008 financial crisis.*
04:51 📉 *He reflects on the current perceived economic crisis and compares it to past recessions and depressions in U.S. history.*
06:38 🏦 *Johnson explains the role of Federal Reserve policies in economic cycles, particularly under Paul Volcker.*
07:53 🌍 *Discusses the shift towards a more global economy and how it has led to interconnected markets and financial systems.*
09:30 📚 *He touches on the U.S.'s historical shift from manufacturing to a service-based economy, affecting jobs and wage growth.*
10:54 🌐 *Johnson links global economic trends, such as the U.S. relationship with China and Saudi Arabia, to current financial challenges.*
13:11 💵 *Explains the pivotal role of the U.S. dollar in the global economy, particularly after the disconnection from the gold standard.*
16:08 🔮 *He speculates on future economic and geopolitical conflicts, driven by national debts and economic struggles.*
19:56 💳 *Discusses the severity of the global debt crisis and how the U.S., despite its challenges, may be better positioned than other nations.*
23:25 ⚙️ *Johnson explains the concept of 'no reverse gear' in the U.S. monetary system, emphasizing the need for continuous economic growth.*
28:01 🌐 *He expresses concerns about an 'everything bubble' in various economic sectors and the challenges of government intervention.*
31:12 🏦 *Discusses the Federal Reserve's strategy to manage the economy, possibly leading to controlled economic downturns.*
34:35 💲 *Johnson delves into his 'Dollar Milkshake Theory', forecasting the strength of the U.S. dollar amidst global economic turmoil.*
40:01 🏠 *He predicts a downturn in the real estate market, particularly in commercial properties, due to current economic conditions.*
43:39 🏦 *Reflects on potential government strategies in response to widespread mortgage defaults and the implications for homeownership.*
47:02 💧 *Johnson uses the analogy of a 'drain' to explain how the U.S. dollar remains strong despite extensive money printing, in contrast to other currencies.*
51:30 🚧 *He predicts potential disruptions in the job market and expresses skepticism about government interventions in various sectors.*
55:38 🧭 *Offers practical advice for individuals to navigate upcoming economic challenges, including diversifying investments and maintaining a cash reserve.*
Brent Johnson *discusses the challenges and dynamics of the global economy, emphasizing the unique position of the U.S. dollar and the potential consequences of current economic policies.*
He predicts *economic turmoil in various sectors, including real estate and job markets, and suggests practical strategies for individuals to mitigate risks.*
Johnson's insights *reveal a complex picture of interconnected global economies, highlighting the importance of understanding and preparing for potential economic crises.*
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Thanks, 3rd interview i have watched in last week. Thanks for the information, appreceate it. God bless
Can't get enough of all the great education you and your entire team provide. Keep up the great work! 💪🇺🇸
As one who is concerned about the future in the face of crisis I really enjoy listening to your recent guests talk about what they believe that future holds.
Man this guy lays it on the table. Love his analogy’s and your questions were spot on leading his hand. Fantastic interview. Thank you.
Brent is great. Thanknyou for having him.
This was such a great episode, Todd. Thank you.
Great interview. He brought it down to laymen’s terms, got the point across and added a possible solution. Thanks
This is the best dialogue and interview I have heard in a long time ! Watched it twice as it was so informative and good!
Smart guy thanks for great interview, I shared with 5 friends!!
Really enjoyed this talk. Brent got a nice voice plus his moderate speaking pace and rich knowledge which really pleases the ears and minds
Thanks for a great interview! // Brent is the very best! Explaining how the US and other countries are affected differently as it pertains to inflation using easy to understand analogies like the swimming pool with and without a drain - brilliant!
Excellent guest. Wonderful information!😊🎉
Always good to hear Brent speak.
Great discussion guys, thank you
Great talk. Thank you. Explained so well and balanced. Appreciate recommendations.
This was brilliant! I don’t know if I have heard of Brent before, but I am glad you introduced him.
Great Channel, Great Host, Great Guest, Great Interview!
Brent you were Great!!! This was an incredible interview. Thanks for the education.
He explains everything so simply and so we’ll with analogies, amazing love it
Will international debt be cancelled out with offsetting debt cancelations? Would love to see some evaluations on how this would work.
No, because the billionaire owners of debt - those at the top of the credit Ponzi- intend to use it to buy the world as rentable assets and total political power. The thing that stands in their way is democracy. So...Fascism first!
Great chat! Brent explains his views in a very easy to remember way
Big respect for Brett. Great interview, Todd!
Thank you both, I really like listening
I really do like your shows. You're doing a great job keeping us informed. Thank you.
Brent Johnson: "I think we could have a loss of jobs with wage pressure not collapsing, because I think the government will probably let some things fail, but they will subsidize others" 53:32
This is what effectively happened with the pandemic. Government determined which businesses were "essential" and which were not. Many small businesses didn't survive. They were shut down and never reopened.
Thank you for this interview.
Both you guys are smart yet humble. You do not know all and you say so. Thanks. Before your talk I was humble, for good reason, now a little smarter yet still humble.
Very educational. Thank you 😊
Great conversation!
Enjoyed the show!
Thank you, I really enjoyed listening to that!!
Awesome interview. Enjoyed the entire time, but especially that the topics were so diverse, yet all interrelated.
Everything can be learned from:
1) The Money Masters
2) The Creature from Jekyll Island
3) American Exception
4) Super Imperialism - The Economic Strategy of American Empire
5) Confessions of an Economic Hitman
To sum things up:
1) After WW2, the banks were heavily invested in Aerospace and defense firms and if there’s no boogeyman / enemy, these banks would lose a lot of money if military companies were to go out of business. So they whipped up the frenzy that the USSR could invade Western Europe so they formed NATO to keep the military industrial complex machine / defense contractors humming along during peace time (and called the Department of War and rebranded it as Department of Defense). This shows how much the MIC is part of the US economy and how the war economy was simply rebranded as the Cold War during peace time.
2) The elite banking class created the World Bank / IMF so that the US could take control / global domination of the financial system (you control the world’s monetary system, you control the world). Due to the Bretton Wood agreement where the US dollar is now the world’s reserve currency (because the US now has 65-70% of the world’s gold and 50% of global GDP).
3) World Bank / IMF chief purpose was to enslave the rest of the world (mainly the global south / 3rd world countries in perpetual debt and servitude)
4) With the proxy cold war to contain communism in Korea / Vietnam during the 1950-1970s, the US suddenly went from the number one creditor country to the number one debtor country. Because the US simply printed paper money to pay for the wars. These money printed by the privately owned bank cartel called the Federal Reserve are simply debt financing to the US government to spend on wars
5) These US dollars being spent overseas, especially in Vietnam, ending in Vietnam’s central banks which was a colony of France at the time so those dollars got transferred back to France, in which Charles de Gaulle sent them back to the US to exchange them for Gold
6) With so much US dollar floating throughout the world and countries starting to send those US dollars back to the US for GOLD, Nixon had to end the GOLD exchange to preserve US holdings of GOLD in 1971
7) Since countries can no longer exchange US dollar for GOLD, these countries had to hold onto the US dollars and use it for trade, which devalues their own national currencies
8) With confidence in the US dollar eroding, the US struck a deal with Saudi Arabia in 1973 to provide Saudi Arabia with military security but the Kingdom must sell oil in only US dollar and recycle surplus US dollar back to the US to purchase US treasuries and bonds. This deal created great demand for the greenback so now the greenback is free floating, not constrained by GOLD backing and US treasury and bond market (Wall Street) became the new GOLD standard
9) Debt financing was how the US beat the USSR during Cold War 1.0.
10) Also, with the Sino-Soviet split, the US saw an opportunity to help build up China, hoping to use China as a buffer to further weaken the USSR
11) Plus, with much greater demand for the greenback, the US gets to print almost free money (it cost less than 20 cents to create a 100 dollar bill), and sell money / export money to the rest of the world. But what will the US get from the money? They have to buy stuff from other countries with that money, so manufacturing gets transferred to China as a way to use China as a buffer to contain the USSR and also to use an increase in US dollar demand to invest and buy stuff made in China (on the cheap) and ship them back to the US to be sold to US consumers, hence generating massive profits for US companies and Wall Street.
12) The exodus of US dollar throughout the entire world is what gives US global hegemony. Trade surplus countries (like Germany, Japan, South Korea, China, Saudi Arabia, etc.) make so much US dollars they have to support the US dollar and recycle them back to the US to buy US treasuries and bonds. Trade deficit countries (like Argentina, Brazil, Turkey, Greece, India) starve for US dollar and must borrow US dollar to power their economies and net imports.
13) So the US global empire has found the perfect formula no other empires in the past was able to do, have rich countries and rich foreigners and poor countries and poor foreigners finance the net imports of the US economy and US government. The US powers away on debt based system running massive trade deficits with most of the world.
14) Military spending, domestically and externally, are mostly based on debt financing (meaning borrowed money)
15) But China and Russia saw how flawed the system is (during the 2008 financial crisis) so the BRIC trading bloc had their first meeting in 2009 to figure out a way to de-dollarize and get out of the US dominated financial system. That’s when Obama made the pivot to Asia in an attempt to contain China and prevent this from happening.
16) The new cold war 2.0 is all about preserving the US dominated financial system / preserving the US dollar as the world’s reserve currency.
Sir, you described it quite well and have excellent mastery of the subject.
99 out of 100 people don't have a clue.
Only thing I can add is that the CBDC enslavement digital prison system is what's coming next once the existing system is "reset". The only flock left to fleece is the local one.
Whoa!! That's a great analysis!!
Yup, nailed it I would say 👏
Sickening but True. However , the BRICS nations hate each other too. Interesting times
Excellent. Thank you. Appreciated
Very insightful the information on how the system works and affects the USA differently than other countries as far as our hidden drain was eye-opening. This does help a person stay more centered and realize we have significant challenges, but it is a world problem, and not just a USA problem. The whole conversation really helped me to understand the bigger picture about money supply and how it affects all economies. Thank you Mike D.
Love the easy to understand the economy. Thanks
Thanks for this insightful episode
Great interview
I feel like I just sat through a master class. Thanks guys!!!!
You are my newest favorite channel! Great content and interviews. Subscribed
Thank you. The interview was excellent.
Thank you for this interview. I left with a better understanding of the market and the history that led us here. I really appreciate this channel.
Brent is wise.
Smart on higher level.
Very interesting discussion and great advice, thank you!
Straight forward assessment. Thanks!
Best open discussion I have heard in the last 90 day.
Learned a lot. Thank you for the great explaination of so many things!
Thank you Brent Johnson!!! You have explained everything so well :)
Love the interview very informative
Great stuff, magnificent guest!
Question: "The France kept asking for gold." Does this has anything to do with huge government spending because of the Vietnam War, therefore some international investors got worried and started asking for gold in exchange for dollars?
How expensive would be some of the ordinary things when made in USA, for example some average bicycle?
Thanks again for giving a historical prospectieve connected to financial markets!
After the war, US volunteered to guarding Europe nations wealth, so US took those countries gold and stored it in Ft. Knox. But years later the nations started asking for their gold back. France initially requested their gold returned in 1958. France finally in 1971 sent a ship to NY and demanded their gold back.
God bless you . I love the way you’re explaining thank you.
Great debate. Thank you.
Opened up my thinking.great job.
Very interesting. I liked the conversation.
Excellent 👍👍👍👍👍👍👍👍👍👍👍👍👍 report 💯
One of the best videos I ever seen on the matter.
Very informative insights and discussion