hey everyone welcome to bald guy money as always I'm your host bald guy and in this video I want to talk about what is going to happen when China and the brics return to a gold standard because if you're getting a similar YouTube feed to the one that I'm getting you're seeing a lot of videos that look like this asking why do you think China and Russia are buying so much gold talking about the end of the US dollar and even the end of America to be honest it's all a little frightening but I want to provide a


little perspective for my viewers out there and talk about how I see this unfolding and the reason I want to do that is because China wouldn't be the first country to go back to a gold standard the UK did that in 1925 after abandoning it in 1914 and there are many things we can learn from that episode in history that can be used to determine how a return to the gold standard will impact China and the rest of the world but let's start by taking a quick look at China today to identify what their


strengths are and how that fits in to what we know about making a transition into the gold standard starting with China's position as the Undisputed manufacturing superpower of the world because that has been the backbone of China's rise on the international stage in fact 33 percent of their economy is based on industrial production and it's precisely this industry that is expected to propel China to the number one spot on the list of largest global economies by 2031. as a direct result of this China has a


massive International Trade Surplus which has made it the largest holder of foreign currency Reserves cash that is devaluing at a rapid Pace considering post c19 rates of inflation all around the world so considering the competition they are starting to get from other cheap labor countries like India Thailand Vietnam and Mexico the Chinese government devised a scheme to secure their position as the factory of the world and to put some of that devaluing money they have to good use and that's where the Belton Road


initiative we regularly hear about comes into play this is China's attempt to secure Global dependence on Chinese manufacturing before real competition takes form and they're doing this by lending out their massive cash reserves to fund chinese-led infrastructure projects in poor countries many of which are no longer able to secure significant International loans so that's the status of China today and I have to admit on the surface all of this looks bad for U.S Global dominance and the US dollar especially as the


brics countries regularly point out the many flaws of the western system one of the big ones being what is regularly referred to as Casino capitalism referring of course to the massively leveraged Financial system built on a house of cards in the form of financial derivatives but this is where the story starts to Pivot and we start touching on the gold standard that China wants to or at least allegedly wants to implement with the other brics countries to end US dollar dominance and the weaponization of the


US dollar because as the old saying goes don't throw stones if you live in a glass house and everything isn't as rosy in China as some YouTubers may have led you to believe it is and that starts with this the fact that China is sharing less and less data about its economic performance since Xi Jinping took over leadership of the country in the early 2010s a period in which the global financial crisis almost replicated itself with the Chinese ever Grand real estate collapse and has also coincided


with a Slowdown in Chinese GDP growth something I think was a catalyst for the launch of the Belton Road initiative in 2013. a project that despite its promise has hit many bumps in the road and if you're a member of my patreon you already know that a lot of the participants in the program remember them the countries that were unable to secure other International loans well many of them are struggling to pay back the loans they took from China and it's even led to some debt forgiveness which is eating


into the Chinese cash Reserve instead of growing it as they had originally intended so what does this all have to do with the gold standard well I'm going to tell you that right now and let me preface this please by saying that I think gold and silver are great I own them both as you can see here and I'm going to tell you a little bit more about why I own them at the end of this video but let me also say that I think the whole world should be using gold and silver as money it would be amazing to have sound money


again I think it would solve a lot of the problems we have in the world today and if I ran the world that is exactly how I would do it but and I know you are all waiting for the but the fact is that in a world that is dominated by Fiat currencies some of which are manipulated to create trade advantages and trade surpluses going to the gold standard means you lose your Competitive Edge and this man Winston Churchill a man I immensely admire learned that the hard way in 1925 when he put the UK back on


the gold standard after an 11-year flirtation with Fiat money it resulted in British exports becoming extremely expensive it resulted also in a sharp slowdown in manufacturing and a significant increase in unemployment which led to some civil unrest forcing the government to tackle the problem in 1928 which mind you was the height of the Roaring Twenties a period of economic Prosperity across almost the entire world and especially in North America and in Europe now putting that fact together and the


fact that China is actively trying to defend its position as the global manufacturing Hub I can't see a scenario in which they create an everyday currency backed by gold because it would simply price them out of a lot of markets markets they've just dumped a lot of money into high unemployment in China would certainly lead to civil unrest something an authoritarian government ruling over more than a billion people hardly wants to deal with now that doesn't mean fundamental changes aren't coming a


currency devised solely to settle international trade that is gold backed and cuts into the importance of the US dollar is a real possibility especially when it comes to trading for oil but only as a replacement to the dollar in a very narrow set of trading deals it doesn't mean the dollar is immediately going to zero and although it will have positive impact on the price of gold and silver in U.S dollar terms it doesn't mean that gold and silver are going to be the only form of money by the end of


this year like some people out there would have you believe what it means from my point of view is that we can continue to count on political theater all over the world which is designed to make us believe that someone is in charge and wants to be responsible while our governments continue to print money pushing the nominal price of gold and silver higher as it protects the value of the Fiat money we use to purchase it now is your chance to tell me what your take on this is in the comments section


is this propaganda that's been whipped up by the Chinese propaganda machine which is paying YouTubers to repeat Chinese propaganda talking points on YouTube or do the Chinese simply want to control the supply of the world's money at the cost of their manufacturing Empire let me know what you think in the comments right now now on to this video's viewer question and it comes from a viewer named Bustin and Bustin asked what's your opinion about buying High graded gold coins and silver I find


that they have returned far higher growth than my Boolean gold coin and silver I thought this question was a good one to cover because it's one I get a lot and it's one I recently talked about on my patreon where I revealed what my personal portfolio looks like and if you want to see that as well as gain access to all of my two tools including my precious metals retirement calculator my newsletter with price alerts as well as bonus videos the link is in the description and the pinned comment your support keeps this channel


sponsor free but what I said in that video on the topic of collector's coins is that it's really a different asset class that stands apart from precious metals it's something that requires a lot of specialized knowledge to be good at and this is something I didn't mention in that video it is something that is very cyclical and tied to the health of the economy and the reason for that is because the better the economy is doing the more money people have the more money people have the more they're


willing to spend on things like collectibles if things really get nasty they're not going to do as good a job at protecting you as boring old gold and silver Boolean will because getting back the premium you paid on them will be next to Impossible so I hope that answered your question be Bustin thanks again for leaving it that said that's it for this video I hope you enjoyed it until next time take care of yourselves and take care of each other goodbye