we've been weaponizing the dollar and we've been doing these massive deficit spending that and expanding the currency Supply and inflation respects no borders you expand the currency Supply and dilute it you're stealing purchasing power from anyone holding dollars regardless of what continent they're on and so um we've had that causes a massive wealth transfer from the entire planet to the U.S we've had this extraordinary privilege uh that Charles de Gaulle called the um
how did he phrase it extraordinary uh I can't remember exorbitant privilege exorbitant privilege yes and uh and we've abused it to a point where we're going to lose that privilege uh as soon as there is a reasonable alternative the only reason that we're still a global uh Reserve currency is because there's no reasonable alternative yet but China Russia all the brics countries uh everybody would like uh to have an alternative a way out of this system where we get to be the house in Las
Vegas yeah yeah and I think that the dollar has such a powerful Network that's really the you know we think about Facebook and the network effect or Google or one of these tech companies but when you really start to understand the global monetary system you see clearly there has never been a stronger Network ever in my opinion than the United States dollar right now and these in these Banks and creating the dollar denominated debt and all these things so I I when when I try to think through how
the dollar loses Reserve status I always go back to it's not just the Brick Nations you know trading uh oil for Yuan or something like that but it's also looking at the global dollar denominated debt and yeah when I start to really see that come down as far as a percentage of overall debt that's when I know the dollar is is slowly kind of slipping away because once we get to a point where the the globe doesn't really need dollars to transact uh in that dollar denominated debt isn't creating more
demand for future dollars then that's kind of the the roller coaster on the way down yeah you know I hadn't really really never given that aspect a whole lot of thought I'm glad you brought that up uh I would imagine that once there is a viable alternative and there's all this denom dollar denominated debt down there and uh uh there would be a number of countries that would just say I'm not paying well right now to your point the way we've weaponized the dollar and I don't
think there's ever been a greater display of that than when Russia invaded Ukraine yeah and we came in and and sanctioned them and basically took all their Central Bank dollar assets uh that were obviously a liability of someone other than Russians and they found that out very quickly and I'm not saying that was you know we could go into debating where that was good or bad on net balance I think that was the wrong thing to do when you look at cost benefit but the bottom line right it might have been
a short-term solution that was very bad for the long-term problem yeah and I think it even caused short-term problems you know what their inflation rate and the energy uh problems that they've had in Europe but uh if you're a country that's even friendly to the United States and you see them do that and that was absolutely unprecedented yes and you're looking at your own central banks and okay by the way how many dollars do we have and uh or how many treasuries do we have oh we've got a lot and oh that's my
counterparties the United States and what if they don't like me in the next five years or the next 10 years right now all of a sudden all my assets just poof go up in smoke and I think we definitely increased the rate of the globe kind of quote unquote de-dollarizing but then that's this other cross current that's competing with dollar denominated debt creating future demand for dollars as well so it's I always look at it as like the ocean and you've got all these cross currents that are at play at any given
time and it's not a matter of if we have uh deflation or inflation as an example it's it's which cross current is overwhelming all of the others to really move the needle and I that that's really the The Challenge and kind of the Rubik's Cube that we all try to figure out
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