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 Elon Musk just responded to a great tweet about a 13 year old girl that asked Warren Buffett and Charlie Munger a great question at the Berkshire Hathaway annual shareholders meeting that happened last Friday and Saturday and uh this is a very enlightening and Lucid question about the status of the dollar as a global Reserve currency of the world and the effect that it will have on U.S business in the future listen to this question Mr Buffett and Mr Munger hi my name is Daphne and this is my sixth annual

Berkshire Hathaways channels meeting I've had the privilege to ask you both questions in years past my question for you today is the following as you know the U.S national debt is currently at an estimated 31 trillion dollars making up about 125 percent of the U.S GDP in the meantime over the past few years the Federal Reserve has telegraphed that they intend to monetize the debt by printing trillions of dollars even as they insist that they're fighting inflation already other major economies in the

world such as China Saudi Arabia and Brazil are moving away from the dollar in anticipation of this my question is are we likely to face a time in the future when the U.S dollar is no longer the global Reserve currency how is Berkshire prepared for this possibility and what can we do as American citizens to attempt to shelter ourselves from what's beginning to look like the beginnings of dedolarization well hey I should ask you to come up here and answer some questions I mean they uh so this little girl asked a question

that was better than 99.999 of American journalists are capable of asking what this says about the future of the U.S as the the U.S loses uh the reserve currency status you're going to see business Decline and the lifestyle the wealth of the country you're going to see all of that decline in the future and these things happen with something called s-curve adoption it happens very slowly at first and then bam it's it's uh up it you know so you will see this play out but it's all

starting to happen faster and faster and faster and it's because of uh the internet and all of the light speed transmission of knowledge that we have these days so Warren Buffett's answer was sort of cumbersome and not that good but basically uh just uh today Buffett comes out with a gloomy picture of the incredible period for the U.S economy is coming to an end so the amazing period of growth that we have had uh covering all of the 20th century and you know some of the 21st here is now coming to

an end and it's because of losing the global Reserve currency status and all of this stupid stuff that all of our politicians are doing now uh business has gotten stupid slow uh so this is Dallas fed manufacturing survey and this is old this is from last month I hadn't used this article yet but it's just business slowing down part of the business cycle but it's slowing down as we are about to go into a recession and as this banking crisis increases and that is going this crisis is probably

going to become very bad I believe so uh in uh world of Statistics they listed all of these different tax rates and for all of these countries and the US doesn't look too bad here down at 37 percent now taxes have a big impact on how well a society does over the long term and you wouldn't think about think of it if you look at you know Japan Austria Sweden Belgium these are some countries that are doing okay and the country that's doing the best here is sort of in the middle uh uh but and then

you go down to uh countries that have no taxes these are oil producers here and so they're getting their tax from their oil oil revenues uh but Hong Kong here uh has no natural resources they're just a it's a small island and uh but they are an import export Hub and they're just 15 taxes this is one of the wealthiest societies on the planet and it's partially because of the low taxes Japan is not doing that great um uh but uh Elon Musk responded to this uh saying that this is incorrect the de

facto U.S national income tax is 40 percent when added to California state income tax it's 53 this was the reason the main reason I moved from California but there are others California just made it impossible for me to do business they made my life a nightmare now if you take uh this 53 that isn't where it ends the normal person looks at uh their their the tax that they they pay the government on the on their income but if you're an employee there's matching uh employee taxes that the employer pays

and the federal payroll tax is about 15.3 percent that you have to add on top of that 53 so now you're up at 68 percent uh if you're in California and that covers things like Social Security tax rate of 6.2 percent Medicare tax rate 1.5 Medicare and an additional Medicare of 0.9 and uh the unemployment tax of six percent now these things are capped at certain uh income levels and so this isn't a progressive tax where you pay more of the more you make it's a regressive tax where you pay more the

less you make so minimum wage employees for instance actually cost the employer quite a bit and you really do need to add all of this to your income tax that you're paying and then on top of that after you've in California after you've paid your 68 tax or 60 you know it's over 60 when you add these it's like I said it's capped but it's over 60 percent that you're paying and then you have to go out and spend some of that you got to pay sales tax so now you're up at 70. but then you take a look at

the extra tax that they charge on things like gasoline your phone bill uh your power bill your water bill take a look at the tax breakdown on all of these and you'll see that if you live in California you're actually paying somewhere around 75 of your income is being taken by government officials that say oh no you can't have that unless I get my cut and so what do we get for all of that well San Francisco becomes a ghost town as major retailers flee and they're fleeing because of all of these

Progressive policies uh and you look at uh places where they uh want to try to redistribute all of the income and take care of everybody and sometimes this stuff just doesn't work and downtown San Francisco is becoming an area a lot of these businesses are closing because of the crime and then in Great Britain people need to accept that they are a poorer says the bank of England they just what's what they're saying is happening here is inflation is being caused by people either passing on uh

right their Rising costs to the consumer or uh people asking for raises because they're they're uh standard of living is falling because of of inflation which the bank of England cause and the Federal Reserve caused so they cause it but now they're saying well it's your fault because you think that you should be able to live the way that you did yesterday so these uh the the central banks and the entire banking system are at fault when it comes to uh inflation when it comes to uh inequality of income and

wealth uh distribution uh the guilty parties are the world central banks and the commercial Banks I want to thank you for watching we'll see you next time at goldsilver.com we have a price match guarantee free shipping global storage options and phenomenal customer service thanks for making goldsilver.com your bullion dealer