Then at the end tell you what I think and then we’re going to also look at VectorVest to determine what’s really going on with the dollar and does this Buzz have real Merit at this time I’m going to jump into some slides that I put together for you on the declining
Dollar the US dollar declines when the Dollar’s value is lower compared to other currencies in the Foreign Exchange Market this manifests itself is a decline in the dollar Index generally this means a foreign currency such as the Euro can buy an increasingly large amount of dollars secondly a weaker
Dollar buys Less in foreign Goods this increases the price of imports contributing to inflation story that’s going on right now as the dollar weekends investors in The Benchmark 10-year Treasury and other bonds sell their dollar denominated Holdings all right so that’s one part of it let’s go
To another part the US dollar has declined 2.57 in march marching four losing weeks out of the last five so again this is part of what’s going on is a buzz in social media this story came from an article a senior market analyst from FX Pro said the
Dollar is preparing to stare into the abyss so there’s a lot of Doom and Gloom when it comes down to the dollar and I think that a lot of people are going to the extreme of the dollar collapsing over time will that happen well you know
That that leaves you know we got time to see if that does happen or not but I think that that is definitely an extreme I think that the dollar declining is part of just what happens over time uh but you know you Notch that we do have
Inflation inflation is high let’s see if we can get it under control the FED is doing what it can do to do that in the last six months we have seen quite uh seen quite the typical and understandable reversal of the dollar now there’s three things that add to the
Declining dollar and I’ve got here hyperinflation when hyperinflation occurs every dollar becomes less valuable ten dollars that I gives you an example political instability one thing I don’t like to talk about on this channel is uh politics but while not something we expect to see in the U.S
Okay I want to put that out there governments can be overthrown where there’s a military coup a war or another event resulting in political upheaval a country’s currency can often be a casualty we’ve seen that happen in a lot of other third world countries but I
Don’t expect that to ever happen in the U.S but again that’s my opinion in high debt something that we are currently going through right now many countries have high levels of debt these days talk about the debt ceiling talk about how much debt we’re in overall but this is all relative
To the strength of the underlying economy when a country has very high debt and a shrinking economy this can cause a flight of assets and a collapse of the currency again I think that that goes to the extreme talking about the collapse of an economy so now let’s go
And take a look at a couple of stories that I have for you as well and another part of this is the brics country so I want to talk about who they are and they are actively attacking the dollar to become the new Reserve currency overall We Are The Reserve com uh currency
Globally we you know everybody everywhere you go you can spend US dollars in that country but things are in play to overcome us as the reserve country we serve currency and the bricks is part of it who are they uh why are they a threat to the U.S bricks is the
Acronym that stands for five emerging world economies let me step back a little bit emerging world economies now we had the G7 where seven of the biggest economies came together to address economic issues and currency and all that kind of thing and a lot of people
Felt that the G7 kept out the emerging World economy so then we moved from the G7 to the G20 to Bringing more countries to have a say or word in global global currency and things of that nature but these countries stand out Brazil Russia India China and South
Africa which make up the brics economic system and that system is growing it might seem easy to brush off all the economy all the countries as the world is a third world and we look at that a lot right or emerging but ignoring this Coalition of countries could be
Disastrous for the Western global market now let’s talk about more countries looking to get into the brick system Argentina wants in among others Kazakhstan ubekistan Argentina Egypt Thailand Indonesia Nigeria Senegal and Saudi Arabia want to be in on this Bricks now there’s a reason why all right there’s a
Reason why we’re going to get to that in a second of why these countries are growing together to go against the reserve currency of the United States now didn’t dumping the dollar will the new brics currency be placed the U.S currency for trade and this story talks about the dollarization as regime has
Received a boost in the recent times especially after the Russia Ukraine War Began last February and last week this movement received further impetus while Alexander babikoff the deputy chairman of the state Duma was quoted as saying that the brics Nations are in the process of creating a new medium for
Payments established on the strategy that does not defend the dollar or the Euro again um this is why I say this is out there this is what you need to keep in mind uh in regards to the the brics countries and actually more people or countries wanting to join
To be able to go against this our our ability to be to reserve currency so now I talked about the re I wanted I talked about the reserve currency I did some research on it is a foreign currency that is held in significant quantities by central banks or other monetary
Authorities as part of the foreign exchange reserves all right um push that up there we go uh the United Kingdom’s pound sterling was the primary Reserve currency as much of the world in the 19th century in the first half of the 20th century however by the middle of the 20th century the United
States dollar have become the world’s dominant Reserve currency let’s scroll down a little bit we talk about the uh the history this talk this this week of this this Wikipedia about the currency Reserve currency was very very interesting but I want to go right here the Global Currency Reserves up into
2022 the US dollar is the dominant currency globally all right and from this fact alone and as it’s falling it is declining from 2009 it was at 62 percent right now it’s at 58 over this time period so it is declining but as I look at this we’ve got such a large
Amount of dollars as foreign currency globally I think it’s going to take a whole lot more than just the bricks are they gaining momentum sure they are uh will they overtake the reserve current us as the reserve currency it leaves much to your imagination or again if you
Go to extreme the extreme says yeah it’s going to happen at some point in time I found an article and I couldn’t find it again and that said that Reserve currencies the longest lasting Reserve currency lasted for 110 years before it collapsed we’re sitting at 103 years as
Us being the reserve currency does that mean in seven years now it’s going to collapse I’m not saying that but that’s just a tidbit of information something else the United States dollar major Reserve currencies the United States dollar and this is why the brics company countries are going towards this this this
Polarization to pull us out of the reserve currency the Dollar’s role is an Undisputed Reserve currency in the world allows the United States to impose unilateral sanctions against actions performed between other countries Aha and that’s what keeps us to keep to try to keep people in line when they do
Things that are not right we put sanctions on them and I think that the brics uh Coalition is the coalition to go against or go around those sanctions by being able to trade outside of the of the sanctions keep in mind that when we put the sanctions on Russia Russia said
On oil Russia said we’re gonna you know if you want to buy our order we got to buy it in Rubles and China said okay we’re gonna go buy them in Rubles and so they were outside and if the bricks countries can come together to form another currency outside of the dollar
Then these sanctions will be rendered pretty much useless if they’re trading outside of the US dollar again they get the momentum they garnering the momentum are they at a point where they’re going to create a currency that’s going to usurp uh us as the reserve currency I
Don’t know so let’s go to the VectorVest system and let’s go look at the dollar and then with that I’m going to look at the flight to safety when it comes to the dollar if the dollar is going down gold tends to go up recently I introduced an ETF that’s out there
That’s an inexpensive way to play the gold which is sgo sgol and then I’m tracking the dollar utilizing the ticker symbol uup I want to graph these all right notice that gold ETF is a buy recommendation where the uup or tracking the dollar is a hold recommendation
Let’s graph these and I’m going to put these on a bigger graph put this on a five-year graph and as I look here’s gold gold is trading right now close to five year highs on this ticker symbol of 19.85 it’s currently at 1919. folks that’s a five year high so it means that
A lot of people are definitely migrating to gold at this time and then if I look at the dollar I want you to see something the dollars declining rapidly found the level of support coming back down but we went through this before uh prior to what we’re going through now where the
Dollar found the level of about 24 and some change on uup we’re currently at 27.82 does this mean that the dollar is declining and on board for a collapse I am not going as far to that extreme to say that the dollar is going to collapse that the reserve currency no longer will
Be the dollar after some time but this is something that is out there this is something that you’ve got to keep your eyes on and to play this if the dollar does decide it’s going to keep declining you might want to think about playing gold at this time so that’s my insight
To address what’s going on uh for all of the news that is out there in regards to the declining dollar and again A lot of people are on the other side of the extreme saying if the dollar is going to collapse the brics countries are going
To come up with a new currency that will overcome the US dollar as the reserve currency we’ll see but if nothing else hopefully if this gave you some better insight into the situation let me know in the comments uh if you totally disagree with this let me know in the comments
Um and again for newer people hopefully this opened your eyes set off some lights to help you to better understand what’s going on if you’re not a subscriber to this to the uh Channel hit the Subscribe button hit the Bell icon and um we’d love to keep you here and
Give you this we strive hard to do all of the work so that you can reap the rewards folks this video is over and until the next time see ya
