Watch and listen to U.S. Money Reserve's Coy Wells talk about how the trade war that we are currently involved in and Donald Trump placing tariffs on goods will affect how foreign countries use the U.S. dollar
Foreign Countries Backing Away From the Dollar- Video Transcript
Coy Wells: 00:00
Good morning and thank you for watching daily market insights. Today we're gonna talk about something a little different. What you're seeing in the news today other than inflation that we've been talking about for the past few months is a new word that they're talking about with the economy of the United States, and that's a trade war. What does a trade war necessarily mean? Or Donald Trump talking about playing tariffs on some of the imports and goods coming in, primary aluminum or steel that's coming into the United States. One of the reason why this is important to understand is by us placing tariffs on these other countries and placing it on the goods that will be coming into the United States, these countries will be less likely to use the US dollar. Over the course of the last few years, really actually going back to the year of 2017, there was an alliance outside the United States start pulling away from the US economy.
Coy Wells: 00:42
That alliance initially was called the BRIC's nation. That stands for Brazil, Russia, India, China, and South Africa. Those countries in 2014 signed a five way agreement. And what they did is they started pooling their money together. And what they did is they developed the financial system called the AIIB bank. And that developed into what they call the Asian Infrastructure Investment Bank, one of the largest financial institutions on planet earth. Matter of fact, it rivals the Federal Reserve here in the United States significantly. These countries are pulling away from the United States and they've been doing it for a very, very long time. And a lot of people have to understand that these countries are very slow and very methodical. But it has been a process against the United States. And when the United States gets in trouble, like it is right now from a financial and a deficit standpoint, especially the US treasury bonds, you have to understand what is going on and the inner mechanisms that are taking place with the US economy.
Coy Wells: 01:36
So the BRIC's nations, something that was established in 2014 is starting to take place. And that's why you're starting to hear some of the words trade wars. Before this, about six months ago, going back two years ago, you heard the term currency war. That's because you had other financial institutions that are out there that really don't, uh, that are competing against the Federal Reserve. And you have to remember the U.S. Dollar became the world reserve currency going back about 1944. Taken away from Great Britain, the British pound. So we've got some other big dogs on the block here. And what they're doing is they're starting to compete with the US economy and the US dollar. And that's why you're starting to see the US economy kind of pull back and the stock market. But more importantly, the impact on the US dollar is what is important to understand.
Coy Wells: 02:18
What we've talked about for months and months now is the impact and the steps and the progression towards a decline in the US dollar. We've also talked about the amount of risk that is sitting in retirement accounts, specifically 401k's, IRA's and pension plans. Remember the states inside the United States have been borrowing to keep the US economy or those states solvent by borrowing against the pension plans with inside each state. Uh, we've talked about it in past one of the programs or the pamphlets we put together, it's called the fiscal states of America. This talks about pension plans and some of those areas that are at risk. As always, we've encouraged you to dive into this or call or request this literature. This will help you identify where you stand financially if you have a pension plan or where your state stands from a financial standpoint.
Coy Wells: 03:03
In the news over the course of the next week or so, I want you to start listening to those words. A trade deficit, trade war, uh, tariffs placed on services and goods with products coming in. This is a way that the country is trying to develop and bring in more money and try to strengthen the financial system of the United States. The other thing you're going to start seeing is you're going to start seeing the credit crisis here in the United States. You're going to start seeing these banks really start crunching down on the credit inside the United States at credit cards, vehicle loans, home loans are going to start increasing the interest rates on those areas and they tell us one thing, but if you go apply for a new credit card and if you go get a new home loan or you go buy a vehicle, I can assure you that the interest rates that they're charging you right now, even with someone that has an A plus credit rating is really, really high
Coy Wells: 03:48
Right now. It's sitting at probably four and a half, five, 6% for someone that has a credit rating into 700 beacons, seven, 680 credit beacon. They're raising that incrementally behind the scenes, but the feds and the Treasury Department is telling you that it's at one thing. Jerome Powell talked about raising interest rates. It's being done behind the scenes. If you apply for a new loan, you're going to see that as well. Big picture; US dollar is in trouble right now. Continue to watch the shows. Click on the link below, call the phone number below. There's also a comment section. You're more than welcome to put any comments in there and we'll be more than glad to help you out in the future on some of those topics and questions you may have. As always, thank you for watching daily market insights and I look forward to seeing you further in the week.