China Economic Growth Shocks Wall Street! US Dollar in SERIOUS Trouble

once again Western media has made a mistake in analyzing China's economy but this time it could affect the future of the US dollar and even the future of the United States position in the world let me explain every day Western media bombards you with stories predicting that China is about to collapse at any moment Time Magazine says that China's economic slump is here to stay meanwhile foreign policy states that China started the new year with an economic hangover but earlier this week the economic data from China's first quarter came out and it turns out to be much different than what we've been told on Monday CNBC reported China's economy grew 5.3% in the first quarter beating expectations the growth was driven by external demand as export volume grew by 14% year on-year in addition to robust growth in high-tech Industries this means that despite efforts from the West to decouple from China's economy China is very much still a dominant player in the world economy in fact Morgan Stanley even raised its 2024 real GDP forecast for China to 4.8% up from its previous expectation of just 4.2% now don't get me wrong there are still major challenges in China's economy but what if our media and politicians are focusing too much on China and ignoring the massive problems building under our own house earlier this month Bloomberg economics ran a million simulations on the future of US debt and 88% of them indicate one verdict for the US economy there is a major debt problem ahead this is actually major story that simply isn't getting enough press because once again the media wants to distract you and have you worry about China instead but let's break down just how fast the US national debt has been growing and what it means for the future there were two major events that skyrocketed US debt the first was the 2008 financial crisis which began with the Layman Brothers bankruptcy and the second was the co pandemic the future doesn't look promising either as the Congressional budget office warned the US federal debt is on a path for levels of debt not seen since World War II but what does this really mean it simply means that as the US government prints more dollars the US dollar becomes weaker and his reputation on the international stage declines in fact this Bloomberg article says the hard part out loud the erosion of the dollar standing would be a watershed moment with the US losing not just access to cheap financing but also Global power and Prestige to help us break down these Trends and analyze what's really happening in global markets let's welcome special guest Kevin dearit the CEO of Lear Capital to help explain what this means for the future of our global economy and what other countries including the growing bricks Alliance led by China and Russia are doing to combat these risks well everybody as promised I want to bring in the CEO of Lear Capital this is Kevin dearit Kevin how are you today great thanks for having me Cyrus oh absolutely and I think it's so important to bring in some experts as we try to analyze what's going on in the United States certainly when we're looking at this US economy and Kevin I'm quite concerned about this Bloomberg article that said they've run a million simulations and 88% is really indicating that there is going to be a very big problem ahead one verdict for US economy debt danger ahead so G you can you break that down for our guests here today and talk about this Rising level of debt I mean we're seeing $1 trillion dollars added to the national debt every hundred days roughly what is that going to mean for our future yeah so you know Cyrus the more money the government prints the less our dollars are worth so when you hear everyone talking about or we going to lower interest rates you know maybe it's longer or or higher for longer with with with interest rates that's really what they're talking about we're adding on so much debt that the definition of inflation is too much money chasing too few goods that's what we have happening so you're probably going to have inflation higher for longer but what does that mean for us since 2020 24% of our purchasing power for every dollar in your wallet for every doll you save for retirement has fallen by 24% people are feeling it at the grocery store they're feeling it when they when they fill up their car they're feeling it just almost everywhere you know within the economy so if you can't stop the debt from going up then you're going to have your dollar become worth less and less at a trillion dollars every hundred days three and a half trillion a year is what the government's adding on for debt and it's impossible for them to stop printing money h that is just wild what what I want to to learn more about this you know from the interest rate perspective because for example you know Powell has said that he wants to cut interest rates multiple times but you know there's a lot of speculation into if that's ever going to if that's even going to happen or how that's going to happen how is this also going to affect you know markets and again this continuation the devaluing of the US dollar well I think interest rates you know you get the 10 year up just a little bit more and stocks are just going to start having a a very difficult time the real estate market everybody understands the commercial real estate's having a tough time you'll start to have more problems you know on the on the single family homes and and multif family apartment buildings things like that because interest rates are just such a driver of additional money coming in either one of those markets right I don't think he can lower interest rates three times this year anymore just right you know inflation has been very sticky won't go away and unless they pull back on the money spending which I just don't see them happening in this election year then you're just going to have interest rates higher for longer and so you start talking about this in June when that first interest rate drop was supposed to happen and it doesn't happen then you get the fluctuations in the market yeah you know it's amazing I saw the other week on a headline was was talking about commercial real estate and they said there was a building I forgot which major city it was but that had sold for it was a large commercial building I think 10 years prior it sold for you know over $300 million and they just sold it for under 40 million in about 10 years time because the commercial real estate is just it's just being driven down to the ground I mean people have gone more remote you know the interest rates are crazy it's just it's it's just wild to see you know these parts of the these segments of the economy just completely fall apart yeah look I just I just reup my lease in our building we have a half a floor here this building is almost 20% vacant so here's the problem that the commercial buildings are having you know we have so many people working remotely that at some sort of vcy rate 20% plus the banks just aren't going to Reland on that building so either the company who owns that building has to put down more money to get them back into you know their bank loan to value ratios that that need to take place or give up the building it's just that simple so people are saying hey look I just need to sell the building and get out of this thing if I can for whatever I can get because I can't get a loan on it and interest rates are higher and lease rates are lower it's not a good situation but I had an article here and they said a trillion and a half dollars of commercial real estate debt is maturing by 2025 right so if people believe that the banks are nice and safe the banks that are making big have made big loans on Commercial Real Estate probably are still going to have some problems right oh it's definitely a big one I I have an office as well and and I think vacancy rates are definitely over 50% where I at here in Las Vegas it's I mean there it's a it's a wework facility we did go did file bankruptcy and I mean they're basically throwing every incentive they can to to you know rent a new office if you bring a you know it's a $5,000 commission if you can bring in a referral to anybody that wants to re leas a place and you know half the place is empty you know it's just uh just wild so I want to kind of shift this more to a geopolitical sphere here because you know on our Channel we talk a lot about geopolitics we're talking a lot about China and I think one of the interesting developments is certainly brics you brics is brics is a very interesting development you know that continues to grow they added five new members in you know January 1 there's a lot of speculation of new countries that potentially could be joining in the future as well and you know just last month you know Putin and the whole Russia had announced that they're going to be developing a new currency it is in fact going to be backed by gold that's going to have some crypto and some blockchain elements to that so it's really going to be cutting edge and I think we're also starting to see Kevin a lot of countries around the world starting to trade outside of the US dollar you know certainly Within These Bricks communities you know we've certainly seen China and Russia you know doing a lot of business together certainly not using the US dollar for that but with this dollar becoming I mean that's just amazing 24% less purchasing value since 2020 that's not far not that long ago what what do you see in the geopolitical sphere with the rise of bricks potential new currency and you know countries around the world kind of Shifting away from the US dollar yeah so you know I really look for tipping points and when you bring up these countries when you look at the the the countries that are involved here which is basically Brazil Russia India China South South Africa you add up those people and it's 3.2 billion people that's 40% of the entire world's population you don't need to shift much to get to 50% right and I'm just talking about those countries there's 40 other countries that have kind of signed on or quasi signed on to this bricks currency right so you're going to get over that 50% that's a Tipping Point for me and when you listen to the last meeting and and they I'm going to quote this they said the goal is to redu this is for the currency the goal is to reduce the economic and political dependence on the US dollar we want to create a new international currency replacing the US dollar as a means of transaction right that's what the goal was of bricks to replace the dollar right if you add a gold component to it like Russia did when we you know put some sanctions on them and their dollar crashed and then they backed a little bit of it by gold and it went right back up that's right the bricks countries if they do this or the bricks currencies and the countries behind them if they do this in my opinion will be the biggest transfer of wealth the world has ever seen yeah and the reason I say that is because it's a great strategy if everyone thought about our trillion trillion and a half dollar trade deficit and instead of trading in paper dollars let's say we traded in all gold yeah that would mean by the end of the year I've transferred a trillion and a half dollars worth of physical gold to some other country that had a Sur plus I've literally given them this valuable currency in exchange for a car toys things that go down in value right if you want to take it to an extreme we could say let's transfer a trillion and a half dollars worth of land us property over to these countries right nobody would put up with that but because it's just paper dollars it's almost like you know Vegas you're in a casino it doesn't seem chips don't seem like real money for a second the transfer of wealth if you used a dollar or a gold to back those dollars would absolutely tremendous and crush the US dollar yeah it's definitely it's definitely a goal I think of bricks is to certainly come up with a currency to replace the US dollar and so much of it has just been politicized because you know we've seen you know there's been over 16,000 sanctions against Russia and remarkably I actually did a full breakdown in a video of this is their their kind of strategy to Pivot use gold and then actually be able to freely trade gold in the market and like you said that you know they're they're trading gold for you know other assets or whatever they want to do but essentially allows them to bypass all of these sanctions so sanctions have been pretty much useless for Russia you know you know against this this war that they've been in you know that has only increased Russia's actual military strength they're the strongest since the 1980s now and it's very interesting to just see this pivot you know I I remember Brazil's president said you know I I wake up every single day thinking you know how do we replace the US dollar you know what makes it that it needs to be the US dollar that is the one that we're trading on so it's you know when you've got a lot of these major countries you know around behind it it definitely seems the momentum is going in that way and let's also not forget that for example crude oil that you know the bricks Community now has a very big seize on that as well you know they they have a very big control of that you know Russia actually exports more crude oil than Saudi Arabia you know and so that's a fact that many people don't know and you know what we've seen is Russia being poured in you know they're they're selling their oil to India India's buying it up and huge loads I mean that's what's driving the Indian EC as well so it's there's a lot of things you know going on behind the scenes that we're not really aware of it's certainly not being talked in the US media yeah you bring up oil but think about the gold market for a second here yeah if they're going to back and by gold you need some gold reserves if you look at all of the central banks and there's been record amounts of gold buying for the third year now who's buying well Russia has the third largest deposit of gold right China they don't put out their Central Bank holdings but they're either number one number two right you've got Brazil South Africa obviously huge every one of these countries has relied upon gold or has huge Central Bank deposits of gold at this particular point so for them to back a currency is not a big stretch here to back some portion of it then you add in all these other Commodities that have held value like you brought up oil and so on and so forth it's the perfect time in my opinion when you're printing up trillions of dollars of US currency that's getting devalued and then bringing on another currency that people can rely upon that has value and will hold the value is where most people really want a reserve currency to hold and the US dollar is obviously not doing that yeah absolutely well let's kind of shift back ears here to you know what we're seeing in inside the United States right now because like you said the United States do the US dollar is not holding its value we kind of see that with inflation because there there's also another interesting thing where you know Joe Biden likes to broadcast To America that you know we're we're tackling inflation everything coming down everything's great it always makes me question that because it's like you know have you been to the grocery store have you have you been to a restaurant I mean are you living in the same place that we are because that that is you know I mean I think this is actually crushing Middle America and certainly a large portion of this country that are just finding it it almost impossible to you know not even live a high standard of life just survive you know just because of inflation right now yeah look you can't print the kind of money that they've printed so up until 2008 what we had 8 trillion or so of of debt from 2008 to where we are today 15 years later we added another $26 trillion to get to $34 trillion every dollar that they print makes our dollar worth less but here's what people don't understand they can't stop printing the money when you start printing these huge amounts of money you can't just turn it around because you need to print up just interest payment on that debt at the very least the interest payment on our debt right now is one and a half half trillion dollars per year but that's not counting all of the real estate and the loans you and I have as as as you know regular people and corporations and so on and so forth it's impossible for them to stop printing so I give this example to people to give them some sort of an idea if you believe your dollar is going to be worth more here's the example that I can prove that it won't let's say you and I are on an island and on that island the only thing we use as money is our shells okay and on this island there are 10 shells you somehow s we the banker and you have all 10 shells the banker got all of it right you know not a big stretch I'm an entrepreneur and I come to you and I said okay cus I have this great idea I need all 10 shells you listen to the IDE you said that's fantastic I'm gonna lend you 10 shells and I'm going to charge you 10% interest for your idea I said fine I grab the 10 shells I go invest it into the market my business booms and I have all 10 shells back at the end of the year and I come to you and I said man the business did fantastic here's your 10 shells back and you foreclose my business why because the 10% interest isn't available you as the banker need to print that extra shell out of thin air so that I can pay the interest back to you right if the government is printing money faster than the economy is growing you're going to have inflation and if they print it at the speed that they're printing it now you're going to have more inflation that's why you cannot lower interest rates inflation is going to stay higher for longer it's just simple math yeah no that's a really good point and just to kind of give everybody U I want to bring up just one article that I read this morning I logged into CNBC to to to read this morning US economy we'll see more things break in 2025 if the rates stay high strategist says and going back to this Bloomberg article you know a million simulations I want to read you the opening paragraph from that because it's it's quite amazing it says the Congressional budget office warned in its latest projections that the US federal government debt is on a path from 97% of GDP last year to 100 16% by 2034 which would be even higher than the levels in World War II but they warned but the actual outcome is likely much worse than that so I mean we just see a lot of momentum going here and I like your insights Kevin because you you made it very clear you know this is not something that the government can shut down you know they can't just stop this it's kind of a runaway train you know if you know you've seen those before I mean it's a very dangerous situation how do you stop a runaway train so I want to also also shift this because what's interesting is is as a result of this we're also seeing other things happen for example Bitcoin you know recently hit an all-time high and we continue to see gold which obviously I know you're a specialty specialist in that but these are also hitting all-time highs so tell us a little bit more about these assets specifically gold as well and you know why is that happening and will that continue to increase yeah so for gold Bitcoin hasn't been around long enough to to run these kind of analysis but right one very high correlation that gold has is to the US debt so there's a 92% correlation to the size of the US Deb to the value of gold and it's been this way for the past 20 years or so so if we look at the debt and then we project gold out or project the debt out one year the price of gold should be around 3200 oddly enough I think it was Bank of America or City Bank one or the other today came out and said hey the price of gold that we're projecting is around $3,000 an ounce I don't know if they're projecting it that's what it should be today or that's what it should be by the end of the year but that's what the projection is with a 92% correlation on the gold to the debt right the Congressional budget office has never been right with the projection ever I don't think I've ever read it and said boy they hit it right on the nose right and 99% of the time if not 100 they're way too low their debts always much higher they projected a trillion and a half dollars for this year and we're going to be at three and a half trillion so that's how close they are with again if you print more and more money the value of paper currency goes down and the value of tangible things that you can't print like gold or Bitcoin go up because you're just you have more money supply chasing fewer Goods just think of it as if more money you have an increased Demand on a fixed Supply yeah you'd have an increase in price well I can't print gold and the increase in demand is an increase in money it's chasing the gold and driving it up at the same time you have central banks around the world that are purchasing record amounts of gold well hey if I could go to my garage and print up paper dollar out of thin air like they can and go out and buy gold I would do it as well especially when I'm printing up as much as they are because I know those dollars that I'm going to hold they're going to be worth less but the gold is going to be worth more right that's why you're seeing that these large central banks are are purchasing the precious metals and they're not day Traders they don't buy today to sell tomorrow they typically hold 10 15 20 years at a time they understand that the money printing has an effect on tangible assets and that's why they want to hold more gold I think you're going to see more record highs on gold in the next few years yeah I think so as well and I mean it's I think a great indication is these like you said worth repeating these central banks around the world I mean it's not just one or two I mean we're seeing all these central banks they set a record in I believe 2022 and then I think it was nearly matched in 2023 and then here we are this new year you know first quarter that trend is continuing like you said there three years in a row record amounts of central banks and like you said you know they know something right I mean they have these paper dollars but it's like hey we should be buying you know a physical asset that's probably going to be worth a lot more and much safer so Kevin with that note I do want to you know kind of shift a little bit more into specifically gold because ler Capital you guys are the experts it's you know that's that's who I trust to you know buy physical gold and make these kind of Investments so I want you to break down a little bit more about Lear Capital but also I think you have like a special report you know do you have anything else that you want to share with anybody I'd like to you know what our goal is always to provide value you know and that's I think that's what people that watch this YouTube channel they like these insights they love these interviews like this and it's always great when we can bring a CEO of a wellestablished you know and trusted company in to bring these insights yeah you know we have a special report called $3,200 gold debt and $3,200 gold with correlation that I was talking about I wanted people to understand it and how long that correlation has been going on because it's the best way to invest right if if I have this historical re repeating correlation at at over 90% then we have to pay attention to it so if people understand it I think they can make better decisions on hey I should invest in gold and then where should I invest possibly in the silver market so we go over that how to place gold and deliver it physically to your home or how to place physical gold into your retirement accounts if if people would like to protect their assets there so we've got that special report it's all free of charge if they give us a call at 800489 6450 or go to cyrus.com Le cyrus.com and you know I always love to do something special for for list I just love your program every person who either calls the number or goes to that URL we're going to give a Mercury Dime so the old 1930s through the 1950s Silver Mercury dimes we're just going to add one to anyone who requests the information you don't have to purchase there's no obligation at all but just make it fun for people to actually hold a piece of silver get them started in a little way as our thanks for being on the program and and love sponsoring it yeah that's awesome well I think the the big the biggest thing is that you I appreciate your sponsor ship but it's it's what I love about Lear is that you are all about education you know and and what I always tell people is you know it's not a hard sell for me you know it's it's just more if you want to get educated you know have a call you know learn from Lear you know they you've got have so much information that is just so helpful you know and really trying to understand this market so I really appreciate you again providing that value to our guests and the viewers of this channel who tune in for all these latest geopolitical insights but I think it's incredible it's a story that you know will continue to follow I'm going to be going back to China this summer I'm going to be you know vlogging there and kind of seeing what the economy is doing there but it's interesting because I mean we just saw Janet Yellen go back to China as well and you know there's there's a big story there you know a lot of it is the the fact that Beijing is selling a lot of that US debt they used to hold a tremendous amount but they're actually selling off the debt and they're buying gold in record amounts you know for 16 straight months now and so you know that I'm sure Jenny Ellen's going over there trying to say hey can you can continue to hold our debt and you know I don't know if that's really going to be the play for China so it's an interesting one but again Kevin thank you so much I'll give you the final word about the anything else that you'd like to chat but again thank you so much for your time and the amazing knowledge that you're giving everybody today yeah you know thanks and and you're right it's it's about education you know I love the program because it's about education that's what we're about that's why I want people to get this information first before they make any kind of a decision talk to your financial planner about it sit down with him you know we can send out two packages of people request we always want the financial planner to be a part of of this so you know the education is very important love the program and I appreciate you having me on wonderful well everybody we're going to put the comments we're going to put all the details rather in the comment section down below and also the description so again if you're interested in learning more simply just go to Lear cyrus.com there's also the 800 number 1 800489 6450 so I want to thank you all for your amazing support and Kevin thank you so much for joining us today thanks for having me all right

Channel: Cyrus Janssen

Views: 206,983

Keywords: us dollar, us dollar collapse 2024, us dollar collapse 2023 news, us dollar rate today, us dollar collapse, us dollar coin, us dollar printing, us dollar rate, us dollar index, us national debt explained, us national debt visualized, us national debt clock live, us national debt crisis, us national debt interest, us national debt documentary, gold investment, gold investing for beginners, gold, china economy today, china economy news, china economy explained, china, dollar

Id: y6hBdAXk2QM

Length: 24min 24sec (1464 seconds)

Published: Fri Apr 19 2024