Is china taking over the world is it going to replace the us dollar as as the world's reserve currency. Is china the next big superpower. Let's find well the bottom line of this video is always is going to come first and today. It's going to be quite simple despite talking the big talk.

China is not a global superpower at least not yet in fact. The next. 10 to 15 years are going to be a major pain in the ass for china it's going to struggle with massive economic issues. Demographic political and energy trouble beyond that the dollar is going to remain is the world's top reserve currency.

And it will not be replaced by the yuan not now not in the foreseeable future and probably not ever for reasons. Which i'm about to explain in just a second so first of all let's answer. A simple question is china actually a global superpower right now can it become one in the future. Well.

The truth is that the united states is not what it used to be let's be honest we can all see and feel it you know a series of stupid mistakes. Horrible decisions and political blunders have caused the us to decline and since it's no longer the same undisputed superpower. It was 40 years ago. It left a significant vacuum and a lot of other players are trying to go for their neck.

This is how the world works and if you listen to people like ray dalio. You're going to hear that china is about to fill that void and be thrown in the us. But here's the problem there's a huge difference between a desire and ability for example. I really really want to be an nba player.

But i don't have a chance since i lack the required skills. It's simple. But the question is i guess does china have the required skills and attributes to dominate the global stage instead of the us first of all let's be fair china has a huge industrial base. Some of it will created by the way.

It has a massive population strong military. Force all. Facts no also it has global influence in the. Un.

Security council. Also they're pretty much buying up. Africa. Cloud also it has an impressive economic growth over the past couple decades it's just insane.

They had a 200 billion dollar economy in the 80s right now they're right up there with the us with 20 trillion dollars. In just 40 years you can't ignore that however. I think crowning china is the world's next. Superpower is a bit premature given what i'm about to show you right now.

In this video. So for a country to become a true global superpower it needs to dominate the world like mj dominated. The nba it needs a stable political system a rule of law. The most technologically advanced economy a strong military.

The ability to provide for weaker countries and have clout and influence having the most desired culture standard of living needs to be the baddest strongest and richest and smartest player in the game now throughout modern history. Nobody even came close to the us. Including the ussr by the way who could have competed for global military and political clout. But never came close to the economy.

The ussr had the economy of a chicken farm in nebraska. And the standard of living that nobody in the world. Wanted trust me. I lived it so now let's put china through the same test.

Does china check all of these boxes or even just a few so as far as the chinese economy goes look from the first glance you look at china you look at this number 20 trillion dollars gdp. It looks phenomenal. It's literally up there with the us with its 21 trillion. It's basically the same however when you pop the hood.

You're going to find out some issues you haven't seen in first glance things become a little bit more problematic so in the us. If you divide the gdp by the amount of people you're at 65 000. Per capita. Which is i think the sixth or the seventh best figure in the world china is ranked 59th with about 14 000.

Per human being you cannot be ranked 59th in gdp per capita and claim global dominance. This is not how the world works. The problem is that even in 2022. A large portion of the chinese population still lives in villages little peasants with no access to proper health care services education let alone clean water i mean there's absolutely no way you can become a real global superpower.

When you have 800 million of your people struggling to survive daily. It's not going to happen. The other factor that needs to be considered here is how likely is china to keep the current rate. Which its economy been growing.

I mean the growth was staggering. Now the main problem with that is that china is slowly becoming extremely aging. The crazy part is that it's mostly self inflicted. They did this to themselves so china had this policy enforced between 1980 and 2015.

It was the one child policy basically a law that limited families to only one single kid. Guess what when you limit families to one kid only bad are gonna happen you know what they say play stupid games win stupid prizes now the chinese government actually repealed this law. But the chinese people are not even close to reproducing at the same rate in 1980. The median age of a chinese citizen was 21 years old right now.

It is all the way up to 39. My guy and at this rate by the time we hit 2050. The median age in china is going to be 50 years old and while it is true that you know us suffers from a very similar aging population problem the us. Can automatically add new blood add new working age residents by immigration because everybody wants to move to the us.

But ask yourself this question is anybody you know trying to immigrate into china. Hardly and look things are not getting better for china. At this point as of 2020. The proportion of elderly chinese that are 65 and older was 9 of the population this year.

2022 two years later we're at 14 at this pace by 2050. One third of the chinese population is going to be above 65 years old even right now before they feed hit the shan. Only 900 million chinese are at the working age of 16 59. There's 40 percent of china.

Who are not working or either too old or too. Young. That's a major problem. China has effectively become the jose mourinho of demographic problems they're playing the 421 system.

Now the 4 1. System for those of you like soccer or football. Depends on where you're from is a society. Where most families have a 4 2.

1. Structure. Essentially one working couple. Supports.

Four parents and one child. That is not sustainable now look the aging population imbalance increases. Healthcare expenses pension costs at the same time reducing productivity reducing tax revenues reducing savings reducing investments and all these negative effects on china's economic growth are not going to go away just because somebody hopes they will and ray dalio can't hope this thing away on top of that at the fact that they don't have any rule of law. Over there imprisonment of political rivals.

Check ceos and founders like jack ma. Going to prison or disappearing for slightly. Criticizing the regulation check lack of any prospect of being energy independent chick chinese ghost towns check the complete farce that is the chinese real estate market check and just to let you know the chinese real estate market is literally the strongest part in their economy. And that whole thing is built on chicken legs.

Also we can talk about their borders. Surrounded by unfriendly neighbors being part of the putin fan club and the complete politicization of the economy by president xi including vicious crackdowns on successful companies. Such as alibaba tencent didi. Just to name a few not to mention the refusal of chinese companies listed in the us to be regulated and audited by.

Us. Regulators which led to a major risk of actual delisting from the us stock exchanges and combine all of these ingredients you get a nice dish of a country that isn't deep now as far as the reserve currency goes. Look. There are a lot of things not to like about the us.

Dollar that's for sure the massive printing of money check the massive us. National debt check the insane inflation check the sanctions everything sure china on the other hand has around 125 countries. Which consider china to be its key biggest best partner for trading china russia. India.

Brazil they all hate. What the us is doing with sanctions. They don't want it so if they all don't agree with what the us. Is doing if they're all hating on it if china and all their friends brazil.

Russia. India. And all of their 125 partners agreed to use their prospective currencies to push the yuan to become the world's reserve currency. Would it work.

Well. Theoretically. The answer is probably yes so ask yourself this question. If that's so simple.

Why hasn't it happened yet. Because china likes the us not exactly despite. Everything i just told you the dollar still somehow holds about 60 percent of the world's reserve currency. Interesting right including the holy grail.

Which is the petro dollar status. Now. I'm not going to talk about that. But it's a huge element.

The only currency opec sells oil in is only the us dollars. Why is that well that's because they like the us. No. That's because they cannot change so why can't opec just say well we're gonna change to yuan.

We hate the us the relationship with mbs and biden has never been worse. Why can't they just move to d1 you need stability to serve as the world's money for that you need the rule of law due process democratic elections transparency in politics transparency in banking oversight regulation. All things that china excels in obviously. That's a joke for china to get all of that in place they would literally need to absolutely abolish.

The chinese communist party change. The regime overhaul everything become democratic basically. The chinese communist party has to decide to kill itself to make it the world's reserve currency. And as you know the chinese communist party.

Isn't really that good at relinquishing control. And the point of this video is quite simple china is not some global superpower. They're not about to take over in fact they're going to struggle to keep the lights on for the next 20 years they're going to have massive demographic problems massive energy problems massive political geopolitical they have a lot of problems to solve definitely not take over the world. That's the least of their concerns.

They want a renegotiated place at the table. That's why they're poshing. But they don't want to manage the they literally can't now obviously they could in the future. If they ever got rid of the ccp and reform.

The out of this country basically make it more than democratic and absolutely everything that is not today. But this is like asking putin to resign and give up the power and make russia democratic just because it's the best thing for russia despite it means giving up control communists are not really good at really giving up control 30 hertz straight up.