So let's talk about why the US economy is so resilient. We just got the core PC numbers 3% this month in line with expectations, slightly cooler, and the next FMC meetings in in 5 days. it seems. You know if you look at Fed watch: 97% of no rate hikes in November 80% of no rate hikes in December.

So it means that pretty much for the year of 2023. no more rate hikes cool at the same time. Three days ago or few days ago I may be losing count the GDP The gross domestic product came out at 4.9% annualized as of Q3, which is the best we've seen in three years. So the US is doing better better than ever.

maybe better than three years ago. At the same time, the inflation numbers are not that bad 3.7% CPI for the month of September Not ideal, but definitely manageable. So two years of the highest pay case of rate increases that we've seen in the last 40 years and $100 billion spent on the war in Ukraine and coid and lockdowns and 9% inflation just in June 2022 and somehow we end up with 5% GDP and 3.7% inflation. How in the world does that happen? How is the US so strong economically? Now one thing is clear that all the know: doom and gloomer predicting the end of the United States the end of the dollar, the de dollarization and the the rise of China And they're writing books and they're making podcasts.

They're making great money off of these clicks. but now we know They don't know what the hell they're talking about. It's a very humbling experience for them to see these numbers. Of course they're not ever going to admit it, but still is.

China is on the brink of collapse. We have a crazy demographic crisis. A crazy real estate crisis. They're really struggling to keep the lights on and feed their people while the US is doing fine.

How about that? Now look any other country. When you have 11 times in a row where the Central Bank raises interest rates, you would have seen the economy the toilet, not the US. Now you can see that clearly. In a place like Turkey, Turkey just raised their interest rate to 35% Why? Because their inflation used to be 80% it's currently 60 % and their whole Turkish L is in the toilet.

And by the way, Turkey is an import country. Which means that the devaluation of its Turkish L is hurting. Its bad. So the reason they bring up turkey? Because there's a lot of chatter about Turkey moving away from NATO and its classic Partnerships towards Russia and Iran.

Turkey needs the US to bail them out out of this predicament. They need the US and they're doing all this showboating much like the Saudis to get a better deal from the United States. But Turkey is really in the deep deep economically. not to take anything away from Turkey, but I'm saying they have a lot of problems.

but this isn't the video about Turkey. this is a video about the United States So why is the economy so strong So number one? The first reason is obviously consumption, right? it's a cultural thing. The consum: the consumer spending in the US is insane and we may criticize it. but it's good for the economy you have Christmas which is literally a a boost that doubles the revenue of businesses over the entire year with have a culture of not being jealous of people who buy new stuff.

Basically the only thing you do is buy that new stuff for yourself as well unlike the East European culture where I came from and we have crazy things like the 1031 like kind exchange where in the 1031 like kind you literally get a tax exemption if you buy more expensive houses or real estate. Um, and also you know the consumer spending over the past year and a half in the US even though we had the rate hikes the the wars the Co, it just shows a lot of confidence of the US consumer in the economy. Um, you see, the earnings of the companies are fine. the jobs are fine, there's no unemployment, right? Housing prices are fine stock prices are fine.

Um, it's a cycle. When the US consumer is confident they spend more money, they spend more money. There's more Revenue There's more Revenue They hire more employees. The employees have more money.

They spend more money. ET ETA ETA That confidence in the US economy by the consumers is kind of a self- fulfilling prophecy and sure some of it is still. You know due to the excess coid money that was giving out and it will eventually burn through that? That's why the United States has to take care of its CPI the inflation. They have to bring it down to 2% They have to make things cheaper in the US before this confidence is lost.

So you know by the time people eat through their savings this thing has to be solved. But they do have time. But the bigger reason why the United States is in this position where the economy can take all of this punishment and still be absolutely insanely strong is the ability to print endless money. You see, there's two types of economies in the world, the economies that consume money and the economies that print money.

And there's only one economy that prints money and that's whoever is the reserve currency of the world. and currently this is the United States Now the reason it's still has the status is because of what is called the Petro dollar. Uh, because the only way to buy oil right now still in 2023 is is really through dollars. and if you need dollars to buy oil and everybody needs oil, there's high demand for the dollars, then you can print more of it and you know, etc etc etc.

The reason is because the Saudi Arabians literally hold OPEC by the balls and the Saudi Arabians promised to Richard Nixon in the 70s that they will make a law law that you can only buy oil in dollars. Now initially this was a political agreement, but now there's a lot of talk about how the Saudis are stepping away from this, etc etc etc. Well, a few facts here. Number one, 90% of the global oil trade is still done in US dollars.

So you know all the talk about the bricks. The bricks is like a an undercard for a for a fight and all of them are losers. but you have a lot of them. Even if you add up all the losers into one card, it's still a bad card.

So Iran China Russia South Africa Brazil There's not a lot there on the bone. Even if they all Bann together, there's still a bunch of losers now. the only one who's not a loser there is India and India is way way closer right now to the US than it's been. So India is really is starting to drift away from the breaks towards the US and I'll talk about it in a separate video and I think India is a massive Global superpower in the making Now Um, the thing is with the Saudis, you have to understand they've been making a lot of noises about potentially dollariz the O trade but they will never do it, they won't do it because they need the US to provide security for them.

They have the US equipment, the US military is literally the subcontractor of Saudi security, and they have the whole transition of the next 20 years from oil into a service base based economy which the US is actually facilitating with the US technology and the US gear, etc etc. Not to mention the entire Saudi oil industry is based on Us technology, Us gear, and US Personnel. So the Saudis are playing hard to get right now and they're trying to get better conditions from the US but they're not actually going to leave. They did agreed to make a few deals in in Yuan with the Chinese Uh, but that's not anywhere close to what they have with the US dollar.

That's a specific thing they've done. and and look, I don't want to hear anything but Chinese Navy they can maybe conquer a bathtub Okay The reason they've done this is because look, H the Saudis and the Iranians are mortal enemies Iranians hate the Saudis more than they hate Israel believe me. So the Saudis really don't have a way to defend themselves. That's why they're using the Us as a subcontractor for that defense.

But they also know that China is a is a friend of Iran and they're basically saying look, China we'll buy some oil off of you in Yan and you won't have to use the dollars just A little bit. But then if Iran screws with us, you help us. So they buying kind of a built-in suspenders like the US and then China on top. but it's a very regional thing specific.

between Iran and Saudi doesn't happen in the entire opic. It doesn't spill over. So it's a general rule of thumb. the Petro dollar is not going away the world.

Reserve Currency of the US dollar isn't going away because simply, there's no substitution tol the US dollar. You need a currency that's going to be massive in quantity, supported by the best banking system, the biggest military, a due process, a legal system that actually is fair. Everything that China and Russia isn't China and Russia are centralistic currency restrictions, No legal system that has any sort of due process, No real militaries that can expand and protect the currency around the world. Not enough of it, volatility, etc.

etc. Look at what happens when things get shaky and things get bad, people run towards the dollar. So the dollar is a stable currency. What happens if you trade in Yuan and spikes like crazy Or the Ruble? God Forbid it's not possible, so there's not anywhere close to a candidate to replace the US dollar.

Maybe it happens someday. Maybe India does that, but not in a lifetime. So I hope you enjoyed this video if you have I'd appreciate a subscription to this channel if you haven't yet and hitting the like button it really helps the algorithm. Thank you so much I'll see you in the next video.