Right since World War II, the U.S dollar has been the dominant International Reserve currency and has been used as the Benchmark for global trade. But over the past few months, there's been an increasing number of countries looking for Alternatives Russia and China in particular have been buddying up on many fronts, but they've also teamed up with other nations like Brazil India and South Africa and they're creating a process for creating a currency. Last month, China and Latin America's largest economy Brazil reached their own deal to dump the dollar in transactions between the two of them and will now trade in their own currencies instead. Even Saudi Arabia has said that it's open to the idea of trading in currencies beside the US dollars.

But why and what does that mean for our economy and your wallet? Let's ask business and Market analysts says Denton and financial analyst and YouTube Star Kevin Pafrath. Um, Kevin I Want to start with you I I've not gotten more text emails to my website to DM saying what's going on here. The the US Dollars almost 60 percent of total foreign reserves as compared to the Euro. I mean what? How big is this of a deal that the U.S that they're considering a realistic alternative to the US dollar as a reserve currency? Yeah, absolutely.

Look, thank you so much for having me first of all, but we want other countries using the dollar because it makes it easy for us to raise more debt. and that's what we keep doing. We keep raising the debt limit. If we can't do that anymore, we might have to start cutting funding, which maybe Congress ought to do that.

But why is this happening? That's the big key. The big key as to why this is happening is we're losing our standing in the world in the Middle East The Americans have been attacked 78 times since we left. Afghanistan We have responded to just three of those attacks. We are becoming an embarrassment in the Middle East Saudi Arabia doesn't trust us anymore.

So now instead of relying on us, they're actually starting to partner with their former enemy Iran and they're trading the uh, their oil with Iran in other currencies. That's what they're doing with China with natural gas as well. And yes, other countries are talking about other currencies the grand scheme of things. The petrol dollar is about a four trillion dollar market out of 12 compared to the international dollars used so long term.

probably least something that slowly is a slow candle of an issue for right now. Yeah, it's just a sign that we're weakening internationally when we can't stay on this path, right? you know? Seth Donald Trump Yesterday posted on on Uh, Truth Social, he said China's trying to displace the U.S dollar as the number one currency in the world. So here's my question: I mean how realistic is it that people would want to take go out of the U.S and go over to a place like China Which I I mean I Got to be honest with you regardless of of how concerned you might be about the US dollar and our debt. Uh, do you really want to be putting your money in China's currency? No.

and these countries don't necessarily either. The This: These are part of larger trade deals. This is expansion of China's belt and Road initiative where they're going into these specific countries and doing infrastructure build outs. but in turn for doing that and growing their trading partnership, they have to switch to the digital you want or they want and that's what's going on here.

Uh listen. China actually sets their currency rate based on the U.S dollar and our Fed raising interest rates has hurt their Yuan in this past year. so this is a long way to go. I Think Kevin makes a great point.

it's still 60 and you did two. Sean We're still 60 of global reserves. This is a long burn, but we've got to start looking at where we can make investment because China's belt and Road initiative? That's a 100 year plan. We won't be here, but our kids and grandkids might be and we need to think about them all right.

Kevin Real quick. How if for the average investor for the average American is this going to affect their their well-being Eventually the dollar, just like every currency will become worthless. We don't know if that's in 10 years or 100 years. The best thing to do is own assets, stocks, bonds, gold, real estate.

get out of the dollar. You make money invest it. It doesn't matter if your house is sold in crypto in the future. Dollars or Renmin B Chinese currencies.

just get assets and then forget the dollar. Okay, uh, Seth real quick El Salvador Went to Crypto. seemed to be doing well. Is that an option? No Stay away from the Fool's Gold Avoid Crypto.

That's funny. money. don't chase it. Okay, all right Seth Kevin Appreciate the uh, the insight and advice.

Good to hear from you both. Thanks Sean Thank you you met. All right coming up. legal embarrassment, even.