Name: US Dollar Is Collapsing, And Its Far Worse Than You Expect
Uploaded: 2025-06-18T11:11:01.000Z
Duration: 14 min 16 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Past simple

This is what Jamie Dimon said about the bond market.

To-infinitive

And that means that the US dollar is about to lose its position as the global currency reserve because it stands on the shoulders of the bond market.

And if anything negative happens to that bond market, then you can forget the dollar to be the global currency reserve.

And if that happens, it will create hyperinflation in the US, the likes we have never seen.

So the global financial crisis of 2008 that shook down the entire US economy will seem absolutely nothing.

This will be by far the greatest crisis in the entire history of the US.

So here in this video, let's try to answer a couple of questions. 1.

Why exactly Jamie Dimon, who is the most powerful banker in the world with more data than anyone else besides the Fed, is so worried about the bond market?

Why does he believe that in 40 years from now, the US dollar will no longer be the global currency reserve?

That's exactly what he said, that if the trend is going to continue the way it is, and according to his math, then forget the dollar. 2.

And thirdly, he said that he is going to make so much money out of it that people will look at JP Morgan and will think that they have created this crisis in order to profit out of it.

So he is telling everybody that I am warning you, so you prepare yourself and get ready and take advantage out of it just like JP Morgan is trying to do.

So if you are ready, give this video a thumbs up and let's get right into it.

If the current trend continues, in 40 years from now, we will find ourselves that the total debt will grow to 230 trillion dollars.

I honestly cannot even comprehend what 230 trillion dollars is.

We are not talking about billions of dollars, we are already talking about hundreds of trillions of dollars.

And that kind of debt is unmanageable for most people.

Which means that the interest payments alone on that debt annually will be 10 trillion dollars.

And that means that 38% of the entire government's revenue will be spent on servicing that debt.

In 40 years from now, given the fact that the trend continues the way it is, almost half of the taxes that will be collected from people who are paying so much taxes is going to go towards paying off just the interest on the debt that the government has borrowed.

How do you think the government will be able to pay for social security, medicare, defense and other expenses?

So I guess they will simply abolish the social security, even though that you spend your entire life paying payroll tax.

This is why Jamie Dimon said, the greatest crisis is not China, is not an enemy from outside.

The greatest enemy that the United States is facing is an enemy from within.

That the country cannot come together and start fixing these problems instead of blaming everybody else.

And this scenario considering the fact that the current spending continues the way it is.

However, if you look at the history of the United States, time to time it goes through crises and it has to boost spending in order to get out of that crisis.

The last one was in 2020, prior to that we had a crisis in 2008, then back in 2001 when the dot com bubble burst.

So the nature of the crises within the entire spectrum of the US economy are something normal.

What are the chances that the United States will not face a single recession in the next 40 years?

Nobody believes that, because we have recessions literally every 5, 7 or 10 years.

Which means that this number can easily be divided by 2.

According to Jamie Dimon, since 2020, in the last 5 years, the government of the United States already borrowed over 10 trillion dollars.

The bond market determines how much interest the United States is going to pay on its debt.

And given the size of the debt of the United States, you can say that it's important, because a single percentage is going to cost the United States at the current debt level 400 billion dollars.

And if it's going to be 230 trillion dollars, imagine a single percentage is going to cost the government 2.3 trillion dollars.

And that's why it's important to have the faith of investors in the bond market.

Because based on that, it is going to be determined how much interest you are going to pay.

And you can't suddenly just make more money.

You can't just force people to pay more in taxes.

But if you raise them more than 50%, then there is no incentive for people to work harder, make more money, because they know that they will have to pay the vast majority of that money back to the government.

It makes sense when the country is going through a real crisis, such as World War II, where taxes were increased up to 95%.

But during peace periods, do you think people are going to buy that?

They will literally just leave the United States and just live elsewhere, where they don't have to pay that much taxes.

And that's why making sure that the trust of investors are there for the United States is so important.

If the trust is going to be cracked down, if the trust is going to be lost by investors, it's going to shake the bond market, then the United States dollar suddenly is going to be removed as the global currency reserve.

So the more trust there is, the lower interest rates the government is going to pay.

The higher the trust is, the less interest the government is going to pay.

So the entire budget of the United States depends on the bond market.

That's why he's so worried about that there will be a crack in the bond market, and it's going to cause a serious crisis.

He literally said that, I don't know whether it's going to happen in six months from now or in six years from now.

But if it happens, then we're in a catastrophe.

So the only way to fix this problem is to simply restore the face in the US economy, so that investors understand that it's much safer to lend money to the US government.

But when they see this relentless, or I would say reckless spending by the government, that they have no incentive to lend money to the US government at such a low interest rate.

They will keep demanding higher interest rates because they can literally do the math.

They understand that, well, if this is the trend, then I'm not going to make my money back anytime soon, which is why I would rather simply just sell my government bonds.

Even if you go back to the period of Reagan, who was literally the guy who incentivized the United States to cut as much taxes as possible.

One of the biggest tax cuts in the entire history of the United States was literally done by Ronald Reagan.

But during his time, the debt to GDP ratio was 35%.

And it's not about Republicans or Democrats, it's literally what both parties have been doing the last 35 years.

Secondly, the deficit during the Reagan, despite his cut taxes, was 3.5%.

And if this continues, let's say we have a recession, it can easily go to 10% because we know that during any kind of financial crisis, as the government just uses that printing press in order to boost the economy and give an incentive for people to work harder, which again creates massive inflation, just like in 2020 that we have seen.

Even Reagan wasn't in such a big trouble like we are right now with the current deficit and the current debt to GDP ratio that we have.

And that leaves us with a couple of options.

Now according to Jamie Dimon, we cannot cut the military.

The moment that the United States will no longer have the most powerful military in the world, the United States dollar can forget its position as the global currency reserve.

Because the United States military is everywhere.

It's literally controlling the entire world.

There are like over a thousand military bases in every single part of the world.

And if somebody speaks against the United States, then you're going to mess with the most powerful military that has ever existed in the entire history of humankind.

That's what stands out behind the United States dollar.

And if you get rid of that, if you stop spending so much money on the military, you will lose it.

You can't do that because you have so much money, you are so rich, you are maintaining those military bases, you are producing the most powerful weapons in the world.

So we cannot cut spending on the military.

In fact, according to Jamie Dimon, we have to increase spending on the military.

Well, currently we talk about the fact that, oh, we cannot do that because people have paid payroll taxes, they have the right to receive their social security payments.

But if we don't do anything, if we don't cut some spending, we have no other option.

So the only two places we can cut spending is Medicare and social security.

Because the fourth major spending is, of course, the interest that we have to pay on the debt.

Do you have a politician who can literally just come out and say that, when I become the president, I will raise taxes?

What do you think is going to happen to that president?