Name: Trump Didn’t See This Coming: America will never recover from this
Uploaded: 2025-07-20T19:24:31.000Z
Duration: 13 min 59 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...

The superlative

This is one of the craziest things I have ever seen in my entire life.

Past simple

This has the potential to destroy the financial system that the United States helped to build over the last 70 to 80 years.

Sentences with adverbs of degree

The consequences of these actions are so severe that it puts at risk the United States dollar as the global reserve currency.

This is the letter that Donald Trump has sent to the president of Brazil, that starting on August the 1st, Brazil will be faced with a 50% tariff on all the exports that will be exported to the United States.

And these kind of letters have been sent to every single country.

The problem is that the United States over the last 80 years have been trying to actively sign free trade agreements with every single country possible.

Because these trade agreements made the United States dollar the global reserve currency.

To understand how important these trade agreements are, we first have to understand what is a free trade agreement or what is a trade agreement at all.

Let's say we have two countries, the United States on one side and Brazil on the other side.

United States is the wealthiest country in the world with a GDP per capita of 90 thousand dollars and a total GDP of 30 trillion dollars.

On the other side, Brazil is a middle-income country with a 10 thousand dollar GDP.

So these two countries are at two different economic stages and they have completely two different interests.

United States wants to expand its influence and wants to make Brazil dependent on the US dollar.

Because the primary goal of the United States to trade with the rest of the world is to make sure that the dollar keeps paying the global reserve currency.

The United States also wants the US tech companies to dominate the world.

You want Apple, Nvidia, Netflix, Google, Amazon to be the global leaders in innovation and any piece of technology that comes up.

If they will dominate the world, they will be using the dollars because they are US companies and the United States will be at the top.

However, these are not the goals that Brazil wants to achieve.

Brazil is interested in modernizing its economy and at least living or achieving half of what the United States has achieved.

Brazil also wants to sell its natural resources and manufacture goods if they can and send them to the United States.

Because Brazil does not manufacture advanced GPUs from Nvidia.

Brazil does not have an Apple that produces world's best smartphones.

If you look at the average Brazilian, you will find out that they use Google, they use Netflix, they use Apple and they pretty much use everything that the United States produces.

In fact, if you go to Brazil, undoubtedly you will find US banks that control a big chunk of the Brazilian financial sector.

How many Brazilian banks have you seen in the United States?

How many Brazilian tech companies have you seen in the United States?

Do you use a Brazilian bank to manage your money or invest in the Brazilian stock market?

And that's why Brazil is also interested to buy US technology since the United States produces some of the best technologies.

And these two countries have two entirely different goals.

They have to sign a trade agreement that will align with their own interests.

And that's why it often takes years to sign a trade agreement, anything between a year up to 5 years, since you have to come up with rules that will satisfy both parties.

The United States has completely different interests.

Brazil has completely different interests.

Brazilians want to sell their manufactured and agricultural products.

United States wants to keep the dollar as the global reserve currency.

But to sign, for example, a free trade agreement, it will take you years since you have to negotiate every single industry, every single sector.

The financial sector, the technology sector, agricultural sector, fashion sector.

And that's why if you look at any trade agreement that the United States has ever signed, you will find out that they are part of the deal that is back for the United States.

On the other side, they are part of the deal that is bad for Brazil, that is bad for Japan, that is bad for South Korea.

And that's why you don't find Japanese technology sectors dominating the technology sector in the United States.

However, if you look at the cost, for example, you will find out that Japanese cars are flooding the US market.

So on one side, somebody is winning, on the other side, somebody is losing.

But at the end of the day, if you sign a free trade agreement, the final consumer is going to win because prices will come down for the final consumer.

But because the United States is far more advanced than any other economy, and it's far bigger than any other country or most of the countries, it tried to sign all of these free trade agreements with everybody to ensure that the dollar is being used absolutely in every single corner of the world.

The more a country trades with you, the more dollars they will use.

The less they will trade with you, the less dollars they will use.

So if you have two countries that are not in any way related to the United States, or are not interested in trading with the United States, for example, take China and Russia.

They're not using the dollars because the United States kicked one of them out of the US financial system and has started a major trade war against the second country, which forced them to trade between one another in their own local currencies instead of the dollar.

Which is why, when the United States realized that we have the global reserve currency, let's sign free trade agreements with everybody, or at least partially trade agreements with every country possible to ensure that the dollar is being used in every single corner of the world.

So the US signs USMCA trade agreement, United States, Canada, and Mexico free trade agreement.

But when Trump became the president the first time, he did not like it, he slightly changed it and renamed it to this new name.

The United States has also signed a free trade agreement with Central American countries.

It also has signed free trade agreements with over 20 countries, and also partial free trade agreements with multiple countries.

You see, at the end of the day, not every single country is interested in a free trade agreement, because they have to get something out of this deal in order to make it attractive for them.

But these are the three main objectives that the United States wants to achieve.

First of all, you want countries to use the dollar.

So if you sign a free trade agreement, there is more trade with the United States, the more dollar is being used.

If you use the dollar much more often, then you're more likely to invest in the United States bond market, in the United States stock market, in the housing market.

More money will be invested in the United States, and the faster and bigger the US economy is going to grow, which will keep the United States, the largest economy in the world, and the dollar, the global reserve currency.

The second objective is to ensure that the US tech sector dominates the world.

Over the last 70 to 80 years, the United States tech sector have been at the top of the game.

The more markets they will explore, the more money they will make, and the more money they will have to reinvest back into themselves.

Currently, the largest tech companies are NVIDIA, Apple, Amazon, Google.

It doesn't matter which country you look at.

You will find out that besides China, most of the tech companies in the United States have dominated their markets.

Which allows them to make much more money in those markets, bring them back to the United States, reinvest in newer technology, and stay at the top of the game.

And that is the strategy that the US have been pursuing.

And that's one of the reasons it's important for the United States to sign these free trade agreements with every country possible.

The third most important objective is the military dominance.

You see, I'm not an expert in military, and you should not take even my opinion when it comes to military, but let's look at the military from the financial perspective.

If you build one single F-16, you will spend a lot of money on research and development and building the factory, so it will be extremely expensive to build it.

However, if you build a thousand F-16s, then the cost per unit goes down dramatically.

Which is why if you want a military dominance, you want more countries to buy your own military.

Which is why part of the trade agreements is that those countries buy American weapons, so companies such as Boeing, Lockheed Martin, start making much more profits, which allow them to reinvest back in better technologies, which keeps the American military the most powerful military in the world.

These three objectives force the United States to sign as many free trade agreements as possible with as many countries as possible.

And cancelling these free trade agreements, or simply starting changing them by imposing a 50% tariff on Brazil, a 40% tariff on Canada, and a 100% tariff on some other country, is literally just cancelling everything the United States have done over the last 70 to 80 years, which diminishes the objectives or the national objectives of the country.

Secondly, you cannot expect to renegotiate a trade agreement within a span of a few months.

These agreements have taken the United States decades to negotiate with other countries.

And now you come in and you expect to do it in a couple of months, that is impossible because those countries have their national interests as well.

And compared to 20 years ago where you could actually sign with them a really great free trade agreement, today it's much more difficult because there are other countries that are proposing to be the global reserve currency.

They might say, you know what, we no longer want American banks in our country, maybe we'll start using Chinese banks.

We no longer want your cars or your smartphones, we'll buy these smartphones and computers from China.

If you want to renegotiate these deals, they might not be as great as they have been over the last 50 to 80 years.

The system hasn't been perfect and there have been a lot of real losers, such as farmers and manufacturing jobs.

There are other countries who farm the exact same thing outside the United States at a fraction of the price because the cost of labor in those countries is cheaper.

Manufacturing jobs have left the United States because manufacturing jobs require a lot of labor and for example, building furniture in the United States is not as profitable as doing it in China and that's why those kind of jobs have been disappearing in the United States.

On the other side, the tech sector has been flourishing since the tech sector in the US hasn't just conquered the market in the United States but the market in the European Union, the market in the entire Asia and the rest of the world.

The financial markets have been flourishing as well.

The US banks today exist literally in every corner of the world because the US dollar is the global reserve currency.

And because of these two systems, the stock market in the United States have been going tremendously higher and higher.

Literally, investing in the stock market in the United States have been the best investment somebody could possibly make.

And other stock markets across the globe haven't been growing this much.

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