Name: “Most People Have No Idea What’s About To Happen To US DOLLAR”
Uploaded: 2025-08-04T18:28:57.000Z
Duration: 10 min 49 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...

Something strange has happened to the dollar, and it's unlike anything we have ever seen before.

Ever since President Trump took office, the world economy is in chaos.

On 1st of February, he announced a 25 percent tariff on everything that comes from Mexico and Canada.

On 2nd of April, he announced a universal tariff on any goods that enter the United States and reciprocal tariffs that went as high as 245 percent for some countries.

That chaos spilled into the bone market, and that forced investors to sell their investments fast.

And now Moody's, the most respected rating agency in the world has downgraded the United States credit score.

That will cost the United States hundreds of billions of dollars, wiping out any potential profits that the United States would have made out of those tariffs.

It's like when you are running a business and you raise your prices to make more money, and then your landlord triples your rent.

That's just what happened with the US government, and that could have a devastating impact on the United States dollar as the global currency reserve.

Let me ask you, what is the most powerful company in the world?

Blackrock that controls over 10 trillion dollars under management?

Or maybe wall street which is the most respected bank on wall street?

Or how about Apple, a 3 trillion dollar company that shapes the way we live?

What if I told you that there is a company that is more powerful than all of these companies combined, and it's called Moody's.

Most people have no idea how truly powerful this company is.

This company can single-handedly destroy entire banks and companies, and even in some cases, countries.

You see, countries just like people have credit scores.

The higher your credit score, the cheaper for you to borrow money.

But the lower is your credit score, the more you pay to borrow money.

If investors believe that a country is reckless with their finances, then their credit scores go down, which means that their interest payments instantly go higher.

A good score means lower rates, a higher score means you are going to pay much more.

A 400,000 dollar mortgage can cost an extra 100,000 dollars just because you have a lower credit score.

And that's why you should maintain or try your best to maintain a very good credit score if you want to get as rich as possible.

Remember Silicon Valley bank, one of the largest banks in the United States and probably the largest bank for tech startups in Silicon Valley.

It had assets worth over 300 billion dollars.

And most of those assets were invested in some of the safest assets out there, such as the US government bonds.

But with a single move, when the Moody's downgraded SVB's credit score, the bank went into bankruptcy in less than 48 hours.

Investors panicked, they rushed to SVB and pulled out their investments, and that led to the crash of one of the largest banks in the United States.

Mortgage-backed securities and collateralized debt obligations, which were very toxic products that were filled with risky home loans, were given triple A ratings by Moody's.

So pension funds, investors, and banks threw trillions of dollars into these very risky assets.

But at the end of the day, when Moody's pulled the plug and triggered and downgraded those assets, investors panicked and instantly started selling these assets, which led to the catastrophe.

It was the main reason why the Lehman Brothers collapsed and the global economy was on the brink of catastrophe just because Moody's downgraded these assets.

Imagine one company is so powerful that they almost destroyed the entire global financial system just because of a few letters on a rating sheet.

And now they have turned their attention to the United States.

And I am afraid to say 37 trillion dollars because maybe by the end of the video, it might be 38 trillion dollars, 40 trillion dollars, god knows how much it's going to be.

And now since Moody's downgraded the US credit score, that means higher debt payments.

A single percentage increase in payments for the United States means an extra 370 billion dollars in annual payments.

And as the debt keeps growing, that annual payment is going to keep rising. 37 trillion dollar debt is like 37 million credit cards maxed out at 1 million dollars.

Can you even comprehend those kind of numbers?

Most people when they hear these numbers, they do not fully understand what exactly those numbers mean.

Here is how Moody's explained it in their own report.

Success of US administration and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs.

Let's translate that to a human language.

Both Democrats and Republicans have been kicking the can for the last 25 years and they haven't agreed on major policies that could change the trend and start cutting costs.

And there is absolutely nothing that the US government can do right now in the short run to fix the problem.

It puts at risk its status as the superpower.

If it continues borrowing, its debt will keep growing until it buries it.

So what exactly the United States can do right now or supposed to do?

In December 2021, Biden raised the debt ceiling by 2.5 trillion dollars.

In June 2023, they supposed to raise the debt ceiling again by trillions of dollars, but then they decided that they will delay it.

And now Trump has no other option but to increase the debt ceiling again by trillions of dollars.

Republicans are not going to agree on an increase of debt ceiling unless they will approve a 4.5 trillion dollar in tax cuts.

Let's take that and translate it to a human language.

More borrowing, more debt, and more interest payments.

By the time Trump is going to leave office, the total debt of the United States will be around 48 trillion dollars.

And if we assume that the GDP of the United States will increase to 33 trillion dollars, then the US debt to GDP ratio is going to be around 145 percent.

And now since Moody's have downgraded the United States credit score, it means it probably gonna grow to 50 trillion dollars and a debt to GDP ratio of around 150 percent.

That's like making 100 thousand dollars but having credit card debts at 150 thousand dollars.

And that does includes your mortgage and your car payments.

And that is the biggest threat that the US dollar is facing as the global currency reserve.

Despite all the attempts to cut spending, 2025 is going to be a financial disaster for the United States.

Now, the budget for the United States is 7.3 trillion dollars for this year.

And the United States will make 5.2 trillion dollars, which creates a shortfall of over 2 trillion dollars.

Can you imagine for a moment that this year alone, the United States will borrow an extra 2.1 trillion dollars just to fill the budget.

If this trend continues for the entire presidency of Trump just like it did during Biden, then the United States is on a crash course.

Ever since 1945, whenever there has been any kind of crisis, investors would rush to the United States and they would invest their money in the US government bonds since they were considered as safe as gold if not safer than gold.

And that's why during any crisis, gold prices rise.

That's exactly what's happening right now.

If you check gold prices for the past couple of years, they have been rising since there have been so much chaos in the world.

And secondly, bond yields on the US government bonds start to fall down.

But that did not happen during the last crisis on April 2 when the United States announced universal tariffs on all the world.

In fact, investors started massively selling US government bonds.

Yields represent the interest rate that the United States has to offer to borrow money.

So when the demand rises, yields naturally drop.

The government has to offer very little when everybody wants to lend money.

If everyone wants to lend you money, then you have to offer very little in exchange.

But if nobody wants to lend you money, then you have to offer a much higher reward for anyone to loan you even a small loan.

So on April 2 when the United States announced universal tariffs on everybody, the absolute opposite has happened.

Yields rates started to rise instead of going down.

It's as if your house was the safest place during any crisis.

But during the last tornado, instead of people running to your house, they started running away.

And that's a huge danger for the US dollar.

Because the United States does not borrow millions of dollars, it borrows trillions of dollars.

And a downgrade by Moody's means that the cost of borrowing from now onwards is going to exponentially rise.

And that could also mean that the era of cheap money is over forever for the United States.

No longer low interest rates for the United States.

And that means that everything will become more expensive.

Groceries, mortgages, cars, whatever you buy is simply going to become much more expensive, which means that you either can simply sit down and watch how inflation is going to eat away your money or you can do what rich people do during these times, invest.

The greatest wealth transformation never happened during the good times, they always happened during crises.

In 2008, when everything started to crash, smart investors jumped in and bought some really great assets at a fraction of the price.

In 2020, when everything started to crash, really smart investors were patient and they made a lot of money during their recovery.

But people have all of these questions in their mind because they are confused about investing.