Name: “Something Big Is Coming… And No One Is Ready”
Uploaded: 2025-10-22T17:56:16.000Z
Duration: 14 min 22 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...

Adverbs of manner

Tensions between the United States and China are growing, especially over rare earth minerals.

After China imposed some restrictions on the rare earth minerals, Donald Trump has renewed his tariffs on China.

Adverbs of degree

As if we are back to day one, as if trade war is just starting.

Just when we thought that the two largest economies are about to find a common language.

It seems like that is not going to happen.

rare earths are just the beginning because the world is entering into a completely new phase, a phase that you and I haven't seen because this is going to be an ultra competitive world.

Since 1991, when the Soviet Union collapsed, the world moved into a peaceful period where most countries traded with each other.

And everybody accepted that the United States is the global superpower and the US Dollar is the global reserve currency.

Everybody simply accepted US companies as the largest and the most powerful corporations in the world.

So investors all across the globe invested in the United States.

So if you want to make money, you invest in the United States.

And it doesn't matter where you are, whether you are in the European Union, in Japan, China or anywhere else.

If you want to maximize your profits and be confident that your investments are safe, then you simply buy either U.

S. Treasury bills or you invest in the U.

And that's why the US GDP grew exponentially fast compared to many other economies.

Even the European Union has far more people than the United States.

And yet the entire European Union cannot catch up with the United States.

And if you compare it to other nations such as Japan, that almost overtook the United states back in 1980s and 90s, collapsed since then, and

has no chance to compete with the United States.

When you look at the US debt, when you look at that $38 trillion, it seems like the United States is in crisis.

But on the other side, it signals to the world that look how many investors of how much wealth is spent or loaned to the United States.

Investors across the globe are so confident in the United States that they're willing to loan the United States $38 trillion.

And that debt is projected to grow to $50 trillion over the next 10 years.

You have so much wealth, that wealth is called capital.

This capital is being held by foreign banks, foreign investors, by people all across the globe.

And when you're sitting on so much wealth, your main goal is to invest it and maximize your returns.

And if you're sitting on just currency, then there is something called inflation.

So your wealth is getting smaller and smaller.

You're literally losing money by sitting on so much cath.

So these smart rich people, they know that they have to allocate that capital smartly.

And the United States, because it's the most powerful economy and it's the best place where you can maximize the returns, that capital was flowing into the United States.

Either it was invested in the U.S. bond market or in the U.S. stock market.

And that's why the United States created the world's most powerful corporations, from Apple to Microsoft.

It's not a coincidence that even the AI revolution is primarily being taken or held in the United States.

And that's why we have companies such as OpenAI or Nvidia that are in the United States.

So these companies are paying taxes in the United States.

These people are also paying income tax and payroll tax to the United States.

And the investors who deployed their capital into the United States will make their share of the profits.

Essentially, it has turned into a never ending machine that keeps cycling, that keeps turning around and making the United States wealthier and wealthier and wealthier.

And because these corporations are obligated by law to use the dollars because there are US and they're operating on the US soil, everybody else who is investing in these corporations will find it much more convenient and much more profitable to invest in US Dollars because you can't be investing in Apple or Microsoft or OpenAI or any of those corporations with any other currency.

So if all investors, if all rich people across the globe are forced to use the dollars because they want to maximize their returns by investing in the US companies, suddenly using the US dollar becomes more convenient.

And that's what keeps the United States dollar as the global reserve currency.

It's not because they are forced to do that, but

rather because it's much more profitable and much more convenient to use the dollar where you can maximize your returns.

But that also creates a dynamic where the cost of borrowing money becomes cheaper.

Both for the government, for the companies, for people.

United States has some of the lowest interest rates in the world in relation to its inflation.

That's what allows the US Government to borrow so much money.

Like no other government in the world has the ability to borrow $38 trillion, it's going to collapse.

The only country that can afford something like that is the United States.

U.S. companies can actually borrow money much cheaply compared to the rest of the world.

So if you are a company, you would move to the United States because that will give you an edge over everyone else and that will help you to dominate your industry.

If you are in the US getting a mortgage or getting an auto loan or getting different kind of loans, it's much cheaper compared to the rest of the world, again compared to the inflation, because there are countries where you have a lower interest rate, but

these countries have much smaller inflation.

So you always have to take that into account.

So when the country and the companies and people can borrow money at a cheaper interest rate, they will borrow more money.

So more money will be invested in the country that will reinforce the growth and the economy will grow even faster than the rest of the world.

Inflation in the US is about 3% right now.

The US government right now is borrowing money at 3.9%.

So essentially it's almost 1% higher than than the inflation rate.

So even at that rate, where the US government has $38 trillion in debt, it is simply borrowing money at 1% interest rates.

Because if inflation is 3% and you're borrowing money at 4%, the real cost of borrowing money is simply 1%.

And the 3% inflation rate is not even the real inflation rate.

This is the CPI data that has been based on selected data by the government.

If you take the real inflation the way we had, we used to calculate inflation back in 1970s and 80s, the real inflation is about 7 to 10%.

So essentially the US government is borrowing money at 4% interest rate, while the real inflation is 7%.

So investors are literally giving money to the US government even when they know that they're losing money.

Do you see how powerful it makes the United States?

And the only reason they would do something like that is because the United States is considered a safe haven.

The only asset today in the world, besides gold, that you would trust completely with your heart are the U.S.

Yes, the dynamic of that is slightly shifting because the world is moving into a completely new world.

But nonetheless, that has been the case at least since 1945.

And that's what made the United States such a powerful economy.

And now we are entering into a new competitive world, at least since 1991.

I mean, it's very difficult to compare the United States with the Soviet Union because the US Is a capitalistic country.

And Soviet Union back in the days was a communism.

There was no, there was no capitalism over there, so businesses wouldn't thrive there, so money wouldn't flow into the Soviet Union.

But still, nonetheless, there was some kind of attention.

Now the United States is facing a real challenge.

A country that has capitalism, that is thriving in business, that is creating a business environment, and

So the United States, for the first time ever, is facing a real competition.

An economy that can literally overtake the United States.

The US GDP is about $30 trillion, but that $30 trillion is a nominal GDP.

If you adjust it to inflation, then the real GDP is about $23.7 trillion.

So the Chinese GDP or the real GDP in China is about $19.4 trillion.

So the real difference between the two nations is about $4 trillion.