Name: The Secret Plan To Reset the Dollar in 2026 - What You Must Know
Uploaded: 2025-11-27T17:58:11.000Z
Duration: 12 min 51 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...

Sentences with advanced comparative

The US Government is planning to reset the dollar as soon as 2026.

Last year, the total interest payments on the debt has exceeded the spending on the military.

Adverbs of degree

And that was a major warning sign for the US Government because if this trend is going to continue in 10 years from now, the government will be forced to reduce the size of the military just to avoid a financial default.

And we all know how much the government just loves the military.

In 2020, the total interest payments were about $500 billion.

While that seems like a lot of money, it was sustainable.

The government can afford a few hundred billion dollars in interest payments.

In just three years, the total interest payments have climbed to over $1.2 trillion.

That is more than the total military spending by $350 billion.

That money is not spent on making the country better.

That money is not spent on building schools, infrastructure, hospitals or anything.

That money is simply spent just to ensure that the dollars that you have in your bank account do not become worthless overnight.

So that puts a lot of pressure on the shoulder of the government.

Which is why the government was actually trying to find a solution.

And it seems like they have found a solution.

A solution that you are not going to like.

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The average interest rate on the $38 trillion debt is about 3.3%.

And that's why the government is paying $1.2 trillion in interest payments.

the vast majority of it are the interest payments that the government is making.

If we suddenly get rid of these interest payments, then the real deficit is literally about $580 billion or so.

So the real question is, how did the government sud so much interest payments back in 2020 and 2021?

The government has borrowed a lot of short term debt in order to distribute stimulus checks to the average American.

Finally, people were happy that the government is directly paying them money.

But remember, there is no such thing as free lunch.

But in 2020, investors didn't actually buy it.

Why suddenly the government wants to borrow money to literally distribute it to the average people, which is why they did not suddenly begin to buy all of these government bonds.

That the government has issue a problem for the government because the cost of borrowing money literally depends on demand and supply.

If there is a lot of people and investors want to buy the U.S.

treasuries and there is very limited demand for them, then the cost of borrowing goes down and vice versa.

If there is very limited demand for these Treasuries and the government wants to borrow a lot of money and issues a lot of these Treasuries, suddenly the cost of borrowing goes to the moon.

Which means that the government will have to pay trillions of dollars in interest payments.

And that's something the government couldn't possibly afford, which is why the Federal Reserve steps in and starts buying all of these Treasuries from the US government.

That huge demand for the Treasuries by the Fed has decreased the average cost of borrowing to about 1.8%.

So even though that the total deficit in 2020 was about $3.1 trillion, the cost of borrowing that money was $500 billion.

So the government borrowed way more money in 2020 and yet paid very little interest on it compared to today.

Today the total deficit is much smaller than 2020 and yet the government is paying far more in interest payments.

Why can't the Fed simply continue buying those Treasuries to make it more affordable for the government to keep borrowing money.

And that's because there is a huge difference between the Fed and the average investors.

The normal investors, when they buy Treasuries, they do that with their hard earned money.

They're investors, they want to profit out of it.

So if they can actually lend their money to the US Government and generate interest, that is fantastic.

But where the Fed gets the money to buy the Treasuries from the US Government, it prints it out of thin air, which is going to increase the supply of money, which is going to increase inflation.

And that's why by 2022, when the Fed realized that it is massive buying of US Treasuries and increasing its balance sheet has caused almost double GD infl, it stopped doing that and stopped buying the US Treasuries.

What do you think that does to the market?

Suddenly those Treasuries are expiring because every treasury has a maturity date, which means that the government pays you interest throughout that you're holding that debt.

And then when it reaches the maturity, the government has to pay you back the principal.

But because the US Government does not plans to pay you back the money, the principal, that means that the US Government has to refinance that debt.

And so it issues a new treasury, sells it to a new investor, takes that money and pays the previous debt.

And since the Fed is no longer actually buying those Treasuries, now the Fed has to find real investors.

That increases the supply of Treasuries in the market.

And assuming that demand remains the same, suddenly the government has to offer a much higher interest rate to attract these investors.

That increased the average interest rate on that debt, which increased the total interest payments to about $1.2 trillion by 20.

But this is unsustainable because most of that debt is short term debt and that debt consistently expires and the government has to consistently refinance the debt.

The Fed will stop quantitative tightening as soon as December.

Whenever the Treasuries that the Fed is holding are going to expire.

The Federal Reserve is going to buy the exact same Treasuries to help the government refinance the debt.

Suddenly, all those Treasuries that would have hit the market anyways are not going to hit the market.

We're just going to limit the supply of Treasuries.

And if we assume that demand for these Treasuries remain the same, the average interest rate on these Treasuries should theoretically fall down.

The second thing that they would do is that there are rumors that the Fed will start quantitative easing as early as 2026.

It might not happen until Jay Paul, because he doesn't want more inflation.

But Jay Paul is leaving office the first half of 2026, and

he will be replaced by somebody who is much more loyal to Donald Trump.

And he will certainly start quantitative easing as soon as 2026.

Quantitative easing means that the Federal Reserve will start actively buying Treasuries from the market.

So if there is huge demand for these Treasuries by the Fed, and

assuming that the supply remains the same, suddenly the average interest rate on these Treasuries are going to fall.

And if they successfully bring the average interest rate from about 3.3% to as low as 2.5%, the total interest payments would fall to $950 billion, saving the government about $300 billion in interest payments.

But if those treasury purchases will be much more aggressive and the rate will go to about 2%, the total interest payments would go to $760 billion.

And at 1.5%, total interest payments would go to as low as $550 billion.

And that will help the government enormously to reduce this deficit.

The real question is, can the Fed afford that?

Currently, the fed holds about 13% of all the Treasuries in the market.

Well, that seems like a lot by global standards.

There are central banks that hold the Treasuries of their countries or the governments at about 20%.

Of course, the US won't go to as high as 50%, because at that point, you're going to lose your status as the global reserve currency.