China Just Declared a New World Order - Here's What It Means for Your Money

The president of China just said that the international order is quote crumbling into disarray. Take a listen. He's not talking about China. He's talking about the United States dollar. More and more countries around the world are having to pick a side, China or the United States. And he's saying that more countries are starting to say no to the United States and yes to China. Spain just signed 19 trade deals with China. Canada is now cutting deals with China. and Yahoo Finance also ran this headline. All the biggest trade deals so far in 2026 don't involve the US, but they are starting to involve China. Now, the reason why you want to pay attention is because if the United States dollar loses value, that means that your paycheck can't buy you as much stuff, and you need more dollars to buy your groceries or your house or your car or your vacation. And in this video, I want to break down what's going on. That way you can protect yourself but also understand where the economic opportunity is because yes, this creates opportunities for the financially savvy investor. So, let's break it all down. Believe it or not, the United States was not always the world's economic superpower and the United States dollar wasn't always the world reserve currency. That all changed after World War II in 1944. Because in 1944, 44 countries got together and decided that the United States dollar would be the next world's reserve currency. This means that the entire world, not just the United States, but the entire globe, does business in the United States dollar. Why does that matter? Because that means there's more demand for the United States dollar. Because if you want to buy oil, you need United States dollars. You want to do business and trade internationally, you need United States dollars. More demand for United States dollars mean there's more value for United States dollars. So when you go to work in the United States and you get paid a paycheck, your paycheck has more buying power. When you save United States dollars in the bank, your savings have more buying power. So this reserve currency status gives your money that you're working for in the United States more power, more status, more buying ability. Now, you might hear that and say, "Just breathe, I don't know about that because $1,000 today does not buy me as much as $1,000 10 years ago. " Yes, you're right. And this brings me to point number two. What happened in 1971? Because during this time when the dollar became the world's reserve currency, our dollar was backed by physical gold. Which meant we didn't have the ability to just print money out of thin air. But that changed in 1971 because this is when our United States dollar went from being backed by physical gold to just being a fiat currency. meaning it is no longer backed by physical gold because then President Richard Nixon took the United States dollar off of the gold standard. — I have directed the Secretary of the Treasury to take the action necessary to defend the dollar against the speculators. I have directed Secretary Connley to suspend temporarily the convertability of the dollar into gold or other reserve assets. — Let me show you what that meant and then means and let me show you what's coming. Our entire economic system runs on spending. The more money you spend, the more money somebody else makes. If you walk into Chipotle and you open up your wallet and you buy the bowl, Chipotle is going to make money. If you open up your wallet, you buy the extra meat, guac, Chipotle is going to make more money. They can hire more employees. But if you go into Chipotle and you don't spend any money and you walk out, Chipotle might have to shrink operations because they're not making as much money. Now, the largest spender in our economy is not you or me. It's not Chipotle or Amazon or Nvidia. It is the United States government. Well, where does the government get their money? The United States government has one source of revenue. It's tax dollars from taxpayers. But there's one problem with that. The way that the government works is they generate tax dollars by taxing you when you go to work. They tax your property. They tax capital gains. They tax corporations. They tax a whole bunch of different things. But the government collects these taxes and then they go out and spend money. Now, you might say that the United States government is going to be smart with their money and if they collect $100 in taxes, they're going to spend $100 in taxes. But that's not how it works. The government collects $100 in taxes and then they spend $120 because the government spends more money than what they generate. This is called our national deficit. Every year the government spends more money than what they get. And then every year that deficit rolls over into something called our national debt. And right now at the time of recording this video, we have about $39 trillion of national debt because we keep spending more money than what we generate. And all that extra money gets rolled over into this debt. Well, there's a couple things you got to understand. Where is the United States

government going to borrow that money from? Well, there's three general places where the government can borrow this money. They can borrow this money from people like you and me. foreign countries like Japan, the United Kingdom, China, or they can go to number three, the Federal Reserve Bank. And this is a major lender to the United States government. So, the Federal Reserve Bank lends money to the United States government and the government spends it. Now, this is where things get a little bit interesting because although they're called the Federal Reserve Bank, they're not actually a bank because you and I can't go with it to deposit money. They're not a reserve because they're not sitting on any cash reserves and they're not federal. It says so on their website. They're not a part of the United States government, which might have you scratching your head. Well, if the Federal Reserve Bank is not a bank and they're not sitting on any cash reserves, how do they lend money to the United States government? Well, the Federal Reserve Bank has a special power and that special power is money printing. And so the Federal Reserve Bank when they want to lend money to the United States government is they turn on the money printer. They print this money, they lend it to the United States government, the government then spends that money and everybody feels rich because now the government can give out benefits. They can pay out contractors. They can do business deals. They can send out unemployment checks and stimulus checks and you'll feel rich because you're getting this money from the government. But there's a consequence. Anytime you hear of government spending, I want you to think of one other thing. Because government spending in and of itself is inflation. Because what is inflation? Inflation comes from the word inflate. What are you inflating when you have inflation? You're inflating the monetary supply. You're inflating how much money is out there. So if the government is now spending money they don't have that money has to be printed. And as you create more dollars the value of each individual dollar goes down. Why does that matter? Let's go back to what I'm talking about here. Because prior to 1971 our dollar was backed by gold. When it was backed by gold you can't print money because you need more gold in order to print more money because you can't just print wealth. You can print dollars, but you can't print wealth. So, prior to 1971, if you wanted to print more money, we would need more wealth to justify doing that. After 1971, when President Richard Nixon took the dollar off the gold standard, that was not the case. Now, the dollar became fiat currency. It was money or what we call money backed by a promise by the United States government. That's what fiat currency means. It's not backed by gold. It's just backed by a promise. And now what happened after 1971? That was when the government can now start printing whatever amount of money that they want through the help of the Federal Reserve Bank. Because guess what? To print money, we don't need more gold. It's just pieces of paper. And now when you print this money, it allows the government to spend. But the problem then is inflation. And this is where things get very interesting. And now I want to remind you that we've been covering all this in market briefs. Again, Market Briefs is my free newsletter for investors where every day we're breaking down what's happening in things like the economy, housing market, stock market, the crypto market, and the global market into a fun reading and easy to read newsletter. You can read it less than 5 minutes every morning. We have hundreds of thousands of investors that read Market Briefs every single day. And as an added bonus, when you sign up for Market Briefs, we're also going to give you a brand new free investing master class that I created where I'll walk you through how you can get started as an investor and find hidden investment opportunities before they hit the headlines. I'll show you the exact framework that my firm uses to research investment opportunities and find investment opportunities. So, if you want to get the investing masterass and market briefs all for free, all you have to do is sign up and I have the link for you down in the description below. The reason why this gets very interesting now is because we understand how the government spending is inflationary. And the reason why this is so important for you to understand critical here is because yes, it's inflationary. But remember, the reason why it's not more inflationary is because the United States dollar is the world's reserve currency. Everybody continues to have faith in the dollar. Why? Because the world does trade in the dollar. The world buys oil does business in the United States dollar. So there's still a lot of demand in the dollar. So the dollar relies on demand in order to continue having value. But if the world has less demand of the dollar, well now all of a sudden the dollar doesn't have as much buying power, which means that your paycheck that you're working for can't buy you as much stuff. Your savings And you know that over the last number of years, especially post pandemic, savings have been losing value. Your paycheck might not have been growing fast enough to keep up with inflation. All of that is due to this inflation right here because of the government spending. But

the real inflation has been contained because people continue to have faith in the dollar. Imagine what would happen if people said, "Hm, I don't have so much faith in the United States dollar anymore. I don't want the United States dollar. " Well, now that can create a bigger problem because it costs 12 cents to print a $100 bill. You can start to see that problem there. And this is what the president of China is alluding to. Over the last number of years, we've been slowly starting to see people and countries start to move away from the United States dollar. I'll show you some numbers. Back in the year 2000, 71% of global reserves were saved in the United States dollar. Fast forward 10 years and in 2010 only 62% of global reserves were saved in the United States dollar. Fast forward to 2020 and now only 59% of global reserves are saved in the United States dollar. And then fast forward to halfway through 2025 and about 56% of global reserves are saved in the United States dollar. Now, you can start to see a trend here that over the last number of years, less global reserves are being saved in the United States dollar and they're starting to be saved in other currencies and other forms of money. Why does that matter? Remember what I was talking about before, supply and demand. Less demand for the United States dollar, less value dollar. And this is where China comes into play because China understands that this is happening and they're actively doing things to accelerate people leaving the United States dollar because China wants to strengthen their currency. They want to strengthen their economy. They want to be the next world's economic superpower. And so China has worked to build together their own pact called bricks. Brazil, Russia, India, China and South Africa along with many other countries now have started to create their own alliance where they are working to transact in their own currencies and they are working to try to leave the United States dollar. We saw Indian refiners buying Russian crude oil in the Chinese yuan, not dollars. We're seeing BRICS countries working to build their own payment system outside of what the United States has created. And now we have this conflict in the Middle East and everybody's talking about Iran, but it also impacts China. I'll talk more about that in just a minute. Now, here's the reality. The United States dollar is not going to zero tomorrow. We're not going to lose their reserve status tomorrow. It's a slow and gradual shift. And we've seen this shift happen time and time again across centuries and across empires. We saw it happen from the Great Roman Empire. to the Spanish British Empire. And now the American Empire is entering a point of what's going to happen next. The American Empire is led by the United States dollar. And every great empire before us lost its status because government started to then spend money they didn't have which then led to the devaluation of currency. And the devaluation of currency hurts the economy hurts that currency which eventually creates the opportunity for a new world order a new world superpower a new world currency and that's what China is alluding to that they want to be next. Now when will that happen? Will it happen in our lifetime? I don't know. But that's the thing that you want to pay attention to. And the reason why I was talking about what's happening in the Middle East is let's take a step back and understand how China plays a part with the Middle East because Iran is a big producer of oil and the largest buyer of Iranian oil is not Europe, it's not India, it's China because China is purchasing something like 90% of the oil from Iran. So we talk about this conflict in the Middle East as if it's a war between the United States and the Middle East. But now when you have talks about the United States blockading the straight of Hormuz in the Middle East, well, why would the United States want to blockade oil passage through the Middle East? Because if we are stopping oil from passing, that's hurting the supply of oil. If you don't have supply of oil, the price of oil goes up, the price of gas inflation goes up. Why would the United States do something to make inflation worse? because they know that if they can stop Iran from shipping their oil out, that's less oil going to China. Why did the United States get involved with Venezuela? Well, a big buyer of that Venezuelan oil was also China. Not to mention that not only is Iran selling oil to China, Iran is selling oil to China below market value. Because that means China is able to buy this oil at a discounted price and oil is used to produce plastics. make energy. Oil is used for every part of the economy. And if China is getting this oil for cheap, then they can use this cheap energy to produce more products to compete against the United States. And we also know that the Chinese economy has been growing by around 4% a year, while the United States economy has been growing by only around 2% a year. This is why many economists are saying that over the next decade or so, if the United States and China grow at the same speeds that they're going now, China's economy will surpass the United States economy. So maybe these conflicts geopolitically aren't just what we think it is. Maybe it's a way to try to hurt the Chinese

economy. We can go back to the tariffs that are happening. Well, why do the United States impose such strong tariffs on China? We talk about wanting to bring manufacturing back to the United States, and I'm sure that's part of it. But don't forget, United States companies do a lot of business in China. And if these companies are now tariffed out from doing business in China because it's so expensive to do so due to the tariff taxes, if these companies move their businesses out of China, that's going to hurt the Chinese economy because that means businesses and money is moving out of China. So we can start to see this economic game being played here where the United States was ahead. They are still ahead, but they're concerned that China is going to take the lead. And now we can do two things. We can try to compete and beat China or we can also try to hurt China in their own game. How do we do that? Potentially by tariffs to entice businesses to want to leave China. Potentially through these oil conflicts to make it more difficult and more expensive for China to get energy. And that's why you want to understand some of these things that are going on because not only is it a economic thing, but it's also for the value of the United States dollar. Because if you're working for dollars and you're saving dollars, the last thing you want is to have concerns about the dollar losing value. And anytime the government spends money, the dollar loses value. Now, you might say, well, why can't the government just stop spending money? Because this is a pretty simple solution to the problem, but that spending comes with a pain and consequence as well. Because now we've reached a point where people are addicted to government spending. We saw what happened with Doge in early 2025 when they started cutting government spending. Now, Doge did not do what it was saying it was going to do, but the idea was Doge was going to reduce government spending. Well, anytime you hear of the United States government cutting departments, cutting spending, well, that means somebody's not getting paid. That means somebody's getting laid off. And those things cause pain because remember the United States government is the largest spender in our economy which means a lot of salaries are reliant on the United States government spending. And the government isn't just spending based off of what they generate in taxes. They're relying on this debt. We are spending about $2 trillion a year that we don't have. That money has to be borrowed. Where do they borrow this money from? Well, they can borrow this money from people like you and me. foreign countries. But they can also then borrow this money from the Federal Reserve Bank. and they have to always print that money to lend it to the United States government. And every time the Federal Reserve Bank prints another dollar, more inflation happens, which hurts the value of your savings, paycheck. And that's why the Chinese president is now talking about how there's this crumbling world order because they want to seize this opportunity of this economy relying on government spending to then become the next world order. Now again, we don't know if or when that is going to happen, but let's talk about how this could also create potential investment opportunities because the reality is if you were just a saver, you're going to lose to inflation. Inflation hurts the value of the dollar. Inflation has been happening well before the pandemic started and the people that understand this can become wealthy because of it while everybody else unfortunately slowly falls behind. Because if you're just relying on your paycheck, savings, your paycheck and your savings are losing value to inflation. And this is where your investments become incredibly important. So, let me go over just a few ideas. Again, I cannot tell you what to invest in. I'm not telling Investing has risks. You are never guaranteed to make money when you invest. In fact, you will lose money at some point. So, make sure you always do your own due diligence and never blindly trust a random guy on YouTube. Number one is real estate. And the reason why I like real estate is because number one, it's a hard asset. Something that you can see, feel, and touch. And it's an inflationadjusted asset. When inflation happens, generally real estate prices go up. Now, I'm not saying real estate prices only go up. I understand real estate prices go up and down. But when more money gets printed, people buy real estate, that generally pushes real estate prices up. And in your buying real estate as an investor, as inflation happens, what else happens? Rental values go up. That means your income also goes up. Because when you buy real estate, you're getting cash flow. You own a hard asset, and it also comes with some of the biggest and best tax breaks that a tax code has to offer. As a licensed attorney, who's not your attorney, I can tell you that there are many real estate investors making huge sums of money that are paying little to no money in taxes because that's what the tax code says. Now, if you don't want to actually buy the real estate itself, but you want exposure to real estate, there are funds out there that can give you exposure to real estate. Again, I can't tell you what to invest in, but as an example, VNQ, this is an ETF created by Vanguard that gives the exposure to real estate if you want that without actually buying the physical real estate. Number two is gold. Now, I understand gold prices have boomed post pandemic, but let's really talk about gold here from a historical perspective because gold really is not an investment. That's not the way that I look at it. I look at

gold as a way of saving hard money, money because your gold when you buy it doesn't produce any value. It just sits there and look back at you. Versus when you buy something like the Amazon stock, well, the Amazon company's working to produce value. It's working to do something to actually make the world a better place and produce better profits. Well, gold is just sitting there. It's not doing anything. But gold prices have been booming. Why? Because people buy gold when they're worried about the dollar. concerned about inflation. People buy gold when they're worried about the economy. And the thing about gold is it doesn't also only go up in value. Let's go back in time. Take a look at what happened to gold prices after the 2008 crash. Gold prices bmed in 2008. Why? Because the economy crashed. The Federal Reserve Bank started printing money. The government started doing quantitative easing and gold prices boomed between 2008 and 2012. Well, then what happened in 2012? That was when people realized that the economy was going to be okay. The United States dollar Hyperinflation was not going to happen. And gold prices crashed from 2012 all the way until 2020. In 2020, that was when the money printer was turned back on. The government started stimulating the economy. The Federal Reserve Bank turned on the money printer and then gold prices boomed between 2020 until now because those concerns about inflation have not gone away yet. If the concerns about inflation go away, gold prices will probably fall. But when you look at gold as a way of saving hard money because you understand that inflation is going to keep happening and you're a long-term investor, well then it can create opportunity for you. Again, you can buy the physical gold or if you wanted to buy a paper version of that on the stock market. There are ETFs out there. Again, I'm not telling you what to buy, just an example to help you think like an investor. GLD is an ETF that gives you exposure to gold. Then we have number three, commodities. And the reason why commodities are interesting is because anytime you hear about reserve currencies and global trade, what are they talking about primarily? They're talking about commodities. These are metals. These are things that people need. Wheat, food. These commodities will need in order to produce the economy, in order for people to survive. And so that can be a potential investment opportunity as well for the long term. Now again, there's many ways to play commodities. You can go and actually buy them yourself or you can invest in the stock market into funds that give you exposure to these commodities. Here's a couple examples. Example number one is DBC. This is an ETF that's giving you broad exposure to commodities. So this is things like oil. These are things like agriculture. metals. So if you just want broad exposure to the physical resources that the world is fighting over, this is going to give you exposure to that. If you want to get a little bit more niche, again as an example to help you start thinking like an investor, you have copper. COPX is an ETF that's going to give you exposure to that copper space and copper is the backbone of infrastructure. Every new factory, power grid, EV and data center needs copper. So if you wanted to invest in that space, that is an example over there. Going handinhand with commodities is energy. Because now in order for countries to compete, they're competing in order to produce stuff. In order to produce more stuff, we need more energy. To produce more data centers, to produce more AI, we need more energy. We need more electricity. We need more local energy. And China's competing on energy. The United States is competing on energy and well you can just invest in the energy space if you believe that there's an opportunity there. Let me go over a couple examples. Again, these are just examples to help you start thinking like an investor. Number one, Nukes and UKZ. This is an ETF that's going to give you exposure to nuclear and uranium energy because we know that China and the United States are both heavily investing into nuclear energy. Another one is grid grid. This is an ETF that's giving exposure to the energy infrastructure grid. All new trade needs power and grids are what are helping to support it. And the last but definitely not least is number five, the United States. Investing into the United States economy. Because I know a lot of this sounds like, oh my god, the United States is going to fail. That's not what I'm saying. Look, the British Empire collapsed and that was when the United States dollar became the world's reserve currency. But the British economy is still doing okay relative to where it was 100 years ago. And so I'm not saying that the United States economy is going to be bad or horrible, but understanding how you can invest your money and potentially want to have some diversification maybe in international markets as well because you can invest in the United States and also internationally if you believe that that's an opportunity for you. So if you wanted to invest in the United States markets, there are many ways to do that. You can just invest in something like the SNP500 which is giving exposure to the 500 largest companies in the stock market. That would be something like SPY. If you wanted to get an exposure to the total stock market, well then you can invest in something like VTI, which is going to give you exposure to the 2,000 plus companies that are on the United States stock market. And now you might be saying, "Well, Despite, what if I want to invest in international companies? into the Chinese economy? " Yes, there are funds that give you exposure to that as well. Number one, if you just wanted broad exposure to developed countries around the world, these are more the

larger, more established countries around the world. Funds like VA are going to give you exposure to those developed countries. If you said no, I'm going to go into the smaller countries, the more emerging markets, the one that have more risk for more potential return. Well, then you can invest in something like VWO, which is going to give you exposure into those emerging markets. If you want to get even more niche and you want to invest in specific countries like maybe China. Well, there are ETFs that can give you exposure to China. For example, MCHI is an ETF that can give you exposure to the Chinese economy. Again, these are just a few examples. I'm not telling you what to invest in. There are funds that can give you exposure to many countries out there. But as an investor now, you want to understand where the money is moving. That way, you can park your money there. You don't have to invest all of your money into one place, but it's understanding how you can protect your money and where you believe the money is going. One of the things that I've learned in life is that oftentimes the things you don't pay attention to end up mattering the most. And that's why I want to talk to you about life insurance with our sponsor, Policy Genius. Because if you don't have the assets to live off of yet, something tragically happened to you, the last thing you want is now your spouse and your family trying to struggle to survive financially. And that's where term life insurance can come into play. Now, I'm talking about term life insurance here, not whole life insurance. The whole idea with term life insurance is it's life insurance for a period of time, 10 years, 20 years, 30 years. That way you can work to build your assets. It is a lot cheaper than whole life insurance because the whole idea is you're not here trying to get rich off your life insurance. It's just there as a bridge until you can build your assets. This is one of those things where the earlier you start, the cheaper it is. Because if you're a healthy 30-year-old guy, you could potentially get a half a million dollar term life insurance policy for less than a dollar a day. So, if you have any questions, you want to learn more about term life insurance or you want to see how much a term life insurance policy would actually cost you, I'll put a link to Policy Genius's form down in the description. It only takes a few minutes to complete and it'll give you an actual quote on how much term life insurance will actually cost you. And I have that link for you down in the description. So, what we talked about in this video is how the Chinese president has been talking about a changing or crumbling world order. What is he talking about? the United States dollar specifically because we've been seeing change over the last number of decades and over the last century and this is where the Chinese economy along with other countries in the BRICS nations have been working to strengthen their currencies as a way to compete against the United States and we've been seeing a lot of conflicts geopolitically including what's happening in the Middle East right now as also a potential way to hurt the Chinese economy. Yes, we've been covering all this in market briefs. Again, that's my free financial newsletter. If you haven't signed up for that, I have that link for you down in the description. But then what we talked about is how money flows through economic system because the United States government spends money that they get from taxes, but they spend more than what they generate. So what do they do? They have to go into debt. Well, who is one of the major borrowers? Well, where does the United States government get this money that they're going to be spending? They can borrow from people like you and me. They can borrow it from foreign countries. Or they can borrow from the Federal Reserve Bank. But the Federal Reserve Bank doesn't have any money. They have to print that money. Then they lend it to the government. Then the government spends it which creates an economic boom. But then that causes inflation because anytime you see government spending, it is inflationary. It causes the prices of things to go up, the dollar to go down. And right now we have $39 trillion worth of debt because the government has spent $39 trillion that they didn't have and they had to borrow that money. A big chunk of that had to be printed by the Federal Reserve Bank. Well, now as we're entering this next stage of the economy, we have more and more countries that are trying to compete against the United States economically. And this is where as an investor, if you wanted to see, well, how to invest my money. I went over a handful of different options. What we talked about, again, can't tell you what to invest in. I'm just showing you how you can start thinking like an investor is you can invest in physical real estate because it's a hard asset. It creates cash flow and it has tax breaks. Or if you wanted to invest in real estate on the stock market, something like VNQ can give you exposure to that. Then we talked about gold because gold is generally a hedge against inflation. Now I don't like to think about gold as an investment. I a way to save hard money. But again there are paper ways on the stock market to invest in gold. Then we talked about commodities. If you just wanted to own a piece of the broad commodity market because we know that global economic trade is always fighting over commodities. There are funds that can give you exposure to that. Or if you want to get more niche, you can invest into funds that give you exposure to things like copper. Then we talked about energy because there's a global energy race happening right now to continue powering their economy to power AI to power technology and everything else. Well, you can invest in things like nuclear or the energy infrastructure or if you wanted to invest into the broad American economy because you believe in the future of the American economy. Well, there are funds that can give you exposure to the 500 largest companies in the stock market. Or there are funds that can give you exposure to the total stock market. Or maybe you're saying well dri I want to invest into international companies. as well. You can invest into developed countries. You can invest into emerging markets or you can invest into specific countries like

China depending on what your investment strategy says. Again, this is where your strategy is so important to understand what's happening, not to panic, but to understand how money is moving because it can all create opportunity for you. If you got value out of this video, the best thank you is a referral. So, if you could please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you. On May 15th, 2026, the Federal Reserve Bank is going to reset and most people are not going to hear about it until they feel it in their wallet. What's happening on May 15th? The chairman at the Federal Reserve Bank is going to change and he has a new plan on how to shrink the debt crisis here in the United States. The only problem is you cannot fix the debt problem withouting