00:00I mentioned the BRICS alliance. Do you know what that is?
00:02It's an alliance of countries, which is Brazil, Russia, India, China and South America.
00:07It's been extended now to some other countries, including Ethiopia, Egypt.
00:12Saudi Arabia is on the brink of joining it.
00:17It's an alliance of countries, which is a kind of trading bloc,
00:21which Russia and China are building up to confront America as the dominant nation.
00:26Remember, since the fall of the Soviet Union in 1991,
00:31the Soviet Union broke up into different parts.
00:34Russia became part of it, but the leading part of it.
00:38And Russian power was extremely broken from being the sort of confrontation
00:43between the Soviet Union and communism and the West.
00:46You now have America as the dominant nation, a unipolar nation, as they call it.
00:51And Russia has resented that, and Putin has played on that resentment,
00:56and that's part of his battle over Ukraine.
00:58He wants to keep the Russian empire intact.
01:01He wants to keep Ukraine in the Russian side of things, not in the Western side of things.
01:07Now, they have a policy of confronting American dominance in the financial area.
01:14Now, I'm not an expert on this.
01:16I think that Mark knows more about this than I do,
01:18but I'm just going to tell you what I know.
01:20You have American financial dominance in the world,
01:23which comes through the petrodollar system
01:25and the fact that the U.S. is the world's reserve currency
01:29and the U.S. has control of the SWIFT system for exchange of currencies.
01:34All of those things give America a huge advantage in the economic sphere.
01:37It means that if you want to buy oil, for example,
01:43a country wants to buy oil from Saudi Arabia, they have to buy dollars,
01:48and then with their dollars they buy the oil.
01:51And these are not small sums, these are billions of dollars.
01:55It actually gives America a big advantage.
01:58And one of the reasons why America has had to be able to keep its very high standard of living,
02:01even though it has a debt of 38 trillion dollars and rising,
02:07which is an astronomical figure, is because of this setup.
02:11Now, the BRICS policy and Putin's policy actually is to break this arrangement
02:15so that American dominance will go, American financial dominance will go,
02:20you won't need to change your dollars to buy petrol and gas,
02:23and America will no longer be the world's reserve currency.
02:29If that happens, it's going to have a huge effect on the American economy
02:33and also on ours, because they're all linked.
02:36You could have a complete currency breakdown.
02:38The dollar would lose its value, inflation would spike in America,
02:43and there would be a move towards a new economic order.
02:49One of the things they want to do in this new economic order
02:51is to set up what they call central bank digital currencies
02:53as a means to exchange money and use high-tech means of exchange.
03:00Also using cryptocurrencies and all that kind of stuff
03:03to change the financial order.
03:07This happens then, it's very difficult to predict what the end will be,
03:14but the fact is that America has its 38 trillion dollar debt,
03:18which you will no longer be able to finance.
03:19So we'll have to, it's got to pay back annually at least one trillion
03:24just in paying the interest on it.
03:27If that happens, the American economy is going to be,
03:29I don't use that, that's a nice word.
03:33It's going to be smashed, basically.
03:37And if the dollar collapses, then the global financial system
03:41is going to implode, because 70% of international trade
03:44still runs on dollars.
03:47And money will be shifted to other currencies,
03:49including cryptocurrencies,
03:50which have basically no intrinsic value, as far as I can see.
03:54And you have basically a world system,
03:58which will be almost like a house on the sand
04:01as the currency collapses.
04:02You've also got the issue of what they call derivatives,
04:09which, again, I don't understand totally,
04:11but there are trillions of dollars lined up in derivatives,
04:14which are kind of unsecured loans,
04:16which if the balloon goes up,
04:18then no one will be able to pay them,
04:19and it'll, again, bring it, kind of crash in the financial system.
04:23So these are things which could happen.
04:25How soon they could happen depends on other things,
04:28but it could mean that you see some measure
04:32of financial instability, which could happen at any time.
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