Ep: 183: The US Dollar and International Market - More Knowledge, More Wealth

  📍 Good day. This is Gabriel Shane, certified financial planner and your host, more Knowledge, more Wealth here on every weekend, talking about all important topics of personal finance. our goal is to give you the knowledge you need. To increase your wealth now to the listener, you can always reach out to myself or any one of our colleagues here at Falcon Wealth Planning.

Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the Bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for sure, and feel free to if you have any questions that you want me to answer here on air to go ahead and send an email just through your mobile. At Radio falcon wp.com.

Now I'm a principal here at Falcon Wealth Planning. We are a fee only non-commissioned true fiduciary. Firm folks. We're an ria, registered investment advisory firm, independent ria. We handle all important topics of personal finance. Goes over anything that involves a dollar sign. Folks goes over where you are today, how retirement looks like, talks about taxes, investments, estate planning, insurance, folks, you name it, anything that involves a dollar sign and we are giving a free financial assessment.

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We service multiple states. Uh, and quite frankly, most of the meetings these days tend to be on Zoom, even for people that are one city away from us. So, uh, but either way, we obviously like in person, but either way, we're able to accommodate folks. Give us a call. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the Bird.

We can help relate this show to your specific situation. Now, we are gonna talk about a lot today. There is a lot of interesting things going on in the world right now, which quite frankly why it was, uh, took some time for us to send out this episode. I wanted to make sure it was as fresh as possible so, I want to talk about the alliances of what's going on internationally.

This is new news. This is started with China and Russia and India and South Africa, and Turkey and uae, and Saudi Arabia and Brazil, and a few others as well. And so what happens right now when. Governments and countries are trading amongst themselves. They use the United States dollar as a reserve currency.

This is the currency that they use. The dollar is universally known and respected. Essentially, we're acting as an escrow company, as a broker between these two countries, all multiple countries across the world. So what's happened now is China taking the lead on this is to now start using their currencies to do.

Now you're hearing a lot of crazy news out there, so beware of the news that is coming out, that's talking about the end of the dollar, petro dollar, talking about the, uh, the collapse of America. Like, just calm down for heaven's sakes. I mean, there's still at the end of the what day? We are still almost two times the GDP of China.

Okay. Like just chill. But I do want to talk about what that means and what it could potentially lead to. Now it's nothing negative, even though it. Could be negative, but folks, everything is cyclical. Everything goes up and comes down, and you have to understand, as long as we are continuing to turn on our TV and watch something, or our Netflix or using internet or eating food and pumping gas or using electricity, as long as we're still using that, We are fine.

And at the end of the day, people still want to buy American goods. Doesn't matter where you go in the world. Even the places that knock off American goods, they're American goods, they're knocking off. And people that come from China, people come from other countries. What do they do? They like buying those Samsung buy, uh, luggage, uh, Samsonite and they like buying Levi's pants and ray bands and all these other things, right?

So I mean, my point. It's, I don't want anybody to overreact over this, but it is news to be discussed and because us their gdp, uh, US GDP is still roughly, uh, based on World O meter.info is still about. 20 trillion. Okay. And so China is roughly 12 and a half trillion. So we are still well ahead of the, the curve here.

Uh, Japan's 5 trillion. Germany is three and a half. India is two and a half, uk, two and a half, you know what I'm saying? So it is vital to understand. That this does have an impact. It does matter. But US is still by far the largest. And so when you put this into perspective of what this means, when governments stop using US dollars for exchanges, this matters from an IMF point of view.

Because historically speaking, um, America. When China entered the IMF a few years back, I think it was 2018 or 19, well, America went from 56 to 58% down to like 52 or 54%. So why is this IMP and this is of World Money? Well now that could drop a little bit more. So China America does lose a little bit of power.

In addition to that, when everything's in US dollars, it's easy for them to implement tariffs. It's easier to have global. Uh, enforcement of any violations. So everything sounds great to China, Brazil, India, Russia, and all these other countries. Everything sounds fantastic until it's not fantastic. Let me give you another example.

You don't need an escrow company to broker your real estate. Transaction. Oh, by the way, unless something goes wrong, you wish you had that escrow company. So right now, they could talk and argue all they want, whether it's China and Russia wanna do deals together. China and India wanna do deals together.

China and Brazil, uh, or whoever, or uh, or Brazil on the uae, United Arab Emirates, it doesn't matter. Everything is great until it's not. And this is why everybody just needs to calm down now. Nobody's freaking out, but there is extreme awareness going into this. I had a few emails over this past weekend discussing this, which is why I'm bringing it up now.

By the way, folks, if you're just joining us, you're listening to. Gabriel Sheen, certified financial planner and your host of More Knowledge, more Wealth here and every weekend talking about all important topics of personal finance. And today I just wanted to talk about the changes of certain countries wanting to eliminate, having to go through the usa.

Which is why they're starting to do trade in their dollars. Now, this is mostly oil. Now. Oil is one of the biggest ones that globally us has been the main focus of trade and the currency used for it. In addition to that, Japan, one of our allies for multiple decades has said they're gonna start buying.

Oil from Russia just strategically, it's closer to them and it's cheaper as barrel prices has surged, as we've heard from the Middle East, that they are cutting their production by 1 billion, excuse me, 1 million barrels a day. That is quite substantial, folks. So they're cutting that down, which is why oil and gas prices skyrocketed here in the markets when you look at, uh, crude oil, and you'll eventually see those in the, uh, price of the pump as well.

So what's my point of all this? This seems like a lot of news going on here. The news is, or the commentary is nobody knows the true economic impact it's gonna have. For example, the fact that they're using less dollars. Okay, these countries are not trading in dollars. Well, first off, that's not cash. These are electronic dollars.

For example, America doesn't have enough cash to give everybody if they wanna convert all their money into cash, it's just, it doesn't work that way. There's a F 25 percents on the dollars. What's available? Okay. And I know this is what people's concerns are, or more money is electronic than actually physically green currency.

I get that. But now, if these international countries are not utilizing this, what does that mean? I mean, is this an inflationary problem? Could it be that we have more dollars now available here? Or if there's a high supply less demand? I mean, could this cause inflationary issues? Could this be a deflation?

I mean, it's hard to really explain and understand the ramifications of this, and I'm gonna be doing some intense research on this and bringing it up in future episodes because this is a real good question. The point is, is this is why it makes sense to have. Your portfolio re-looked at because most of the time in the past 10 years, most people have their money in US stock market.

And when you look at even in 2022, international emerging markets and developed markets, overperformed US markets, this is where it could make more sense than ever where historically speaking, emerging markets should have on higher expected rate of return over. US markets and SEMA developed so now can make more time than ever to make sense.

So relook at your portfolio to see the exposure you have to international markets and to be able to identify areas of opportunity and changes to be made. This is why we're offering a free financial assessment really to be able to answer those questions, to see what's going on in your portfolio and to make these type of recommendations to you folks.

At no cost, we are offering one to two meetings, one to two hours. No obligation, no cost at all. We'll tell you what you need to do and why you need to do it. Folks, give us a call. We would love to help. Our phone numbers (855) 963-2526. That's 8 5 5 96 Falcon. Like the bird, we'll be able to put a personal confidential assessment really to help relate this show to your specific situation because it is complicated now, and this is a great example, and I've said this in multiple shows where things are just ever changing.

Things change nonstop. What's great yesterday may not be great today, and right now you have some pretty serious hitters in the economy. That are actually looking at starting to trade in their own currency. This lacks now enforcement and control from the United States. This is allowing other countries to grow at a faster rate and create their own rules and regulations.

Now, here's the thing. This is no news. The financial markets knew about this for the longest of time. When you look in the seventies, from a market capitalization point of view, the value of corporations US was over two thirds of the world money. Now it's about 50 50. Projected in just in 2050. We're gonna be one sixth of the world money.

There should be no surprise. The world is catching up. So what are you doing about. You look at the rate of our GDP increase, it's roughly 2%. China's upset when it's under seven. Look at the compounding growth and when their GDP is gonna outperform ours or be larger than ours. It's already outperforming India.

It's about seven. You have developed countries like a Japan, like a, uh, Germany, like a uk, like a France. Well, let's go over the list. Japan under 2%. Germany, little over 2%. UK under 2%. France under 2%. I mean, come on. I can keep going. Italy, 1.5. I mean, Australia under 2%. Spain, 3%, Mexico, 2%. Come on guys. I mean, developed countries naturally underperform.

So this is why it makes sense, folks to speak with a professional. We would love to help Folks, we're gonna go on a quick break. We'll be right back after a few words.

📍 Welcome back folks. This is Gabriel Sheen, certified financial planner and your host of More Knowledge, more Wealth here and every weekend when we're talking about all important topics of personal finance. And today, I just thought I would talk to you about the hot topic that's going on right now behind the scenes.

Wall Street's not really bringing this up. Nobody's really bringing this up, and quite frankly, it's. It's something that was maybe expected. Something called the petro dollar. What does that mean? What's a petro dollar? I've heard that before. It's the US currency used as the standard for oil exchanges, for money exchanges when each country is looking to buy oil.

And now, which has came out over the weekend was China, Russia. India, Brazil, u a e, United Arab Emirates, uh, looking at, uh, Saudi Arabia, South Africa, and a few others, folks, they are now saying they're going to stop using the dollar for these type of transactions. They're gonna use their own home currency, and China's leading this initiative now.

This is important because America's involvement gives them more enforcement, allows them to put more tariff control, allows them to control money, move, make sure that America's being trusted as in essentially the escrow company to control the in and outflows of the money and to make sure. Quite frankly, nobody gets screwed.

So the fact that America now is having a few countries, some of 'em top three or four of the largest companies in from a GDP point of view. I mean, you have China, you have India, you have, uh, let's see, who else is on this list, uh, for Brazil. You know, which is number eight on the top. Gdp, you know, is, is a big deal.

It's relevant, but what does this mean to you and your portfolio? Well, analytic, uh, research, uh, excuse me. Academic research has shown that the US economy is still gonna continue to grow. The dollar is still gonna be strong. So you're seeing now a lot of infomercials talking about late night radio, late night tv, late night internet ads, trying to.

Probably you should go in Bitcoin or gold cuz the US dollar is gonna come to a halt. That's ridiculous. That's not logical. It makes no sense. We're not talking about that. That's not gonna affect the United States economy from a dollar for dollar point of view where it's gonna drop cuz you're still gonna be spending money.

Companies are still gonna be making a profit that has no impact in regards to day-to-day act. Activity. This is all external through this quote unquote petro dollar, which is used to buy an exchange in US dollars, international oil. So now that is gone. It's less regulation, quite frankly. What does it mean?

Is it, it does give slightly less power to the United States of America to enforce rules of people being the bad guys, people not playing fairly. So everything sounds great. What's going on? They're probably so happy they don't have to use America until it's not great and they're wishing for an enforcer.

Quite frankly, there could be a World War II now. I mean, could you imagine if China and Brazil went at it and then one person screwed the other, or India and China, they've already had problems over their border. China is as powerful. They are. They can't even beat India with pitchforks and knives pushing a back across their border.

I'll actually say China has proven not to be a. But ma rather, uh, master economic explosion and expansion. So the point to all this is everything's great and told it's not good luck doing it on your own. Russia has proven time and time again not to be trusted. China's had their own issues as well, and so, and quite frankly, it's a communist country, even though their president has done a really good job at expanding and being a little bit more socialist than communists.

At the end of the day, it's a communist country. So, I mean to now have and taking the lead yet again, it's great until it's not. And so we'll see how that ends up turning out. My point to you is you have to be able to identify what makes sense in your situation, in your specific situation because right now issues are happening around the globe and is your portfolio in position to take advantage?

What was a great company today, may not be a great company. Well, it's a great situation and allocation today may not be great tomorrow. And the thing is, you always have to prepare for tomorrow. That's why we save in our retirement accounts on our four four, three 4 57 our IRAs. But it's not just saving, that's enough.

It's what are you doing right? Just cuz you go to the grocery store to shop for food. What food are you buying? Are you buying just a bunch of candy bars for the family? Or you're buying the necessary foods that need it, the vegetables, the fruits, the rice, the meats. So this is crucial in future planning folks, and we see this all far too off, where people mess this up and I don't blame them.

I get it. It's complicated, it's intimidating. And listen, you can't always just trust. A financial advisor. Why? Why? Cuz there are commission-based and fee-based advisors out there that can take advantage you of any time and sell you junk without even knowing it, without even disclosing it. It's unfortunate and it's sad.

I get it. This is why as a fee only non-commission 100% of the time, true fiduciary who's legally obligated, legally liable to do what's in your best interest is offering a free financial assessment to help answer these questions and see how you're allocated. This is the time to do it, folks, because historically speaking, in the past 10 years, US has outperformed international substantially.

Well, that might not be the case for the next 10 years, especially since the emerging markets has the highest expected rate of return. From an academic point of view, well, it's been significantly underperforming. Maybe this is the turnaround that's coming because you know the countries that we just talked about, the China, the India, The Middle East, Brazil, these are all, all those companies are emerging markets and they grow at a much faster pace.

As you saw, six to 7%. This is the time to talk to a professional. Folks, this is not a time to mess up. Take advantage of what's going on across the globe. Folks, our phone number is eight fifty five. 9 6 3 25 26. That's 8 5 5 96. Falcon like the bird. This is the time to reanalyze your portfolio. Folks, this could be the best time to get into international.

I'm not telling you to go by international. I'm not Chinese to tell you to sell usa. I'm just saying this is the time to relook at your situation. I don't know how you were invested. I don't know your risk tolerance. I don't know how and when you need this money, if it's for you or for your heir. I don't know.

If you're working for an international company, that's already too much risk, cuz you might have individual stock from there or you're getting a paycheck from them. And if they were to go outta business, not only are your portfolios down, but now you don't have a paycheck. I don't know any of this stuff.

This is why there is no substitute to talk to a professional folks. And my point and my issue that I found, Uh, more times than not is that people are just letting it ride. They've done things a certain way for so long and things have been fine, but that's just not always the case folks. And for people who've gotten older, they realize that that's why they now have to switch up their routine and take medicine.

Or they used to just be able to go to sleep. Now they have to put on certain ointments, they have to do certain things when they wake up and go to bed. So you can't just continually say, and that you're gonna do things. As you normally do. It just doesn't work that way. You have to adjust, you have to progress, and I've just seen more times than not, people are not doing that.

By the way, folks, if you're just joining me, you're listening to Gabriel Shaheen, certified financial Planner and your host of More Knowledge, more Wealth here on every weekend, talking about all important topics of personal finance, and today I'm just talking about what's going on in the world today and what this.

When countries come together and say, we're no longer gonna use the US dollar as a reserve or as a trade currency. This is important as we've been discussing this whole matter, but you have to look at what the ramifications are of this, and if this continues, at the end of the day, you still have global countries, you have countries that have their biggest c.

Okay. The, the China's version is Alibaba and Baidu. Okay? You have other countries across the world that have their stocks, their biggest stocks, their biggest companies trading on the US Stock exchange, because it's still the most regulated. It's still the most trusted. We're still one of the few countries in the world that put politicians, x, CEOs, heck, even this as crazy as this sound.

Our president, former president, Uh, Trump is being indicted. Now we can argue that's a political issue and some circus going on over there, but the point is, is the fact that that's even happening goes to show you, and you've seen issues happen in Brazil and in other European countries where there have been some poor leaders and this has affected how things have operated.

And so my point is is America is the most trusted country and people say, America's corrupt and well, quite frankly, every country is corrupt. Why? Cuz people will get corrupt. America's just the least corrupt cuz we will come after our politicians and our leaders if they end up doing things. Wrong. And so whether it's right or wrong, you know, indifferent, whatever the case is, the point of this is this is gonna be very difficult if in fact America was going to unwind and not be the superpower, which it still is because you have global countries still trading our, and companies trading on our exchange.

And that's not gonna unwind folks. It's just not. We have the financial power. Knowledge regulation, and when money is involved, you need regulation. And this is why you're seeing a lot of late night infomercials talking about gold and Bitcoin and so on. Well, guess what, folks? Those do not have regulation, so don't be buying those things.

And when they're trying to sell you at a premium, might I add, they're unregulated. And I see it far too often where people are buying. To, uh, to these gold funds and bars and all these things, and they're paying a 50% premium. If gold is trading at $2,000 an ounce, they're buying it at $4,000 an ounce without even knowing it.

It's so sad. And then when they go, Try to get out of it. They gotta pay another 50% commission getting out. My point to you is you got to be careful. This is the time when news comes out, when people try to scare you that the dollar is gonna be worthless. I'm trying to tell you what the news and background behind it is.

Nothing changes with America's GDP because of this. Nothing changes with your day-to-day activities and corporations that are running. That's why you don't even see it on cnbc. They're not even discussing this topic because quite frankly, this is money that's going on behind the scenes. And America's not making money outside of maybe your percentage from an escrow side of it, because they're converting that back into their u uh, their foreign currency.

This really has no ramification, folks. It's just getting headlines. And who is it, given headlines? Not by Wall Street Journal, not by the LA Times, not by the New York Times. No, it's getting it by these social media, by, uh, these TV infomercials, radio shows. So who is this really trying to benefit? The people trying to sell you Beer.

America has withstood every situation that's come in their way. This is where you now have to just trust in the process. I'm not trying to tell you to trust in the presidents or trust in the government or anything like that. You have massive companies. That's goal is to always make. And they will do everything in their power to do that.

Just like you, you're gonna have to survive no matter what, always. So don't worry about the nonsense that's out in the news. You're gonna have to figure it out. You're always gonna have to, you're gonna look for another job. You're gonna always, some of you may have been immigrants and move to America.

Some of you had to always adjust. Maybe what you went to school for didn't pan out the way you wanted to. You had to pivot in your career choice, whatever it is, you're as a survivor and America's a survivor. Why? Because we are for the people. By the people, and so as the people, we are survivors. This is why we all unite.

We come together for a common goal. Now, I know it feels like it's more separated now than ever, but you have to. Capitalist minded, which is what America's about. Capitalist minded from a money point of view. Remember, this is politics that's going on in the background. The division is politics. Okay? We're not talking about that.

We're talking about money. And when money's involved, everybody's happy. All right, so much to talk about guys. Uh, if you have any questions on this, please feel free to reach out. We'd love to help a lot going on here. This is the time where your money matters the most, folks, our phone number is (855) 963-2526.

That's 8 5 5 9 6. Falcon like the bird. We'll be happy to put a personal confidential.

 Assessment to help relate the show to your specific situation. Folks, that was a fast, fast show. I wanna thank you for tuning in with us. You can always reach out to myself or any one of our colleagues here at Falcon Wealth Planning. You can send us a message@radiofalconwp.com. I'll read it on the air, or I'll go ahead and play your audio input.

If you wanna just record it on your iPhone or Samsung and you can send it on in, you can give us a call at (855) 963-2526. So that's 8 5 5 96. Like the bird with any questions you have or if you want to take advantage of our free financial assessment, visit our website@falconwealthplanning.com. That's falcon wp.com for sure.

We'll have a personal confidential conversation where we can help answer the questions that you may have that's keeping you up at night. Folks, I want to thank you for tuning in with us. I want you to have a fantastic week. Have a great weekend, and God.