Oh, do you actually think this is valuable?
Well, let me tell you something.
The real value of the US dollar has decreased 86%
in the last 50 years, meaning this hundred dollars is
about as valuable as $14 back then.
So here's a warning.
Things could be about to get a whole
lot worse due to slowing economic growth,
supply chain issues, and rising global super powers
challenging the US dollar's throne.
This, of course, is fake money.
You know me.
I'm not the type to waste a single penny.
However, the facts are very real.
Currency collapses aren't some kind of conspiracy theory.
For example, this is one million Venezuelan dollars,
and it's only worth around 25 cents.
I've seen this devaluation of the dollar happen
over my lifetime, and the situation
we're currently facing is more worrying
than anything I've ever seen before.
As an older YouTuber, businessman,
and investor, I feel I'm uniquely positioned
to discuss the factors that could lead
to the collapse of the US dollar
and deliver this urgent message
to you, which could have global ramifications.
I'm currently noticing three different things happening
which are contributing to the perfect financial storm
that is stealing the value of your dollars
from right under your noses.
I'm gonna call them the wind, the rain,
and finally the lightning,
the spark that could set things on fire.
So let's discuss these things and how
you can best shelter your money
from the incoming storm.
Part one, the wind.
The wind is the first sign of a storm.
It might start off as a slow breeze,
but can easily escalate into a hurricane.
Entrepreneurs like myself are usually the first
to feel the breeze against our cheeks,
this being in the form of supply chain issues
and worker shortages.
But Mark, I don't care about that.
I'm only interested in what's going to affect me
and my money.
Well, the reality is we're all trapped
in a never-ending cycle.
We need to buy items to survive,
and in order to buy those items,
we need to work to gain the money to buy those items.
In a perfect economy, all of these things are in balance.
However, when a crisis occurs,
it can really shock the system
and cause things to quickly escalate out of control.
I mean right now inflation is sitting
at a hefty 7.9%, the largest 12-month gain
since 1982, which unfortunately was followed
by a huge recession.
I mean your money's literally losing value by the second.
This means that, when supply chains get squeezed
and worker shortages rise,
it just drives up the living costs
for the everyday person.
Because of this, my businesses are facing
some challenges at the moment,
the main problem being supply of raw materials.
It feels like shipping costs have tripled
and the wait time has doubled.
As you can imagine, this impacts my business,
my customers, and the overall economy.
To be honest, I prefer to absorb the cost
as much as possible to remain competitive in the market.
However, it does get to the stage
when running a business just doesn't make sense anymore
if you're not turning a healthy profit.
After all, I do need to pay my staff.
When businesses increase their prices,
people often think it's down to the greed of the owners.
However, as I can see both sides of the situation,
it's a pretty inevitable decision
that companies will have to raise their prices
just to maintain the same profit,
which is sometimes minimal.
In addition to this, during the pandemic,
people needed money, and therefore governments provided
lots of stimulus.
However, this had the knock-on effect
of increasing demand of goods and services
in a time where production was severely under stress.
It contributed to a huge bottleneck
in production that companies are still dealing
with to this day.
All this contributes to inflation,
the gradual decrease in our money's value.
Part two, the rain.
Now it's bad enough that your money has lost value.
However, when that's also combined
with having less actual dollars
in your bank due to the recession,
the storm gets a whole lot worse.
Many experts are saying that recession is inevitable,
and I'm erring on the side of this ringing true.
Back in the day, I remember noticing the small signs
of the 2008 recession.
No one had any money in their pockets at all,
and if they did, it wasn't spare cash
to be spending on hobbies.
And as I was in the hobby industry,
it was a bit of an issue for me.
Far less people wanted to buy my helicopters and planes.
During times like these, you really have
to think out of the box.
My tactic during this period was
to do a lot more in-store demonstrations.
This brought people in the door
and got them hands-on with my radio-controlled gear.
When people are spending less money
and trying to conserve the cash they do have,
the economy begins to slow down,
which can lead to, you guessed it, a recession.
As you can imagine, it's not just small-
to medium-sized businesses that are being impacted.
It's also large companies.
Let's take Tesla, for example.
The demand they have at the moment
for their electric cars is absolutely staggering.
But due to supply chain issues,
customers are facing huge wait times
for their cars to be delivered.
As we know, all public companies have
to release their earnings after every quarter,
and during times of recession,
this will probably be less than impressive,
which could therefore impact stock prices
and our investing portfolios as a whole.
I mean my Robinhood stock just keeps dipping.
Part three, the lightning.
When you have both of these conditions,
then add a bit of lightning,
it could well strike a tree and cause a forest fire.
I'm hoping these analogies are making sense
and I'm not sounding like some kind of weather man.
What I'm talking about is the threat
to the US dollar as the reserve currency
of the world due to rising competition from China.
This was first popularized by Ray Dalio's book,
"The Changing World Order", which studies
how reserve currencies have changed throughout history.
But Mark, what exactly is a reserve currency?
The world reserve currency is purely the
most popular currency used throughout the world
in global trade.
In my business, we do lots of trade abroad,
like buying stock from overseas.
This means that, when I'm ordering products
from China, I'm hit with lots of exchange rates due
to holding most of my cash in great British pounds.
As you can imagine, it first gets converted
into dollars, and then into Chinese Yuan.
This results in me often having to pay an extra two
to four percent due to exchange rates,
which, on a 100,000-pound orders, is quite a lot.
The US dollar, of course, benefits
from all of this use, but a currency's time
at the top is limited.
Ray Dalio actually broke this down
into three different stages.
First comes the rise, with lots of new innovation
and technology, leading to lots
of borrowing and speculation.
Then we come to the top.
This is usually a few generations after the rise.
Because times are easier and everything seems
to be booming, people start spending
more on luxuries and contributing less to society.
Basically they're taking their foot off the gas.
I like to think of this a bit like Blockbuster.
They were so large that they didn't look
like they could fail.
However, they took their eye off the ball
and allowed a gap in the market
for companies like Netflix,
with their online alternatives to movie rentals,
to sweep in and steal all of their business.
In this case, Netflix is China.
They're able to produce goods at a cheaper price,
as their workforce doesn't demand such high wages,
which allows their economy to grow,
all while the leading reserve currency enters the decline,
without the leading power even realizing it.
Due to such high debts, countries can
either choose to not pay their debts
or print more money, and as you can imagine,
they always print more money,
which devalues the currency even further,
allowing room for rising powers
to sweep in and overtake.
Oil is one of the most valuable commodities on the planet
and could play a huge role in the passing
of the torch between the US dollar
and the Chinese Yuan as the reserve currency.
Saudi Arabia, which is one of the biggest exporters of oil,
sells a quarter of all its exports to China
and is considering pricing its oil in Chinese Yuan.
And more than 30% of central banks have revealed
their plans to increase their reserves
of Yuan in the coming years.
All these elements contribute
to the weakening of the US dollar
as the world reserve currency.
Now this all sounds pretty scary,
but what can you do to protect
your money effectively from the incoming storm?
Part four, sheltering from the storm.
So lemme take you back to this burnt $100 note.
It's clear that the dollar will eventually lose
its status as the world's reserve currency.
However, what's not so clear is the currency
that will take its place.
Sure, I've mentioned the Chinese Yuan,
but it's not the only competitor.
Bitcoin is also the perfect candidate.
For centuries, this fight
to become the world's reserve currency has been linked
to global power, but now our world is
more interconnected than ever before.
Maybe it's time for politics
and our financial system to separate,
and Bitcoin could make this happen.
This is because Bitcoin is borderless,
open to everyone, and censorship-resistant,
as well as being scarce, with a set supply
of just 21 million coins.
And guess what, guys?
I've got one of 'em.
I've been embracing crypto more and more recently,
and there's no better place to buy it
than the FTX app, which has 85% lower fees
than the other platforms available.
They also give you free crypto
on every trade over $10 when you use the code MARKTILBURY.
I'll leave the link below if you wanna check that out.
As for the stock market, you're probably expecting
me to say, "Buy the dip and keep holding,
"as thing will always get better."
However, although that's historically true
with the US stock market, the reality is
that it doesn't work for everyone.
If you can't afford to invest for 20-plus years,
it might be worth reevaluating your positions
and allocating more of your money
to assets such as gold.
As we've discussed, national debt is
at an all-time high, and the Fed can't keep
just printing money,
otherwise it risks inflation getting out of hand.
This means essentially the safety net has been taken away.
If you're on the younger side
and you can afford to wait through a lost decade,
then it's more important than ever
to dollar-cost average into the market
by investing consistently into an index fund
so that you can benefit
from the great deals coming your way.
If you're more of an individual stock-picker,
then it might be a good idea
to start investing into some stocks
that have paid a dividend,
despite the market conditions.
These are often quite recession-proof companies.
That's why there's no time like the present
to pick up your free stock slice worth
between three and a thousand dollars
from the Public app when you sign up and fund your account.
I'll drop the link in the description.
I've personally also taken on more good debt
than usual and put that money to work,
because as our money loses more
and more value, it means that it actually benefits me
by eating into my interest payments.
So I'm gonna leave the next video right up there,
but don't click on it just yet.
Make sure to subscribe if you wanna grow your wealth, okay?
I'll see you over there.