Transcription
Ladies and gentlemen, China has just retaliated to the US sanctions with a massive double blow, as they say they will not back down, and they will fight to the end. Now we're going to talk about both of these, but the first blow is that China has put an 84% tariff on US imports. This is to take effect on Thursday. This is after President Trump imposed a 104% eyewatering tariff on Chinese goods entering the United States.
But it's really the second blow that's just flipped the financial world on its head. And almost nobody is talking about it, especially not the media. I haven't seen it on a single mainstream media channel. Because while they distract you with tariffs and political theater, Beijing has just launched a digital currency system that completely bypasses the US dollar and SWIFT systems. Not only that, though, they're also dumping US treasuries at the same time. So I called it a double whammy, but it's really a triple whammy.
Now this is really, really serious because it's the most aggressive move I think I have ever seen taken in the space of a few days towards dollarization. Uh, so really pay careful attention to this video here because I'm going to explain what this means for your money and how smart investors are actually getting ahead of this massive power shift.
Now, to add insult to injury here, Spain's economic minister on Monday said that Beijing could be a crucial strategic partner for his country and others in Europe. The EU, the European Union, have doubled down on this and said they're looking at divorcing, in you know, not so many words, but divorcing the USA and having closer ties with China. This is what I call financial self-destruction.
Now I don't need to tell you what's going on in the markets over the last month. In fact, rather than tell you, let me show you, because it is absolute chaos. This is the one-month: look at Apple down almost 19%, Amazon 9, 11, 12, Google 11, Meta 15.4. Some of these stocks, some of these companies are down over 20%. You're only really seeing some boosts in healthcare here, but very few and far between. It is absolutely crazy what's going on in the markets. And if we get a little closer here on the one-month chart, this is the S&P 500 down 13% on the month. The FTSE 100, for my UK viewers, down 11.4% on the month. And then we have the Stoxx Europe 600. This is down 13.7% on the month as well.
But you'll of course heard the expression, "Never let a good crisis go to waste." Well, this situation is exactly that: a once-in-a-lifetime crisis that we can actually make money from quite easily. So rather than many of you messaging me and asking, "Neil, is is now the right time for me to buy stocks," my answer is: buy when you have analyzed the market for significantly undervalued stocks using my course and stocks screener system. It's really that simple, ladies and gentlemen. Honestly, just go below the video; you'll find the link here. And and this shows you don't need to, don't even worry about all of these modules right now. All I want you to focus on: skip ahead, and then you can go back and do the rest after Chapter 10, how to use a stocks screener; 11, analyzing individual stocks and companies; Chapter 12, the Warren Buffett value investing system; dividend investing. I know many of you will be at a certain age now that you're focused on dividend investing. I mean, these are the modules you should be doing right now. Do not delay. Get on these modules. And my friend even said, "Neil, I don't have time to do your whole program. It's too big." Well, just skip ahead and do the stocks screener module, then then work your way back, because you can let the screener do the hard work for you. It's easy. Just don't miss this massive opportunity that happens very rarely in history. And honestly, you shouldn't be in the stock market unless you know what you're doing. That's why many people are getting crushed right now because you haven't taken my training. My stock market course is one of the most comprehensive finance programs available anywhere. That's not me saying it; that's what the students say. And it's normally $2,000, but today I'm offering it on a flash sale for just $197. And it includes two bonus modules as well, for a limited time only. You'll get instant access, and it's the best price I've ever offered. Honestly, just let my online stock screeners do the hard work for you. It's so simple. People are making this way harder than it needs to be here, trying to calculate all this and watch the news. Just don't do any of that. Just do the module, and then boom, you just ride this massive wave up as we recover. That's what the missing piece is that's confusing everyone. So I'll stick the link below in the description so you can go and grab that program now for a limited time only.
Now back to China then. This new retaliatory move by them versus the US stance could paralyze major sectors of the US economy. But neither country is backing down, and one country is overplaying a weak hand at the moment. Everyone's fixated on China, but here's what they're missing: China does just 8% of its trade with the US. The US, on the other hand, imports over 40% of its total goods from China. That's a massive imbalance. And it's not just trade; China holds a large slice of US debt as well. In retaliation, China sold off $50 billion in US treasuries, pushing up the 10-year yield, which will hit mortgages. It's going to hit credit cards and borrowing right across the board. This is not good. And China is not bluffing. That was just the first shot across the bow. They've got 60 trillion dollars in deposits. That's three times more than the US, by the way. And if that capital starts fleeing, it's not a slowdown; it's a complete collapse of the system.
And just as serious here, while everyone's arguing tariffs and trade, China just fired a monetary nuke, which could be like Breton Woods 2.0. Oh, because the People's Bank of China quietly launched a digital platform integrating the digital yuan into the cross-border payment system of, wait for it here, 10 ASEAN nations and six key powerful Middle Eastern countries. Let me put this into context: That's over 38% of global trade now bypassing the SWIFT system. So the US-dominated system of SWIFT is uh going to have some issues. Let's just say that this isn't just dollarization in real time; it's a lot more serious than that because the Belt and Road Initiative is now syncing with this digital yuan platform. That's trade, investment, long-term cooperation are all being locked in without any US or Western oversight. So the settlement time alone has been cut down from 3 to 5 days under SWIFT to just 7 seconds on the new system. So by using this new system, these 16 countries avoid sanctions, interest rate changes, and of course, political weaponization. And this is exactly why I warned everybody about this about a year ago when I talked about CBDCs being launched in Europe, because when they launch, what will they need intermediaries for? What will they need banks for? And then what happens to our money? I mean, the European Union has been very clear: They they don't care that they will just dip into our savings accounts whenever they need to. And there's nothing we can do about it if we choose to leave our funds there. They've been very clear: They don't see it as our money; they see it as, because they're so socialist now, as the collective's money. And and not just that, anyway, the fees have been slashed by 98%, and intermediary banks pretty much gone because there's no need for these middlemen anymore.
And for context as well, in 2022, China-ASEAN trade approximately hit just under a trillion dollars. This was a 120% increase since 2013. In early 2023 alone, it hit $400 billion dollars. So this isn't just a trade war; it's a currency war as well. So while you've got the US printing dollars, China's building infrastructure, and now they're making entire regions dependent on the digital yuan, not the dollar. So this is a serious blow to the US dollar dominance.
So while governments clash and all the media is doing their things, investors like you can actually make money out of this opportunity, but it's only if we act strategically. Tariffs, currency wars, financial realignment—all of it creates volatility. And in this volatility, there's massive opportunity. So this is the absolute best time to build your investment—uh, let's use the word "war chest" here. But you do need the right tools, and you need the right knowledge to do it. Don't just watch CNBC and Jim Cramer and all the—they're going to lead you astray. You know, if you're serious, get the program, use the screener, but really position yourself now because when the dust settles, the winners are going to be the ones who saw through all of this noise and are just being strategic, being smart, and just getting on with it.
So with that said, uh, all I want to say now is thank you so much. Take care. God bless you guys, and I'll see you on the next video. Links below in the description.