[000:00:00;00] the, the, i'm rick sanchez, i've been doing news for 30 years into languages around the world. and here in the united states interviewed for president's work. the for the u. s. has major television networks, i believe. now it should be honest, direct and impactful. this is direct impact the, you know, countries around the world have been asking a certain question about the united states dollar. now for the better part of the last decade at 1st it, it was maybe more of just that i sent or maybe even

a whisper. so as to not get shut out or shut down by washington or us bags, but now the question as being as more boldly it seems and with more conviction, here's brazilian president luis, ignacio let the silver saying it out loud and for all the world the here i'm doing so from china, no less the give me the key to keep the spice we still will pretty cut those of us it. f of they have simple, massive lashed to the new dollar. forget, you know, before they move funded logical mental mesh that had loss of web that flew on the silver or lou as he's known throughout the hemisphere. it was made up of time with president chinese presidents, asian thing g and lew law are taking. busy very 1st steps to be able to trade in their own currency. somehow,

while trying to diminish or cut out. exchange in dollars is altogether, the layers say that the reason that they're doing this is because it's a, it's, it's a cost cutting move. but you know what, it's likely much more than that. in fact, it's, it's a political statement, seemingly met to send a message to the west and more specifically to washington. that it may be time for a change and get used to it. think this latest the dollar is ation. move is led by breaks the organization of countries talking about pulling together an agreement to serve, in essence as its own bank. to work around the us dollar breaks is a coalition that includes brazil and russia and india and china and south africa and the who set their agenda at an annual summit. each year. it isn't just brazil in beijing though. those talking about all this, the dollarization thing suddenly from are from india to argentina, brazil, to south africa, from the middle east to south east asia,

nations and regions are accelerating efforts to reduce their dependents on the dollar. so how do we get here? let's start with a wrong the decision by the trump administration to renege on the iran new deal and the actually amplified sanctions. in spite of an international agreement with terry, ron demonstrated that the us is willing to push it's will our country despite what other countries might want or think. and that we're also willing to use what amounts to economic warfare. but now the u. s. has doubled down, and this time, the vitamin ministration with a series of financial sanctions against moscow, the likes of which are bound to have repercussions. first, there was the decision to freeze $300000000000.00, which is nearly half of watches, foreign currency reserves. and if that wasn't economically punitive enough for us to move to remove russian bank from swift, an enter bank messaging service, which is how countries essentially talk with banks and are able to communicate with

one another. taken together with the most recent economic restrictions imposed on that as well and firms and tracking these firms. there is this message that countries around the world are hearing loud and clear. the u. s. is willing to deploy what appears to be economic warfare. but more importantly, that it's willing to use, it's now perhaps more than they've ever have in the past. so it's not just about doing it, it's about doing more of it. and that may be why countries from latin america to africa, to the middle east are asking themselves if they can do it to those countries, if they can do it to china and russia and that as well on iran. will we be next? and there's a time to start looking for an alternative. joining us down to talk about this as economist and professor richard wolf. always good to see you, my friend, i'm glad we get a chance to talk about this. what do you make of this situation with low at

a silver going out there and just saying out loud, but a lot of countries i've been thinking and how important is that is very important. and what he's saying is in the mines and in the press release is of more and more countries every day. there is no nice way around this. the us dollar became the global currency at the end of world war 2, because the united states was the only country to come out of that war. stronger than it went in and all its competitors were really prostrate, you know, unable to function. and the dollar became the international currency. the way the british pound had been in the 19th century. and that couldn't last. anybody who knows anything about history knows that that was a kind of exceptional situation. and it wouldn't not glass. but it brought the norm is benefits to the united states. very simple to explain. we bring goods and

services from around the world here, french, wine, japanese cars, whatever it is. and we give them an exchange little green pieces of paper that costs nothing to make. if they need dollars, they accept those pieces of paper, we get the benefit of real product. mm hm. and they paper and then the make it worse since the paper doesn't give them anything, no interest. they lend the paper back to the american government, helping to fund the deficit, and they get an interest from the united states for holding those dollars. this is a wonderful benefit multiplied to the united states, but it makes every other country jealous, they want that they don't want to be on the wrong end of that kind of deal. they want it in for most of the 20th century. they couldn't, they weren't strong enough and the united states was dominant. but with the new millennium, with a sanctions against the iran, for example,

you're quite right. this began to break down. countries wanted a little of the benefit for themselves. they to want to always have the dollar be the intermediary, one of the biggest speakers that made that happen. what saudi arabia, which agreed to be paid for its oil as the biggest oil producer in the world, only in dollars in them, i make. everybody need to whole dollars to keep dollars in reserve, et cetera. when all of this change is in the new century, the last 20 years, because not only did countries become big enough and rich enough lead by china to begin to say seriously, we want our own currency to be part of the deal. even europe got the but after the year 2004, what really did it, and you, you were right quite in the united states, changed its policies from being the dominant country in the world,

making sure that its currency was everywhere available. it suddenly weaponized this with the system and all the other systems that use the dollar, use them for its own foreign policy objective and you're not managing it for everybody. you're managing your for your. so that's a great that's, that's what amazing you see, i, the shakespeare had a quote, right? you can't leave well enough alone. the united states. was it a free to use an old term that only guys like you remember, a pretty groovy place, right? i mean, they had the best of both worlds. but when, when, when we started doing what we've done with cit, go in venezuela, just as an example off the top of my head or with the deal with iran or what we're doing now with china and my god with. as you mentioned, what we did recently with russia that seems punitive, it's not, we want to be

a part of the system and we're going to be equal players. know, it's what you just said. we're in a position where we didn't use our power to leverage it against you. and i think that's, that's the turnaround in this whole thing, professor. yep. and i think if i can venture a moment of history, it's a classic moment when an empire makes of fundamental mistake. it, we've had a ride up in the american empire, we replaced the british empire. it was a good ride up to most of the 2nd half of the 20th century and really roared forward. but it has peaked. we don't have the position we had before, we just don't. and the question is, how are you going to manage that? if you manage it by you leveraging your power, beating up on other countries, you're going to sooner or later drive in to get together to confront views,

a power house with the reality that you're not as strong as you once were. and they are a strong group, then they once work that has to be accommodated and warfare is not the way to do it . not only not military warfare, which would be crazy now, but even economic or fear. the fact of the matter is over the last 10 years, the dollar has gotten weaker literally every month. so it used to be that 7080 percent of the reserve is in every central bank and this in this planet. we're in the form of dollars today, it's less than 45 percent. it's a catastrophic drop in the importance of the dollar and in the power of the united states, the use of that dollar. it's one of those examples we're using that power was a big, big mistake. as under cuts that power, it would have been much better in retrospect,

to have managed and kept your dominant position as a reliable, trustworthy manager. then to become a part is in flight or when the rest of the world. and let's remember the united states is very wealthy by the 4 and a half percent of the world's population, not the rest of it, and the rest of it. that's remember, the 2 biggest companies in the world are india and china. they're part of the bricks. as you correctly pointed out, this is the united states welling around because it doesn't want to face that it's shrinking in needs footprint around the world. and so once it's higher and you whether you come to terms with that is the crucial question. and denial is not a solution. you know, i've been talking to some economists and a lot of america, and they pointed out to me, they say, you know, rick, you're, you're, you're, i understand your point about the dollar is ation. but it's not so much about the dollar is ation. it's just the fact of the matter that the world has changed. and

while the united states was the mack daddy, as we like to say, economy in the world today, they're either not or about to be not because of what's going on with china. and that's really what is driving this as you just mentioned, the economies of places like china and india and others. you're just yeah, the world is changing and the world is changing. and you know, i get frightened to be honest with you rick. i get frightened because either you arrange to manage that live and let live you drive that has to have its way to develop its economy. we have to have our way that can be worked out. i want to remind people a little bit of history when the united states broke away in a violent revolution from another empire, the british empire, the british empire, tried to stop and militarily right at the war of dependence. and then we had another warrant, 1812, and then the british realized,

i'm not gonna stop this by military means. and they came to terms with the united states and we had a century of no war between those 2 countries. i think we need to learn. so we're not caught up the punish trying to back its drum, couldn't do it by you can't do it. i really give you one statistic because i'm an economist. we now have the results of economic growth. the 1st 3 months of this year, january, february, march, 1st quarter of 2023. be the economics of britain, a girl 0, no growth at all. france 0.2 percent. the united states, one percent. the people's republic of china, 4 and a half percent. i mean, you can make, believe these realities aren't they? are, they've been there for 20 years. they're not going away. it's time to sit down and work out something where we can live together on this planet because there really

is no viable alternative. and the d dollarization is a screaming message to us, so i hope we have the brains and the capability to absorb. i wonder if we do though, because what i've seen lately from a both a trump administration. and frankly, going back to all the administrations, including the one that we have now, who happens to be a man with, you know, with all due respect to him and god bless his soul. is a guy from the cold war mentality. tons of the 19 fifties and sixties, of which makes him act like everything is about a bludgeoning tool. you've just got to have up the old american acts and we can do away with all of our competitors. well, no, we can't. but it seems like that's the only way that they're going to use see any way forward where we would be a little more understanding a little,

maybe more compromising as well. i'm hoping and i know this may sound a bit odd. i'm hoping that you know, way defeat teaches us something as it has in the history. at least sometimes. we thought we had the power to win in vietnam. we didn't, we thought we had the power to vent a wind in afghanistan. we didn't, we thought we had it in the rock, we didn't. the reason we're talking now about f sixteens in ukraine is recall of a whole, but previous escalations did not work. that's why we keep giving them bigger and bigger. bearing for the book, they're not winning the war rush that hasn't been dropped to its knees. russia found other people to buy it's oil and gas filed other people to work their trade deals with. i'm not in favor of the regime or against the regime, but i want to look honestly,

we're not able to do what we tried to do in the past. we had that power once, but we don't anymore. and the sooner we understand it, the sooner i think the capabilities there to work out, let's remember, nixon and kissinger went to china to close, open it up. and we had several decades in which the united states prospered and trying to prosper. i don't believe that is for ever gone. i think that a logic can come back. neither of us wants a nuclear war, which is lunacy. so let's try to work out some arrangement that does not involve these efforts to destroy that are having negative affects. the, the irony is the inflation in the, in europe is worse than it. is it, russia, inflation in europe is worse than it is here. they're paying norm is price. the whole country of france is basically come to

a stop because they can't work out the problems that come in large part from the rising price of energy, which makes you are unable to compete with the rest of the world. i mean that, that the fallout from this should be teaching a less than you didn't understand what you were getting into. and it is blowing back on you in a way you has to take account of. when we come back, i want to talk to you about africa, latin america, parts of the middle east, the places that we haven't paid a lot of attention to in the past that are suddenly raising themselves up and saying, wait, we want a piece of it goes to, by the way, professor richard, well, if you stay right there, by the way, i have to tell you i have a pod cast where i as a journalist as a latino and as an entrepreneur, tell my story and share with you what i had learned. and we also talked about some of the stories that to hear right here. it's called the rick sanchez podcast. i invite you to check it out when we come back. well,

more on the potential destruction of the us dollars of many countries around the world, including some of the smaller ones. now say they can have it their way will be right back. the release of russian states never is as tight as one of the most sense community. most all sense and up the same assistance must be the one else holes. question about this, even though we will then in the european union, the kremlin media mission, the state on us to day s r t. suppose next,

even our video agency, roughly all the band on youtube, the tenant 70 question, did you say even closer to the take a fresh look around is life kaleidoscopic? isn't just a shifted reality distortion by power to division with no real opinions. fixtures designed to simplify will confuse who really wants a better wills, and is it just because it shows you fractured images, presented as fast? can you see through their illusion going on the ground?

can the pay. welcome back. how much sanchez? i want to once again list for you some of the agreements that are already taking place to show that this de dollarization effort is more than just a thought that our country's economic and foreign policy advisors would be smart. to start taking some of these things into account argentina and brazil recently moved forward on an agreement to facilitate trade between them between the each country without having to use dollars back in march. as we reported here, a trade deal for a supply of natural gas was reached between the united states. a, pardon me, the united arab emirates and china that it was carried out in chinese cohen, c with the coordination of the french energy for think about that. and then in april report surface that a group of countries were negotiating with india's central bank about conducting

transactions in indian world. please. among the countries involved in those talks are the mom leaves me in mar, russia, and also somewhat surprising. are you ready for this? the united kingdom, germany who zailynn. so these are not little countries, but they're going along now with other countries that wouldn't traditionally be making these arguments back. now with the professor, richard wolf. what do you make of that professor? that not only are we seeing suddenly african nations america, latin american countries, like we said, with lula and argentina coming forward and asking for a change in the system. but that we're also seeing countries like new zealand. and if in great britain popping their heads out and going, you know what? i think we want to be invited to this dance before it gets away from us. it seems to be what's going on now. that absolutely, i mean, in the past and bypass,

i mean the last 506070 years, any small country in asia for go latin america, eastern europe and so on. basically had nowhere to go. the, the dominant place to go for a loan for his development project. for any idea about changing the system would be to go to washington and western europe, maybe to tokyo and try to work a deal. but since the japanese and the western europeans and the americans were a tightly knit group that had worked together for a long time, you basically could not to negotiate. to do this, click now you can, that is an birth shaking difference lead by trying the but now with the brakes and all the people joining them, they are an alternative. so for example, if you want to build a new railroad in some corner of africa that can move key resources to the coast

where they can be shipped around the world. who's going to build your railroad. it used to be either the united states or west and you know, not the chinese will come in, build you a better railroad, cheaper quicker. but what are you going to do? and if the chinese gu, they will work a deal and pretty soon you're going to see the parts of the western, the lions, like you pointed out, breaking away a french farm here, a british firm there, or maybe it looks like an egyptian firm. but if you study it long enough, right behind it is a belgian and a dutch firm. in other words, they don't want to be left out. china is the most rapidly growing market in the world. i've taught in american business schools, we teach young, long term for newer. as you want to succeed, be where the market is growing fast as that's where you need to focus. well,

then you're going to go to china. and if your government says they're not nice in china, you're going to say a lot of it may be, but if i'm going to survive competitively, i have to go there. otherwise, i'm going to be left behind. this is a whole new world and every small country is experiencing whether we know whether or not in tens debates inside the leadership of those countries. have we been on the wrong horse by staying with the united states in western europe? are we missing opportunities that would be better for the development of ours society and for the profit ability of our companies? if we stay the way we've done and they're answering the question, that's why d dollarization is happening. the chinese say we're not going to be always dollars . you have to deal and you want, we'll be able to in your currency. in other words, they are the open come or they are doing in the world. what the united states

a 100 years ago was doing tool, which is how it became, what it was and why others are now say, it's our turn. well, and i'll disagree with you on that just a little bit and, and here's, here's how i'll push back because i happen to be latin american as you know, and i know all the stories. my father and my uncles told me growing up as a kid of what the united states did in latin america is maybe not the same as what china is doing. and places like africa and latin america, the united states seem to go in there with a clenched fist most of the time. and they didn't deals that required back country to be indebted to the united states for ever and ever. and we only put in our workers and our companies to execute on whatever plan that we put in. and then we use new s marines to back up those companies. if those guys decided they wanted

a more square deal for lack of a better term, is isn't china doing it a little differently? yes, china is trying to do it a little differently. it's a little early to tell because the knees move here is really only a few years old in most of these parts of the world. so i a little bit, i have to hedge because we don't have quite enough information here. but a lot of your point is violet. the chinese know there's an accumulated 2 to 300 year bitterness and anger about the injustices of colonialism. yeah. both of all colonialism that the europeans to, for example, did in africa. literally carving the country up or the little bit more in formal monroe doctrine and type of control that the united states operated in latin america. but the chinese know they're on their own report. if they look or smell or talk like they're doing what was done before, they will get

a blow back from the local people that will make it much harder for them to function. so they are under a kind of pressure to behave differently. and you know, that's true for the company that goes into those parts of the world. now you cannot count on the american marines to show up next week the force people to do what you want in the way you ones. good. that's no longer possible, not just for the chinese but possible for the west either. and if they don't learn that less than the departure of asia, africa, and latin america to join bricks which is already on their way, will accelerate professor richard wolf as usual. thank you. for taking us through this, thank you for your time and i look forward to talking to you once again, my friend the same here and i look forward to a just as much. thank you so much. hey, before we go, i want to remind you of our mission, why, why we do this right?

and it's really simple. i think it's time to disable the world. we've got to stop living in these little boxes, right? because truth, they don't live in boxes. truth is everywhere. how much sanchez? i'll be looking for you again right here, for i have to provide a direct impact the . the 1935 fast is easily led by dictator benito mussolini decided to expand its colonial empire in africa and take over ethiopia. by that time,

elvia was the only fully independent states on the continent. back in 1896, its inhabitants were able to feed via daily and colonists and defend their independence. since then, rome craves for revenge before the humiliating defeat. in the morning of october 3, 1935. without any announcement, the flashes attacked ethiopia and bombarded it most severely ethiopian arms forces bod, courageously. but the roots allergy of the italians knew no bounds. they use not only massive bombing attacks on civilians, but also chemical weapons, toxic gases. this change the course of the war. as a result of the occupation of ethiopia by the fascist 760000 people were killed. the capture of the african state was committed with europe's tacit approval.

britain and france recognize the annexation, giving the green light to a further fastest expansion in the world and davy and the way for the outbreak of world war 2 the, the russian federal security service thorton assassination attempts on our cheese editor in chief, margarita simenon and journalist cas thing of salt chuck, the head of ukraine's main orthodox christian monastery is placed in costa city for 30 days. unable to pay a large bale fee, washington makes a multi $1000000000.00 credit applied to one car in return for sweden's, a session to nato. that's the forwarding to pulitzer prize winning journalist