According to analyst Luke Gromen, the U.S. dollar's hegemony is over, as shown by China's recent announcement of export controls on rare earth minerals, an important component in electronics manufacturing and military defense applications.
China's export controls on rare earths prohibit sales of the critical minerals to the U.S. military-industrial complex, which supports the worth of the dollar through military force, Gromen told Truth For the Commoner (TFTC) founder Marty Bent on Sunday.
The export controls prompted U.S. President Donald Trump to announce additional one hundred pc tariffs against China and showed that China “has rather more influence than many Western commentators admit,” Gromen said. He added:
“If you messed with the monetary side of the rules-based world order, the United States would send within the military and bash your head in. That's an enormous a part of why Saddam invaded, an enormous a part of what Gaddafi did.”Analyst Luke Gromen sits down with Marty Bent on the Truth For The Commoner podcast to debate the changing macroeconomic landscape. Source: TFTC
According to Reuters, China produces over 90% of the world's rare earth minerals and rare earth magnets, that are utilized in electronics manufacturing. The announced export restrictions for rare earths wouldn’t only change the provision chains, but additionally the whole global monetary order, said Gromen.
Here's what it means for Bitcoin and hard money investments
Gromen said that a tough money standard is the one solution to the present economic problems within the United States.
He described BTC as certainly one of the hard money assets that may save the struggling economy, meaning that gold and BTC prices will proceed to rise amid currency inflation as individuals and corporations adopt BTC to guard purchasing power.
He also questioned the US government's plan to make use of stablecoins to guard US dollar hegemony, arguing that stablecoins are only a brief, short-term solution that doesn’t address the core problem, namely currency devaluation.
According to investment analysts at The Kobeissi Letter, the US dollar is on the right track to have its worst yr since 1973, while Bitcoin and gold are hitting latest all-time highs.
“The USD is now on the right track to have its worst yr since 1973, down over 10% year-to-date. The USD has lost 40% of its purchasing power since 2000,” wrote The Kobeissi Letter.
The ongoing devaluation of the currency implies that prices of all assets will proceed to rise as investors strive to guard their purchasing power, Kobeissi Letter added.
