The dominance of the US dollar is coming to an end, highlighted by China’s recent introduction of export controls on rare earth minerals, crucial for electronics production and military defense, as mentioned by analyst Luke Gromen.
These export controls prevent the sale of vital minerals to the US military-industrial complex, which supports the dollar’s value through military strength, Gromen explained to Marty Bent, founder of Truth For the Commoner (TFTC), on Sunday.
The export restrictions led US President Donald Trump to impose an additional 100% tariff on China, indicating that China “has significantly more leverage than many Western analysts acknowledge,” Gromen stated. He further noted:
“If you tamper with the monetary aspects of the rules-based global order, the US would deploy military force in response. That’s a major factor behind the invasions of Saddam and Gaddafi.”
According to Reuters, China produces over 90% of the global supply of rare earth minerals and magnets used in electronics. Gromen asserted that the newly announced export restrictions will not only transform supply chains but also the entire global monetary system.
Related: EU looks to euro stablecoins to compete with dollar dominance
Implications for Bitcoin and Hard Money Assets
Gromen suggested that a hard money standard is essential for addressing the current economic challenges facing the United States.
He pointed to BTC as a hard money asset that could help restore the struggling economy, indicating that the prices of gold and BTC are likely to rise as individuals and businesses turn to BTC to safeguard their purchasing power amid currency inflation.
He expressed skepticism regarding the US government’s strategy of using stablecoins to maintain US dollar dominance, arguing that stablecoins represent merely a temporary solution that fails to tackle the root issue of currency debasement.
The US dollar is poised for its worst performance since 1973, while Bitcoin and gold have reached new all-time highs, according to investment analysts at The Kobeissi Letter.
“The USD is currently on track for its worst year since 1973, down over 10% year-to-date. It has lost 40% of its purchasing power since 2000,” The Kobeissi Letter reported.
Continuing currency debasement means all asset prices are likely to rise as investors seek to protect their purchasing power, the Kobeissi Letter added.
Magazine: China critiques US crypto policies, Telegram’s emerging dark markets: Asia Express
