The dominance of the US dollar is waning, especially highlighted by China’s recent implementation of export controls on rare earth minerals, which are essential for electronics manufacturing and military defense, as noted by analyst Luke Gromen.
China’s restrictions on rare earth mineral exports ban the sale of these vital minerals to the US military industrial complex, which underpins the dollar’s value through military might, Gromen informed Marty Bent, founder of Truth For the Commoner (TFTC), this past Sunday.
These export controls led US President Donald Trump to impose additional 100% tariffs on China, revealing that China “holds significantly more leverage than many Western commentators are acknowledging,” Gromen stated. He continued:
“If you tamper with the monetary aspects of the rules-based global order, the US would deploy military force to intervene. That’s a significant reason why Saddam was overthrown, and a large part of Gaddafi’s downfall.”
According to Reuters, China accounts for over 90% of global rare earth minerals and rare earth magnets used in electronics manufacturing. Gromen emphasized that the new export restrictions will not only alter supply chains but could also transform the global monetary system.
Related: EU targets euro stablecoins to challenge dollar dominance
Implications for Bitcoin and Hard Money Assets
Gromen asserted that a hard money standard is the sole solution to the current economic dilemmas in the United States.
He championed BTC as a pivotal hard money asset capable of rescuing the struggling economy, suggesting that the prices of gold and BTC will rise amid currency inflation as both individuals and businesses turn to BTC to safeguard their purchasing power.
Moreover, he expressed skepticism regarding the US government’s strategy to utilize stablecoins to uphold US dollar dominance, arguing that stablecoins merely serve as a temporary, short-lived remedy that fails to address the fundamental problem of currency debasement.
The US dollar is on course for its most challenging year since 1973, coinciding with Bitcoin and gold reaching new all-time highs, according to investment analysts at The Kobeissi Letter.
“The USD is currently facing its worst year since 1973, with a decline of over 10% year-to-date. The USD has lost 40% of its purchasing power since 2000,” stated The Kobeissi Letter wrote.
The continuous debasement of currency implies that all asset prices will keep rising as investors seek ways to safeguard their purchasing power, the Kobeissi Letter added.
Magazine: China ridicules US crypto regulations, Telegram’s emerging dark markets: Asia Express
