The hegemony of the US dollar is over, as evidenced by China’s recent announcement of export controls on rare earth minerals, a critical component in electronics manufacturing and military defense applications, according to analyst Luke Gromen.
China’s rare earth mineral export controls prohibit the sale of critical minerals to the US military industrial complex, which supports the value of the dollar through military force, Gromen told Marty Bent, founder of Truth For the Commoner (TFTC), on Sunday.
The export controls led US President Donald Trump to announce additional 100% tariffs on China and revealed that China “has much more influence than many Western commentators admit,” Gromen said. He added:
“If you messed with the monetary aspect of the rules-based global order, the United States would send in the army and kick you in the head. That’s a big part of why Saddam was invaded, a big part of what Gaddafi was doing.”
China produces more than 90% of the world’s rare earth minerals and rare earth magnets used in electronics manufacturing, according to Reuters. The announced restrictions on the export of rare earths will not only reshape supply chains, but the entire global monetary order, Gromen said.
Related: EU targets euro stablecoins to challenge dollar monopoly
Here’s what it means for Bitcoin and hard money assets
Gromen said a hard money standard is the only solution to America’s current economic problems.
He touted BTC as one of the hard money assets that can save the ailing economy, meaning that gold and BTC prices will continue to rise in the face of monetary inflation as people and businesses adopt BTC to protect purchasing power.
He also cast doubt on the US government’s plan to use stablecoins to protect the hegemony of the US dollar, arguing that stablecoins are just a short-term temporary solution that does not address the core problem, which is currency debasement.
The US dollar is on track for its worst year since 1973, amid Bitcoin and gold hitting new all-time highs, according to investment analysts at The Kobeissi Letter.
“The dollar is on track for its worst year since 1973, down more than 10% so far this year. The dollar has lost 40% of its purchasing power since 2000,” The Kobeissi Letter wrote.
The continued currency devaluation means that prices of all assets will continue to rise as investors rush to protect their purchasing power, Kobeissi Letter added.
Magazine: China mocks US crypto policies and new Telegram dark markets: Asia Express
