Dear Reader,
Happy Tuesday.
Today is Tuesday, February 3rd.
Overnight, I was reading about Chinese President Xi Jinping once again calling for China's currency — the yuan, or renminbi — to become a global reserve currency.
And I want to pause on that for a moment.
Because of all the predictions I've made over the years — calling the housing bubble before 2008, calling the snapback rally during COVID when the world was panicking, calling inflation when the Fed flooded the system with liquidity — I genuinely believe the most important one may have been back in 2022.
That's when we published a research report called "China Attacks the U.S. Dollar."
At the time, a lot of very smart people laughed it off.
Friends of mine at big Wall Street firms said the dollar was untouchable. Invincible. They said this kind of talk was doom-mongering.
But here's the thing: many people on Wall Street are very good traders.
Very few of them study history.
History is our secret weapon.
History tells us that rising powers always challenge established powers. Thucydides wrote about it thousands of years ago. It's the same dynamic you see in nature — the younger lion eventually challenges the one running the pride.
In that 2022 report, we laid out a few very specific predictions.
First, that China would continue dumping U.S. Treasuries and dollar-denominated assets. That has happened. China alone has sold more than $100 billion, and other countries have followed.
Second, that central banks — especially those with tense relationships with the West — would begin hoarding gold.
That didn't just happen. It exploded. Central banks have bought more gold in the last two years than in the prior two decades combined.
And third, that China and its partners would eventually unveil a rival currency — partially backed by gold — designed to weaken the dollar's dominance.
Today, Vladimir Putin has publicly unveiled what they're calling "the unit." A BRICS-linked currency structure that's part sovereign currency, part gold.
So when Xi Jinping talks about a global reserve currency now, this isn't theory anymore. It's execution.
At its core, this isn't really about gold.
It's about control — who sets the rules, who can freeze assets, and who can change the system when it no longer works for them.
When countries start designing alternatives to the dollar, gold becomes the neutral asset again — not because it's nostalgic, but because it sits outside political systems.
That's why I'm not treating today's market like just a normal gold rally.
Because this is anything but normal.
On March 31st, everything could come to a head.
And if you haven't prepared yourself, you could get wiped out.
If you haven't yet, read all the urgent details here.
The timing is critical.
Pull the camera back and look at the game theory.
In the weeks following President Trump's very aggressive posture — Greenland, trade pressure, blunt rhetoric toward allies — we've watched something subtle but important happen.
World leaders have started going to Beijing.
Canada's leadership went and struck new deals. The UK followed. Others are lining up. The message being sent is quiet, but unmistakable: the United States is no longer the only option.
And then — right on cue — China steps forward and says it wants its currency to play a global reserve role.
That's not a coincidence. That's opportunism.
This is why, back in 2022, we quoted Sam Zell, who said:
"Losing the dollar as the world's reserve currency would be worse than losing any war."
That may sound dramatic — until you think it through.
The dollar's reserve status is what allows us to finance massive deficits at lower rates. It's why foreign capital steps in during crises. It's why interest rates, mortgages, credit cards, and even healthcare costs are lower than they otherwise would be.
If that status erodes, everything becomes more expensive. Recessions become deeper. Debt becomes harder to roll. Policy mistakes become far more painful.
And I don't think most people fully appreciate how high the stakes are.
I'm not saying China is ten feet tall. It isn't. Xi Jinping is human. He makes mistakes. But he is clearly exploiting every opening that's being presented — countering moves with discipline and patience.
Like a skilled martial artist.
That should concern us.
Because losing reserve currency status wouldn't just be a financial event. It would reshape the entire economic landscape Americans live in.
So when Xi says this out loud now, we should listen.
Anyway, that's what's on my mind today.
Have a good day.
I'll see you tomorrow.
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