The Dollar Index (DXY) is recording its worst performance since 1973, falling over 10% since January.
In the escalating tensions between the United States and China, rare metals are emerging as a powerful geopolitical instrument. These critical elements, essential for advanced technologies, are being used by Beijing as an invisible weapon in a strategic game where industrial dominance and monetary influence intersect.
Beijing restricts exports to the US
China, which produces over 90% of the world’s rare earths, has officially restricted exports, targeting primarily the US military-industrial complex. According to macroeconomic analyst Luke Gromen, this move goes far beyond a mere trade decision; it challenges one of the invisible pillars of dollar supremacy.
In response, Donald Trump announced 100% tariffs on Chinese goods, highlighting the tensions in trade relations. Gromen points out that China wields far greater influence over strategic reserves than most Western estimates admit. By controlling critical supply chains, China demonstrates that it is ready to leverage its dominant position in strategic resources as a tool of indirect monetary policy.
Need for safe havens
As the dollar loses value, investors are increasingly turning to Bitcoin and gold as protective assets. Gromen argues that a monetary standard based on tangible assets is the only viable solution to the structural problems of the US economy.
The Dollar Index (DXY) is posting its worst performance since 1973, falling more than 10% since January, while the dollar has lost roughly 40% of its purchasing power since 2000. In this context, assets like Bitcoin and gold function not only as investment tools but also as safe havens against inflation and currency depreciation for both retail and institutional investors.
A new paradigm for global currency
The growing shift toward safe havens and digital currencies raises questions about the role of decentralized money in the future global economy. If the dollar continues to lose its dominant status as a reserve currency, a new financial paradigm could emerge; one based on programmed scarcity, transparency, and individual sovereignty, rather than military power or Bretton Woods agreements.
In this context, China’s control over rare earths highlights how strategic resources can be used not only for industrial dominance but also as a tool in the monetary and geopolitical chessboard.
www.bankingnews.gr
Beijing restricts exports to the US
China, which produces over 90% of the world’s rare earths, has officially restricted exports, targeting primarily the US military-industrial complex. According to macroeconomic analyst Luke Gromen, this move goes far beyond a mere trade decision; it challenges one of the invisible pillars of dollar supremacy.
In response, Donald Trump announced 100% tariffs on Chinese goods, highlighting the tensions in trade relations. Gromen points out that China wields far greater influence over strategic reserves than most Western estimates admit. By controlling critical supply chains, China demonstrates that it is ready to leverage its dominant position in strategic resources as a tool of indirect monetary policy.
Need for safe havens
As the dollar loses value, investors are increasingly turning to Bitcoin and gold as protective assets. Gromen argues that a monetary standard based on tangible assets is the only viable solution to the structural problems of the US economy.
The Dollar Index (DXY) is posting its worst performance since 1973, falling more than 10% since January, while the dollar has lost roughly 40% of its purchasing power since 2000. In this context, assets like Bitcoin and gold function not only as investment tools but also as safe havens against inflation and currency depreciation for both retail and institutional investors.
A new paradigm for global currency
The growing shift toward safe havens and digital currencies raises questions about the role of decentralized money in the future global economy. If the dollar continues to lose its dominant status as a reserve currency, a new financial paradigm could emerge; one based on programmed scarcity, transparency, and individual sovereignty, rather than military power or Bretton Woods agreements.
In this context, China’s control over rare earths highlights how strategic resources can be used not only for industrial dominance but also as a tool in the monetary and geopolitical chessboard.
www.bankingnews.gr
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