Global markets are alarmed by China's new measures to control the export of rare earth metals. According to Reuters, China, producing over 90% of the world's rare earth minerals and magnets, has introduced restrictions prohibiting their supply to the US military-industrial complex. Experts note that this decision could radically change supply chains and undermine the dominance of the US dollar.
Renowned analyst Luke Gromen stated in the Truth For the Commoner podcast with Marty Bent that the dollar's hegemony is coming to an end. According to him, China's control over rare earth minerals deprives the US of key resources for manufacturing electronics and defense equipment, undermining the military foundation of the dollar's value.
Gromen emphasized: "If anyone interferes in the financial side of the rules-based global order, the US deploys the military." The analyst cited historical examples such as the invasion of Iraq and actions against Gaddafi, highlighting that China has leverage that is underestimated in the West.
Export restrictions prompted a response from US President Donald Trump, who announced additional 100-percent tariffs on Chinese goods. Gromen noted that such measures only confirm Beijing's advantage in the trade war.
The dollar index (DXY) continues to decline. According to investment analysts The Kobeissi Letter, the dollar is experiencing its worst year since 1973, losing over 10% of its value this year and 40% of its purchasing power since 2000. Currency depreciation stimulates the growth of prices for protective assets.
Luke Gromen insists on the need to transition to a hard monetary standard to solve the economic problems of the US. He called bitcoin (BTC) one of the reliable assets capable of protecting the economy from inflation. According to the analyst, prices for gold and BTC will continue to rise as investors and companies turn to them to preserve purchasing power.
Gromen also criticized US government's plans to use stablecoins to maintain dollar hegemony, calling them a temporary solution that does not solve the problem of currency depreciation.
Continued dollar depreciation means rising prices for all assets as investors seek to protect capital. Bitcoin and gold have already reached new all-time highs, confirming their role as hedges against currency inflation. Geopolitical shifts initiated by China increase interest in decentralized assets and support the long-term growth of BTC amid global instability.