🚨 THE START OF A NEW WORLD ORDER China is closing the gap on the US… fast. And the US has 2 big problems: 1: Debt 2: China becoming #1 Yes, if the U.S. doesn’t do anything, China could become the “greatest country in the world”… Don’t believe me? Here’s how: CHINA’S EDGE (THE NUMBERS): – Energy: ~9,000 TWh vs US ~3,000 TWh (3x) – Manufacturing share: China 28% vs US 16% – Tech: 5G leader, catching up in AI – EVs: BYD > Tesla – Robotics: China ahead If you think this doesn’t matter… you don’t understand hegemony. China became the factory of the world. The U.S. has one option to save themselves, and it’s to devalue its currency… Let’s take a look at what happened 40 years ago: 1985, PLAZA ACCORD (JAPAN). US + Japan + Germany + France + UK… met in NYC… …and coordinated dollar-selling to weaken USD. Why? Because Japan’s exports were eating America alive. WHAT HAPPENED NEXT (3 YEARS): – JPY 260 → 120 (about +116%) – Japanese products got WAY more expensive overseas Japan panicked. THE BOJ DID WHAT CENTRAL BANKS ALWAYS DO: They cut rates to save growth. – 1990: 6% – 1995: 0.5% – 2000: 0.1% – 2016: -0.1% Decades of near-zero rates. This is how lost decades are manufactured. THEN THE BUBBLE / CRASH CYCLE: – Nikkei 10,000 → 38,900 – then 38,900 → ~7,000 (-82%) And the real monster showed up… CARRY TRADE. Borrow near-0% yen → buy higher-yield US assets. Trillions flowed. PLAZA ACCORD 2.0 MECHANIC: 1: USD down 2: Yuan up 3: China exports weaken 4: PBoC cuts rates 5: Carry trade shifts to cheap yuan 6: Multi-decade grind IT’S SIMPLE MATH: Right now: $1 ≈ 7 yuan If USD weakens 50%: $1 ≈ 3.5 yuan That’s a yuan that effectively doubles. And export models don’t survive that. THE EXPORT SHOCK: – China exports: ~$3.5T (~20% of GDP) – 50% hit = -$1.75T/year – Export-linked jobs: ~220M – If exports halve: ~110M at risk That’s societal pressure. China’s positioning (gold/silver, reducing Treasuries) helps at the margins… …but currencies are the real battlefield. 1985 Japan. 2026 China? Btw, I haven’t missed a major top or bottom in a decade. My next call is coming soon. Trust me, you’ll wish you followed me sooner.
