The Next Planned Black Swan: Global De-Dollarization

There's growing evidence that the Trump administration is making a move to devalue the dollar on purpose in an effort to bring about the global de-dollarization that many people have feared would come at some point in the future. In fact, the very man who popularized the idea of the black swan through his book of the same name, Nassim Taleb, recently spoke about global de-dollarization being the black saying that quote, I'm really afraid of a progressive loss of the role of the dollar. So why in the world does it seem like the Trump administration is actively pursuing this de-dollarization? I'm going to show you what it looks like they plan on doing, why they're doing it, and most importantly what you can do to profit from the chaos this would bring about. So first up, what exactly is this de-dollarization plan that looks like it has already started? Many people are well aware that the trajectory the United States government has us on, financially speaking, is completely unsustainable, and left alone, it will either result in hyperinflation or in a deflationary death spiral. Either way, extremely painful outcomes. Both would probably spell the end of the United States as we know it, but the only reason nobody's ever really tried to stop it is because that painful ending is still fairly far away in the future. But the thing is, it's not impossible to turn that ship around. The downside is that you might bring around a lot of pain right now in an effort to save yourself from that extra pain in the future. So the first step in this plan would be to make the dollar just worth less, and I need to be clear here before we move forward. I'm not making a defense of this plan. I'm also not critiquing this plan. I'm just presenting to you what it looks like they are trying to do. So step one would be devalue the dollar relative to other currencies. If you look at a chart of the US dollar index, you can see that basically from the day Trump took office, the US dollar has declined against its basket of other currencies. In the past, if you wanted to devalue the US dollar, you could simply try and get the Federal Reserve to start up quantitative easing, start printing a bunch of money, injecting that into the economy. You've got more money now relative to goods and services. You'll push interest rates lower. The dollar becomes worth less versus other currencies. But you can't do that once inflation has escaped the bottle, just like you can't put toothpaste back in the tube, because any significant increase to the money supply would cause inflation to be reignited. And that's something you don't want to happen when you're staring down the barrel of a debt spiral. And so it looks like the method that Trump has chosen in order to try and devalue the dollar is actually tariffs. And the reason why this happens is essentially that the dollar is just not as useful for global trade as maybe other currencies are. And there is more uncertainty around holding those US dollars. In addition to the fact that it now takes more dollars to buy stuff from other countries. So the first step is to devalue the dollar using tariffs. The second step to this plan is to reduce government spending, which they are actively pursuing with Doge right now. And I'll show you why this connects into the plan in just a moment. But first, I do have an important announcement about a free event that I have coming up. It's very important regarding what is happening in the markets and in the world right now. It is no secret that we are currently in and heading into some of the craziest and most volatile times in history. We have trade wars, market crashes, market meltups, extreme volatility in crypto markets, commercial real estate crashes, housing market reverse crashes, and the geopolitical situation around the world is changing literally by the day. And so that's why on March 27th at 7 p.m. Eastern Time, which if you notice is just a few days before Trump's next round of tariffs go live. I'm going to be hosting a free live zoom call to teach you something I call the asymmetric trade is a special trading strategy that can help you profit as volatility soars. In fact, over the past year and a half, I have personally used this strategy to take home returns in my own account as high as 279 percent, 733 percent and even 1299 percent in a matter of months. As all this volatility has been playing out and even though massive thousand percent gains are the exception and they are not the rule, I want to show you why I think the next couple of months could hand out some of the biggest asymmetric trades we've seen yet. This sounds like something you're interested. Simply click on the link in the description below and mark this date on your calendars. Thursday, March 27th, 7 p.m. Eastern Time. Attendance is completely free, but the seats on the call are limited. So sign up now and don't forget to show up early. I look forward to seeing you there. OK, so step one was devalue the dollar using tariffs. Step two is decrease government spending. It's no secret that government spending is the primary driver of the growth in the money supply because all dollars are lent into existence and the U.S. government runs a massive budget deficit every single year. That means every single year the amount of money that the U.S. government borrows is And so if the U.S. government can slash its spending enough to bring the deficit near zero, in other words, the only money they're spending is the amount of money that they are taking in taxes. That means that the U.S. government's contribution to the money supply growth would be near zero. In other words, the money supply would only grow when private lending grows. The reason why this would be advantageous is because private lending and private spending is a lot more responsive to economic signals. In fact, the U.S. government usually does the opposite. When the economy is struggling, they borrow and spend more, whereas free economic actors respond to economic signals properly, which means, hey, if there's hard times, I need to save. I shouldn't borrow more and spend more. And so if you remove the government from the equation of the growth and contraction of the money supply, then the money supply will only grow and contract when private individuals on net are making real economic decisions to grow or contract the money supply. In other words, to borrow, spend, invest, save. Now, if this by itself happened in isolation, many people would consider it deflationary or at the very least disinflationary because the government would stop inflating the money supply in perpetuity consistently every single year. In fact, at that point, the money supply sometimes would grow and sometimes would contract. It would be a beautiful thing. But if the money supply does contract, then you have a lot of people with a lot of money and a lot of power get very upset because it makes them feel more poor. And so if you can convince the rest of the world to slightly de-dollarize at the same time, you can use that to somewhat prop up markets. OK, so so far we have devalued the dollar with tariffs paired with shrinking government spending. Now, this third piece, you might be shocked that it actually fits in, but I promise I'll show you how in a moment. This is strategic asset reserves. We've heard a ton of talk about and by the time you're watching this, maybe it's already implemented about a crypto reserve, about a strategic Bitcoin reserve, about a stockpile of gold. They've been very, very interested in looking at how much gold we have actually doing an audit of that. And we've even seen massive shipments of gold being drained out of the Bank of England and coming back to the United States. Now, with the crypto reserve, it looks like and again, by the time you watch this, the news is changing on this pretty much daily. So this might be updated by the time you see this. But with the crypto reserve, it looks like they're looking at utilizing only cryptocurrency that they confiscate from criminals and they will just hold that instead of selling it with Bitcoin specifically. It looks like they're looking at actively purchasing Bitcoin and creating a strategic Bitcoin reserve that they're actively stockpiling with gold. It looks like number one, we got to make sure the gold is there. Number two, probably start buying more gold as well. So again, all three of these pieces of this plan so far are currently happening. We've got tariffs. We've got a devaluation slightly of the U.S. dollar. We have lower government spending. We have the beginnings of strategic asset reserves and a sovereign wealth fund. So what does the sovereign wealth fund and that strategic asset stockpile? What does that have to do with this overall plan for global de-dollarization? Well, that asset pile means that the U.S. government can start borrowing against it. Now, this might sound ridiculous, but if you look at the mechanics of what would be happening there, that's essentially what the U.S. government did with gold during the Bretton Woods agreement. The U.S. government borrowed from institutions and countries collateralized by gold. The U.S. government promised to pay back dollars. But if those institutions or those nations wanted the gold instead, they could claim the gold. And that is what borrowing against Bitcoin or borrowing against gold would do today. The gold or the Bitcoin would be held as collateral and would either be paid out on request or it would be structured to be paid out as the bond matures. This idea is not new. It has actually been floated by many on Trump's team to issue gold bonds or Bitcoin bonds or both. This would have a couple of very big consequences. Number one, it would automatically restrict the amount of printing the government could do in the future because the price of gold responds by moving higher in anticipation of currency devaluation. In other words, if I think my paper is not going to be worth as much metal in the future, I'm going to go get my metal now. And that's exactly why gold responds like this in anticipation of devaluation. And if that happens to too large of an extent, it would force the government to default. So by issuing bonds with gold or Bitcoin as collateral, it would automatically put an anchor on government spending. Now, it is true that both 1934 and 1971 represented years in which the United States defaulted on its bonds, which were gold bonds first to US citizens and then to the rest of the world. And the government could default again. But if the United States maintains proven reserves of gold or Bitcoin, which is a little bit easier to do today with technology, there would be a ton of money willing to be lent to the US government at much lower interest rates. Just ask yourself, would you be willing to lend to the US government at 1% if you were getting paid back in gold or Bitcoin? Or would you be willing to lend to them at 2% or 3% if there was that collateral just in case? You may think that's preposterous, but there are trillions of dollars that are being lent to the US government with no collateral whatsoever. And that currently at a rate of a little over 4%. And so by adding in collateral that will increase in value with financial irresponsibility, there would be a lot more money available at much lower rates than the government is Which would mean the US government could roll over and refinance much of the national debt at a much lower price and stop the interest rate spiral that they're facing right now. Right now, the US government is paying about $1.2 trillion per year just in interest on the debt. And that is growing every day because old cheap debt is being rolled over to new expensive debt. Gold bonds or Bitcoin bonds or both would allow the US government to do the opposite. Not only would it allow them to borrow at lower rates, but it would also put a leash on them about how much they could borrow in the future. Now in case it's not apparent, this would partially re-monetize gold and monetize Bitcoin, effectively dethroning the dollar as the global reserve currency. And it would place gold and or Bitcoin at the bottom layer of the global financial system yet again. Which would mean other countries would also be incentivized to do the same thing. This would restore faith in the fiscal responsibility of the US government. And it would mean that there wouldn't be a mass dumping of US treasuries like there would be in other cases of mass global de-dollarization. And most importantly, the United States under a new administration couldn't just reverse course again and go back to printing and borrowing and spending like crazy. Because then a disorderly global de-dollarization would be very easy to do because the rest of the world had already partially de-dollarized and built up stores of gold and or Bitcoin. And other currencies as well. In other words, right now, the pain for other nations to dump treasuries, it's a lot. But if this plan could be implemented, then the pain of dumping treasuries would no longer be there. Which means that future administrations would also have a leash on borrowing, printing, and spending. I need to reiterate that none of this is me saying it's a great plan, it's a good plan, makes sense, or that it's a terrible plan. I'm just explaining to you what it looks like the current administration may be trying to do. So what are some things that you can do to profit from this? Well, I hope obviously the number one thing that should be apparent is that gold and Bitcoin will be vital to own during this transition period. And that's good news because even if none of this is happening and we just continue seeing more spending and more printing and higher deficits and higher debt, gold and Bitcoin will still be vital to own. Now those are definitely not the only assets that you should own. You should have a portfolio that is fairly well diversified between a few uncorrelated asset classes. Which means that you should have stocks even though they will continue to be very volatile over the coming years. Although if this plays out, the economic growth that you would see from a smaller U.S. government would be extremely bullish for the economy and therefore markets. Cash on the other hand, in either case, is most likely going to be an extreme liability to hold on to. Cash does very well during rapid deflation, but political incentives are there to prevent deflation at all costs. This means in the most likely scenarios, cash will be a liability to hold on to, especially considering the fact that the interest rate that you can get paid on cash will be moving down. This is as a result of the tariffs and the lower dollar and the inflation that will accompany it. But most importantly that I think many people are going to miss out on is the rotation of wealth. Industries that have partly or fully been dependent on U.S. government spending are going to see significant decline over the coming years. Education and universities, healthcare and medicine, any company that has anything to do with producing anything for the military, the entire tax industry and CPAs. Real estate in the Washington, D.C. area, non-profit work, all of these areas and plenty more are going to have extremely rough times ahead because they have been on the receiving end of a bloated, parasitical government and the money faucets are now being shut off. On the other hand, you have unbelievable growth ahead for the sectors where that wealth is going to rotate into, especially ones that artificial restrictions have been placed on and that will be removed. You have agency shrinkage underneath the executive branch and widespread deregulation. It means you allow individuals and businesses to freely transact with each other yet again and that causes prosperity. Whether it's in energy like oil or natural gas or nuclear, or whether that's in manufacturing, real materials, small caps, value, even tech. There will be individual companies and entire sectors that will see insane amounts of growth as a result of that tumor on the back of the U.S. economy being removed. And of course, if you are interested in learning how I pick out the plays that have the largest potential to make you the most money, don't forget, sign up for my free asymmetric trading masterclass. The link is in the description below. It's completely free. It's on March 27th at 7 p.m. Eastern Time. Seats are limited, so sign up now. As always, thanks so much for watching. Have a great day.