China's decision to restrict rare earth mineral exports is being seen by analyst Luke Gromen as a direct blow to the U.S. dollar's long-standing dominance.
These minerals, essential for electronics and military technology, underpin much of America's industrial and defense power. By limiting supply, Beijing is striking at a pillar of U.S. influence -- the link between military strength and monetary authority.
"The dollar's dominance rests as much on force as finance," Gromen told the Truth For the Commoner podcast. "China's move shows it can attack that foundation without firing a shot."
Washington responded with sweeping 100% tariffs on Chinese goods, but the move, Gromen said, only highlights how dependent the U.S. has become on Chinese-controlled supply chains. With China producing more than 90% of the world's rare earths, the export curbs expose how limited America's leverage has become.
For decades, challenges to the dollar-centric order were often met with U.S. intervention abroad, Gromen noted, citing Iraq and Libya as examples. "This time, the pushback comes from a rival the U.S. can't intimidate," he said.
As confidence in fiat money weakens, investors are turning to scarce, non-manipulable assets like gold and Bitcoin. Gromen argues these are the only "hard money" options that can withstand systemic currency debasement. Stablecoins, by contrast, merely mirror the dollar's fragility, he added.
The trend is already showing in markets. The U.S. Dollar Index is heading for its worst year since 1973, down over 10% and nearly 40% weaker in purchasing power since 2000, according to The Kobeissi Letter. Bitcoin and gold have both surged to new highs as investors seek protection from inflation.
"The post-war financial system is running out of time," Gromen said. "The next era will belong to assets no government can print.