Contradictory policies as the world flees fiat currency.

 ARMADAS WILL NOT SAVE THE DOLLAR

NEW MONETARY SYSTEM IS UNSTOPPABLE

Today gold is trading at $5515 per ounce and Silver is at $117, Chairman Powell when asked about it claimed it was irrelevant to the Federal Reserve. I suspect that this is the general thought of many in Washington today. The yield on the 10 year bond is 4.25 % and 4.87 on the 30 year, mostly unchanged this year, but one might expect that will be changing soon.

The dollar has dropped significantly against most major currencies, exactly as the Trump administration has been hoping. This will make imports more expensive, and the hope is it will make U.S. exports more desirable. While at one time this was possible, one must ask what U.S. exports are now competitive in the world market? It is true that Chinese exports to the U.S. dropped by 20%, but their trade surplus in 2025 reached a record high of $1.2 trillion up 5.5%. This was fueled by exports to Asia, Africa and Latin America. Their leading exports were telephones, computers, integrated circuits and cars. China is now and will be accelerating as the leading manufacturer of cars worldwide. In 2025 China produced 34 million vehicles compared to 15 million in the U.S.. China will dominate the overseas market. They now are the dominate manufacture of electric vehicles and they will soon be available, in Europe, Canada and Mexico. 

So back to the declining value of the dollar, while hoped to increase exports it will also make the U.S. bonds less desirable, a contradiction when one is hoping to keep those yields down, rising yields raise the cost of servicing the growing U.S. debt much more difficult.  At the same time expenditures in military spending are expected to rise and keeping Armadas in many parts of the world trying to enforce U.S. supremacy will only add to the cost and the retreat from U.S. bonds and the dollar. An actual major war may be the quick end of the U.S. ability to finance its debt and accelerate the flight from the dollar.

The price of gold and silver and even the rise in the U.S. stock market are all indicators of dollars being exchanged for metals or shares of companies rather than fiat dollars or unpayable debt. At this time this is mostly the policy of Central Banks and sophisticated investors, some time it will expand to many more and that will be a currency and debt crisis as never before.

The U.S. policy has been and continues to be based on the belief that its standing in the world can be sustained by threats and force rather than real sound fiscal management and a currency that is indeed as "Good as Gold"