Silver Rips up 5.4%. Gold soars up $2.75%
People are figuring out how to Short the USA via precious metals. US has no tools left.
It was a threat that reverberated across the global financial system: President Donald Trump, in a flurry of late-night posts and campaign trail bombast, declared that any BRICS nation daring to challenge the supremacy of the U.S. dollar would face a punishing 100% tariff on all exports to the United States.
The message was clear—defy the dollar, and you’ll be locked out of the world’s largest consumer market. But what does this ultimatum really reveal? Is it a show of strength, or is it, in fact, a tacit admission that the U.S. is losing its grip on the very system it built?
Let’s dig deeper.
Why Now? Why BRICS?
For decades, the dollar has been the backbone of global trade, a privilege cemented by the Bretton Woods agreement and maintained through America’s unmatched economic and military might. But today, the world looks very different.
The BRICS bloc—Brazil, Russia, India, China, South Africa, and their recent additions—now accounts for nearly a quarter of global GDP and over 16% of world trade. These nations are no longer content to play by Washington’s rules. They’re building their own development banks, experimenting with alternative payment systems, and—most provocatively—talking openly about settling trade in local currencies or even launching a BRICS currency.
So, what’s driving Trump’s panic button approach? Is it really about protecting American workers, or is it about something more existential: the fear that the dollar’s reign is ending?
Is the Dollar’s Throne Really in Jeopardy?
Trump’s threats are not just about tariffs—they’re about power. The dollar’s dominance gives the U.S. unparalleled leverage: the ability to impose sanctions, dictate terms, and finance deficits at ultra-low cost. But that power is only as strong as the world’s willingness to keep using the dollar. If BRICS succeeds in building a credible alternative, the consequences for America could be seismic.
But here’s the twist: most experts say the BRICS bloc, for all its bluster, is nowhere near launching a viable rival currency. Internal divisions, economic disparities, and logistical hurdles have stalled the project. The dollar, for now, remains king.
So why the overreaction? Why threaten economic mutually assured destruction over a threat that’s more smoke than fire?
What’s Trump Really Admitting?
Let’s call it what it is: a sign of weakness. Trump’s ultimatum is less a show of confidence and more an admission that the U.S. can no longer take dollar supremacy for granted. In the past, Washington would have dismissed such talk as fantasy. Now, it’s responding with economic warfare. Why? Because the ground is shifting. The weaponization of the dollar—through sanctions against Russia, Iran, and others—has pushed rivals to accelerate their search for alternatives. China is promoting the yuan, Russia is settling trade in rubles, and even U.S. allies are hedging their bets.
Is this the beginning of the end for the dollar’s “exorbitant privilege”? Or is it a last-ditch effort to freeze the world in a system that’s already cracking?
Who Really Gets Hurt?
Let’s follow the money. If Trump makes good on his threat, the pain won’t be limited to BRICS exporters. U.S. GDP would shrink by an estimated $432 billion, inflation would rise, and American manufacturers—reliant on BRICS components—would face soaring costs. Consumers would pay more for everything from electronics to pharmaceuticals. Meanwhile, BRICS nations, especially China, would suffer export losses, but they’d also have a new incentive to double down on de-dollarization and build alternative trade networks.
Does Trump’s tariff gambit actually protect American power, or does it accelerate its decline?
Is the U.S. Isolating Itself?
Trump’s approach isn’t just risky—it’s self-defeating. By wielding tariffs and threats as a blunt instrument, the U.S. risks pushing not just adversaries but also allies into the arms of alternative systems. The dollar’s dominance has always depended on trust, openness, and the willingness of others to hold and use it. But trust is a two-way street. If the U.S. becomes an unreliable partner, the world will look elsewhere.
Is this how a superpower behaves when it’s confident in its future? Or is it the desperate move of a nation watching its influence wane?
The Bottom Line
Trump’s 100% tariff threat is not just a policy—it’s a confession. It’s an admission that the old playbook no longer works, that the world is moving on, and that America’s economic arsenal is running out of ammunition. The East vs. West struggle for financial supremacy is no longer a cold war—it’s an open contest, and the U.S. is playing defense.
The real question: Is Washington ready to adapt, or is it doomed to lash out as its era of unchallenged dominance slips away? The answer will shape the global order for decades to come.
What else is going on?
Gold has reemerged as the only asset that commands universal trust among nations, a neutral store of value immune to the whims of any single government or central bank. In a world where the U.S. dollar’s dominance is openly challenged and the petrodollar system unravels, gold now buys more oil than the dollar ever could—a seismic shift that has upended decades of energy and currency politics. No longer must oil exporters or importers worry about being clubbed into submission by U.S. military might or economic sanctions simply for refusing to transact in dollars. With gold as the new settlement medium, the fear of being the next target for “dollar enforcement” has evaporated, ushering in a new era where trade flows free from geopolitical coercion.
The game is up for the U.S. dollar. Central banks across the globe are accelerating their gold purchases, with reserves hitting multi-decade highs as gold is remonetized and reclassified as a Tier 1 asset under Basel III rules. Meanwhile, the BRICS bloc has positioned gold at the heart of its financial strategy, with the UAE now surpassing London as the world’s second-largest gold hub. In this new order, gold’s price has soared, reflecting its renewed role as the ultimate settlement asset and its ability to buy real goods—especially oil—on terms far superior to what the dollar can now command.
Rumors swirl that the U.S. may attempt to claw back credibility by launching a gold-backed Treasury instrument on July 4, 2026—a last-ditch move to restore faith in the dollar by tying it to the very asset the world already trusts. But by then, it will be too late. The world will have moved on, and the dollar’s era of unchallenged supremacy will be over, replaced by a system where gold—not the greenback—anchors global trade and finance
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