Here are the 7 most important pieces to understand the seismic shift happening now in global money.
#1 - The US Dollar is losing its status as the world's reserve currency.
China wants the crown - but another challenger has already won. And nobody realizes it yet. #Bitcoin
#2 - In early 2022, the US froze Russia's foreign currency reserves & cut them off from the SWIFT banking system.
This was like dropping a nuke on the monetary world order.
The world as it has been since 1971 is over. Have you noticed everything getting weird?
#3 - The rise of the BRICS nations.
Originally an informal acronym of emerging economies (Brazil, Russia, India, China, South Africa)...
...the group has become a formal coalition of countries sick of taking directions from the post-WW2 world order dominated by the USA.
#4 - For years, the economic strength of BRICS has grown relative to the G7.
Recently, the BRICS nations surpassed the G7 nations in GDP.
...But the BRICS nations still needed a reason to break free from the status quo.
The G7 freezing Russia's FX reserves was it.
#5 - In 2020, Ray Dalio released "The Changing World Order"
In it, he argues that superpowers always succumb to death by too much cheap, easy debt. And a new superpower emerges.
The implication is we are living in the decline of American power and the rise of China.
#6 - For the last 40 years, commodities have underperformed financial assets (stocks, RE).
This was caused by interest rates compressing, fueled by huge international demand for the stability and low-risk returns of US Treasuries.
That era is over. Nobody is buying Treasuries.
#7 - Commodities are back. In a multipolar world (USA/G7 + China/BRICS), "hard money" is king.
This used to mean gold, now it means gold + #Bitcoin
Depending on Bitcoin's share of growth in the "hard money" category, it could be the major winner this decade.
And #Bitcoin is the key to understanding why Ray Dalio is wrong.
China's currency will not be the world's reserve currency.
Find out why in this month's Bitcoin & Macro update: jessemyers.substack.com/p/64-april-202…
Thread and article informed by the excellent analysis of: @LukeGromen @LynAldenContact @FossGregfoss @LawrenceLepard @BitcoinIsSaving @MartyBent @ODELL @stephanlivera @VailshireCap
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