Trump Flew to China With 18 CEOs, Tariffs Was Never the Real Story
Watch what these people actually DO, not what they say in front of the cameras, and mostly you'll find the real story hiding there in plain sight.
When Trump landed in Beijing with Elon Musk, Tim Cook, Jensen Huang, and BlackRock's Larry Fink in his delegation, the official story given to the public was tariffs and trade, as usual. But financial commentator Andrei Jikh put out a theory that's much more interesting than that, and it's now 11 weeks old, and it's still checking out against the real data as time passes. His theory: this trip was never really about tariffs. This was about who gets to write the next global monetary order, now that the post-World War II dollar system Washington has been riding on for 80 years is clearly falling apart at its seams.
Jikh goes back to 1985 and to the Plaza Accord, the deal Washington forced onto Japan, West Germany, France, and the UK, to weaken the dollar and save its own manufacturing. It 'worked' for America, sure. But Japan's currency doubled overnight, its export economy got destroyed, and the country spent the next 30 years trying to dig itself out of what history now calls the Lost Decades. That is the real price of making a monetary deal with Washington, ask Japan. China, and this is not surprising at all, has zero intention to become the next Japan.
So instead of a direct revaluation of the yuan, this theory says, the pressure valve this time will be gold. And the fingerprints are already there for anyone who wants to look: China's currency getting stronger instead of weaker while it's supposedly "under pressure," Chinese borrowing costs staying flat while everyone else's keep climbing up, and physical gold, not oil, not weapons, becoming one of America's single biggest exports for five of the last six months. Guess where all that gold is heading to. Throughout history, whoever is the country exporting its gold is usually the one losing this game, and whoever is hoarding it is the one about to come out ahead. Washington already sold off the gold pile that made the dollar the world's reserve currency in the first place, decades ago, now it's quietly handing another one over to Beijing.
Add on top of this the Strait of Hormuz, closed since Washington's war on Iran started earlier this year, and around a fifth of the whole planet's energy flow choked with it, and Jikh's theory gets even sharper: Iran is not really the main actor in this story, Iran is the leverage. China and Russia don't need to hand Tehran a nuclear weapon to win this standoff; all they need is for the Strait to stay closed long enough until Washington's own broken supply chains and drowning debt force it to sit at the table on someone else's terms, not its own.
The public part of this emerging deal: something around $1 trillion of Chinese investment flooding into American factories, which is basically the exact same thing Japanese automakers did after 1985, except this time it's Chinese money rebuilding the American industrial base that Washington itself hollowed out over the decades. The quiet part, the part not said out loud: a coordinated re-pricing of gold that could make Washington's absurdly underpriced official reserves, still valued on the books at $42 an ounce since 1973!, suddenly worth what they're actually worth today, easing a debt burden that otherwise cannot be paid, without China having to touch the yuan-dollar exchange rate at all.
Jikh is careful, to be fair to him, to call all this a theory, not a confirmed account of what got said behind those closed doors. Fair enough, noted. But watch what happens to the dollar in the coming period, watch what happens to gold, and watch closely who ends up holding real assets versus who ends up holding a currency that's being quietly inflated out from under them while they sleep. As always, and as we've said here many times before, it's never the countries Washington sanctions and bullies who end up paying the real price of its own decline, it's the ordinary American sitting with cash in a savings account, while Washington's empire quietly rearranges the furniture on its way down.
Watch Jikh's video clip on our Telegram channel: https://t.me/syupdates/4022.
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