Geopolitical risk has been relatively subdued as an investment theme over the past decade. But it’s now moving quickly to the forefront, as today’s headlines about Ukraine, Russia and NATO make clear.
There’s another, much more quiet and poorly understood threat that I want to bring to your attention today.
It was raised by macro analyst Luke Gromen at last month’s Wealthion conference, where he explained that China is exploiting the US dollar system to lock up a growing number of key global resources.
In Gromen’s words “China is conducting an LBO of the world using the Eurodollar system, backstopped by the Federal Reserve and protected by the US military”
They have basically hacked the game America forced everyone to play, and have bent the rules to their interest. As Luke says, Nobody’s a bigger fan of the US dollar system than China, except for a few politicians and CEOs getting rich of the current scheme. See the YouTube Video for the charts and graphics: https://youtu.be/as5oBtlZU1k
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