the trade war isn't just about tariffs anymore it's about control of global trade and it's exposing China's second fatal mistake one that could cost them global power for the next 100 years now they already blew it once in 1873 when the world shifted monetary systems and China chose wrong losing its leadership on the global stage now while headlines scream about tariffs and trade deals behind the scenes a new monetary revolution is underway i'm Mark Moss i've spent two decades tracking money markets and the geopolitical shifts that shape empires my video from four years ago called out China's big mistake and now it's time for an update so in this video I'm going to show you what China missed what the US just did and why this shift will redefine global power for the next century because this isn't just a trade war it's a monetary war and Trump's trade offensive is the spark that's magnifying the consequences now almost no one is connecting these dots but once you see it you can't unsee it so let's go all right so we're getting right into this and we're talking about on the surface it seems like a trade war now a couple days ago at the time of this recording we had what Trump was calling Liberation Day which is we're going to stop letting the world take advantage of the United States were going to put retaliatory or even tariffs on each other to even out the playing field and there was a big announcement trump had this big board showing all the different tariff rates against each of these individual countries now since that time the world has gone into a tail spin we've seen the S&P 500 start to crater down as you can see this gap in the market right here showing the big big step down the NASDAQ doing the same thing with these big gaps as it's dropping down and so the world is sort of in a panic but I think they're watching sort of the wrong thing now people say that Trump is playing 40 chess so it's not just the tariffs there's 40 chess well I won't lay out the entire playbook although I'm working on that if you want a video on that let me know but let's talk about a big piece of this now since then there's already been a lot of movement so a lot of people say "What's the art of the deal?" So he throws out this as an anchor and then he negotiates back so 50% tariffs on you okay we'll we'll take 10 or whatever so he use these as negotiating tactics and it seems to be working as a matter of fact at the time of this recording a lot of the world is already coming around and wanting to strike deals we've seen India announced that they're going to even the playing field argentina Vietnam lots of countries at the time of this recording as of today as of this morning even the EU says that they will probably cave which seem like the EU is going to hold out so all of these countries are coming around as a matter of fact Trump said that over 50 nations have agreed to come in and work this out but China seems to be wanting to fight back as a matter of fact China announced retaliatory tariffs against the United States and they will probably be the last one to come to the table why is that well we're going to break that down but we have to understand this is not just a trade war this is not just about goods or prices or jobs this is about monetary policy and this is where the two big dogs want to want to battle this out the monetary policy okay so if you watch my videos for a long time I used to do this where let's go back in time let's go back in history and see what the historical precedent is for what we're witnessing right now so let's go jump back about 150 years by the way if you've been watching my videos long enough to remember this drop me in the comments let me know how long you've been watching and supporting this channel okay let's go back to China's first fatal mistake now we're going back to about 1873 and this is when the whole world monetary system shifted as well you see at the time the world had uh what was known as by metallism we had gold and we had silver okay and what happened is the world started changing the world order started changing and the entire world or most of the developed world um that is the United States and countries in Europe decided that they were going to go to a gold standard the problem is for countries like China is they had a bunch of silver and they didn't want to go on to a gold standard because they had silver so they were going to stay on a silver standard and so we can see uh some of the headlines from uh this era say like how the silver standard wrecked China's economy so by deciding to stay in the old monetary order when the new monetary order was shifted it wrecked their economy and it didn't just wreck their economy as a matter of fact we can see that it did a lot more than that so here we have the year 1873 marked a turning point in monetary history this is when the world shifted so the German empire uh went from silver to a gold mark in September the Paris mint limited silver coinage ended the double gold gold silver standard so they went to gold earlier that year the US Congress legislated phasing out of the temporary paper currency and replaced it with gold dollar united Kingdom already on the gold by the end of the 1870s silver which until 1873 that's the turning point had been on an equal footing with gold became a secondary currency metal used by mostly periphery countries so leading countries made the move if you want to be a third rate country periphery nation you stay with that the monetary impact was stark between 1873 and the end of the decade silver depreciated by some 20% and so as uh China decided not to go to gold and decided to hang on to silver it continued to lose its purchasing power now it lost 20% ended up losing 30% so the nation China saw their their their national purchasing power drop by 30% it's a massive a massive drop in standard of living we can see by 1933 uh in November of that year the Chinese government threw in the towel they nationalized what silver was left and they put the country on a paper currency standard instead so they decided finally to capitulate finally okay we lost the world went to gold we didn't we stayed on silver okay we lost 30% of our purchasing power okay let's throw in the towel and we'll eventually capitulate and we'll move over after they lost 30% but it wasn't just 30% they lost they lost their position as one of the global dominant world leaders they became a periphereral nation as it said now that was their first fatal mistake now they've spent the last h 100red years or longer trying to catch up trying to fix or write the wrongs of that past so for the last h 100red years they've been trying to get back to the gold standard they've been trying to get as much gold as they possibly could and they've been adding more gold during this recent time than any other nation out there as a matter of fact we can see that China has been rumored to be laying the foundation for the next world gold standard system this was written back in 2016 so they appear to be laying the foundation to bring the world back to the gold standard like it used to be uh for those that don't understand President Richard Nixon 1971 cut the ties to the gold standard so they're saying bring it back to that now we can see that China has been buying more and more gold as the trade war drags on now this is 2019 trade war drags on 2019 why is that well in Trump's first term is when the tariffs really started that's when this trade war started between the US and China two dominant superpowers and so this has been going on for a long time they've been buying more and more gold as this trade war drags on now how much gold do they have well we can see that number one we don't really know but let's do a little bit of math we know that the US gold holdings officially officially the record shows which by the way I don't know if it's been audited uh shows the US owns about 8,100 8,133 tons of gold in Fort Knox we want to see that audited but China's officially declared holdings this is where it gets sticky officially holdings is 1,948 tons make up just 3% of his 3.2 two trillion in for exchange holdings but the real number is much larger than that china's been the world's largest gold producer since 2007 the largest producer this past decade it has produced about 15% of all the gold miners in the world last year it produced 380 tons that's 20% more than the world's second largest producer which is Australia so not only is it the largest producer but it's also one of the largest buyers but I want you to understand what its policy was is key for understanding this we can see that China has roughly mined about 6,500 tons mine 6,500 tons now the key behind this is that the gold it mines it keeps exporting of domestic mine production is not allowed so basically China says hey come mine as much gold as you want in China but you have to sell it to us you can't export that gold so all of this being produced in China is being bought by China chinese mining companies have also been buying assets abroad so not only have they been mining in China selling to China but they've also been buying assets abroad africa South America Asia etc the world's biggest producer China is the world's biggest importer so not only are they the largest producer and they buy it all they're also the biggest buyer at the same time over 6,000 tons has entered the country since 2000 of that cumulative gold production since 2000 you get to a figure of about 13,200 tons this is like back of the napkin math a lot of it's like hidden uh we'll skip ahead here we can see that a lot of it doesn't go through the main channels since 2008 roughly 20,000 tons have been withdrawn from the Shanghai Gold Exchange so if we add all this up the rumors are that China could own somewhere between 20 to 30,000 tons of gold china's hoarding gold to challenge the US dollar again this has been going on for a long time this is 2014 so we have the two big dogs coming to the table and the US now is trying to force not just tariffs on them not just trade tariffs but this is a monetary shift to monetary restructuring now rumors also are that maybe China is paving the way for a goldbacked yuan and so they might actually want to back their currency with gold which then means they sort of in the dollar dominance other nations would rather buy a goldback currency like a Chinese yuan now I've done other videos on this if you want to see that we'll link to it down below if you want to understand more about that but that's not the key point that we want to dig into right now okay what we really want to understand is that the last time this happened as the world shifted to a new monetary standard China decided to stick with the old standard and they lost their position in the world now we're witnessing a new monetary evolution while China is still trying to build the previous one what am I talking about well of course Bitcoin has been the best performing asset in the world it is the most scarce digital asset in the world and right now we have people corporations governments all jumping into it now I would talk about this as an evolution monetary evolution the reason why if you look back through thousands of years of history of monetary history you understand that it's an evolutionary process so we've had feathers rocks sea shells all types of things become money eventually gold emerged as the best form of money but it's an evolutionary process it first starts as a collectible like "Oh look at this cool rock or this cool feather cool seashell look at this cool baseball card or whatever it is." Now some not most collectibles don't but some become a store of value so the wealthy store wealth in collectibles so for example not all baseball cards but some baseball cards are worth a lot of money not every painting but some paintings some old cars so some collectibles do become a store of value then some things could become a medium of exchange that we use it for exchanges for buying goods and services but only if it has the right attributes which are portable durable divisible recognizable fungeible things like that so the Mona Lisa is not divisible a cow is divisible but it's not funible one like a ribeye is not the same as a liver um a banana would be no good because it's not durable but gold fit all of those things however it's not very portable right it's very hard to move large amounts of gold so now we understand that Bitcoin was a collectible oh it's cool magic internet money today we know that the United States government calls it a store of value and is putting on the strategic reserve but we also know that it has better attributes that could allow it to become a mean of exchange so we're seeing it go through this monetary evolution and we understand that in these technology cycles we have a 50-year cycle as they reach adoption and there's two distinct phases first one was the retail phase 2010 to 2020 we're past that 2020 to 2030 is what we call the institutional phase where Wall Street comes in the corporations come in the sovereigns come in and we're clearly in that phase now we don't know all the implications because we're still in the evolutionary phase but this is where China's second fatal mistake comes in now you see China is uh they have a scarcity mindset because it's a communist country so they have to protect they're a protectionist they can't allow their people to look on the internet to see what other people are doing in other parts of the world they can't allow other technologies come in they have to have this scarcity mindset so when people start innovating with different things they can miss out on that they want to stop it before it takes off and so they miss the innovation so for example they had a lot of Bitcoin in China but they banned it over and over and over matter of fact China banned Bitcoin 13 times since 2012 didn't work the first time the second time third time well let's try 13 times uh and that's because it can't be banned it can't be stopped but what they could do and this is where really the second fatal mistake really kicked in is that China had over 60% of the Bitcoin network mining hash power in their country they had control of it bitcoin miners China's cryptocurrency crackdown pushes companies overseas so they decided to get all of the mining out of China now what do they do with gold mining well they're the largest producer and the largest buyer so with gold mining come mine all you want but sell it to us they had all the Bitcoin mining happening in China they could have done the same same policy hey you can mine it here but you have to sell it to us but instead they pushed it all out now where did it go china's kicking out more than half the world's Bitcoin miners about 60% and a whole lot of them could be headed to Texas so the United States became the main beneficiary of this and that's why you hear Donald Trump saying now we want all the Bitcoin uh that's created to be created in America he has claimed it to be a strategic initiative for the US to be the world's dominant leader in Bitcoin create it here store it here and the US has moved first partly because we're not a communist country we can have innovation now we have some of the largest uh most influential people in the world or in the United States and the world like Larry Frink from BlackRock who is the largest asset manager in the world who has now said that Bitcoin is an asset bitcoin is a store of value asset we have Scottent the new Treasury Secretary was just on um Tucker the other day and he said it is is a store of value bitcoin is a store of value we have Howard Lutnik he is the uh secretary of commerce for the new Trump administration and uh before I tell you what he said let's just hear from him directly uh multi-billionaire uh Wall Street fund manager and now the secretary of commerce let's hear directly from him i guess the easiest way to get a clear view of where Bitcoin is going over the next 5 years is take a look at the last five right the last five Bitcoin has been an outsider in the finance business but coming closer and closer and closer right now there's an ETF just starting to go a little bit mainstream maybe you will see all the traditional financial service companies the big banks the big brokerage companies they're all going to go head first into Bitcoin pond that's what's going to happen and it's coming and when that happens you're going to see Bitcoin move in a very very strong positive direction so that's why I'm a fan of Bitcoin it's going to go much higher it always bounces around like any other financial asset but ultimately over the next 5 years as it gets invited into this party up we go so you can hear he said that every institution wants to get in and this will just push the price up up and even the Trump family his son Eric Trump was just on TV saying how they're pivoting from real estate which the Trump name is synonymous with real estate and they're pivoting into Bitcoin now this is all happening right now and it's not just all of those individuals I mentioned like I said this is a new global asset because now the United States with the dominant global position as the US dollar is the reserve currency of the world has made it a strategic reserve they've created a thesis where they said again Trump wants it all made here he wants the US to lead in this and they're building a strategic reserve of Bitcoin now back to China they had the dominance they had the Bitcoin there they had 60% of the hash power in their country but then they kicked it all out so the US is now home to a majority of the Bitcoin hash rate now the US is home to public and private reserves of Bitcoin the United States has the dominant upper hand while China is still trying to compete for the old monetary system of gold the US and the world is moving into something different and so really if we look at this situation it's not just about trade it's not just about tariffs it's monetary wars the tariffs are a distraction for what's really going on the real war is about the monetary system because whoever controls the money controls the world now China keeps banning innovation they keep stifling it they keep pushing it out and so they're not able to take advantage of things like this it's like a it's a real conundrum that countries find themselves in um if we allow the people to be free and have access to the internet and ideas and information they may reject our authoritarian views but if we don't allow them to have that information then we stifle our own growth and they're trying to play that line if you will but they keep banning innovation but the US is now embracing innovation now the United States diverted under the Biden administration it was overly tough on Bitcoin and cryptocurrencies in general the Trump administration has gone completely the other way now we see Bitcoin adoption and the global reserve is positioning for it specifically just like gold before Breton Woods now some of you might say "Yeah but uh can't China just buy it later?" So what if the US moves first china can just buy it later they certainly can just like China eventually capitulated and bought gold they certainly can but China lost its position in the world because it waited until it lost 30% of its wealth before doing that that's where game theory and mover advantage comes in now what does all this mean well what this means is that what's going on right now with the global monetary system is really shaping the next century the next hundred years of power just like we saw in the first fatal mistake we're seeing the same thing we're we're living through monetary history this is exciting for me because you know how much I love history and so we're literally living through a period that history books will be talking about and we get to live through it we get to witness it in real time owning Bitcoin is frontr running all of these other nations like China they're going to come around eventually we like to say that everyone buys Bitcoin at the price they deserve but you and I get a chance to frontr run this right now and we're going to see wealth consolidate before the world catches on because everyone will come around eventually a quote that I say often is that the future is not evenly distributed so we have access to information today that the rest of the world is going to catch up to eventually but it gives all of us a way to consolidate and build our wealth before the world catches on don't be like China don't make another fatal mistake with your own portfolio instead be a first mover like Bitcoin now if you'd like to know where I think Bitcoin is headed in 2030 2040 and 2050 you might want to watch this video right here otherwise thumbs up if you like it thumbs down if you don't leave me a comment let me know why and that's what I got to your success i'm out