So, here’s the thing. The U.S. just reported a CPI (consumer price index) drop of -0.1%. That’s not inflation anymore, it’s deflation. And that’s kind of a big deal.
Currencies are supposed to inflate a bit over time—because if they don’t, people might start treating cash itself as a valuable asset like gold. That’s why governments intentionally spend more than they earn—to keep the economy growing and inflation ticking along. Weird, right? But it makes sense.
Now, over in China, they’re doing their usual move—dropping announcements quietly on the weekend. There’s talk about tariffs going up to 150%, but honestly, that feels like theater. If the U.S. keeps pushing like that, it could lead to China getting booted from the global financial system (like Russia was with SWIFT). That would be a financial earthquake.
Meanwhile, gold just hit an all-time high—$3,165 per ounce, while Bitcoin is kinda lagging. That tells you something. Gold tends to spike during wars—especially currency wars, where countries compete to make their currencies cheaper so their exports get a boost.
Right now, that’s what we’re seeing. Everyone’s trying to devalue their money. People who understand this are rushing to hedge against inflation—with gold, with dollars (yep, because dollars still act as a hedge too), and ideally with Bitcoin… but Bitcoin hasn’t moved yet. Why? Because Bitcoin pops off more when the system itself feels like it’s breaking. We’re not quite there—yet.
If China ever gets cut from SWIFT, like Russia did, that would be the signal. And honestly—if you just look around—nearly everything is made in China. From your phone to your blanket to your clothes. If China gets isolated, that’s gonna hurt everyone, not just them.
In the U.S., Congress just voted to cut taxes and raise the debt ceiling again. So the U.S. solution to not having money? Borrow more. Then lower the amount of tax they collect. That’s a one-two punch for inflation: more debt + fewer taxes = more printed money.
And if Trump actually follows through with delisting Chinese companies from U.S. exchanges, you can bet China will retaliate—probably going after American giants like Apple and Tesla. That’s not a trade war anymore; that’s a full-on economic war.
Remember: markets love open systems. When Baghdad was a free trade hub back in the day, it was booming. But when you start closing doors and making things exclusive, money leaves. It doesn’t care about race, nationality, or politics—it just wants to feel safe.
Oh, and tonight? We’ve got the Producer Price Index (PPI) coming. That’s inflation measured from the producer’s side. The Fed actually watches PPI more closely than CPI. If PPI goes up more than expected, the dollar usually strengthens. But if it doesn’t? And if the dollar drops despite a high PPI, that could mean companies are raising prices not because of demand, but because they’re getting squeezed.
And that opens the door for the government to step in with stimulus—pump more money in, raise government salaries, cut taxes—anything to keep the public spending. But again, more money floating around = more inflation. So we’ll see gold, silver, property, and yes—Bitcoin—start to rise as people look for protection.
Also, China’s e-commerce giant JD just launched a 200 billion yuan special fund to boost domestic sales of export goods. That’s a massive economic ripple—basically flooding the market with money again. And yep, that’s inflationary too.
Here’s a fun fact: China’s banks have $63 trillion in assets. The U.S.? Only $24 trillion. That’s why China doesn’t flinch much. They’ve got serious financial firepower. If you had $63 trillion in the bank, you’d walk into every room like you own the place too, right?
And now people are asking—did Bitcoin finally wake up? Some say yes. Some are still waiting. But honestly? It’s not about charts or guesses. It’s about whether policies are injecting more money into the system. If yes, that’s good for Bitcoin. If not, it’ll take longer.
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