The Mark Moss Show The Trade War is Exposing China’s 2nd Fatal Mistake
May 2, 2025
The trade war reveals deeper issues about global monetary control, highlighting China's second critical error. Historically, China’s failure to adapt in 1873 cost it dominance, and now, it risks repeating that mistake. Recent tensions spark renewed discussions about currency strategies, particularly as China ramps up gold reserves to challenge the U.S. dollar. Meanwhile, the shift towards cryptocurrency poses further risks for China's outdated policies. This journey through monetary history underscores the importance of proactive investment strategies today.
AI Snips
Chapters
Transcript
Episode notes
China's 1873 Monetary Mistake
- China made a fatal monetary mistake in 1873 by sticking to the silver standard while the world shifted to gold.
- This choice led to a 30% loss in China's purchasing power and a drop from global leadership to a peripheral nation.
China's Gold Accumulation Strategy
- China has amassed huge gold holdings by being the world's largest gold producer and importer.
- They restrict export of domestically mined gold to keep it within the country, building a potential gold-backed monetary system.
Bitcoin as Monetary Evolution
- Bitcoin represents a new monetary evolution, with superior attributes for money compared to gold.
- China missed this innovation opportunity by banning Bitcoin multiple times and pushing out miners, unlike the US that embraces it.