PANews reported on April 5th that Arthur Hayes tweeted that U.S. Treasury bonds and U.S. stocks (to a lesser extent) serve as global reserve assets. Since Nixon abandoned the U.S. gold standard in 1971, the U.S. Treasury bond balance has grown 85 times. The United States must create credit dollars needed for global economic growth. This is good for some Americans and bad for others. Trump's election was driven by groups who believed they did not share in the "prosperity" of the past 50 years.

Once the U.S. current account deficit is eliminated, foreign countries will have no dollars to purchase bonds and stocks. If foreign countries must stimulate their own economies, they will sell their U.S. bonds and stocks to fund their national priority policies. Even if Trump softens the severity of tariffs, no treasury secretary or world leader dares to bet he won't change again, so things cannot return to their original state. Every country must fight for itself.

Gold will serve as a neutral reserve asset. The U.S. dollar will remain the global reserve currency, but countries will settle global trade by holding gold. Trump has already hinted at this because gold is tariff-free. In the new monetary system, gold must circulate freely and at low cost. Today, those who benefited greatly from the old system are mostly in denial and harbor illusions that everything will return to "normal". Absolutely ridiculous.

For those who want to adapt to trade relations before 1971, they should buy gold, gold mining companies, and BTC.