China is narrowing the gap with the United States... and quickly.
And the United States faces two existential problems:
1️⃣ Huge debt
2️⃣ China's rise to the number one position globally
If Washington does not act, China could indeed become the world's number one economic power.
And the numbers explain everything.
📊 Where does China excel?
Energy: ~9,000 terawatt-hours versus ~3,000 for the United States
Manufacturing: China 28% of global production versus 16% for America
Technology: Leadership in 5G and a clear acceleration in artificial intelligence
Electric vehicles: BYD surpasses Tesla
Robots: China is in the lead
Whoever does not see the danger of this… does not understand the meaning of global dominance.
China has become the factory of the world.
And the United States has one option to defend itself: devalue the dollar.
🔙 Return to 1985 – Plaza Agreement (Japan)
The United States met with Japan, Germany, France, and Britain, and coordinated the sale of dollars to weaken it.
The reason? Japanese exports were crushing the American industry.
📉 Results over 3 years:
Yen: from 260 → 120 (+116%)
Japanese exports have become globally expensive
Japan has entered a state of panic.
🏦 Reaction of the Bank of Japan (familiar scenario):
1990: Interest 6%
1995: 0.5%
2000: 0.1%
2016: -0.1%
➡️ Decades of near-zero interest… and thus the lost contracts are made.
📉 Bubble then crash:
Nikkei Index: from 10,000 → 38,900
Then a crash to ~7,000 (-82%)
Then the real monster appeared… Carry Trade
Borrowing in low-interest currency (yen) → Buying American assets with higher yields.
Trillions of dollars flowed.
🔁 Potential scenario “Plaza Accord 2.0”:
1️⃣ The dollar weakens
2️⃣ The yuan strengthens
3️⃣ Chinese exports are harmed
4️⃣ The People's Bank of China lowers interest rates
5️⃣ Carry trade shifts to the yuan
6️⃣ Long-term economic drain
🧮 Simple math:
Today: 1$ ≈ 7 yuan
If the dollar weakens by 50%: 1$ ≈ 3.5 yuan
➡️ The yuan effectively doubles…
And export models do not survive in this scenario.
🚨 Export shock:
Chinese exports: ~3.5 trillion dollars (20% of GDP)
A 50% hit = -1.75 trillion annually
Export-related jobs: ~220 million
Potential risks: ~110 million jobs
This is immense social pressure.
Yes, China's moves in gold and silver and reducing U.S. bonds are significant…
But the real battleground is currencies.
📌 1985: Japan
📌 2026: China?
#GlobalMacro #USChina #CurrencyWars #GOLD #NewWorldOrder
📊 These currencies are on a strong rise: 👇
💎 $PLAY
💎 $SOMI
💎 $JTO
