China's Rare-Earth Controls Threaten Dollar, Analyst Says

China's announcement of export controls on rare-earth minerals has intensified debate over the US dollar's global role, analyst Luke Gromen said.

China supplies more than 90% of the world's rare-earths and magnets used in electronics and defense; the controls reportedly block sales to the US military-industrial complex, a move Gromen says undermines the geopolitical underpinning of dollar dominance and revealed greater Chinese leverage. He also noted it prompted US President Donald Trump to announce additional 100% tariffs on China.

Gromen argued that persistent currency debasement requires a return to hard-money standards and highlighted Bitcoin and gold as likely beneficiaries as investors seek to preserve purchasing power. He dismissed stablecoins as a temporary tactical fix that leaves the underlying monetary problem unresolved.

Investment notes cited by commentators show the US dollar on track for one of its weakest years since the 1970s and significant long-term purchasing-power erosion. If currency debasement continues, analysts expect increased demand for hard assets and rising prices across nominal asset markets as protection-seeking behavior accelerates.