U.S. Issues Russia Severe Ultimatum, Washington Caves To China Economy, Japan Bond Crash Worsens

U.S. Issues Russia Severe Ultimatum, Washington Caves To China Economy, Japan Bond Crash Worsens

All right, guys. So, every day is getting worse. It’s It’s just getting worse. Now, we know the US is desperately trying to cling on to the old world order. They cannot afford for the dollar to lose reserve status and the global economy moving away. But if we are being serious, it’s horrible mistake after mistake since 2020. Now, we saw unbridled money printing, senseless sanctions, confiscating assets, and the genius of a tariff war. Now, you would think a U-turn is in order, but nope. Trump is doubling down and is about to repeat a classic Biden mistake. He’s flexing with his boys in NATO to punish the Russian economy once again. Now Trump is threatening Russia with big financial penalties and he wants to collapse Putin’s trade. And if Moscow doesn’t make a deal with Ukraine in 50 days, they will face 100% tariffs. But here’s the interesting twist. It won’t be direct tariffs on Russia. The Russians, they have shown that they can survive completely without US trade. So that trade threat is a non-event, but it will be a secondary tariff of 100% to countries looking to buy and sell with the Russians. And this is going to open up Pandora’s box once again, and Trump won’t like what will be left inside. So if any country wants to trade with Russia, they could face a 100% tariff, trying to sell their own goods into US markets. Essentially, it’s a total import embargo from the Americans. And if you think that’s crazy, there’s already congressional support within Washington to corner Russia. A bipartisan bill is floating in Congress that proposes a 500% tariff on Russian origin goods and services. And that might as well be a million% at this point. But it does tell us US overreach is totally out of control. They can literally tariff any country they want. Trump can make it a direct punishment or forbid any other nation to trade with you. Firstly, it’s important to underscore the fact that Russia doesn’t need the US to survive, not in the slightest. And the data tells us everything that we need to know. Now, since the Ukraine war in 2022, the US has stopped their imports of Russian goods by over 80 to 90%. All the mineral fuels and base metals imports have grinded to a halt. And that’s self-defeating because now US industries are cut off from cheap Russian commodities. So the secondary terrorists are the only option left to bring Putin to heal. At least that’s what Trump believes. Now of course NATO is excited about this, right? Mark Rutters probably clapping like a seal listening to this. Finally, finally the Americans are siding with us against Russia doing very severe tariffs. If we don’t have a deal in 50 days, tariffs at about 100%, you’d call them secondary tariffs. You know what that means? But today, we’re going to talk about something else. And as you know, we’ve spent $350 billion approximately on this war with Russia and Ukraine and would like to see it end. It wasn’t my war. It was Biden’s war. It’s not my war. I’m trying to get you out of it. And uh we want to see it end. And I’m disappointed in President Putin because I thought we would have had a deal two months ago, but it doesn’t seem to get there. But let’s be real here. There will be consequences if Trump really imposes secondary tariffs on countries trading with Russia. Now, firstly, Russian revenue is still going strong. There have been fluctuations of course, but export earnings, especially when it comes to commodities, are still going strong. Now what Trump’s terrorist will do is threaten the global energy economy. It will turn rivals into enemies and piss off a whole lot of his allies whatever is left. Now this charge forces the biggest buyers of Russian fossil fuels. The biggest consumers for coal and crude oil are China and India. The EU still buys a lot of pipeline gas and they are the biggest buyers of Russian LG by far. Turkey also buys a lot of oil products like gasoline, diesel and jet fuel. So imposing secondary tariffs on them is not going to work. The biggest casualty will be Europe because now they’ll be st of cheap Russian energy. The only alternative would be expensive US LNG which might be the main ploy at the end of the day. Definite possibility here. However, let’s war game this out. Who will be the biggest winner if Trump really imposes a 100% secondary tariff? Well, Russian revenues might drop in the short term because most likely Europe and Turkey would comply. Now, India, another huge energy buyer, probably will comply as well. But we can be sure China is not going to listen. Just on imports alone, China’s enjoying over€5 billion a month worth of affordable Russian energy. And this includes oil, gas, and coal. So, do you think China is going to give up a strategic advantage that affects the entire industrial sector just to listen to Trump? Very, very unlikely. A 100% tariff does not frighten China. And let’s put it this way, if a total embargo happens, both economies will get hammered 100%. But the US will be far more devastated than China, especially when they are struggling with inflation, higher rates, and a global tariff war. In fact, China can’t wait for their exports to the US to reach zero because that would mean zero dependence risk, and the majority of their trade will be outside the dollar. Now, in the first half of 2025, China’s trade with the US collapsed by more than 25%. That sounds tragic and sounds like it spells doom. But across the board, from Canada to Asia, Chinese trade has exploded higher. The US only accounts for 9% of global trade. So the devastation here isn’t that groundbreaking. Now imagine if the US sanctions Russian oil with the secondary tariff at China gets hammered. Well, the Chinese will keep buying Russian oil and become an even more competitive manufacturing hub. and this will only strengthen their trade with the world. Now, this entire tariff war is one grand campaign that indirectly strengthens the Chinese economy. It’s exactly the opposite of what Trump is saying. And if you need even more evidence of this, US chip giant Nvidia, they’re now scrambling back to the Chinese market. Nvidia is about to resume sales of its H20 AI chip to China. and Jensen has managed to get Washington to U-turn the ban on exports to Beijing. So, it’s good news for Nvidia because sales are definitely going to heat up. Washington has indeed caved to Beijing, but understand the grand plan behind the scenes. It goes beyond just Nvidia making more money. That is baked into the cake. That’s obviously going to happen. And a big shout out to our the idea is to slow down the progress of Huawei but introduce more competition. And if Chinese companies buy Nvidia chips, less revenue will flow to their local ecosystem and progress will begin to slow down. It won’t stall completely because the high-tech blackwell chips are still banned. But the ploy here is to keep China behind. And truth be told, you can’t really blame Trump for trying, right? If I was in Washington, this is perhaps the only cut left to play that might work. China today is the global leader in major technologies, and this includes UAVs, solar panels, high-speed rails, and of course, electric vehicles. And this helps China cement their position in global trade. And by 2030, if the US doesn’t do anything, China will reach par with the west in the final frontier and we are talking about robotics, AI, semiconductors, and even aircraft. And that will be the final disruption because at that point, China won’t need to sell anything to the US anymore. Bricks and even the EU will buy their technologies from China. It will be far cheaper and more likely have no strings attached. Now we have to see what Nvidia’s master plan is. It is to get Chinese companies hooked on US technologies. Get them to build their stack on top of Nvidia solutions. Now China of course has to resist this and keep powering on ahead with their own development because there’s always a worst case scenario of Washington flipping a switch and everything going dark for Chinese tech and the risk is just too big. And by all their actions, Chinese leadership isn’t falling for this because they know industrial momentum is with them. It’s counterproductive to even think of stopping progress. Now, despite the tariff war, China’s GDP in Q2 hit 5.2%. And industrial output climbed by incredible 6.8%. Countries around the world are buying more stuff from Chinese exporters. Now, imagine if China stops their semiconductor progress. It won’t be good. Chips will be the biggest global tech export in the decades to come. And if Huawei and other Chinese companies fall behind, the entire country will lose the biggest market of the future. But let’s shift focus to another point of chaos happening in the financial markets. It’s really telling us how dangerous a debt crisis is, especially during a trade war. And we are of course talking about Japan. They are facing the perfect storm where a recession is coming, export collapse looming, and a bond implosion is converging all at the same time. Not only are Japanese ultra long bonds in danger, now the 10-year JGP has increased to nearly 1.6%. And just like the economy, this controls the rate for almost everything else. How are Japanese companies going to take loans to expand? Japanese consumers who are already under pressure won’t be swiping any plastic. Maze consumption numbers are down by 0.3%. So why are yield starting to rise? Shouldn’t the falling US dollar rotate money out of the reserve currency into the yen? And doesn’t that mean more demand for Japanese government bonds? Now the problem lies with a good old debt crisis is a classic loss of confidence. Investors just don’t believe the Japanese economy can recover and as a result paying back the debt will be impossible. We can see an unmititigated disaster happening today. The Japanese 30-year has hit an incredible yield of 3.2%. Now compared to 2019, the bond itself has lost nearly 50% of its total value. Which means if the value just stays stagnant, investors will have to wait for over 15 years to break even. the bond payments are simply not enough. And if this continues, the domino effect will be serious. Now, many Japanese banks are holding a bunch of JGBs. The Bank of Japan is also sitting on over $50 billion worth of bond losses. There’s no rescue coming from either the private sector or the central bank, which points to the only relief valve left, and that is reviving the Japanese economy, especially when it comes to XOS. And this circles back to Japan’s dependency on US markets and the tariff war. Now 25% tariff is coming for Japan in just a few weeks time. And this has the potential to crush Japan’s export economy and push them quite easily into recession. And we aren’t joking here. Here’s what we mean. When Trump started his auto tariff on the world, Japan’s car export prices to the US collapsed by 12% in May. And this followed a 4.5% drop in April. as well. Now, prices have to come down to counteract Trump’s tariffs, and this is going to hammer down margins, squeeze the bottom lines of Honda and Toyota, and if this continues long enough, the end result will be unambiguous. A big wipeout of major Japanese exports, especially when first August happens. And that’s why demand for Japanese bonds is down. And if there’s one big takeaway, it’s how disastrous Trump’s trade war is. It is reshuffling the entire landscape and whatever rule book you are looking at, it’s best to just throw it away. The main drivers today are sanctions, terrorists, retaliation, threats, and money printing. Really, just just burn your old economics textbooks. That is old world thinking. The modern economy today is just one one dark comedy show. But let’s circle back to Russia and will Putin bow down and count out to Trump now. chances are low to non-existent. This bluff by Washington will be called and there’s no way they can do a show hand with Russia. And let me make a bold prediction. Trump will do a taco Tuesday on this. He will probably say he and Putin got off a call and the Russian president understands now Trump will try to save face, but imposing this universal Russian tariff is unthinkable. But as always, let me know what you think. Will Russia fall to Trump and can Japan dig themselves out of this born mess? Let me know in the comments below. Stay safe. Be sure to smash the like button and subscribe as we navigate through these crazy times.

Use the code SEANFOO at https://bit.ly/IPMBullion to buy gold & silver at a discount!

In a big sudden move, Trump just threw Russia an ultimatum that actually threatens the global economy. Meanwhile Nvidia has confirmed they will be selling chips to China while Japan’s bond crash just got worse.

📈 My Preferred Broker, Moomoo (Get FREE Stocks)
Singapore Viewers – https://start.moomoo.com/00iOSj
US & International – https://start.moomoo.com/00mFkE

📍Buy Gold & Silver At A Discount: https://bit.ly/IPMBullion
– Just use the code: SEANFOO at checkout

Subscribe to my channel where we dive deeper into the world of gold, silver & investing:
🔴 Subscribe: https://bit.ly/3kzabfN

Helpful videos for gold investing:
– Start With Silver Or Go Straight For Gold?: https://youtu.be/rDy3xOuC0j8
– How Much Gold To Own: https://youtu.be/pnildJSdmnY
– How High Can Gold Prices Go: https://youtu.be/aaHTVACqGYg

Learn how to buy physical gold:
👑 https://bit.ly/3D76Lqn

Here’s how to buy physical silver:
🪙 https://bit.ly/3rlsXJ3

Please note: I will earn a small commission from affiliate links at no additional cost to you.

Disclaimer:

The information presented on this channel is for news, education, and entertainment purposes only. The information does not constitute an offer or solicitation to buy or sell any investment product(s) or investment strategies, or a substitute for professional investment advice. It does not take into account your specific investment objectives, financial situation or needs. I am not a financial advisor or a licensed investment professional. Please consult with your financial advisor before following any investment strategies discussed herein.