Dear Reader,
The media is looking the wrong way. They always do.
They see the Strait of Hormuz closed. They see the Middle East burning. They think the battle is over oil. They think it’s a military problem.
The Hidden Bond Market Attack: The real threat of the Middle East crisis isn't military—it's a forced global selloff of U.S. Treasuries
China's Secret Advantage: While the West suffers from choked supply lines, massive amounts of oil are quietly still flowing directly to China
The $6,000 Gold Target: As the U.S. government is forced to print trillions to save the collapsing bond market, trust in paper money will vanish
For decades, one type of investment was reserved for the ultra-wealthy. Then Trump signed Executive Order 14330 - and opened it to everyone. Now you can get into this boom for less than $20. See what changed >>
They are dead wrong.
The real battleground isn’t in the desert. It’s in Washington. It’s in the U.S. Treasury market.
And the enemy doesn’t need to fire a single shot to win.
Luke Groman sees it. He runs a research firm called Forest for the Trees. He understands how the game is really played.
He said something chilling recently.
He said Iran doesn’t have to beat the U.S. military. All they have to do is beat the bond market.
If they break the bond market, they break America.
The Treasury Selloff Death Spiral
Here is how the trap works.
The world runs on dollars. Global investors hold $27 trillion in dollar-denominated assets.
Most of that is U.S. Treasuries. It’s government debt.
When the Strait of Hormuz chokes off the oil, prices spike. Foreign nations panic. They need energy. They need food. They need commodities to survive.
But they don’t have enough cash. So what do they do?
They sell their U.S. Treasuries. They dump American debt to buy oil.
It’s a death spiral. As they dump the bonds, the yields go up.
The 10-year Treasury yield already climbed to 4.2%.
The U.S. government is broke. The deficit is projected at $1.9 trillion this year. Our debt-to-GDP ratio is over 120%. Back in 1973, it was 31%.
Foreign nations hold $9.4 trillion of our debt.
If they start selling it all at once to buy expensive oil, the U.S. bond market collapses.
The trap is set.
The Secret Pipeline to China
While the West panics, the East is getting rich.
The Strait of Hormuz is a massive chokepoint.
Twenty million barrels of oil a day usually pass through it. That’s a quarter of the world’s seaborne oil.
Right now, the market thinks it’s completely blocked. But it isn’t. Not for everyone.
Groman pointed out a massive secret. Oil is still flowing. But it’s only flowing to one place: China.
China buys 90% of Iran’s oil exports. They have 50 million barrels of Iranian crude sitting offshore right now.
They are securing their supply while the rest of the world starves for energy.
The strategic sorting is happening right in front of our eyes.
Groman asked the million-dollar question.
We have the greatest military in the history of the world. Why are we on day 11 of this crisis, and we still can’t open the Strait?
Maybe it’s because the game has changed.
Power is shifting.
The Final Settlement Asset
Trust is dead.
Groman said it perfectly. Trust is in a bear market, and it’s getting worse every day.
When the financial system is leveraged to the moon, and energy supply chains break, paper money becomes worthless. Sovereign debt becomes toxic waste.
Smart money moves to physical assets. Real money.
Gold is the ultimate safe haven. It’s a zero-percent yielding bond with infinite face value.
It’s nobody else’s liability. It is final settlement. When the paper burns, gold remains.
Groman suggests a massive shift. He says average investors need 15% to 25% of their portfolio in physical gold.
The rest in cash, equities, and real estate.
You need hard assets to survive what is coming.
The Road to $6,000
The math is brutal. The outcome is inevitable.
The U.S. cannot afford high interest rates. They cannot afford a massive bond selloff.
If the Strait stays closed, the oil shock will force foreign nations to dump more Treasuries.
The Fed will have to step in. They will have to print trillions to buy the bonds nobody else wants.
When they print, the dollar dies. And gold explodes.
Groman made a bold call. He said all roads lead to gold.
If the situation in the Strait of Hormuz stays exactly as he hears it, gold will hit $6,000 an ounce by midyear.
Six thousand dollars.
This isn’t a drill. The U.S. bond market is the bedrock of the global financial system.
It is cracking under the pressure of the energy crisis.
Don’t get caught holding the bag. Stop trusting paper promises.
Get into real money. Get into gold. The true battle has just begun.
Robert Kiyosaki
Editor, Money Power and Profit
P.S. President Trump is pouring trillions into a new kind of infrastructure. And there's one fund positioned to profit from every dollar that flows through it — the same way McDonald's profited from every car on the highway…
In fact, Trump put up to $25 million of his own money into this fund… and it pays him as much as $250,000 a month.