EU Drops US Treasuries in Ukraine Defiance; Trump Tightens Capital Controls on Americans; Gold Pops on Tighter Capital Controls

Trump's illusory consensus for the Ukraine Peace deal did not last a full week: already, the EU completely and formally repudiated it:

BitCoin Dump - EU's Opening Salvo

The EU warned Trump through the only mechanism his administration respects: capital markets. By relentlessly dumping seized Russian bitcoin and other crypto assets in the market last week, the EU crashed crypto currencies, hurting both the Russian elite, which hoards its wealth in crypto and depends on crypto payment rails, and Trump insiders, who invest heavily in crypto infrastructure and depend on continued inflows into crypto to prop-up the American sovereign debt market and the ponzi real estate market.

Crypto Crash CAN Crash US Treasury Market - Tether the Key

The EU insiders know full-well that there does exist a crypto price below which, Tether, itself would come under pressure.

Thus, the EU hit Trump squarely in the most vulnerable part of the American Empire: her tottering debt markets.

Trump Response to EU Stablecoin-Tether Raid: Capital Controls

Historically, when Sovereigns have to defend a "strategic asset", they demand institutions ban undesired behavior, e.g. short-selling was recently banned in both Korea and Japan.

Trump, this week, imposed capital controls for "remittances over $2,000", presumably for immigration-related SAR's. Of course, it would be trivial to consider all crypto liquidation from Tether into cash a "SAR", and thus, any outflows above $2,000 from US crypto markets, into cash, and then out of the US could presumably be seized, outright.

The "illegal aliens" serves a handy pretext, but this FinCen capital control came because of the EU's attack on the crypto market and the potential destabilization of the Tether-Treasury peg: relentless selling in crypto could result in a liquidation outside of stable-coins, into cash, and thus create massive selling pressure in US Treasury bills - an absolute calamity.

America: Rush to Narco Inflows (& gold, oil, et cetera)

Sensing the vulnerability of American capital markets, the Trump administration has prioritized an acceleration of the ingestion narco capital and associated assets(gold, oil, et cetera) at full-tilt:

With these "new friends" and their assets pouring into the United States capital markets, the Trump administration hopes they can buttress demand for American Treasuries, with crypto and thus Tether, a US Treasury derivative, vulnerable to raids by an increasingly hostile EU.

Onboarding all of South/Latin America Capital - Requires Soviet Blessing

For Trump to pivot the narco and resource capital flows into the US capital markets from all of South and Latin America, he will have to make radical concessions to both China and Russia. Already, we saw Trump pivot on Ukraine for Russia and Taiwan for China. It's not over, though: China and Russia uninterrupted rail access to Kaliningrad: this isn't negotiable, anymore.

It stands to reason that in the upcoming Kaliningrad Crisis, Trump gets his revenge on the EU for their attempt to shatter his Treasury market and give them a taste of the terror his administration felt, last week.

Gold Loves Capital Controls

With the rumor and finally the imposition of tighter capital controls upon America, precious metals soared: tightening capital controls proves a core bullish catalyst for precious metals, with silver making a new all-time high and gold within a breath of making new all-time highs, itself.