On The Deals Shaping Our Economy
Good morning. Ika here. Gold is hitting records, the Yen is staging a comeback, and a stunning purge in Beijing has left China watchers shocked.
🇨🇳 Seismic Shift in Beijing
The most trusted military man in Xi Jinping’s circle has fallen, shattering the image of stability at the very top of the People's Liberation Army.
The big picture: General Zhang Youxia - a combat veteran and childhood friend of Xiis under investigation for "disloyalty" and corruption.
It’s a political earthquake removing a man once considered untouchable.
Why it matters: If Zhang isn't safe, nobody is. Experts say this removes "safety boundaries" for Beijing's power elite.
Behind the scenes: U.S. National Security Adviser Jake Sullivan called the move a "seismic event," noting that Zhang previously exuded the confidence of someone who "didn't feel like he had to be cautious".
The friction: Rumors are swirling that Zhang may have been accused of leaking nuclear secrets to the U.S., though Sullivan denies Zhang shared substantive sensitive info.
State media claims Zhang "trampled on" Xi's authority, inflicting "massive damage" on combat readiness.
"It reads more to suggest that they really were challenging Xi Jinping, that it was really a personal betrayal."
💴 Gold Rush and the Yen's Revenge
Markets are flashing warning signs as the dollar sinks to a four-month low and gold rockets past $5,000 an ounce for the first time.
Driving the news: Investors are betting heavily on a joint U.S.-Japan intervention to save the Yen, which rallied 1.1% Monday.
By the numbers: Silver is also on a tear, up 60% this year.
Global jitters—fueled by crises in Greenland, Venezuela, and Iran—are pushing investors into "haven assets" regardless of price.
The bottom line: The market believes Washington and Tokyo are finally coordinating to cap the dollar's strength.
🇪🇺 Rutte to Europe: Stop "Dreaming"
NATO chief Mark Rutte delivered a blunt reality check to European leaders Monday: You cannot defend the continent without the United States.
The context: Following President Trump’s recent threats regarding Greenland and tariffs, calls for European "strategic autonomy" have grown louder.
Rutte is shutting that down.
The cost: Replacing the U.S. security umbrella—including nuclear capabilities—would cost "billions and billions" and require defense spending well beyond the current 5% targets.
The winner: A fragmented alliance benefits only one person: Vladimir Putin.
"If anyone thinks here... that the European Union or Europe as a whole can defend itself without the US, keep on dreaming. You can't."
🌪️ The Greenland Effect: Energy Pivot
While Rutte talks defense, European energy ministers are scrambling to reduce economic reliance on Washington following the diplomatic spat over Greenland.
State of play: Europe has traded dependency on Russian gas for dependency on U.S. LNG, which now makes up 57% of the bloc's supply.
The fear: Trump could weaponize these energy flows just as Putin did.
The solution: Nine nations—including Germany and the UK—agreed to a massive expansion of offshore wind in the North Sea.
The goal: 300GW by 2050, creating a synchronized grid to swap power between countries.
"We are not aiming at replacing one dependency with a new dependency… We want to grow our own energy".
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