You might be watching the beginning of the end for the dollar's dominance.
You might be watching the beginning of the end for the dollar's dominance.
And if you're still holding dollar-denominated assets while this unfolds in real time...
Let me tell you something:
On Friday, the Department of Justice served Federal Reserve Chair Jerome Powell with grand jury subpoenas.
Not a request. Not a friendly inquiry.
A criminal investigation threatening indictment.
The official reason? Powell's testimony about a $2.5 billion building renovation.
But Powell himself called bullshit on that excuse.
In an unprecedented video statement, he said the quiet part out loud:
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."
Translation: The executive branch is using criminal prosecution to control monetary policy.
The Federal Reserve has operated independently since 1913.
111 years.
Through world wars. Through the Great Depression. Through 2008. Through COVID.
No president has ever used the DOJ to criminally threaten a sitting Fed Chair.
Until now.
The market reaction was instant:
Gold smashed through $4,600 for the first time in history.
Up 2% in a single day. Up 6% in 2026 alone.
HSBC says it could hit $5,000 in the first half of this year.
Why? Because the dollar's entire value proposition just got put on trial.
The dollar isn't valuable because of America's GDP or military.
It's valuable because of TRUST.
Trust that the Fed operates independently. Trust that monetary policy won't be dictated by whoever holds power this week.
That trust is evaporating in real time.
Foreign central banks have already dumped $113 billion in dollar reserves since September.
And they're not parking that money in other currencies.
They're buying gold.
For the first time since 1996, gold now makes up a larger share of central bank reserves than U.S. Treasuries.
The world's central banks trust a shiny metal more than American IOUs.
The playbook is textbook emerging market collapse:
1. Politicize the central bank
2. Erode institutional independence
3. Watch foreign capital flee
4. Currency devaluation
5. Inflation spiral
We just witnessed steps 1 and 2 happen simultaneously.
J.P. Morgan is forecasting gold at $5,055 by Q4 2026. Goldman Sachs says $4,900.
Meanwhile, Kevin Hassett is the frontrunner to replace Powell in May.
The same Kevin Hassett who's currently White House economic advisor.
The president's own guy running the Fed.
What happens to rate decisions then? What happens to the dollar's credibility?
The Nixon comparison is already being made.
In the 1970s, Nixon pressured Fed Chair Arthur Burns to keep rates low. It contributed to the worst inflation America had seen in decades.
But even Nixon didn't use criminal prosecution.
This is using the justice system as a weapon against monetary policy.
If you're still overweight dollar assets right now, you're betting that institutions will hold. That the dollar's 80-year reign as the world's reserve currency will survive what's happening.
Maybe you're right.
But the smart money isn't making that bet.
They're buying gold. They're diversifying out of dollar assets. They're treating America like a jurisdiction with increasing political risk.
Because that's exactly what it's become.
The DOJ just subpoenaed the Fed Chair for setting interest rates independently.
That's not "checks and balances."
That's institutional vandalism with better lighting and worse consequences.
Gold at $4,600 and silver at $85 are the market’s answer.
And I believe they’ll go much higher.
What are you betting on?
posted by Satish Sharma at
14:18
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