Seeds of Wisdom RV and Economics Updates Tuesday Afternoon 1-20-26

Good Afternoon Dinar Recaps,

U.S.–Europe Trade Tensions Escalate at Davos

Tariff warnings, Greenland politics, and a fragile global trade order collide

Overview

Tensions between the United States and the European Union took center stage at the 2026 World Economic Forum in Davos after U.S. Treasury Secretary Scott Bessent publicly urged European leaders not to retaliate against President Donald Trump’s proposed tariffs tied to the Greenland dispute. The warning comes as global markets show increasing signs of stress and risk aversion.

Key Developments

  • Davos Intervention: Treasury Secretary Scott Bessent cautioned EU officials that retaliation would risk reigniting a destructive trade war at a time of fragile global growth.

  • Greenland Factor: The tariff threat is linked to broader geopolitical pressure surrounding Greenland, highlighting how strategic geography is now intersecting with trade policy.

  • Market Sensitivity: Equity markets, currencies, and commodities have reacted sharply, underscoring how tariff rhetoric alone can move global capital.

  • Diplomatic Fractures: Despite public calls for restraint, trust between Washington and Brussels appears strained as trade policy becomes increasingly unilateral.

Why It Matters

Escalating trade tensions between two of the world’s largest economic blocs threaten global supply chains, suppress growth, and weaken confidence in multilateral trade frameworks. Even without immediate tariffs, the threat itself is enough to disrupt markets, delay investment, and amplify geopolitical risk.

Why It Matters to Foreign Currency Holders

For those holding foreign currencies in anticipation of higher future valuations:

  • Trade fragmentation increases pressure on fiat currency stability.

  • Volatility in the euro and dollar highlights vulnerabilities in the current reserve system.

  • Periods of trade conflict historically precede currency realignments and revaluations, especially during broader systemic shifts.

This environment reinforces why many currency holders view geopolitical stress as a catalyst rather than a setback.

Implications for the Global Reset

  • Pillar 1: Trade Fragmentation

The Davos warning underscores a move away from unified global trade toward regional blocs and strategic alliances — a core feature of reset-era restructuring.

  • Pillar 2: Monetary Confidence Erosion

As trade disputes intensify, confidence in legacy systems weakens, accelerating interest in alternative settlement mechanisms, hard assets, and currency reform.

This is not just diplomacy — it’s structural pressure on the post-World War II economic order.

This is not just trade policy — it’s global finance restructuring before our eyes.

Seeds of Wisdom Team
Newshounds News

Sources

~~~~~~~~~~

Why Gold and Silver Are Soaring While Crypto Slips Under Tariff Pressure

Safe-haven metals surge as trade tensions expose fault lines in risk assets

Overview

Gold and silver prices have surged to new record highs as investors seek safety amid escalating U.S.–EU tariff tensions and broader geopolitical uncertainty. At the same time, cryptocurrency markets have weakened, with Bitcoin, Ethereum, and major altcoins declining as capital rotates out of high-risk assets. This divergence highlights a renewed preference for tangible stores of value during periods of economic and political stress.

Key Developments

1. Precious Metals Attract Safe-Haven Demand
Gold and silver have rallied sharply as investors hedge against tariff escalation, market volatility, and geopolitical risk. Rising uncertainty has reinforced the traditional role of precious metals as defensive assets during periods of instability.

2. Crypto Markets Slide Amid Risk-Off Sentiment
Cryptocurrencies have declined alongside broader risk assets. Bitcoin has fallen below $93,000, while Ethereum dropped under $3,100. The overall crypto market fell more than 2% in the past 24 hours, with SOL, DOGE, and ADA also trending lower.

3. Tariff Tensions Drive Capital Rotation
Renewed tariff threats tied to U.S.–EU trade disputes have increased caution across markets. Investors appear to be reducing exposure to speculative assets and reallocating capital toward metals viewed as protection against policy-driven shocks.

4. Diplomacy Signals Brief Market Relief
President Donald Trump confirmed upcoming trade discussions with European leaders at the World Economic Forum in Davos. While this raised hopes for de-escalation, markets continue to price in elevated risk until concrete outcomes emerge.

Why It Matters

The divergence between precious metals and cryptocurrencies signals a shift in investor psychology. In periods of sustained uncertainty, markets tend to favor assets with long-established roles as stores of value over newer, volatility-prone instruments.

This rotation reflects declining confidence in growth-dependent assets when trade policy and geopolitical stability are in question.

Why It Matters to Foreign Currency Holders

For foreign currency holders anticipating revaluation or reset-driven gains:

  • Rising gold and silver prices often signal declining confidence in fiat stability.

  • Sustained safe-haven demand can precede currency realignment or reserve diversification.

  • Weakness in speculative assets suggests capital is preparing for monetary or structural adjustment rather than growth expansion.

Historically, precious-metal strength has accompanied periods leading into monetary resets or repricing events.

Implications for the Global Reset

  • Pillar 1: Return to Hard-Asset Confidence

The renewed dominance of gold and silver reflects skepticism toward policy stability, debt expansion, and trade coherence. Hard assets regain prominence when trust in systems weakens.

  • Pillar 2: Risk Assets Face Structural Headwinds

Crypto and other speculative markets remain sensitive to liquidity conditions and political risk. As tariffs and fragmentation persist, volatility increases, reinforcing the divide between value preservation and growth speculation.

This shift signals preparation — not panic — within the global financial system.

This is not just a metals rally — it’s a warning that markets are repositioning for systemic change.

Seeds of Wisdom Team
Newshounds News

Sources

~~~~~~~~~~

BRICS Digital Currency Link Signals 2026 Acceleration in De-Dollarization

CBDC interoperability proposal highlights Global South push to reshape trade and payments

Overview

A new proposal from India’s Reserve Bank to link BRICS central bank digital currencies (CBDCs) is emerging as one of the clearest signals yet that de-dollarization efforts are entering a more structured phase in 2026. The initiative, expected to be placed on the agenda of the BRICS summit hosted by India later this year, aims to facilitate cross-border trade and tourism payments while reducing reliance on the U.S. dollar.

Key Developments

1. RBI Pushes CBDC Interoperability to Summit Level
India’s central bank has recommended formally discussing a BRICS digital currency link at the 2026 summit. If adopted, this would mark the first coordinated attempt to connect the CBDCs of Brazil, Russia, India, China, South Africa, and newer members at a bloc-wide level.

2. Building on 2025 Rio Declaration
The proposal expands on a 2025 BRICS declaration in Rio de Janeiro that called for interoperability between national payment systems. The current framework represents a shift from concept to implementation, signaling that BRICS nations are preparing digital infrastructure for real trade usage.

3. Trade Imbalances and Governance Take Center Stage
Officials acknowledge that interoperability alone is insufficient. Governance rules, settlement mechanisms, and solutions for trade imbalances remain unresolved. Previous local-currency trade experiments, particularly between Russia and India, exposed practical limits without robust settlement frameworks.

4. FX Swaps and Periodic Settlement Considered
Central banks are exploring bilateral foreign exchange swaps and periodic settlement schedules to manage imbalances. These mechanisms would help prevent the accumulation of unusable local currency balances while maintaining sovereignty over monetary policy.

Why It Matters

This proposal reflects a structural evolution in global payments. Rather than replacing the dollar outright, BRICS nations are building parallel systems that reduce dependence on correspondent banking networks and U.S.-centric settlement rails.

The focus on CBDC interoperability suggests that future trade flows may bypass traditional financial intermediaries altogether.

Why It Matters to Foreign Currency Holders

For foreign currency holders anticipating revaluation or reset-driven gains:

  • Digital settlement frameworks often precede currency repricing.

  • Reduced dollar reliance increases flexibility for regional currency realignment.

  • Trade-driven digital infrastructure strengthens the case for managed revaluation rather than speculative appreciation.

This development reinforces the idea that currency change is being engineered through plumbing, not proclamations.

Implications for the Global Reset

  • Pillar 1: Payments Before Currency Replacement

BRICS is prioritizing payment interoperability rather than announcing a new reserve currency. This incremental approach minimizes disruption while steadily weakening dollar dominance in trade settlement.

  • Pillar 2: Global South Trade Reorganization

Trade projections show BRICS+ growth outpacing traditional blocs. As trade reorganizes, digital payments become the backbone supporting a multipolar monetary system.

The reset is advancing through infrastructure — quietly, technically, and deliberately.

This is not the launch of a new currency — it is the rewiring of how global trade settles value.

Seeds of Wisdom Team
Newshounds News

Sources

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™ Website

Thank you Dinar Recaps

Previous
Previous

Economic Videos Featuring Andy Schectman 1-20-2026

Next
Next

Iraq Economic News and Points To Ponder Tuesday Afternoon 1-20-26