Terrence Howard on Bitcoin, Silver, and the Dollar's Collapse

TL;DR

Terrence Howard avoids Bitcoin and crypto entirely, arguing it is still based on fiat and can be wiped out with the push of a button as the US dollar weakens. He favors precious metals instead, claiming silver has been artificially suppressed for 50 years and could rise to thousands of dollars. He says the dollar has lost 9% of its purchasing power in 12 months.

Transcript

How do you feel about everything that's happening with Iran right now? You know, giving your roots from it. I'm so happy that China came in and said, "Hey, you guys aren't going to to bully them completely like like you've been doing before." And as a result, what does Saudi Arabia do? Now Saudi Arabia is no longer selling any using US dollars, you... Read More

Key Insights

• Bitcoin is dismissed as unsafe because it is still based on fiat, and Howard argues nobody wants money in 'something that can be wiped out with a push of a button' as the dollar weakens amid war uncertainty. He holds less than 1% of his portfolio in Bitcoin.
• The US dollar has lost 9% of its purchasing power in the last 12 months, meaning $100,000 held last year is now worth only about $91,000, and Howard says the decline is steadily continuing.
• Only 51% of the world still uses the US dollar, with 39% of global finances no longer dependent on it. Howard says 25 countries have joined BRICS apart from the original five member nations.
• Silver has been artificially suppressed for 50 years, and JP Morgan paid $920 million in fines for suppressing the silver market through paper contracts, creating a gap between futures pricing and actual silver in Shanghai.
• Silver demand is critical for electronics: over 1.2 million ounces are used across electronics, with 20 grams in solar panels and 50 grams in every electric vehicle, while only 851 million ounces are produced yearly.
• Only about 20% of silver comes from actual silver mines, with most produced as a byproduct of gold, lead, zinc, and copper mining. China is hoarding it and JP Morgan now holds 750 million ounces.
• Trump's strategy of weakening the dollar to bring manufacturing jobs back has a 90% chance of failing, according to Howard, because tariffs and the loss of dollar dependency undercut the approach that would have worked 40 years ago.
• China is winning influence by continuing its Belt and Road initiative, giving to countries without forcing constitutional changes, while nations like Canada, Greenland, and African states increasingly turn toward Beijing.

Questions & Answers

Q: Why does Terrence Howard think Bitcoin is going to die?

Howard argues Bitcoin is going to die because it is still based on fiat currency, and as the dollar decreases in value amid war uncertainty, nobody wants their money in something that can be wiped out with the push of a button. He says he stays free and clear of all crypto and holds less than 1% of his portfolio in Bitcoin, noting it had dropped to around $61,000 after rising from 18 to 40 to 60 to 125.

Q: How much purchasing power has the US dollar lost according to Terrence Howard?

Howard says the US dollar has lost 9% of its purchasing power in the last 12 months. He illustrates this by explaining that if you had $100,000 last year, you now only have about $91,000, and the value is steadily declining. He ties this decline to Saudi Arabia no longer selling using US dollars and to global de-dollarization, with only 51% of the world still using the currency.

Q: Why does Terrence Howard believe silver prices could skyrocket?

Howard believes silver could rise to thousands of dollars because it has been artificially suppressed for 50 years while being essential to electronics. Over 1.2 million ounces are used in electronics, 20 grams in solar panels, and 50 grams in every electric vehicle, yet only 851 million ounces are produced yearly. With China hoarding silver and JP Morgan now holding 750 million ounces, he expects the gold-to-silver ratio to compress from 30:1 or 50:1 down to about 13:1.

Q: What fine did JP Morgan pay for silver market suppression?

According to Howard, JP Morgan had to pay $920 million in fines for the suppression of the silver market because of paper contracts. He explains this created a different pricing for paper silver futures compared to actual physical silver in Shanghai, eliminating an arbitrage opportunity where traders once bought silver domestically and sold it in China at a higher price because there is no longer silver in the Comex.

Q: What is Trump's plan for the dollar and why does Howard think it will fail?

Howard says Trump's plan is to weaken the dollar so manufacturing jobs can return to America, but he gives it a 90% chance of not working. He argues the approach would have worked 40 years ago when every country needed US dollars to trade, keeping the economy stable. Now that the dollar is no longer necessary worldwide, tariffs on countries like Canada and China backfire, and a more diplomatic approach is needed instead of isolation.

Q: How are countries responding to US tariffs and trade pressure?

Howard describes multiple countries pushing back. Canada, blocked from the chip system and US dollars, is working with Beijing, seeking a $12 billion war chest from NATO, and threatening tariffs on the electricity it supplies to 12 states while withholding minerals. China sold $864 billion of US debt and continues its Belt and Road initiative, while nations from Greenland to African states increasingly turn toward Beijing rather than Washington.

Q: What is happening in the Strait of Hormuz according to Terrence Howard?

Howard describes a standoff in the Strait of Hormuz where, as the US was about to pounce on Iran on behalf of Israel, China sent its ships and Russia sent its ships, creating a confrontation. He argues the US cannot strike Iran without those ships being wiped out and starting a world war, so there will have to be a de-escalation because Iran is no longer isolated but backed by America's two biggest rivals.

Q: Why does Howard say China has gained global power?

Howard explains that US presidents, starting with Nixon, opened up China to counter the Soviet Union, helping China grow from nobody into the world's number two economy that could now compete with the US. He says China plays a smart long game by continuing to give to countries the US turns its back on through the Belt and Road initiative, without forcing them to change their constitutions, so nations increasingly align with Beijing.

Summary & Key Takeaways

• Terrence Howard argues the US dollar is collapsing, having lost 9% of purchasing power in 12 months. Saudi Arabia stopped selling using US dollars, only 51% of the world still uses the dollar, and 25 countries have joined BRICS, signaling declining American financial dominance globally.

• Howard is bearish on Bitcoin, refusing to touch crypto because it is still based on fiat and can be wiped out instantly. Instead he trusts precious metals, claiming silver has been suppressed 50 years and could reach thousands of dollars as demand outpaces supply.

• Geopolitically, Howard says Trump's dollar-weakening plan has a 90% chance of failing, Canada is turning to Beijing, and China plus Russia backing Iran and African leaders like Ibrahim Traoré is reshaping global power away from US isolation.