I am getting a lot of questions about , which has declined 19% this month and 32% this year. Bitcoin is now 53% off its highs. I still recommend that investors sell all their cryptocurrencies. A strong is now hindering Bitcoin and even a bit. The U.S. dollar will remain strong since economic growth is accelerating and the U.S. is demographically stronger than the rest of the world, much of which is suffering from a demographic decline from aging populations.
The U.S. energy boom is no longer shrinking the trade deficit. Specifically, U.S. exports decline 5.4% in May, due partially to lower energy prices, while imports surged 3.6% to the highest level since March 2025. Overall, the trade deficit rose 27.4% in May to $105.8 billion, which was much higher than economists’ consensus estimate of $85 billion. Currently, the Atlanta Fed is estimating second-quarter growth at a 2.5% annual pace, but in the wake of May’s higher-than-expected trade deficit, second-quarter GDP growth may be revised lower.
The European Union (EU) continues to systematically destroy its domestic auto industry with its emission rules, with the goal of being fully electric by 2035. is reportedly planning to close four factories and lay off 100,000 workers, which means that one in six workers will be terminated.
In the U.S., we do not have these oppressive emission rules, so VW Group should divert more of its manufacturing to its U.S. plant in Chattanooga or its new Scout Motors plant in South Carolina. Although VW Group makes electric vehicles like the ID.buzz van, it cannot compete with cheaper Chinese EVs that are now sold in Europe. As a result, Brussels continues to systematically destroy its domestic auto industry.
Due to tariffs and other challenges, , for now, will be exiting the U.S. market. Specifically, the Commerce Department banned Polestar vehicles due to the software in its vehicles. The “connected vehicle” rule, which was implemented by the Biden Administration, aimed to restrict the import or sale of vehicles with hardware and software linked to China due to national-security concerns. Carmakers had until March of this year to attest to the U.S. government that their products don’t contain code written in China or by a Chinese company or otherwise petition for authorization to continue sales of vehicles beginning with model year 2027.