Postcards from the New World Order

[Postcards from the New World Order](#) Gold prices snapped above $2,700 today, and once again, the headlines are missing the point. Here's what you need to do... now. Garrett {NAME} OCT 18 [Icon]([Icon]([Icon]([Icon]( Gold prices hit another record high Friday, squeezing above $2,730 per ounce. The mainstream media blames inflation fears and geopolitical tensions. This article from Reuters/CNBC cites “safe haven” demands… Nope... Once again, they're missing the big picture. Let’s discuss what’s happening… and what you need to do before it’s too late. The Global Shift Hits Hard The world has changed how it handles money. Gold now stands at the center of the global system. For decades, the U.S. dollar has been king. Countries needed dollars to buy oil, making the dollar powerful due to the demand to fulfill transactions. This system was initially called the petrodollar. It was the backbone of America's economic power from 1971 to the early 1990s. Following the first Gulf War, the U.S. government expanded its focus. The Treasury quickly got nations (that weren’t so involved in the global oil trade) hooked on U.S. dollar-denominated debt. After roughly 30 more years of additional dollar domination, things are shifting abroad. We can pinpoint the day that the world shifted under our feet. The West put sanctions on Russia in late February 2022. Western leaders thought they'd cripple Russia's economy. Instead, it backfired. Now, the world is engulfed not only in physical wars across the Middle East and in Ukraine but in a quiet economic war that threatens everything we own. Following the 2022 sanctions and ensuing price caps on Russian oil prices, the West hoped Vladimir Putin’s nation would be unable to engage in global trade. Instead, Russia and China saw an opportunity. They started working together to bypass the dollar. Here's how: - China created the petro-yuan. It's a way to buy oil with Chinese money backed by gold. - Russia began selling its oil and gas in currencies other than the dollar. - Both countries started buying massive amounts of gold. In 2023, central banks worldwide added over 1,000 tons of gold to their reserves. We witnessed the largest purchases of gold by central banks since Richard Nixon took the U.S. off the gold standard. Why are all these central banks buying gold? Because it's trustworthy. Countries don't fully trust China's money yet. But they trust gold. So, China needed a lot of gold to back up its currency. Japan’s Role in this Mess While the U.S. continues to hold sanctions on Russia and places technology restraints on China, there’s been another player in the global economic wars. That’s Japan. Its currency has cratered over the last year. Here's what's happening: - Japan is printing yen at an alarming rate. The Bank of Japan is buying massive levels of government bonds, effectively creating new money out of thin air. - This aggressive monetary policy is weakening the yen. A weaker yen makes Japanese exports cheaper and more competitive globally. - Some experts think Japan aims to drag down China's economy. By devaluing the yen, Japan pressures China to devalue its currency, the yuan. - If China were forced to devalue the yuan, it would hurt its economy, undermine trust in its currency, and limit its global economic ambitions. - To defend against this, China is stockpiling gold. By backing the yuan with gold, China makes its currency more stable and attractive for international trade. - This "currency war" between Japan and China has pushed both countries to accumulate more gold, which in turn has driven up global demand. China's strategy appears to be working. But it comes at a price. The nation is still facing a massive debt load, and deflation remains a core challenge for its economy (and its housing market). Despite Japan's efforts, the yuan is gaining strength on the global stage. More countries are using it for trade, and it is becoming a more important part of the world's currency reserves. This conflict between Japan and China is another factor pushing countries away from traditional currencies and towards gold. It's increasing the pace of the shift away from the dollar-dominated system and from U.S. debt. As fewer nations are interested in holding U.S. debt, we continually ask who will be forced to carry the debt load of the United States in the future. The answer… is the U.S. public, according to the Congressional Budget Office (CBO). The CBO writes: "Federal debt held by the public increases each year in CBO’s projections, swelling to an all-time record of 116 percent of GDP in 2034. In the two decades that follow, growing deficits cause debt to soar to 172 percent of GDP by 2054." What to Do Today As more countries move away from the dollar, the U.S. might struggle to pay its debts. This could change the value of everything—stocks, bonds, and savings. But gold? It'll likely keep going up. So, what should you do? - Consider buying gold. It is not just coins or bars but also a look at gold mining stocks and royalty companies. We have long advocated for the Sprott Physical Gold Trust (PHYS) as a simple, more liquid way to increase gold exposure. - Keep an eye on what big banks and countries do with their money. - Pay attention to international trade deals, especially those involving China and oil-producing nations. This election could lead to two very different outcomes, but regardless of who wins, the long-term trend is de-dollarization. Remember, this change won't happen overnight. The U.S. dollar will still remain the primary instrument of trade over the next decade. But we see this process accelerating at the moment. Those who understand what's happening will be better prepared for what's coming. In a world where paper money is getting shakier, gold is becoming the real deal again. It's not just shiny metal—it's a way to protect your wealth and purchasing power in uncertain times. The golden bull is a sign of a new financial order coming our way, one in which gold isn't just a commodity but a primary factor in the global money system. Stay positive, Garrett {NAME} [Icon]([Icon]([Icon]([Icon]( [Logo Image](#) Postcards from the Republic 1125 N. Charles St. Baltimore, MD 21202 This email was sent to you because you subscribed to this publication via FinPub. To stop receiving these emails from Postcards from the Republic, Please click [unsubscribe](. © 2024 Postcards from the Republic, All Rights Reserved. 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