The Looming Global Financial Upheaval: Experts Warn of a Seismic Shift in the International Monetary System

In a thought-provoking interview with Kitco News' Michelle Makori, Andy Schectman, the President and Owner of Miles Franklin Precious Metals, has shed light on the potential for a major global financial reset that could redefine the role of gold in the international monetary system. Schectman's insights delve into the ongoing de-dollarization trends, the introduction of a new common currency backed by gold, and the implementation of central bank digital currencies (CBDCs) – all of which could drastically reshape the global financial landscape.

Experts Foresee a Seismic Shift in the Global Financial Order

The Impending Collapse of the Dollar-Dominated System

Schectman emphasizes that the current system, heavily reliant on the U.S. dollar as the global reserve currency, is at risk of collapsing. He points to the mismanagement of the U.S. dollar, the weaponization of the treasury, and record levels of gold accumulation by central banks as key indicators of a looming shift. The BRICS nations, through initiatives like Project mBridge and their exploration of a new currency, are positioning themselves to challenge the dominance of the U.S. dollar in international trade. These initiatives aim to reduce reliance on the dollar and introduce alternative payment systems that would enable participating nations to trade without using the U.S.-controlled SWIFT network.

The Rise of a Gold-Backed Global Currency

According to Schectman, the BRICS nations are not only looking to introduce a new global currency but are also working on creating an alternative global payment system that could rival the existing U.S.-led systems. The concept of a gold-backed currency system, he explains, is not far-fetched. The Bank of International Settlements (BIS) has already elevated gold to a Tier 1 asset, giving it the same status as U.S. dollars and treasuries. This, along with the unprecedented levels of gold repatriation by several central banks around the world, indicates that gold is once again being positioned as a central pillar in the global monetary system.

The Potential Implications for the U.S. Dollar

Schectman warns that the continued weaponization of the dollar, coupled with excessive money printing and inflation, is eroding confidence in the currency. The U.S. government's policies, including sanctions and the overuse of the dollar as a political tool, are pushing countries to seek alternatives. As the BRICS nations and their allies shift away from the dollar, Schectman predicts that the U.S. could face significant economic challenges, including higher inflation and a potential loss of its status as the world's leading reserve currency.

The Revaluation of Gold and Its Impact on the U.S. Economy

Schectman also discusses the potential implications of a revaluation of gold to $150,000 an ounce. He explains that such a revaluation could allow the U.S. to drastically improve its balance sheet by offsetting its liabilities with higher-valued gold reserves. This, he argues, could provide the U.S. with a path to restoring some economic stability, especially as its debt levels continue to rise at unsustainable rates.The insights provided by Schectman paint a compelling picture of the impending global financial upheaval. As the BRICS nations and their allies work to challenge the dominance of the U.S. dollar and introduce a new gold-backed currency system, the world may be on the cusp of a seismic shift in the international monetary order. The implications of these developments could have far-reaching consequences for the global economy, with the potential to reshape the financial landscape for decades to come.