The world may not be altogether sure why nations who have professed to be the world’s leaders of freedom and democracy are launching unprovoked aggressions violating treaties, pumping arms into impoverished nations to prolong proxy wars and doling out hundreds of sanctions worldwide. It seems nonsensical to the popular narrative of freedom and justice we have all believed.
But perhaps, the world is now seeing beyond rhetorical hubris, to actual fact thanks to the advances of the information age. And it may be that new technology and new alliances will forge a dual system. A system where there is debt, poverty, instability and sanctions on one track; and prosperity, trade and growth flourishing on another. It may be then that world actors may have the choice to exist in two economic realities or at the very least choose the one most beneficial to its interests. In effect, developing economies may now be able to leave the figurative darkness of poverty and instability of a Tolkienesque Mordor for the bright Elven future of economic security in the Shire.
A person could be broke and contained under one system, but thriving and vibrant in the other. Nation would then have the options to thrive and grow regardless of whether their ideology or interests fit the narrow confines of Western self-interests.
The retreat from the current model began in earnest the minute SWIFT was used as a tool of war and punishment. Suddenly the world could see a pivot away from SWIFT and the current fiat model–but also that it could be much more. It also revealed that the old system was ran by a meager few who could then leverage the mighty many. In essence, that day, the world learned the economic system was not democratic.
Since that time, the world has begun to question everything. And many are moving toward building a system with better checks and balances and world inclusion for participants. The challenge to the LBMA (London Bullion Market Association) which assigns values to gold and other precious metals, will help equalize and normalize precious resource trading. This push to change valuations is a game-changer for producers of precious metals, mining and gold production. It’s a pivot that could turn the world upside down and put resource producers like Eastern Europe, Latin America and other regions at the top of the food chain.
The valuations at the LBMA has ensured that the association can dictate values based on arbitrary or self-interested reasons. It is why major gold producers like Ghana and South Africa must go to the World Bank and the IMF for fiat to settle their debts–when they are literally replete with gold and diamonds. It has been a clever scheme over the years, but that the gravy train may be ending for the tiny non-producer nations who feast on the real-wealth of producers.
At this point, it will be fine to go broke in the current system with all of its sanctions and containment and simply switch over to prosperity, opportunity and freer trade in the new one. Allowing old, absurd debt to explode may make more sense for economies who have never had a fair chance at prosperity and growth. Now “third-world” may become a thing of the past. Sanctions will mean nothing, if there is another option.
Debt is crushing the current system. Even when the current US president announced student loan forgiveness in August 2022, that should not have come as a shock. It was inevitable and desperately needed for the system itself. In fact, there will likely be more of this kind of debt load shedding in various quadrants. Keep your eye on the commercial property debt burden, which in the US has reached 4.5 trillion in 2022 according to the World Property Journal. Luxury housing will likely also face an implosion too, as hundreds of overpriced, fancy units sit empty unable to turn viable profits. These are bubbles so enormous the explosion will be heard and felt around the world. The system just isn’t working, we’ve come to the end of the Monopoly game.
More and more as nations are increasingly unable to cope with ballooning debts, the inclination to simply abandon them and allow them to implode in the face of greedy lenders is pressing. And if these bogus debts created by bloated fiat, fractal math and manipulated precious metal values implode–for many, a new system awaits with better architecture and greater stability. It may be time for the world to divest from the albatross that keeps dragging world economies back to hell and certain demise.
The Titanic is sinking and the band played on.