Summary of "New Global Order: Blueprint Revealed, Gold Is the Trust Anchor | Schectman & Makori"
The video "New Global Order: Blueprint Revealed, Gold Is the Trust Anchor | Schectman & Makori" features a detailed discussion on the emerging multipolar global order challenging U.S. dominance, focusing on the Shanghai Cooperation Organization (SCO), BRICS, and related financial and geopolitical developments. The conversation, led by Michelle Makori with expert Andy Schectman, covers the following key points:
Emergence of a New Global Order
- Chinese President Xi Jinping called for a new world order at the recent SCO summit in Tianjin, attended by over 20 world leaders including Russia’s Vladimir Putin and India’s Narendra Modi.
- The SCO, representing nearly $30 trillion in GDP (about a quarter of global economy) and close to half the world’s population, is building a parallel financial and security system designed to bypass the U.S.-led order.
- Initiatives include the SCO Development Bank with billions in funding, proposals for joint SCO bonds, an “electro yuan” system to settle green energy projects in Chinese currency, and China’s Beidou satellite network integrating member economies into Beijing’s technological orbit.
- The SCO and BRICS alliances, along with the Belt and Road Initiative, represent a loosely united front against Western hegemony, with significant military and economic power.
Geopolitical Alignments and Hedging
- The summit showcased Putin, Xi, and Modi standing together, signaling that these powers can align when needed despite differing interests.
- India and Saudi Arabia are seen as hedging their bets, maintaining relationships with both the West and these emerging alliances, balancing trade, energy, and manufacturing interests.
- The SCO’s military capabilities were highlighted by China’s massive military parade showcasing hypersonic missiles, AI-driven tanks, drone swarms, and its full nuclear triad, signaling military deterrence backing the emerging order.
Financial Architecture and De-dollarization
- The SCO Development Bank was formally approved with significant initial funding, laying the groundwork for a parallel financial system not reliant on the IMF or World Bank.
- Proposals for SCO bonds backed by member countries and issued in local currencies or yuan could challenge U.S. Treasury dominance over time.
- The electro yuan initiative aims to settle green energy and infrastructure projects, paralleling the petro-yuan system, further challenging the U.S. dollar’s role in global energy trade.
- Expansion of the Shanghai Metals Exchange with multi-jurisdictional vaults (including one being built in Saudi Arabia) supports gold-backed settlement systems.
- Central banks worldwide are increasing gold reserves, surpassing U.S. Treasuries for the first time since 1996, reflecting a lack of trust in the dollar and Western financial institutions.
Role of Gold as Trust Anchor
- Gold is positioned as the neutral, credible reserve asset underpinning this new global monetary architecture, addressing trust deficits among member countries.
- The U.S. is also quietly accumulating gold, possibly preparing for a monetary reset involving gold-backed treasuries.
- The Genius Act in the U.S. is seen as a step toward a new monetary system, creating synthetic demand for U.S. Treasuries via regulated stablecoins backed by dollars or short-term treasuries.
- This act may also pave the way for Central Bank Digital Currencies (CBDCs) and increased governmental control through digital IDs and transaction monitoring.
U.S. Response and Monetary Reset Prospects
- The U.S. faces the Triffin dilemma: maintaining the dollar as the global reserve currency requires running deficits, which undermines its own economy.
- To counter the loss of dollar dominance, the U.S. may pursue a controlled devaluation of the dollar by revaluing gold (potentially to $24,000/oz), pegging the back end of Treasury bonds to gold with near-zero interest rates to revive manufacturing and economic growth.
- Stablecoins would manage front-end liquidity, supporting government operations while the gold peg restores confidence.
- This would allow the U.S. to bring manufacturing back, reduce reliance on foreign supply chains, and grow out of debt.
- The plan may include temporary measures like universal basic income to cushion economic transition effects.
Military Signaling and Risks
- China’s military parade and demonstration of advanced weapons systems serve as a deterrent and a message that the emerging order has the military strength to back its ambitions.
- The renaming of the U.S. Department of Defense to the Department of War signals a readiness to defend interests aggressively, but both sides understand the catastrophic risks of kinetic war, making military conflict unlikely but possible.
- The geopolitical environment is characterized by saber rattling and strategic posturing more than imminent conflict.
Technological and Strategic Foundations
- China’s Beidou satellite system provides precise navigation and timing critical for logistics, agriculture, energy grids, and financial transactions, integrating SCO economies into a non-Western technological framework.
- The infrastructure being quietly laid down—financial, technological, military—makes it increasingly difficult to reverse or unplug from the emerging system.
Broader Implications and Future Outlook
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