History shows us that we have moved between fiat, gold standard, fiat, gold standard, fiat, gold/silver, fiat, gold, fiat...

Ray Dalio has told "Ray Dalio to Investors: Choose Gold Over Treasurys for Financial Stability" gold over treasury He also have his view on change of world order. Silver, gold, palladium, platinium are massively up this year. Central bank buying and investors piling on.

China and India has reduced US treasury buying, while countries like Norway has increase US treasury buying to make up for it...

USA if not finding enough international buyers off their treasury bonds needs to buy them themselves (increase their money printing). If it happens it will lead to a lot of inflation in USA, but we are not there yet.

It will be interesting to see if today's fiat money system survives the next 10 to 15 years without regime change in central bank policy. What could the new money system be: gold again? batman-coins? EURO?

I remember when the head of IMF in 2011 suggested to replace the USD as world currency with a new world currency consisting of a basked from: dollar, sterling, the euro and the yen, Chinese yuan.  I thought he would not be able to keep his job for long, and soon enough he was out.

"If the evident recent success of fiat money  regimes falters, we may have to go back  to seashells or oxen as our medium of exchange. In that unlikely event, I trust,  the discount window of the Federal  Reserve Bank of New York will have an  adequate inventory of oxen.”
Greenspan 2002

Make sure you all have some sea shells or even better Oxen! 

"In the absence of the gold standard, there is no way  to protect savings from confiscation through inflation.
There is no safe store of value. If there were, the  government would have to make its holding illegal, as was done in the case of gold. . . . The financial policy of the welfare state requires that there be no  way for the owners of wealth to protect themselves. 

This is the shabby secret of the welfare statists'  tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth.”

Alan Greenspan, 1966

Even Keynes knew money printing caused inflation (hidden tax)

How many of you are caught in the silver squeeze ?

How an epic short squeeze drove silver's first record in 45 years

"Bank of England chief warns of ‘worrying echoes’ of 2008 financial crisis. Andrew Bailey says a close look is needed at the private credit market after collapse of two big US firms" 

https://www.theguardian.com/business/2025/oct/21/bank-of-england-chief-warns-worrying-echoes-2008-financial-crisis-tricolor-first-brands

Fiat money printing has inflated assets including housing and increased the wealth gap. What we see is increased polarisation of the people politically and otherwise. Many assets are now likely in a bubble that could pop any time ? Or can more money flooding the market keep inflating the bubbles (125 billions injected last few days) 
 

Only time can tell, time to trim the hedges!

Central banks have for decades created bubbles and then bailed out the bubbles, at some stage it will not work anymore...people are screaming left or right, instead of focusing on the center: Central Banks!

Notwithstanding that Milton Friedman was a demonstrated academic cheat (and not alone at that in Chicago), an appreciation of the staggering growth in western central bank balance sheets makes it very hard to disagree with the view that the central banks are villains here. Why did they print so much money? Some wags think it was to provide the financial system with massive amounts of high-quality collateral; the global bank regulators having deluded themselves into thinking that sufficient collateral could insulate the banking system from domino-like collapses. The practical problem with collateral printing, as noted in 2012 by then-Bank of England higherup Andrew Haldane, is that we have a very, very poor ability to forecast unexpected losses. So, a great deal of collateral came out of that way of thinking.

We have another continental divide forming in economics. The frankly practical European (English) view that collateral management cannot fundamentally make the banking business risk-free. Versus the American view that, needless to say, is a dice rolling view consistent with their current and hopefully temporary dip into the politics of criminality and insanity.

China is now issuing considerably amounts in USD dominated bonds. As china is one of world largest holders of USD dominated bonds this could be an excellent strategy to try to reduce exposure to USD bonds. Instead of dumping US treasury simply hedge them by issuing USD dominate bonds. Use the proceeds to buy more gold and also other things needed from the west.