“You have the watches, but we have the time.”
The Taliban often referred to this old Afghan stating when discussing their fight against the Americans.
Ultimately, they were shown right.
After nearly twenty years of conflict, an insurgent army from one of the world’s poorest nations caused a definitive military defeat on the United States, the global superpower that maintains the unipolar world order.
The United States government’s overall failure in Afghanistan– the longest war in American history– signifies a crucial moment and turning point in world history.
The Soviet Union collapsed about two years after the Red Army was defeated and withdrew from Afghanistan.
As we approach the second anniversary of the American retreat, could a similar fate be in shop for the US?
While nobody understands the future, there is an exceptional chance that the colossal failure in Afghanistan could speed up the unraveling of the geopolitical power of the United States and the shift to a multipolar world order.
Afghanistan’s strategic position has constantly made it a coveted prize in the Eurasian landscape.
As shown in the image listed below, Afghanistan is situated in the center of Eurasia, at the crossroads of China, Iran, and Russia– the three primary challengers to the US-led world order.
This main area is why Afghanistan has enormous geopolitical importance and why the United States preferred a tactical military presence there.
Source: Ontheworldmap.com The United States military’s existence in Afghanistan was a tactical roadblock to Russia, China, and Iran’s goal of developing a powerful geopolitical group in Eurasia that might challenge the US-led world order.
However, with the Taliban requiring the US military out of Afghanistan, the door to a more coherent geopolitical alliance in Eurasia is now wide open.
In other words, failure in Afghanistan is a geopolitical catastrophe for the United States.
For at least the past decade, China, Russia, and Iran have actually been dealing with an outstanding plan to connect Eurasia– even while the United States armed force remained in Afghanistan. This trend will likely speed up now that the US armed force is no longer physically in their method.
Here’s what they have actually been working on …
China, Russia, and Iran are building a huge network of land-based transport infrastructure, making the US Navy’s control of the oceans less considerable.
China’s New Silk Roadway project is main to this brand-new system. It aims to bypass the United States monetary system and the United States Navy’s control of sea routes. The project, prepared to be operational by 2025, consists of high-speed trains, highways, fiber optic cable televisions, energy pipelines, seaports, and airports.
These Eurasian powers are also establishing alternative worldwide organizations for monetary, political, and security cooperation, separate from those main to the US-led world order, organizations like NATO, the World Bank, SWIFT, and the IMF.
Some noteworthy examples consist of the Asian Facilities Investment Bank (AIIB), released by China in 2014 and is an alternative to the IMF and World Bank.
The Eurasian Economic Union (EEU), a Russian-led trading bloc created in 2015, allows for the totally free motion of goods, services, capital, and individuals among its member nations.
Last but not least, the Shanghai Cooperation Company (SCO) concentrates on military and security collaboration between its members.
If present patterns continue, it will lead to higher financial, political, and security partnership amongst the 3 main Eurasian nations– China, Russia, and Iran– at the cost of United States geopolitical interests.
This scenario is precisely what Zbigniew Brzezinski worried would make the United States “geopolitically peripheral.” It spells the end of the unipolar world order.
Simply put, we are on the course to the development of an alliance of effective Eurasian countries and a multipolar world order.
As the world order changes, I think there are 2 prominent financial investment outcomes we can bank on.
Outcome # 1: The United States Dollar Will Lose Its Privileged Position
The decline of America’s geopolitical impact is another huge headwind for the US dollar.
Suppose the world believes the US armed force is the supreme backstop of the United States dollar. What does it indicate for the United States dollar’s reliability when a mangy group of insurgents from among the poorest countries can beat the military which backs it?
If the magnificent United States armed force could not protect its partners in Afghanistan, how can it safeguard its other allies?
Taiwan, South Korea, Japan, Western European countries, and the Gulf Arab states are most likely considering this.
It wouldn’t be unexpected to see them make security arrangements with US foes– such as China, Russia, and Iran– that exclude the Americans.
In truth, this has actually currently occurred with Saudi Arabia, a vital player in the US-led world order. Saudi Arabia is the linchpin of the petrodollar system, which has underpinned the United States dollar because Nixon eliminated its last links to gold in 1971.
In a matter of weeks, Saudi Arabia has:
- Restored relations with Iran.
- Brought back relations with Syria and welcomed it back to Arab League.
- Supported multiple OPEC+ oil production cuts versus American dreams.
- Reported an end to the war in Yemen.
- Consented to sell oil in other currencies.
- Chosen to join the Shanghai Cooperation Company (SCO).
The United States just recently sent its CIA director to Riyadh to inform the Saudis the Americans feel “blindsided” amid these seismic shifts in Saudi diplomacy.
Simply put, a paradigm shift in Saudi policies signifies a paradigm shift in the US dollar because of the petrodollar system.
Nevertheless, Saudi Arabia is not the only United States ally hedging its geopolitical bets recently. France, India, Japan, Mexico, Brazil, and others are making moves to cozy approximately the Eurasian geopolitical block.
The big concern is, the length of time will the world continue to hold the paper liabilities of an insolvent and decreasing federal government?
While the United States dollar is the leading worldwide currency, it was already on a path of unavoidable debasement and ultimate collapse– even prior to considering the intensifying results of a multipolar world order.
The only reason the US federal government has handled to avoid severe repercussions from its monetary policies is the US dollar’s status as the world’s premiere reserve currency, thanks to Washington’s military and economic supremacy that has prevailed considering that completion of The second world war. Nevertheless, as this dominance wanes, so will the dollar’s purchasing power.
The United States government’s capability to conceal the impacts of its rampant cash printing by offloading trillions of dollars to immigrants is nearing its end.
That’s dreadful news for the US dollar.
Now, that doesn’t indicate I’m excited about the Chinese fiat currency– or whatever brand-new financial mixture the Eurasian block develops. Ultimately it will be absolutely nothing more than the liability of a brand-new grouping of corrupt politicians and bureaucrats.
Money is merely something helpful for storing and exchanging worth. That’s it.
Individuals have used stones, glass beads, salt, livestock, seashells, gold, silver, and other products as cash at various times.
Think about money as a claim on human time. It’s like saved life or energy.
Sadly, today the majority of humanity thoughtlessly accepts whatever useless digital and paper scrips their federal governments provide as money.
Nevertheless, money does not need to come from the government. That’s an overall misnomer that the typical individual has actually been hoodwinked into thinking.
Fake money originates from federal government. Genuine money emerges from the market.
Federal government currencies are horrible money since they are easy to produce with a possibly endless supply.
The free market wouldn’t choose government confetti as cash without laws requiring their usage.
Here’s another way to think about it.
Imagine if Tony Soprano forced his area to utilize notepads with his signature as cash and threatened violence against anyone who disobeyed. That’s what governments are making with their currencies.
Here’s the bottom line with money. Hardness is the most crucial attribute of a good cash.
Hardness does not indicate something that is necessarily concrete or physically hard, like metal. Rather, it implies “hard to produce.” By contrast, “simple money” is simple to produce.
The best way to consider solidity is “resistance to debasement,” which helps make it a great store of value– an essential function of money.
Would you want to put your savings into something somebody else can develop without effort or cost?
Obviously, you would not.
It would resemble keeping your life savings in Chuck E. Cheese game tokens, airline frequent leaflet miles, or papers with Tony Soprano’s signature. Regrettably, putting your savings into federal government currencies isn’t that much various.
What is desirable in an excellent money is something that someone else can not make quickly.
In other words, as the United States dollar loses its privileged position, I anticipate an ocean of capital to flow into apolitical, free-market, hard-to-produce monetary options like gold and Bitcoin.
That’s why I believe completion of the unipolar world order will enhance 2 significant investment trends– the re-monetization of gold and The Bitcoin Supremacy– as the world seeks options to the US dollar.
Outcome # 2: Product Supply Disruption
Completion of the unipolar world order implies transitioning to a multipolar international trade program– with serious implications for commodities.
As I see it, there will be two primary geopolitical blocks.
First, there are the countries part of or allied with the West. I hesitate to call this block “the West” because the people who manage it have values antithetical to Western Civilization.
A more fitting label would be NATO & Friends.
The other block includes Russia, China, Iran, and other countries beneficial to a multipolar world order.
Let’s call them the BRICS+, which stands for Brazil, Russia, India, China, South Africa, and other interested nations.
Algeria, Argentina, Bahrain, Bangladesh, Belarus, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Saudi Arabia, Sudan, Syria, Tunisia, Turkey, the UAE, Venezuela, Zimbabwe, and various others have expressed interest in membership of BRICS.
BRICS+ is not a best label, but it’s a good representation of the nations beneficial to the multipolar world order.
While there already is friction in free trade– sanctions, tariffs, export bans, nationalizations, embargoes, tactical competitors, and so on– in between NATO & Friends and BRICS+, I expect it to grow considerably as the multipolar world order emerges.
That will have major consequences for commodities, which BRICS+ controls.
Take Russia, for example.
Politicians and the media in the US frequently ridicule Russia as nothing more than “a gasoline station with nuclear weapons,” an incorrect cartoonish representation.
Here’s the reality …
Russia is the world’s largest exporter of natural gas, lumber, wheat, fertilizer, and palladium (an important cars and truck element).
It is the second-largest exporter of oil and aluminum and the third-largest exporter of nickel and coal.
Russia is a major manufacturer and processor of uranium for nuclear power plants. Enriched uranium from Russia and its allies supplies electrical power to 20% of the houses in the US.
Aside from China, Russia produces more gold than any other country, representing more than 10% of worldwide production.
These are just a handful of examples. There are numerous tactical commodities that Russia dominates.
In short, Russia is not just an oil and gas powerhouse however a product powerhouse.
As stress in between NATO & Friends and BRICS+ continue to rise, I expect it to disrupt product trade in between the two even more.
Supply interruptions indicate greater costs. That’s a result I think we can bank on.
I anticipate countries in both geopolitical blocks will increasingly focus on securing vital products and guaranteeing access to steady supplies.
I believe we can bet on geopolitical competition in between the two blocks triggering increased need and unstable materials.
That’s why getting direct exposure to strategic commodities as the world order changes might be a winning move.
Here’s the bottom line …
Sadly, most people have no idea what truly occurs when the world order changes, let alone how to prepare …
The coming crisis will be much even worse, a lot longer, and extremely various than what we have actually seen since World War II.
Countless millions throughout history were eliminated financially– or worse– as the world order altered since they failed to see the appropriate Broad view and take suitable action.
Do not be one of them.
That’s exactly why I simply launched an immediate brand-new report with all the information, including what you need to do to prepare.
It’s called, One of the most Dangerous Recession in 100 Years … the Top 3 Techniques You Required Right Now.