**So Many Open Signs Of Financial Disaster Ahead And Gold Working**

So Many Open Signs Of Financial Disaster Ahead And Gold Working

_Authored by Matthew Piepenburg via GoldSwitzerland.com,_ (https://goldswitzerland.com/so-many-open-signs-of-financial-disaster-ahead-and-gold-working/)

From oil markets to treasury stacking, backdoor QE, investor fantasy and hedge fund prepping, it’s becoming more and more clear that the big boys are bracing for disaster as gold stretches its legs for a rapid run north.

Recently, I dove into the **cracks in the petrodollar** (https://goldswitzerland.com/golden-question-is-the-petrodollar-the-next-thing-to-break/) as yet another symptom of a world turning its back on USTs and USDs.

Gold, of course, has a role in these headlines if one looks deep enough.

So, let’s look deeper.

**Diving Deeper into the Oil Story**

The headlines of late, for example, are all about “surprise” OPEC production cuts.

Why is this happening and what does it say about gold down the road?

First, let’s face the politics.

As noted many times, it seems US policy, on everything from **short-sighted (suicidal?) sanctions** (https://goldswitzerland.com/ukraine-war-headlines-tough-talk-real-math-bad-options/) to the “green initiative” makes just about zero sense in the real world, which is miles apart from the “keep-me-elected” fantasy-world of DC.

After all, energy, matters, which means oil matters.

But the current regime in DC has been losing friends in Saudi Arabia and cutting its prior and once admirable shale production outputs (think 2016-2020) in the US despite a world that still runs on black gold fighting against green politics.

The DC attack on shale may make the Greta Thunbergs happy, but let’s be blunt: It defies economic common sense.

Saudi, by cutting production, is now showing a still very much oil-dependent world it is not afraid of losing market share to the USA in the face of rising oil for the simple reason that the USA just aint got enough oil to fill the gap or flex its energy muscles.

In the meantime, Chinese demand for crude is peaking while Russian oil flows to the east (including to Japan) are hitting new highs at prices above the US-led price cap of $60/barrel.

If DC has any blunt realists (wrongly castigated as tree-killers) left, it will have to re-think its anti-oil policies and get back toward that recent era when US shale was responsible for 90% of total global oil supply growth.

If not, oil prices can and will spike, making Powell’s war on inflation even more of an open charade.

Speaking of inflation…

**Ghana Oil-for-Gold Beats Inflation**

When it comes to oil and the decades-long **bully-effect of a usurious USD** (https://goldswitzerland.com/sanctions-spur-a-massive-decline-in-western-hegemony-as-the-world-de-dollarizes/) (See: _Confessions of an Economic Hitman),_ we have argued countless times that a strong USD and an imposed petrodollar was gutting developing economies around the world.

We also warned that developing economies (spurned by global distrust of the Greenback in a post-Putin-sanction era of a weaponized reserve currency) would respond by **turning their backs on US policies** (https://goldswitzerland.com/how-the-west-was-lost-declining-world-reserve-currency/) and its dollar.

In the old days, the US could export its inflation abroad. But those days, as we warned as early as **March 2022**, (https://goldswitzerland.com/why-gold-will-rise/) would be slowly but steadily coming to a hegemonic end.

Again, this does not mean (nod to the Brent Johnson) the end of the USD as a reserve currency, just the slow end of the USD as a trusted, used or effective currency.

Toward that slow but steady end, it’s perhaps worth noting that Ghana’s inflation rate has fallen from 156% to just over 60% since it began trading oil for gold rather than weaponized USDs.

Hmmm.

**Gold Works Better than Inflated Greenbacks**

The most obvious conclusion we can draw from such a predictable correlation is that gold seems to be working better than fiat dollars to fight/manage inflation, a fact we’ve been arguing for well…decades.

From India to China, Ghana, Malaysia, China and 37 other countries engaged in non-USD bilateral trade agreements, the inflation-infected USD is losing its place in more than just the critical oil trade.

Nations trapped in USD-denominated debt-traps (thanks to a rate-hiked and hence stronger and more expensive USD) are now finding ways to tie their exports (i.e., oil) to a more stable monetary asset (i.e., GOLD).

This, of course, makes me that much more confident that as the world moves closer to its global (and USD-driven) “Uh-Oh” moment, that the already-telegraphed Bretton Woods 2.0 will have to involve a new global order tied to something golden rather than just something fiat.

This, again, explains why so many of the world’s central banks are loading up on gold rather than Uncle Sam’s I…

https://www.zerohedge.com/markets/so-many-open-signs-financial-disaster-ahead-and-gold-working