Billings Author on the New World Financial Order

 You guys may have heard our friend Greg Franks on the radio last week as John Jackson ("the Joker" from X) was on the mic.

by Greg D. Franks

China and Russia and the BRICS bloc has advanced a prototype digital settlement instrument known as “The Unit,” piloted in late October/early November 2025. Backed 40% by physical gold and 60% by a basket of member currencies, The Unit—built on blockchain networks like Cardano—facilitates transparent, SWIFT-independent cross-border transactions within the expanded 10-member group. This initiative, informally supported by BRICS nations, aims to reduce reliance on dollar-dominated systems amid sanctions risks and trade frictions.

China has driven much of this momentum, with aggressive gold stockpiling (reserves exceeding 2,300 tons) and gradual reductions in U.S. Treasury holdings. Collective BRICS gold reserves top 6,000 tons, underpinning efforts to hedge against dollar volatility. The petrodollar system, established in the 1970s to recycle oil revenues into dollar assets, faces gradual erosion as producers like Saudi Arabia (a BRICS partner) explore alternative settlements—though around 80% of global oil trades remain dollar-priced.

In Europe, fiscal pressures and the protracted Ukraine conflict heighten tensions. Elevated deficits (e.g., France approaching 6% of GDP) coincide with calls from some leaders for escalated NATO involvement, fueling concerns over potential miscalculations in a high-stakes standoff with Russia. While no global war looms imminently, the strain underscores vulnerabilities in a system long reliant on U.S.-led security guarantees.

Geopolitical analyst Peter Zeihan anticipated these dynamics over a decade ago in books like The Accidental Superpower (2014) and The End of the World Is Just the Beginning (2022), emphasizing America’s structural advantages—energy independence, demographics, and geography—in a deglobalizing era.

Against this backdrop, monetary innovations offer new tools. The U.S. GENIUS Act of 2025 has propelled Treasury-backed stablecoins to a market cap exceeding $310 billion, with issuers purchasing short-term debt as reserves. This parallel system echoes the National Banking Era (1863–1913), when private banks issued currency backed by government bonds, fueling the Industrial Revolution’s explosive growth.

Treasury Secretary Scott Bessent has advanced growth-oriented deregulation, while the administration prepares for a Fed leadership transition in May 2026.

The Trump administration’s December 2025 National Security Strategy provides a strategic response, reviving the Monroe Doctrine via a “Trump Corollary” that prioritizes the Western Hemisphere: securing borders, countering non-regional influences (e.g., China), and fostering integrated North American alliances. By encouraging allies to manage their own security burdens, this approach conserves U.S. resources for domestic and regional priorities.

In this narrow window of multipolar transition, the Trump administration has to navigate these challenges effectively by leveraging America’s inherent strengths. Prioritizing hemispheric integration builds resilient supply chains and energy networks, insulating against global disruptions. Stablecoins and the GENIUS Act framework extend dollar utility digitally, absorbing Treasury demand through private innovation and reinforcing financing stability without overreliance on foreign buyers.

Gold’s rally to around $4,300 per ounce and silver near $62 reflect global hedging, but U.S. policies position Trumps policies to benefit: domestic energy dominance undercuts petrodollar rivals, while selective disengagement frees fiscal space for growth. As Zeihan has argued, no alternative fully matches dollar liquidity or America geography—BRICS tools like The Unit may fragment trade but struggle to supplant a system backed by the world’s largest economy.

By aligning accommodative monetary policy (via upcoming Fed appointments) with fiscal expansion and regional focus, the administration can turn de-dollarization pressures into opportunities for renewed sovereignty. This path—innovative financing, strategic restraint abroad, strength at home—solves inherited overextensions, ensuring the U.S. not only weathers the shift but emerges resilient in a rebalanced world. The outcomes in 2026, from Fed decisions to hemispheric deals, will prove pivotal to the future of Western Civilization.