# The Dollar System Is Breaking & Gold Is Becoming Money Again w/ Andy Schectman Source: https://www.youtube.com/watch?v=Ofdw3tdorAg Recap page: https://rapidrecap.app/video/Ofdw3tdorAg Generated: 2025-12-02T16:11:27.194+00:00 --- ## Quick Overview Andy Schectman argues that the global dollar system is breaking due to massive, unchecked fiscal irresponsibility, leading to a loss of trust that will eventually force a revaluation of gold and silver, likely resulting in gold being settled outside of the dollar system, potentially via cross-border settlement utilizing digital yuan or similar non-USD assets. **Key Points:** - Andy Schectman asserts that the US Treasury's fiscal irresponsibility, including adding $1 trillion to the debt every 100 days during the shutdown, has irrevocably broken trust in the dollar system (0:04-0:19, 2:58-3:10). - The lack of trust is global, exemplified by Saudi Arabia and China actively pursuing deals outside the dollar system, such as using digital yuan for oil transactions (2:00-2:43). - Physical gold and silver demand is surging as investors seek tangible assets outside the compromised fiat system, with gold up 70% and silver up 100% this year (1:55-2:01, 8:25-8:30). - Schectman predicts that gold will be revalued to $4,000 per ounce, or potentially higher, to settle the massive debts that the US cannot otherwise manage (3:03-3:10, 3:42-3:59). - The move away from the dollar is driven by countries like China and Russia actively building alternatives, such as the digital yuan settlement system, which is intended to bypass Western sanctions (2:39-2:43, 6:50-7:12). - Miles Franklin implemented a 'T+1' settlement standard, meaning physical metal delivery occurs one day after the trade, which is faster than the typical T+2 settlement and demonstrates a commitment to physical backing (1:11-1:26, 10:55-10:58). - Schectman notes that the Fed's actions, like printing money to buy Treasuries, erode the dollar's value, which is why gold's role as a true store of value is becoming increasingly apparent (5:56-6:20, 7:08-7:14). ![Screenshot at 0:03: Andy Schectman predicts the Fed would need Congressional approval to revalue gold to $4,000/oz, illustrating the political constraints on addressing the dollar's devaluation.](https://ss.rapidrecap.app/screens/Ofdw3tdorAg/00-00-03.png) **Context:** John Gillen of Milk Road Macro interviews Andy Schectman, President of Miles Franklin Precious Metals, to discuss the current state of the US dollar, global reserve currency status, and the increasing demand for physical precious metals like gold and silver. Schectman details the underlying fiscal instability of the US system and how geopolitical actors are positioning themselves for a post-dollar world. ## Detailed Analysis Andy Schectman argues that the global financial system, anchored by the US dollar, is fundamentally breaking due to massive, repeated fiscal irresponsibility by the US government, citing the recent addition of $1 trillion to the debt in just 100 days (0:04-0:19, 2:58-3:10). This loss of trust is causing sovereign nations, particularly BRICS members like China, Russia, India, and Saudi Arabia, to aggressively accumulate physical gold and silver as a non-sanctionable, non-USD settlement asset (1:50-2:01, 2:48-3:01, 4:04-4:11). Schectman predicts that gold will eventually be revalued to $4,000 per ounce, or possibly higher, to account for the massive amounts of currency printed, which has decimated the dollar's purchasing power (8:25-8:30, 3:55-4:03). He emphasizes that this trend is being accelerated by geopolitical actions, such as the Petro-dollar deal collapsing, leading countries to seek alternatives to USD settlement, like the digital yuan (2:21-2:43). Schectman contrasts the physical nature of gold with fiat currency, noting that gold cannot be sanctioned or debased by central banks (7:57-8:01). He also highlights that Miles Franklin is actively developing systems, like its T+1 settlement standard and tokenized gold products, to facilitate this transition to a more tangible, trust-based financial architecture (1:11-1:26, 5:01-5:15). ### Dollar System Devaluation - The President could tell the Treasury Secretary to revalue gold right now, but lack of Congressional approval prevents it - Fiscal irresponsibility, adding $1 trillion to debt every 100 days, has broken global trust in the dollar (0:01-0:19, 2:58-3:10). ### Geopolitical Shift - Countries like Saudi Arabia, China, Russia, India, and the UAE are massively accumulating gold and silver, often bypassing the USD settlement system (2:48-3:01, 3:33-3:40, 4:21-4:33). ### Gold and Silver Performance - Gold is up 70% and silver is up 100% this year, indicating a flight to tangible assets (8:25-8:30). ### Miles Franklin's Role - Miles Franklin is promoting physical settlement options and has implemented a T+1 settlement standard for precious metals, contrasting with the fiat system's T+2 standard (1:11-1:26, 10:55-10:58). ### The Future of Gold - Schectman predicts gold will be revalued to $4,000/oz, or higher, because the USD is being debased by massive money printing, and central banks are losing credibility (3:55-4:03, 8:21-8:26). ![Screenshot at 0:03: Andy Schectman introduces the topic by noting the potential for the Treasury Secretary to revalue gold without Congressional approval \(0:03-0:06\).](https://ss.rapidrecap.app/screens/Ofdw3tdorAg/00-00-03.png) ![Screenshot at 0:16: Andy Schectman emphasizes the scale of the problem, gesturing to illustrate his point about the debt and the need for revaluation \(0:16-0:18\).](https://ss.rapidrecap.app/screens/Ofdw3tdorAg/00-00-16.png) ![Screenshot at 1:35: Andy Schectman expresses thanks to John Gillen, marking the transition into the main discussion \(1:35-1:37\).](https://ss.rapidrecap.app/screens/Ofdw3tdorAg/00-01-35.png) ![Screenshot at 2:03: Andy Schectman discusses the global financial system built upon trust, which he claims is now breaking \(2:03-2:16\).](https://ss.rapidrecap.app/screens/Ofdw3tdorAg/00-02-03.png) ![Screenshot at 10:16: Andy Schectman holds up a cup of coffee while discussing how the current system is flawed and that Miles Franklin offers a tangible alternative \(10:16-10:18\).](https://ss.rapidrecap.app/screens/Ofdw3tdorAg/00-10-16.png)