Lanci argues the global monetary system is shifting from dollars to collateral

Vincent B. Lanci’s new book says the international financial system is built less on currencies than on the assets that serve as collateral, with U.S. Treasuries now at the center. He argues the next phase could layer Treasuries, gold and commodities into a more diversified global structure as central banks look for politically neutral reserves. Why it matters: - The global monetary system depends on the assets that support borrowing, reserves and derivatives, not just on the currencies that circulate. - A shift in the main collateral asset can change how credit expands, how markets function and which countries hold financial power. - Rising central bank demand for gold and pressure on U.S. monetary dominance suggest the current Treasury-centered structure may be entering a new phase. What happened: - Vincent B. Lanci outlined his view of the international monetary system in the book AS GOOD AS GOLD: The Return of Real Money . - Lanci is a veteran trader in gold, precious metals, energy and stocks, publisher of the Substack newsletter Goldfix, and an adjunct professor of MBA Finance at the University of Connecticut. - The book argues that the system is built on collateral and that U.S. Treasury securities now anchor that structure. - The release frames the moment as one of gradual change rather than a sudden replacement of the existing system. The details: - World governments hold trillions of dollars in U.S. Treasury securities. - Central banks use Treasuries as reserves. - Banks borrow against Treasuries in repo markets. - Derivatives contracts are margined with Treasuries. - Institutional portfolios treat Treasuries as the safest asset in global finance. - Gold served as the foundation of international finance for much of the 19th and 20th centuries because it had no issuer, no counterparty risk and broad trust as a store of value. - After World War II, Bretton Woods created a hybrid system in which the dollar handled global trade and gold remained the settlement asset for central banks. - The United States suspended gold convertibility in 1971. - Financial markets then adapted and Treasuries gradually took over gold’s role in global finance. - Treasuries provided liquidity, legal certainty and enough supply to support fast-growing markets. - Repo markets grew around Treasuries, derivatives markets used them as margin, and central banks accumulated them as reserves. - By the early 21st century, the global system had become a Treasury-collateral system. - China is challenging the U.S. for economic leadership and monetary dominance. - Central banks are buying more gold for their reserves. Between the lines: - The argument is less about replacing the dollar than about what backs trust in the financial system. - If collateral is the real foundation, then political neutrality becomes as important as liquidity and scale. - The release suggests that the next system will likely emerge through practice in reserve management and market plumbing, not through a formal announcement. - A layered model would keep Treasuries central while adding gold as neutral sovereign collateral and commodities as support for trade-linked regional finance. What’s next: - The next stage of monetary evolution may move toward multiple collateral assets instead of a single dominant one. - Treasuries would likely remain central, but gold could regain a formal role and commodities could matter more in regional financial ties. - The broader test will be which assets governments, central banks and markets quietly choose to trust in future crises. The bottom line: - The release argues that the future of money will be decided by collateral first and currencies second.