LOCAL

The End of the Dollar Era? Why Paul Wong Sees ‘Bretton Woods III’ and a Golden Future

Sprott’s Paul Wong explains why the shift to Bretton Woods III is inevitable and how gold will serve as the ultimate reserve asset in a fragmented global economy.

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The Fragile State of Global Finance

In an era defined by increasing geopolitical friction and the fraying of long-standing trade alliances, the global financial landscape is approaching a critical turning point. Paul Wong, Market Strategist at Sprott Asset Management, argues that the current monetary order is no longer sustainable. As the world transitions from a unipolar system dominated by the U.S. dollar to a multipolar reality, the necessity for a robust, non-correlated monetary reserve system has never been more apparent. Wong suggests that we are witnessing the inevitable birth of what experts call ‘Bretton Woods III.’

Understanding Bretton Woods III

The concept of Bretton Woods III, originally popularized by strategist Zoltan Pozsar, describes a fundamental shift in the nature of money. If Bretton Woods I was defined by the gold-backed dollar and Bretton Woods II was characterized by ‘inside money’—or debt-based assets like U.S. Treasuries—then Bretton Woods III is defined by ‘outside money.’ This new phase prioritizes tangible, hard assets over promises to pay. According to Wong, as the global economy ‘breaks up’ into competing blocs, nations are increasingly wary of holding the debt of other countries as their primary reserve, fearing both inflationary debasement and geopolitical weaponization of the financial system.

Why Gold Stands Alone

In this shifting landscape, gold emerges as the preeminent candidate for a neutral reserve asset. Unlike fiat currencies or government bonds, gold carries no counterparty risk and cannot be printed at the whim of a central bank. Wong emphasizes that gold is the only asset that ‘stands alone’ because it is not someone else’s liability. In a world where trust between nations is at a multi-decade low, the objective value of gold provides a stabilizing force that paper assets simply cannot match. This intrinsic value makes it the perfect anchor for a fragmented global economy that requires a universal medium of exchange that transcends political boundaries.

Central Banks Lead the Charge

The movement toward this new monetary order is already visible in the behavior of global central banks. Over the past two years, central bank gold buying has reached record highs, particularly among emerging market nations seeking to diversify away from the U.S. dollar. This trend is not merely a hedge against inflation but a strategic move toward sovereignty. By accumulating gold, these nations are building a foundation for a future where their economic security is not entirely dependent on Western financial infrastructure. Wong notes that this systemic pivot is a clear signal that the world is preparing for a monetary system where physical commodities play a central role.

The Implications for Investors

For investors, the transition to Bretton Woods III represents a significant departure from the investment strategies of the last forty years. The traditional 60/40 portfolio, which relies heavily on the inverse correlation between stocks and bonds, may struggle in an environment where inflation is persistent and debt levels are soaring. Wong suggests that a monetary reserve system based on gold will likely lead to higher floor prices for the precious metal. As institutional and retail investors follow the lead of central banks, the demand for gold as a ‘portfolio insurance’ policy is expected to intensify, potentially leading to a long-term bull market for the asset.

A Necessary Evolution

While the transition to a new global monetary system is likely to be volatile, Paul Wong views it as a necessary evolution. The imbalances inherent in the current dollar-centric system—ranging from massive debt loads to trade deficits—have reached a breaking point. Bretton Woods III represents a return to fiscal and monetary reality, where value is measured in something tangible. As the ‘world breaks up’ into localized power centers, gold remains the only asset capable of providing the liquidity, safety, and independence required to navigate the coming economic storm.

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LOCAL

A New 10,000-Seat Arena Sports Hub Begins Construction in Downtown Surrey

Demolition begins on a downtown Surrey site to build a 10,000-seat arena that will host the Vancouver Giants, featuring a hotel, housing, and conference space.

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Work Begins on Surrey’s Downtown Sports and Entertainment Hub

Crews have started demolishing a former Safeway building to make way for a 10,000-seat arena in downtown Surrey, with Mayor Brenda Locke taking part in the teardown on Thursday. The venue will eventually serve as the home arena for the Western Hockey League’s Vancouver Giants, who are relocating from the Langley Events Centre.

Alongside the mayor at Thursday’s launch was musician Michael Bublé. He praised the initiative, noting that during his nearly 30-year career, he has observed how major venues can transform a city, adding that the new space will “become a part of memories.” Mayor Locke described the effort as “one of the most significant city-building projects in Surrey’s history.”

Financial Details and Project Features

The city projects the venue’s net cost at $360 million, supported in part by a $198-million commitment within Surrey’s five-year budget. Additionally, the municipality exchanged three city-owned land parcels, valued together at approximately $116 million, with Wesgroup Properties. Beyond the sports arena, the broader site design encompasses residential housing, conference facilities, and a luxury hotel.

Municipal estimates suggest the venue will deliver $2.4 billion in economic benefits over a ten-year period while generating 2,700 regional jobs. Bill Aujla, president and chief executive officer of the Surrey City Development Corporation, characterized the venture as a key investment intended to bring lasting benefits in sports, culture, economy, and community.

Timeline and Local Political Opposition

Despite official optimism, political rivals have raised concerns over the development. In a press release issued Tuesday, the Imagine Surrey municipal party labeled the transaction a “deal done in the dark, on land the city overpaid for.” Mayoral candidate Mike Starchuk stated he would have pursued the arena “in the right place at the right time” and pledged to put every commitment in writing so the public could hold his team accountable.

Site clearing and initial demolition mark the start of construction, which is scheduled for completion in 2030. Until the new downtown facility opens, the Vancouver Giants will remain at their current home in Langley.

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COMMUNITY

Why You Should Join Tofino’s Second Annual Mexican Independence Day Party

Tofino Community Hall hosts the second annual Mexican Independence Day event on Sept. 12, 2026, featuring live mariachi, folklore, and salsa lessons.

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Tofino Hosts Second Annual Cultural Gathering

The Tofino Community Hall and Emergency Reception Centre will serve as the venue for a family-friendly Mexican Independence Day event on September 12, 2026. Scheduled to start at 4:00 PM Pacific Time, the festivities return for a second year following a successful inaugural gathering.

Live Performances and Entertainment Lineup

Attendants can participate in salsa lessons and watch a Nahualli folklore performance. The musical program features mariachi vocalist Laura Rivera, along with tunes provided by DJ Moses. Additionally, the Julio Avila Cuban Latin Live Band will perform during the evening celebration.

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LOCAL

Why Canada’s New Counter-Tariffs May Hinder Local Businesses While Leaving Shoppers Unscathed

Canada enacts $28B in retaliatory tariffs on U.S. goods. Small businesses brace for higher costs while experts predict minimal impact for everyday consumers.

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New Duties Hit Hundreds of American Imports

As of 12:01 a.m. Tuesday, the federal government imposed dollar-for-dollar counter-tariffs targeting roughly 700 U.S. commodities and consumer items valued at $28 billion. Applied at rates from 15 per cent to 50 per cent, these levies touch a broad range of goods including steel, aluminum, plywood, cement, wine, toilet paper, hockey sticks, and coin-operated arcade games. The action serves as a direct response to 50-per-cent tariffs introduced by U.S. President Donald Trump’s administration on Aug. 22 against an equivalent value of Canadian products. Trump has characterized the trade imbalance between the two nations as “unacceptable.”

Small Merchants Face Disproportionate Financial Strain

Representing over 100,000 small and medium-sized enterprises, Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), expressed deep concern over the escalation. “They feel like they’re … cannon fodder in the trade war with the United States. That’s not a good feeling,” Kelly stated, adding that “The burden of counter-tariffs hits disproportionately hard on some, not on others.” Unlike earlier disputes that centered on large industries and automobiles, this measure burdens smaller firms already in difficult financial circumstances.

Local Retailers Absorb Costs Amid Uncertainty

The impact is already visible at the store level. JS Furniture, a Manitoba retailer operating in Winnipeg, Portage la Prairie, Steinbach, and Winkler, relies on U.S. imports for an estimated 60 per cent of its sales volume. General manager Brian Kyca noted that laminate bedroom suites face severe hits, with dressers, chests, and drawers subject to 50 per cent duties, while items such as headboards, mirrors, and nightstands face 25 per cent levies. Navigating vague information from agencies like the Canada Border Services Agency has proven frustrating, but the company chooses to absorb these unexpected expenses for now rather than pass them to customers who ordered weeks ago.

The economic strain has forced JS Furniture to pause store expansion plans, while its 35 workers face uncertainty. Commission-based sales staff feel the squeeze as cautious shoppers hold back. “If people aren’t coming in and buying furniture, they’re not earning any money,” Kyca observed, noting that households with disposable funds are hoarding cash while paycheque-to-paycheque shoppers carefully limit spending.

Minimal Immediate Impact Expected for Everyday Consumers

Despite the challenges confronting merchants, economic experts suggest average households will see little daily disruption. McMaster University economics professor Colin Mang explained that the counter-measures generally target imports that feature readily available Canadian substitutes, offering domestic producers a chance to capture market share. During previous tariff conflicts, retailers absorbed roughly 75 per cent of added costs, passing only a quarter to shoppers. Mang noted that if merchants anticipate a short-term trade dispute, they will likely absorb the costs again at the expense of their own profit margins. Bank of Canada Governor Tiff Macklem similarly noted on Sept. 2 that while these steep counter-measures will increase operational costs for specific firms, they apply to a relatively narrow selection of goods.

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