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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Environment

Invasive Mosquitoes Carrying Brain-Swelling Virus Detected in B.C. Sea-to-Sky Region

B.C. health officials detect invasive mosquitoes and the California serogroup virus in the Sea-to-Sky region following a cluster of childhood encephalitis cases.

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Investigation Sparked by Pediatric Cases

Health officials in British Columbia have confirmed the presence of invasive mosquitoes and a concerning virus capable of causing brain swelling in the Sea-to-Sky corridor north of Vancouver. The investigation was launched by the B.C. Centre for Disease Control (BCCDC) following a cluster of three pediatric encephalitis infections reported in the region in August 2024. Researchers concentrated their efforts between Squamish and Pemberton to identify the source of the rare infections.

California Serogroup Virus Identified

Anya F. Smith, a senior scientist with the BCCDC, stated that researchers discovered two mosquito species testing positive for the California serogroup virus. This group of pathogens is known to cause serious neurological conditions in humans, including encephalitis and meningitis. Among the carriers identified was the northern house mosquito, a species native to Africa, Asia, and Europe that has successfully established itself as an invasive species in British Columbia.

Impact of Climate Change on Disease Transmission

While the detected virus levels were low—preventing the team from confirming a specific strain—the findings are seen as a critical baseline for public health preparedness. Stefan Iwasawa of the BCCDC emphasized that rising temperatures due to climate change are expected to increase human exposure to various mosquito species. Understanding which species are present and what viruses they carry is essential for developing effective prevention and response strategies in a changing environment.

Assessing the Public Risk

Despite the detection, health authorities including Vancouver Coastal Health and the University of B.C. maintain that the current risk of serious illness remains low. Historical data shows only 15 known cases of California serogroup virus in B.C. between 2009 and 2024, with no new cases reported in the Sea-to-Sky corridor so far in 2025. Officials continue to monitor the situation while advising the public to take standard precautions against mosquito bites during the warmer months.

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UBC Dementia Research Receives $500,000 Boost for Revolutionary Blood-Based Testing

The Cowell Foundation invests $500,000 in CLEAR Foundation to fund UBC’s groundbreaking biomarker research and blood-based dementia testing.

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Transforming Dementia Diagnosis at UBC

The landscape of Alzheimer’s research in British Columbia has received a significant boost following a $500,000 investment from The Cowell Foundation. This visionary gift, directed to the CLEAR (Canadians for Leading Edge Alzheimer Research) Foundation, is set to accelerate the development of biomarker-based detection methods at the University of British Columbia’s newly inaugurated Core Facility for Neurology Biomarker Innovation (CFNBI).

Located within the UBC Hospital, the CFNBI represents a critical step forward in neurological science. Under the leadership of Dr. Cheryl Wellington, a Professor in the Department of Pathology and Laboratory Medicine, the facility is focused on a transformative goal: replacing expensive neuroimaging and invasive lumbar punctures with simple, accessible blood tests. These tests detect protein biomarkers that reflect real-time biological changes in the brain, offering a window into the progression of dementia long before traditional symptoms may surface.

Investing in Talent and Technology

The four-year commitment from The Cowell Foundation will be split between two primary initiatives. First, an Operating Grant will provide critical resources to established dementia researchers in British Columbia. Second, a Research Trainee Award will fund the development of the next generation of scientific talent, ensuring that the province remains at the forefront of global medical innovation.

Dr. Wellington’s team has already established a formidable track record, boasting over 50 publications and more than 70 managed projects. Their collaborative network of 140 experts has already attracted upwards of $75 million in funding, but this new investment specifically targets the practical application of biomarker technology to make diagnosis more equitable and timely for patients throughout the region.

The Growing Urgency of Dementia Research

The timing of this investment is critical. Currently, more than 770,000 Canadians are living with some form of dementia, and projections suggest this figure will nearly double by 2050. As the population ages, the demand for early and accurate diagnosis becomes a matter of public health necessity. Early detection is widely considered the key to effective intervention and, eventually, a cure.

In a statement, the Cowell family emphasized the personal nature of their contribution, noting the profound impact the disease has on families and caregivers. By funding the CLEAR Foundation—which directs 100% of public donations toward research—this gift ensures that the path toward a future free from dementia remains a top priority for Canadian science.

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Environment

Montreal Hits Record High for Lyme Disease as Island Becomes Official Risk Zone

Montreal records record 161 Lyme disease cases in 2025. With 38% of infections occurring locally, health officials warn of climate-driven tick expansion.

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Lyme Disease Surge Linked to Climate Change and Local Exposure

Montreal public health officials have confirmed that the city reached an unprecedented milestone in 2025, recording its highest number of Lyme disease cases to date. A total of 161 cases were documented in the agency’s latest annual report, marking a significant increase from the 113 cases reported just one year prior. Most notably, nearly 38 per cent of these infections—61 cases—are believed to have occurred directly on the island of Montreal, reinforcing the city’s status as an endemic zone for the black-legged ticks that carry the bacteria.

Dr. Nicolas Sheppard-Jones, medical lead for infectious disease public health emergencies, noted that the rise is not unexpected given the northward migration of tick populations. Health experts point to climate change as a primary driver, as warming temperatures create more hospitable environments for ticks to thrive in urban gardens and parks. Previously, most cases seen in Montreal were imported from Ontario or the United States, but local transmission has now become the dominant trend.

Demographics and Hospitalization Risks

The 2025 data reveals that older adults are particularly vulnerable, with Montrealers aged 50 to 69 accounting for the largest share of infections. Children are not exempt, however, with 22 cases recorded in the 0-14 age bracket. While Lyme disease is often treated effectively with antibiotics, roughly six per cent of patients required hospitalization due to severe complications affecting the heart, joints, and neurological systems.

Interestingly, many patients were unaware they had been bitten; only 14 per cent reported seeing a tick on their skin. Activities as common as gardening and yard maintenance were cited by 39 per cent of those infected locally, highlighting that the risk extends beyond deep-forest hiking into residential backyards.

Prevention and Immediate Action

Public health officials are urging residents to adopt new habits to mitigate risk. Recommendations include wearing long clothing, using approved tick repellents, and staying on marked paths during outdoor activities. Experts emphasize the importance of a ‘tick check’ and showering within two hours of returning home to remove unattached ticks. If a bite is discovered, the tick should be removed carefully with tweezers without crushing the abdomen, and the incident should be reported via 811 to determine if preventative antibiotics are necessary.

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