The Post-WWII Financial Order Just Collapsed – And If You’re Still Playing by Old Rules, You’ll Get Wiped Out

The World Has Changed—But Most Investors Haven’t

Axel Merk doesn’t mince words. In a recent interview with Kitco News, he said the post-World War II financial system has collapsed—and I couldn’t agree more.

The era where global cooperation, open supply chains, and predictable market signals guided capital? That’s over.

We’re now living in what Merk calls a period of “state activism”—a polite way of saying that governments, not markets, are in control. And if you’re still trying to play this game using yesterday’s playbook, you’re going to lose—and lose big.

Power Now Drives Markets, Not Fundamentals

Merk made it crystal clear: in today’s world, capital flows are no longer driven by efficiency or free trade. They’re driven by raw power.

• Government policy
• Strategic resource control
• Militarized finance
• Broken alliances
• Scarcity

This is why copper is spiking. This is why silver hit $80 an ounce. And this is why the old signals like yield curves, P/E ratios, and monetary policy guidance just don’t work anymore.

The market doesn’t care what your spreadsheet says—it cares who controls the supply chain.

The U.S. Has Entered Fiscal Suicide Mode

Let’s talk numbers. The U.S. federal deficit hit $1.8 trillion in 2025. Public debt is 99.8% of GDP, and interest payments alone now top $1 trillion a year.

Let that sink in: we’re now borrowing money just to pay interest on money we already borrowed.

This is a textbook debt spiral. It’s what happens right before a currency collapse.

Merk warns that the Federal Reserve and the U.S. Treasury have effectively merged, meaning our central bank is no longer independent—it’s a backstop for government overspending.

This is fiscal dominance. And it’s why central banks around the world are dumping dollars and loading up on gold.

Gold Buying Is the Smart Money Signal

Here’s where Merk’s insight lines up perfectly with what we’ve been telling you:

• Central banks bought a record 1,045 tonnes of gold in 2024
• That demand continued strong in 2025, especially from Poland, India, and Turkey
• They’re not just “diversifying”—they’re exiting the dollar system

Merk calls this move toward gold “monetary neutrality”—which is a fancy way of saying: “We don’t trust your paper anymore.”

And you shouldn’t either.

Don’t Fall for the Mining Stock Trap

Now here’s a contrarian take that I really appreciate. Even with gold finishing 2025 up a staggering 67%, Merk warns that mining stocks may not be the slam dunk everyone thinks.

Why? Because the same state activism driving up metal prices is also choking mining operations with:

• Nationalization
• New regulations
• Tax hikes
• Seizures of foreign-held assets

Mexico is reforming its mining laws. Mali is tightening its grip. And Bank of America predicts gold production from North American miners will actually decline in 2026—even as prices surge.

So while the metals are rising, the miners are facing a squeeze. If you’re not careful, you’ll buy the sizzle and miss the steak.

You Can’t Print Copper

Merk also makes a powerful point about copper, which is now testing $6 per pound. This isn’t a bubble—it’s a reflection of real scarcity.

In a rewired geopolitical world, copper isn’t just a commodity—it’s a strategic asset. And with a projected deficit of over 300,000 tons in 2026, supply is stretched thin.

And guess what? You can’t print copper.

If Venezuela or Congo or Chile can’t—or won’t—ship it out, the world has a serious problem. That’s why physical resources are becoming the new currency of power.

Stop Thinking in Theories. Start Thinking in Real Assets.

Look, I come from a blue-collar background. I wasn’t born into wealth—I earned it by learning how the system works and, more importantly, when it’s breaking.

And right now, it’s breaking. Axel Merk isn’t warning about volatility for no reason. He’s warning that the framework we’ve relied on since WWII is already gone.

The real risk now? Clinging to a fantasy that no longer exists.

⚠️ This Isn’t a Market Cycle. It’s a Reset.

If you’re still hoping this all goes back to “normal,” you’re in danger.

The institutions aren’t going to ring the alarm bell. They’re going to keep the music playing while they quietly head for the exits. And when the lights go out, you’ll either be holding real assets—or regrets.

Don’t wait for the next “bank holiday” or currency reset to realize you’ve been had.

Get physical. Get secure. And get educated — because they’re not going to warn you when it all goes down.

👉 Download the Digital Dollar Reset Guide now
Your future self will thank you.
Or curse you — depending on whether you act now.

Stay alert. Stay resilient. Stay free.
— Frank Balm
Lead Analyst, Dedollarize News