History and logic clearly demonstrate that sanctions reduce demand for fiat currencies and the debt they denominate, thus supporting gold. Throughout history, what we now call sanctions—financial and economic warfare (i.e., cutting off an adversary's funding and supplies)—have occurred before and during wars. When adversaries have a creditor-debtor relationship, the debtor's choice to withhold repayments from the adversary's creditor nation has the beneficial effect of harming the adversary's economic interests and reducing its own debt burden. However, this also has the negative effect of weakening the currency and debt value of the sanctioning/debtor nation. When major world powers and their reserve currencies face this kind of situation, the global monetary order inevitably weakens. Consequently, gold holdings and prices rise, as it is a non-fiat currency that remains secure and widely accepted. #principle #raydalio