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In 2014 I wrote The Big Reset.
The most important part: Chapter 6 - The Big Reset
A Sunday thread - inspired by the IMF - calling for a 'New Bretton Woods Moment'
https://www.amazon.com/Big-Reset-Revised-Financial-Endgame/dp/9462980276 or free download https://en.cdfund.com/download-the-big-reset.html
The most important part: Chapter 6 - The Big Reset
A Sunday thread - inspired by the IMF - calling for a 'New Bretton Woods Moment'
https://www.amazon.com/Big-Reset-Revised-Financial-Endgame/dp/9462980276 or free download https://en.cdfund.com/download-the-big-reset.html
New rules have been discussed not only inside the advanced
economies, but with all emerging economies, including China.
Jean-Claude Trichet, former president of the European
Central Bank
economies, but with all emerging economies, including China.
Jean-Claude Trichet, former president of the European
Central Bank
With the status of the US dollar as the international reserve
currency being shaky, a new global currency setup is being
conceived.
Zhou Ming, General Manager of the Precious Metals
Department ICBC
currency being shaky, a new global currency setup is being
conceived.
Zhou Ming, General Manager of the Precious Metals
Department ICBC
The world is moving step by step toward a de facto Gold Standard, without any meetings of G20 leaders to announce the idea or bless the project.
Ambrose Evans-Pritchard, international business editor,
The Telegraph
Ambrose Evans-Pritchard, international business editor,
The Telegraph
I believe that basically the system is broke[n] and needs to be
reconstituted. The system we now have has broken down, only we haven’t quite recognized it. So you need to create a new one and now is the time to do it.
George Soros, hedge fund manager
reconstituted. The system we now have has broken down, only we haven’t quite recognized it. So you need to create a new one and now is the time to do it.
George Soros, hedge fund manager
INTRO
The world economy and its currency system can be compared
to supertankers. All route changes have to be planned well in
advance. If history has taught us anything, it is that a currency
tends to lose its world reserve status over a long period of transition.
The world economy and its currency system can be compared
to supertankers. All route changes have to be planned well in
advance. If history has taught us anything, it is that a currency
tends to lose its world reserve status over a long period of transition.
The ‘endgame’ is often drawn out over decennia. The British
pound first suspended its gold standard at the start of World
War I in 1914, but it was not until 1944 that the dollar became its successor (during the last Big Reset).
pound first suspended its gold standard at the start of World
War I in 1914, but it was not until 1944 that the dollar became its successor (during the last Big Reset).
Although the US understands that the dollar will one day
lose its world reserve currency status, the Americans will try
to maintain their monetary supremacy for as long as possible.
lose its world reserve currency status, the Americans will try
to maintain their monetary supremacy for as long as possible.
Actually, it was already apparent to the Americans back in 1971 that the endgame for this dollar-based system had begun. For over 40 years, the US has used all its power, creativity and flexibility to keep its monetary allies on board.
Every trick in the book has been used to convince countries to support the dollar and to marginalize the role of gold.
But since the Fed has started to monetize most of the newly
issued debt as part of its QE operations, the point of no return
has been passed. Probably even within the next decade, the
global financial system will have to find a different anchor.
issued debt as part of its QE operations, the point of no return
has been passed. Probably even within the next decade, the
global financial system will have to find a different anchor.
We can expect the US to take the initiative again before a real crisis of confidence occurs.
Why do you expect a Big Reset of the global
financial system?
Our financial system can be changed in almost any way as long as the main world trading partners can agree to the changes.
financial system?
Our financial system can be changed in almost any way as long as the main world trading partners can agree to the changes.
There are two types of resets: those that are planned well in
advance – such as the Bretton Woods reset in 1944 which affected almost the whole world – and smaller resets needed due to monetary developments.
advance – such as the Bretton Woods reset in 1944 which affected almost the whole world – and smaller resets needed due to monetary developments.
Examples of the latter are the introduction of the gold-backed D-Mark after the Weimar hyperinflation in 1923 in Germany, the closing of the gold window by the US in 1971, and the theft of depositors money during the rescue of the Cyprus banking system in 2013.
Two major problems in the world’s fijinancial system have to
be addressed: 1) the demise of the US dollar as the world’s reserve currency, and 2) the almost uncontrollable growth in debts and in central banks’ balance sheets.
be addressed: 1) the demise of the US dollar as the world’s reserve currency, and 2) the almost uncontrollable growth in debts and in central banks’ balance sheets.
For all of these issues, central banks have only been buying time since the start of the credit crisis in 2007. Insiders predict that much more radical action will be needed before 2020
In 2013, the Chinese openly said that the time had come to
‘de-Americanize’ the world. They called for ‘the introduction
of a new international reserve currency that is to be created
to replace ‘the dominant US dollar’
‘de-Americanize’ the world. They called for ‘the introduction
of a new international reserve currency that is to be created
to replace ‘the dominant US dollar’
But given how sensitive this issue is, nothing can be said in
public. Any official comments about a new ‘Plan B’ will crash
financial markets (Plan A) immediately. Central planners know
the only way to plan a reset is to do it in total secrecy.
public. Any official comments about a new ‘Plan B’ will crash
financial markets (Plan A) immediately. Central planners know
the only way to plan a reset is to do it in total secrecy.
That is why investors have to watch what central bankers do instead of what they say and prepare themselves well in advance.
Many monetary reforms, like the one in Cyprus, are executed
on the weekends when financial markets are closed. On many occasions, there are no concrete warning signs. Only insiders
and their ‘smart-money’ (i.e., hedge-fund) friends tend to be
positioned well in advance.
on the weekends when financial markets are closed. On many occasions, there are no concrete warning signs. Only insiders
and their ‘smart-money’ (i.e., hedge-fund) friends tend to be
positioned well in advance.
China stopped buying US Treasuries in 2010 and has been loading up on gold ever since, which is a sign not to be ignored. The Russians have been aggressively buying gold as well, ever since the start of the credit crisis in 2007.
The fact that the US is still fighting gold with everything in its power is a clear indication that gold will probably be an important part of a planned reset. If not, it will at least be the best safe haven when the storm passes.
How can the international monetary system be
changed?
Most people see our financial system as a binary system with
only two options: it will work (0) or it will crash (1).
changed?
Most people see our financial system as a binary system with
only two options: it will work (0) or it will crash (1).
They tend to forget that this is a highly flexible system, which can be adjusted in many ways. Because the current system is constructed by mankind and does not follow the rules of natural law, almost any desired change can occur.
