Gold Telegraph: Why we are in the Middle of a Monetary Reset
Dec. 15, 2024
A record 54 countries are spending more than 10% of their revenues on interest payments. This is why we are in the middle of a monetary reset. The global debt problem is becoming very clear for all to see.
The London Stock Exchange is on course for its WORST year for departures since the financial crisis. Nothing to see here. The UK…
Argentina’s deficit has reached effectively ZERO for the first time in over 100 years.
“You don’t get out of poverty by magic. You get out of poverty with capitalism, savings and hard work.” –@JMilei
In the past month, which states in the United States are working to reintroduce gold and silver as legal tender?
1. Texas.
2. Florida.
3. Missouri.
This has all happened in the past month. You don’t hear much about it in the mainstream.
In my conversation with legendary mining entrepreneur Pierre Lessonde, he mentioned that global gold reserves are rising as dollar reserves decline—a direct response to the current U.S. debt issues.
It is worth noting, This year, gold surpassed the euro to become the second most-held asset by central banks globally.
https://twitter.com/i/status/1868475347274269015
Pierre also emphasized the impact of sanctions, the growing demand for gold from China and India’s expanding middle class, and much more.
Watch the full conversation, here: https://twitter.com/i/status/1867307651031261417
GOLD TELEGRAPH CONVERSATIONS #2: BILLIONAIRE PIERRE LASSONDE. “The gold price will ultimately be decided not in the United States, but in the East.” – Pierre Lassonde
China REPORTED gold buying last month after a 6-month pause—a clear message to the United States.
#1 producer of gold on the planet.
#1 consumer of gold on the planet.
#2 largest foreign holder of U.S. Treasury securities
Chinese authorities are reportedly considering a weaker yuan in 2025 to combat tariffs by the United States.
Gold is clearly a hedge against its paper currency.
China’s President Xi Jinping has publicly advocated reforming the international financial and monetary systems.
Gold will play a big part like it always has throughout history.
It is the foundation of the global financial system.
“The day the Shanghai Gold Exchange surpasses the COMEX in transactions will mark a seismic shift—gold’s pricing power will move decisively from the West to the East…”
Watch: https://x.com/i/status/1868009359923663101
DJ: Asset-Backed Currency vs. Fiat Currency and Financial System Implications
The public, as a whole, seem to be obsessed with the idea of asset backed currency. While it may sound good the reality of how it will work has its own set of obstacles. Maybe we shouldn’t be so quick to accept it without understanding its effects.
The debate between asset-backed currency and fiat currency has persisted for decades, with both systems offering distinct advantages and challenges. Each system has profound implications for global financial infrastructure and requires a robust messaging systems to move value efficiently through interconnected markets.
Asset-backed currencies are tied to tangible resources such as gold, silver, or other commodities. It does offer a certain stability and trust: Pegging currency to a tangible asset provides inherent value, reducing inflation risks and instilling confidence in the monetary system.
It also offers reduced government manipulation as the supply of money is limited by the availability of the backing asset, mitigating arbitrary monetary expansion. It would benefit international trade by having a universally recognized value, such as gold, could reduce currency volatility and foster smoother international trade.
But it would also be hampered by resource constraints as the finite availability of backing assets limits economic growth, as currency issuance would be directly tied to resource acquisitions. Managing, securing, and auditing the reserves backing the currency would also be costly and cumber.: In times of crisis, governments cannot easily expand the money supply to stabilize the economy, leading to potential stagnation.
On the other hand Fiat currency is based on trust in the issuing government or central authority and is not backed by physical commodities. It allows for economic growth and flexibility: Central banks can adjust the money supply to support economic objectives, such as controlling inflation or stimulating growth. Without the need for physical backing it makes it simpler to operate, making fiat currencies easier and cheaper. Most economies operate on fiat currency because it simplifies international trade and financial coordination.
The problem with Fiat currency is it is susceptible to overissuance, leading to potential hyperinflation and loss of value. Fiat money’s value hinges entirely on public and investor confidence, which can erode during political or economic instability. Unchecked monetary policy often benefits financial markets and large institutions, encouraging wealth disparities.
Both systems require efficient messaging infrastructures to transmit value across domestic and international markets. Current messaging systems networks like SWIFT, Fedwire, and the European Central Bank’s TARGET2 facilitate fiat currency transactions. These systems rely on secure communication protocols to ensure timely and accurate financial messaging..
Transitioning to an asset-backed system will necessitate a hybrid approach. Modernizing existing systems to incorporate asset certification and real-time reserve auditing will be a necessity . As an example, blockchain will offer transparent verification of backing assets and streamline cross-border transactions. Innovations like ISO 20022 messaging standards can harmonize financial communication across systems. If asset-backed currencies become mainstream, integrating smart contracts to automate value transfer and asset verification will bridge the gap between physical resources and digital finance.
The choice between asset-backed and fiat currency is a trade-off between stability and flexibility. While fiat systems dominate today’s global economy, shifting to or incorporating asset-backed models requires significant adaptations in financial messaging and technology. Striking a balance between the two will be the most viable path, leveraging advanced systems to ensure both security and adaptability in a rapidly evolving economic landscape.
Bottom line is, don’t assume going asset-backed is a cure all. It’s going to take a combination of mechanisms to stabilize the global financial networks. You can’t punch with one finger. It takes a fist to have an effect. But then again, have you ever been poked in the eye?
DJ
Courtesy of Dinar Guru: https://www.dinarguru.com/
Mnt Goat My CBI contact has told me that if the switch over of the currency, better known as the Project to Delete the Zeros, was not connected with a revaluation, then Iraq would have completed it a very long time ago. They would not have to wait. It does not take a rocket scientists to see that a one dinar note etc., etc. would be worthless without a revaluation to coincide…we can now see why they delay in doing the Project to Delete the Zeros… when will this next move occur…So, we are coming very close to the switch over from the currency auctions to the international process of currency exchanges to operate in Iraq. [Post 1 of 2….stay tuned]
Mnt Goat Why did the CBI decide to wait until the end of their fiscal year to do it? Hint..Hint..could it be under the direction of Dr Shabibi they also told us the most opportune time to conduct a substantial revaluation is at the beginning of a fiscal year? Their fiscal year begins January 1st… Also I then back up with my conversation I had…with my CBI contact that told me her committee to switch out the notes still intends to go forward with the process of deleting the zeros at this same time period also. Coincidental? …We can only pray that this new process to begin at the end of 2024 will bring success for Iraq… [Post 2 of 2
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EU and G7 Pressure on ITALY to Avoid BRICS Has Failed: Will US and G7 Alliance Collapse?
Fastepo: 12-16-2024
https://www.youtube-nocookie.com/embed/jQd2SW5EaQ8?feature=oembed&enablejsapi=1
