The West’s fiat currencies are reaching the end of the line. From Alasdair Macleod at goldmoney.com:
After fifty-one years from the end of the Bretton Woods Agreement, the system of fiat currencies appears to be moving towards a crisis point for the US dollar as the international currency. The battle over global energy, commodity, and grain supplies is the continuation of an intensifying financial war between the dollar and the renminbi and rouble.
It is becoming clear that the scale of an emerging industrial revolution in Asia is in stark contrast with Western decline, a population ratio of 87 to 13. The dollar’s role as the sole reserve currency is not suited for this reality.
Commentators speculate that the current system’s failings require a global reset. They think in terms of it being organised by governments, when the governments’ global currency system is failing. Beholden to Keynesian macroeconomics, the common understanding of money and credit is lacking as well.
This article puts money, currency, and credit, and their relationships in context. It points out that the credit in an economy is far greater than officially recorded by money supply figures and it explains how relatively small amounts of gold coin can stabilise an entire credit system.
It is the only lasting solution to the growing fiat money crisis, and it is within the power of at least some central banks to implement gold coin standards by mobilising their reserves.
As I read this article, I could not help but be reminded of Garrett’s 4 pages in his shockingly-brief chapter, “The Gold Convention!”
“For this then is the modern function of gold. To limit the amount of credit that may be willfully and irresponsibly created and set free.”
If I were “King” I would require Garrett’s “A Bubble that Broke the World” to be required reading for recognition as having “successfully” graduated from High School!
So would I and so would Alasdair Macleod if he’s read it.