As The Currency Reset Begins – Get Gold As It Is “Where The Whole World Is Heading”
By: GoldCore
GoldSeek.com
Monday, 2 July 2018
As the Reset Begins, Get Gold
by James Rickards for Agora Financial’s Gold Speculator
This may be the most important commentary I’ve ever written. Here’s why.
For years, financial analysts have discussed what’s called the Global Monetary Reset, or GMR. Expectations of a GMR stem from the fact that monetary policies around the world are unstable and unsustainable.
Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos by James Rickards
There is no anchor to the system. There is no limit on money printing. There is no limit on debt creation.
Such a system grows exponentially based on the false belief that governments can spend as much as they want and central banks will pick up the tab or bail out the system as needed.
Politicians love the system because they can buy votes from their citizens. Central bankers love the system because of the power and prestige it brings them. Citizens love the system because they get handouts, bailouts, pumped-up asset values and other goodies seemingly for free.
What’s not to like?
The problem, of course, is that the system is unstable and unsustainable. It’s a huge inverted pyramid of promises poised on a small sliver of real money called gold. It’s bound to tip over and come crashing down as it has many times in the past, from the Jubilees of ancient Israel to the global financial crisis of 2008.
The 2008 panic would have closed banks and capital markets globally but for tens of trillions of dollars of central bank intervention. That bailout money printing has still not been mopped up. The 2008 bailout has sown the seeds of the next crisis.
Viewing this broadly, an objective analyst can see that a new system based on some hybrid of dollars, gold and the IMF’s world money called special drawing rights (SDRs) is inevitable. This new system could even include an encrypted distributed ledger or blockchain, and might revert to fixed exchange rates instead of floating.
The GMR would be a return to something like the old Bretton Woods system (1944–1973) but with 21st-century characteristics and technology. This is what is meant by the Global Monetary Reset.
That much is clear. The open issues for students of the GMR are when it happens and how.
There are two answers to the how part. It can either happen in a proactive way by convening a new global monetary conference similar to Bretton Woods (1944), the Plaza Accord (1985) or the Louvre Accord (1987). Or it can happen in a chaotic fashion in response to a new financial crisis, as occurred at the G-20 Washington summit led by George Bush and Nicolas Sarközy in November 2008.
My estimate has always been that the GMR would be conducted in a panic due to the lack of leadership and foresight of the global monetary elites.
The Rest…HERE
