Loading ...Fiat Currency System Collapse – But Not The End Of The World
The current fiat currency system collapse will likely take place within the next few months. While it will probably create great upheaval, it won’t be the end of the world. Much of the global financial community has been planning for it for decades. In fact, knowing that the debt associated with the fiat monetary system has been rising exponentially, the players have known for decades it was unsustainable and have been preparing for it’s demise. They have always known and used the fact that they were going to have to return to the use of gold and silver to milk as much leverage as possible before the ultimate collapse. By using derivatives to maximize the debt and associated economic benefit they insured a parabolic blowoff in debt and econoic activity. They were always going to have to return to the only real money in human history gold(and silver). All of the existing fiat based debt, in the form of government bonds of all nations(and related derivatives) will be covered by revaluing the price of gold from the “official” $40 per ounce set at Bretton Woods, to something many multiples of today’s round number price around $2000 per ounce. While the US is the least likely to initiate this change since they still have the global reserve currency(for now), they know it is coming and have been preparing as well. While it may look like the BRICS are the ones to initiate, it could just as well be the Europeans who have probably the largest cummulative gold holdings, after China and Russia. It probably will be a coordinated global effort catalyzed by some geopolitical shock, either planned or not. Most of the general public may be surprised, but the global financial elites have been preparing for decades.
So everybodies liquid “wealth” vaporizes to NOTHING overnight but thats not the end of the world…comforting to know
Whats the PLAN CM ?
It’s one thing to KNOW the end of the Monetary System is Nigh…It’s quite something else to EXPLAIN what comes next.
In this scenario…everybody starves to death
While I am not privy to the governments plans, one would think most of them will push to implement their various CBDC’s tied to UBI. The masses who aren’t prepared(stackers holding gold and silver can opt out) will be begging to sign up.
Yes but what of their bank account ?
ZERO ?
and by what mechanism will we …the chosen few…spend our gold and silver bars and coins ?
This is all so murky and nebulous as to be a useless conversation
Of course zero. If fiat is worthless everything based on it is worthless. It has already lost 99% of its value. The CBDC issued as UBI will be the new currency. If some govts. are smart enough it will be actual gold or redeemable for gold. Others may try to fudge it and just say it is pegged to gold.
Sounds like the end of the world to me.
It is misleading to say Fiat has lost 99% of its Value
Because in spite of that technically being true …Our standard of living in the West is exponentially higher than it was in 1913 when the FED was Created. EXPONENTIALLY !
How much did people make a year in 1900?
In 1900, the average family had an annual income of $3,000 (in today’s dollars). The family had no indoor plumbing, no phone, and no car. About half of all American children lived in poverty. Most teens did not attend school; instead, they labored in factories or fields.
Like I said…if we are going back there…that IS the end of the world
While what you point out about improvements in the standard of living over the decades is correct, it has nothing to do with a revaluation of gold and a new monetary system. People are much better off in many ways and many will be unhappy with the fact they will be even more dependent on the govt. than they already are. If they have a reasonable amount of savings in the form of fiat, then they have no one to blame but themselves for not diversiying into at least some gold and silver.
I don’t doubt that at some point they try to institute a CBDC. As far as this UBI is concerned I would venture a guess it would be along the lines of what Canada pays out for their brand of Social Security. That’s about $500 a month for the low to average earner. Maybe some of you guys North of the Border can correct me on that. They won’t pay a living “wage”. Sounds like pitchforks if any of this is true. Good luck using your Gold and Silver in a SHTF scenario.
School? Or what they call school today. If you have a chance go read some of the letters guys sent home during the Civil War. They learned better in one room schoolhouses than most kids do today.
“The current fiat currency system collapse will likely take place within the next few months”. ~~ Chartsmaster
That’s a pretty bold statement Chartsmaster. I cannot agree though. Fiat is not dying a death like you say because nobody is onside with that idea. Zero people want that and zero banks would promote it. Fiat is still accepted everywhere on the planet and that will continue albeit with higehr inflation in many jurisdictions. Think about it for a moment. Even in economies that experienced high levels of inflation the fiat system did not collapse. Even at the most extreme ends of the inflation spectrum when actual hyperinflation began those systems kept functioning. It just took more paper to buy goods. That’s all. Gold of all things is the most improbable of alternatives. Except maybe after nuclear bombs go off and government itself collapses.
You are assuming that nothing is going to change. That the same exponential increase in debt and currency creation can go on forever. That is unsustainable. These last 50 years are the first and only time the world didn’t have a global reserve currency consisting of actual gold and silver. I may be wrong about the number of months it takes before it collapses but it definitely will collapse. Comparing this last half century to the last 500 years of history are comparing apples and oranges.
You are assuming that we will go back to currency formats and backing that worked in the stone age without considering that technological advances have already made gold and silver backed money anachronisms. Yes there will be changes but they won’t be changes that perfectly rhyme with the past. We are over that already and know it does not work. Precious metals backing money is replete with problems of its own so solving todays excesses by bringing back models that are equally problematic is not going to be the answer. One of the greatest innovations in history is the blockchain and as you have seen that is what is being embraced around the globe. Nobody sober is trying to make gold-backing the alternative system once more. All that Russia is doing by demanding pricing in gold or oil to Rubles is establishing a benchmark and creating a means to keep trading against a backdrop of sanctions. But even they do not want gold backing and I am sure if allowed they would return to a dollar based system using Swift in a heartbeat because that is still what works for most of the globe.
I didn’t say we were going back to the old system. I said we would end the current sysytem and go back to using gold and silver, the only true money which have been used for centuries. How it is used and whether it includes some form of digital blockchain is possible but not necessarily the way it happens. As I suggested, various countries and blocks of countries will try different things. Since China and Russia are big miners and buyers of gold and are nuclear powers they are likely to be major players. How it plays out no one knows but that doesn’t change my belief the old system is on it’s last legs.