Thoughts from DJ on the GCR 8-9-2021

DJ:   DID YOU KNOW?

Once again we all have to come to a point of reality with respect to the impending GCR. We have to look at the event in its totality and not just focus on the potential upside.

First off we have to consider the verbiage of the GCR. This is a global “revaluation” of currencies. The United Nations currently recognize 180 currencies that are used in 195 countries across the globe. It is speculated that only 21 currencies will increase in value the rest will stay relatively the same or go down in value. A handful of hose 21 are expected to have dramatic increase in value. We all know what those are.

The idea is to bring all global currencies to their true value and to replace a debt based currency system with an asset backed system.

Fiat currencies are primarily based on the GDP (Gross Domestic Product) of a country. Meaning the value of a currency appreciates or depreciates based on the economy of the country. In theory it is the best way to value a currency. But the problem is there are too many ways to corrupt that type of a system. Asset backing a currency with a tier one asset makes it close to impossible to manipulate its value.

Now consider what happens to the other 159 currencies that deprecated in value. What that means, simply put, is what you bought today 100 will cost 110, 120, or more the next day. And the products from whatever country that currency is used in will kind go up in price. This concept apply to all financial markets that depreciated currency is used in. We’re talking goods and services, financial instruments, raw materials, and supply chains will be inflated.

If you are one of the lucky ones who may get to exchange one of the valued currencies there is still 99% of the world population who will not directly benefit from it. You would be naive to believe that the global authority dictating the event has not factored that reality into this event.

The cause and effect of the GCR has more possible eventualities then any one person can conceive. Factoring in what can be conceived as to the down side effects of the event, it is not hard see possible financial chaos globally.

This is what happens when you exchange a currency. Say for example you exchange your Vietnamese Dong for U.S. Dollars. What actually happens? The U.S. Treasury takes the Dong and replaces it with dollars. The Dong then goes into in to the “Foreign Currency Reserves” of the U.S. Treasury. The U.S. Treasury then takes the Dong to the treasury of Vietnam and exchanges it for the U.S dollars they have in their Foreign Currency Reserves.

 If Vietnam does have enough U.S. dollars in their reserve they have to purchase U.S. dollars from “currency actions” or wait until they have compiled enough U.S. dollars through their manufacturing base to compensate the transaction. This is how all countries operate their foreign currency transactions. It gets a lot more detailed but you get the jest.

With that in mind then you have to have the a working I.T systems to handle the massive volume of transactions that happen cross-border on a daily basis factoring in the floating rates of value each country’s currency goes through daily and literally by the second.

The bottom line is the GCR may have a definite up-side to some but the down-side effect to depreciated currencies make take years to level out even if asset backed.

There will be a transition period that we all must be prepared for. Quit looking at the rainbow in sky and keep your feet firmly plant on solid ground.

DJ

https://www.rumormillnews.com/cgi-bin/forum.cgi?read=179070