Part 1: The Historical Context Europe’s Preparations for a Return to a Gold-Backed Currency System
Awake-In-3D:
Europe’s Gold Agreement and Plans for a Gold Standard Currency (Part 1)
On July 25, 2023 By Awake-In-3D
Part 1: The Historical Context
Europe’s Preparations for a Return to a Gold-Backed Currency System
Step back in time to the early 1970s when a momentous decision altered the global financial landscape forever. As the U.S. unpegged the dollar from gold, signaling the end of the Bretton Woods system, Europe embarked on a different path—one that has been veiled in secrecy and strategic maneuvering for decades.
Awake-In-3D:
Europe’s Gold Agreement and Plans for a Gold Standard Currency (Part 1)
On July 25, 2023 By Awake-In-3D
Part 1: The Historical Context
Europe’s Preparations for a Return to a Gold-Backed Currency System
Step back in time to the early 1970s when a momentous decision altered the global financial landscape forever. As the U.S. unpegged the dollar from gold, signaling the end of the Bretton Woods system, Europe embarked on a different path—one that has been veiled in secrecy and strategic maneuvering for decades.
Unbeknownst to many, European countries have been diligently preparing for a return to a gold-backed currency system, countering the dollar hegemony and shaping a new equitable financial order. In this gripping account, we delve into the hidden world of European Gold Currency preparations, uncovering carefully orchestrated efforts to equalize gold reserves, strategic gold allocations, and public endorsements of gold as a safe haven.
The evidence points to a powerful conclusion: Europe stands well-prepared for a return to the golden standard, and the implications for the global monetary system are profound.
Introduction
The early 1970s marked a pivotal moment in the history of the global financial system. As the United States unilaterally severed the link between the dollar and gold, dismantling the Bretton Woods system, the world embarked on an uncertain journey toward a new monetary landscape.
Amidst this turbulence, a hidden and lesser-known story was unfolding in the corridors of power in Europe. Unbeknownst to many, European countries were not merely spectators in this grand financial transformation—they were secretly laying the groundwork for a momentous shift of their own. For decades, behind closed doors, Europe had been engaged in strategic preparations to return to a gold-backed currency system, countering the dollar hegemony and forging a new equitable financial order.
In this revealing account, we unearth the extraordinary efforts undertaken by European central banks, from equalizing gold reserves to promoting gold ownership, and explore the unmistakable signals pointing towards a return to the golden standard. The implications of Europe’s well-prepared stance reach far beyond its borders, hinting at a significant transformation in the global monetary system and a potential surge in the value of the precious metal.
Here are the hidden facts of European Gold Currency preparations—where the past, present, and future collide in a tale of power, strategy, and gold’s enduring financial significance in global economic landscapes today.
Key Terms and Organizations referenced in this Article Series:
Fiat Currency System: The current international monetary system based on paper money not backed by a physical commodity like gold.
Gold Standard: A monetary system where a country’s currency is directly linked to a specific amount of gold.
Bretton Woods: The international monetary system established after World War II, where the U.S. dollar was pegged to gold at $35 per ounce.
London Gold Pool: A consortium of eight Western central banks set up in 1961 to stabilize the gold price in the free market.
European Economic Community (EEC): An economic organization established by the Treaty of Rome in 1957, which later evolved into the European Union (EU).
Central Bank Gold Agreements (CBGA): A series of agreements signed by European central banks to coordinate and limit gold sales.
Bank for International Settlement (BIS): An international financial institution that serves as a bank for central banks.
Special Drawing Right (SDR): A reserve asset issued by the International Monetary Fund (IMF).
Shanghai Gold Exchange (SGE): The largest physical gold exchange in the world, based in China.
European Monetary System (EMS): A system launched in 1979 by European countries to stabilize exchange rates and pave the way for the Eurosystem.
Eurosystem: The monetary authority of the eurozone countries responsible for monetary policy and the issuance of the euro currency.
Central Bank of Hungary (MNB): The central bank of Hungary responsible for monetary policy and currency issuance.
Central Bank of Poland (NBP): The central bank of Poland responsible for monetary policy and currency issuance.
Central Bank of Italy: The central bank of Italy responsible for monetary policy and currency issuance.
Banque de France: The central bank of France responsible for monetary policy and currency issuance.
Deutsche Bundesbank: The central bank of Germany responsible for monetary policy and currency issuance.
National Bank of Romania (BNR): The central bank of Romania responsible for monetary policy and currency issuance.
Bank of England: The central bank of the United Kingdom responsible for monetary policy and currency issuance.
Bank of Japan: The central bank of Japan responsible for monetary policy and currency issuance.
International Financial Forum (IFF): An international organization focusing on global financial matters.
Early 1970’s: The End of the US Dollar Gold Standard and European Reactions
In 1971, the United States officially terminated the gold standard, marking the end of the Bretton Woods international monetary system. The U.S. dollar, previously backed by gold at a fixed parity of $35 per ounce, was transformed into a pure fiat currency. European central banks found themselves in a challenging position, forced to go along with the dollar hegemony due to prevailing circumstances. However, sentiment in Europe was to counter dollar dominance and gradually prepare for a new monetary arrangement that incorporated gold.
Bretton Woods and the London Gold Pool
Following World War II, the Bretton Woods international monetary system was established, with the U.S. dollar designated as the world reserve currency, backed by gold at $35 per ounce. Under this system, participating countries agreed to peg their currencies to the U.S. dollar, creating a gold exchange standard. To stabilize the gold price in the free market at $35 per ounce, a consortium of eight Western central banks set up the London Gold Pool in 1961. However, France, critical of U.S. monetary policy, repeatedly redeemed dollars for gold at the U.S. Treasury, leading to the depletion of U.S. gold reserves.
The Collapse of the London Gold Pool and the Two-Tier Gold Market
As pressure on the dollar increased between 1965 and 1968, the London Gold Pool had to supply substantial amounts of gold to maintain the peg. European central bankers began considering ways to exit the Pool agreement, as they did not want to indefinitely defend the peg, which was primarily caused by U.S. monetary policies. Consequently, on March 15, 1968, the London Gold Pool ceased its operations, and the gold price in the free market was allowed to float. This development led to the emergence of a “two-tier gold market,” wherein central banks continued trading gold among themselves at $35 per ounce but refrained from buying and selling in the free market.
What was the Two-tiered Gold Market?
The two-tiered gold market refers to a system in which there are two distinct markets for gold with different pricing mechanisms. This system was introduced in the late 1960s as a response to the challenges faced by the Bretton Woods monetary system, which was based on the fixed exchange rate of the U.S. dollar to gold.
Under the Bretton Woods system, the U.S. dollar was officially pegged to gold at a fixed rate of $35 per ounce, and other participating countries committed to pegging their currencies to the U.S. dollar. However, as the U.S. printed and exported more dollars than it had gold reserves to back them, foreign central banks began to redeem their dollars for gold from the U.S. Treasury. This led to a depletion of the U.S. gold reserves and raised concerns about the sustainability of the $35-per-ounce gold price.
To address this issue, a two-tiered gold market was established in 1968. In the first tier, central banks continued to trade gold among themselves at the fixed rate of $35 per ounce. This arrangement allowed central banks to settle international transactions and maintain some stability in the gold market.
The second tier, on the other hand, allowed gold to trade freely in the open market, where its price was determined by market forces of supply and demand. This market-driven price was often higher than the official fixed rate of $35 per ounce. Central banks agreed not to buy or sell gold in this free market to avoid disrupting the official fixed exchange rate.
The two-tiered gold market allowed central banks to manage their gold reserves more flexibly while still adhering to the Bretton Woods system. However, as the pressures on the dollar continued to mount, the system ultimately proved unsustainable. In 1971, the U.S. unilaterally decided to suspend the convertibility of the dollar into gold, effectively ending the Bretton Woods system and the two-tiered gold market. This event marked the beginning of the era of fiat currencies and the gradual shift away from the gold standard in the international monetary system.
U.S. Decision to End Bretton Woods and Europe’s Response
In early August 1971, France’s move to exchange dollars for gold by sending a battleship to New York signaled ongoing concerns about the dollar’s value. Just days later, on August 15, 1971, the United States unilaterally decided to end Bretton Woods by suspending dollar convertibility into gold. This decision led to a significant diplomatic conflict between Europe, Japan, and other countries, as their dollar reserves were no longer backed by gold.
The U.S. Efforts to Replace Gold with Treasuries
Since the 1960s, the U.S. had been encouraging foreign central banks to reinvest their dollar reserves in U.S. government bonds (Treasuries) instead of redeeming them for gold. This strategy aimed to replace gold with Treasuries in the international monetary system, allowing the U.S. to continue printing money for imports and financing fiscal deficits. However, this move was not seen as an equitable system by European central banks.
The Creation of the Euro to Counter Dollar Dominance
To counter dollar dominance and provide an alternative to the U.S. dollar as a global reserve currency, Europe embarked on a path towards integration. The Treaty of Rome in 1957 gave birth to the European Economic Community (EEC), marking the first step in European integration. The euro, later introduced as a common currency, was envisioned as a means to challenge the dollar’s hegemony and create a more balanced international monetary system.
From the events described here in Part 1, it is evident that Europe has been diligently preparing for a return to a gold-backed currency system since the 1970s. European central banks have taken careful and gradual steps to pave the way for a new monetary system based on gold, signaling their intent to move away from the current fiat international monetary system. The subsequent part of this report will delve deeper into the specific measures undertaken by European central banks to prepare for this transition and analyze their potential implications for the global financial landscape.
Declassified: The Battle for Economic Supremacy – Europe vs. the United States
In the early 1970s, a crucial turning point in the global economic landscape was unfolding as the United States, under the Nixon administration, decided to abandon the gold standard. The U.S. National Security Advisor, Henry Kissinger, and Deputy Secretary of the Treasury, William Simon, were at the forefront of discussions shaping the U.S.’s stance on the international monetary system.
Kissinger, in a phone call with Simon on March 14, 1973, revealed his concerns about a unified European monetary system, fearing it would challenge the dollar’s dominance. He stated, “I basically have only one view right now which is to do as much as we can to prevent a united European position without showing our hand… I don’t think a unified European monetary system is in our interest.”
The European solution, which aimed to fix exchange rates of the European Economic Community (EEC) currencies and float as a bloc against the dollar, was perceived as a move to leave the United States out of the global financial equation. Kissinger’s intelligence report on discussions in the German Cabinet further fueled his resolve to prevent Europe from unifying its monetary system.
However, the EEC was determined to assert its economic independence and unity. The EEC publicly declared its commitment to international monetary reform that would consider the interests of developing countries. French President Georges Pompidou emphasized that multiple centers of economic and political power would bring stability to the world. He said in a meeting with U.S. President Richard Nixon in 1970, “Power thus established never lasts long. The existence of more centers of economic and political power makes things more complicated but in the longer term has greater advantages.”
The U.S. opposed the end of the two-tier gold market, which allowed central banks to buy and sell gold among themselves at a fixed price while the free-market price fluctuated. Phasing gold out of the international monetary system was a priority for the U.S., aiming to maintain control and minimize the influence of other countries, particularly those in Western Europe, who held substantial gold reserves.
In a critical meeting in 1974, Secretary of State Henry Kissinger discussed the EC proposal to revalue gold and create a European Gold Standard Currency. Arthur Burns, Chair of the Federal Reserve, and Henry Wallich, an international affairs expert, weighed in on the matter, revealing the U.S.’s determination to prevent gold from reclaiming its position as the centerpiece of the global financial system.
Henry Wallich expressed his view that the European proposal would result in putting gold back into the system at a higher price, saying, “I think probably I do. The question is: Suppose they go ahead on their own anyway. What then?”
Kissinger echoed the U.S. opposition, stating, “My instinct is to oppose it. What’s your view, Ken?” to which Ken Rush, Deputy Secretary of the Treasury of the United States from 1972 to 1973, replied, “Well, I think probably I do. The question is: Suppose they go ahead on their own anyway. What then?”
The U.S. feared that Europe’s control over a large portion of the world’s gold reserves would give them leverage over international monetary matters. William Simon, U.S. Secretary of the Treasury from 1974 to 1977, argued, “If they have the reserve-creating instrument, by having the largest amount of gold and the ability to change its price periodically, they have a position relative to ours of considerable power.”
In the face of Europe’s determination to challenge the dollar hegemony and promote an equitable monetary system, the U.S. remained steadfast in its opposition to any move that would reestablish gold’s prominence. The battle for control over the global financial order continued, with the outcome having far-reaching implications for the stability and power dynamics of the world economy. The struggle between Europe and the United States was far from over, and the path to a new monetary system based on gold would prove to be an intricate and contentious journey.
TO BE CONTINUED IN PART 2
Contributing Articles:
Jan Nieuwenhuijs: Europe Has Been Preparing a Global Gold Standard Since the 1970s
Minutes of Secretary of State Kissinger’s Principals and Regionals Staff Meeting
Ai3D Website: Ai3D.blog
Ai3D on Telegram: GCR_RealTimeNews
Ai3D on Twitter: @Real_AwakeIn3D
https://ai3d.blog/europes-gold-agreement-and-plans-for-a-gold-standard-currency-part-1/
Awake-In-3D The FedNow Rollout and Its Implications for a US $CBDC
Awake-In-3D
The FedNow Rollout and Its Implications for a US $CBDC
On July 22, 2023 By Awake-In-3D
In CBDCs and Digital Finance, RV/GCR Articles
The future of the U.S. Dollar is likely being reshaped through FedNow, an innovative payment system operating on a Unified Digital Ledger. As this brand new digital Payment Service gains momentum, questions arise about its potential as a foundation for a Central Bank Digital Currency (CBDC) for the United States.
Awake-In-3D
The FedNow Rollout and Its Implications for a US $CBDC
On July 22, 2023 By Awake-In-3D
In CBDCs and Digital Finance, RV/GCR Articles
The future of the U.S. Dollar is likely being reshaped through FedNow, an innovative payment system operating on a Unified Digital Ledger. As this brand new digital Payment Service gains momentum, questions arise about its potential as a foundation for a Central Bank Digital Currency (CBDC) for the United States.
Here I discuss the convergence of FedNow and the prospects of a U.S. Dollar CBDC, where the boundaries between traditional and digital currencies blur. Will this transformative leap forward lead to enhanced financial efficiency, or is it a stepping stone towards a new era of surveillance and control? We should all understand the pivotal role of FedNow in shaping the future of the U.S. Dollar and the potential implications for our monetary landscape.
On July 20th, 2023, the Federal Reserve launched FedNow, a new money transfer system, with 35 participating banks across the country. JPMorgan Chase and Wells Fargo are among the early adopters, but notable exclusions are Citigroup and Bank of America. The U.S. Treasury has also signed up for FedNow. To use the service, both the sending and receiving banks must be part of the system. A total of 353 banks and credit unions have signed up for the Real-Time Payments (RTP) service and both the sending and receiving banks need to be signed up for the system to use FedNow. All participating banks and financial institutions will use the ISO 20022 messaging standard to communicate payment information among each other.
FedNow Payment System Supports the CBDC Agenda
The launch of FedNow, a payment gateway by the Federal Reserve, raises concerns about the infrastructure for rolling out Central Bank Digital Currencies (CBDCs). Early adopters, including diverse financial institutions, processors, and the U.S. Treasury, have expressed their intent to useFedNow.
The gradual adoption of FedNow could lead to increased pressure and dependence on the system, resembling a government strategy. The FedNow Service aims to provide nationwide instant payment services, allowing businesses and eventually individuals to send and receive payments at any time.
While FedNow itself is not a CBDC, its existence raises concerns about the platform’s potential use for implementing CBDCs and its impact on personal freedom.
To transition to a digital currency, a national financial infrastructure must link accounts from all banks. The system must be fast and convenient to encourage user adoption and overcome skepticism. Efforts will be made to incentivize voluntary adoption, offering generous deals and convenient features. Once the system is established and functioning smoothly, the central bank may devalue physical cash, encouraging people to trade it for digital currency.
Will CBDCs Become Reality?
CBDCs will operate on a digital unified ledger, which is a centralized system that records and verifies transactions. This ledger, often referred to as a blockchain or digital ledger technology, serves as a secure and transparent database that tracks the issuance, transfer, and ownership of digital currency units.
With CBDCs running on a digital unified ledger, central banks have real-time visibility into transactions, enabling efficient monitoring and regulation. This technology ensures the integrity and traceability of transactions while potentially streamlining processes and reducing costs associated with traditional financial systems.
The worry arises when digital currency becomes the sole option, raising concerns about control and limitations. A digital currency could enable controls like automatic taxation and restrictions on purchases, easily implemented electronically.
Justification for Implementation? The BIS and IMF suggest that transitioning to an electronic money standard could lead to lower inflation and the ability to manage the economy effectively.
However, CBDCs do not address the underlying debt collapse of our current fiat monetary system. Any digital currency not backed by gold and other tangible assets are still fiat currencies in repackaged form. This “same currency in a new dress” won’t prevent the federal government from bankruptcy when its unsustainable debt system comes crashing down.
Only Our GCR can clean the slate and bring economic fairness, balance and prosperity to a world of out-of-control Elitists and Banksters.
Contributing Articles:
Related Ai3D Articles:
Ai3D Website: Ai3D.blog
Ai3D on Telegram: GCR_RealTimeNews
Ai3D on Twitter: @Real_AwakeIn3D
https://ai3d.blog/the-fednow-rollout-and-its-implications-for-a-us-cbdc/
Note From Awake-in-3D 7-21-2023
Greetings!
Across GCR Land, there are many content and information providers. There exists a healthy spectrum of broad thoughts and opinions serving a community of free thinkers.
While there is seldom complete agreement between content providers, I firmly believe that the one thing we all can certainly agree on is that plagiarism is wrong and should not be supported or condoned.
I am asking your kind assistance in this matter. Would you please consider posting this Public Notice to confront this issue?
Many of my readership have brought multiple articles to my attention that have been modified, published and claimed as a third-party as their own original content. I’m specifically referring to American Media Group (AMG-NEWS).
Greetings!
Across GCR Land, there are many content and information providers. There exists a healthy spectrum of broad thoughts and opinions serving a community of free thinkers.
While there is seldom complete agreement between content providers, I firmly believe that the one thing we all can certainly agree on is that plagiarism is wrong and should not be supported or condoned.
I am asking your kind assistance in this matter. Would you please consider posting this Public Notice to confront this issue?
Many of my readership have brought multiple articles to my attention that have been modified, published and claimed as a third-party as their own original content. I’m specifically referring to American Media Group (AMG-NEWS).
I use a specific example in the link below.
I’ll leave this up to you. If you decide not to post my Public Notice, I would understand. Yet it is my desire to show that this is not an acceptable practice within our special GCR community.
Many Blessings,
Ai3D
Awake-In-3D: FedNow, Unified Ledgers, Asset Tokenization and CBDCs: A Hidden Agenda of Total Control?
Awake-In-3D:
FedNow, Unified Ledgers, Asset Tokenization and CBDCs: A Hidden Agenda of Total Control?
On July 20, 2023 By Awake-In-3D
Current plans for Digital Unified Ledgers and Central Bank Digital Currencies (CBDCs) could create a system of unprecedented power and control, tokenizing all assets and properties, and imposing surveillance reminiscent of Orwell’s “1984.” While the focus on CBDCs captures the public’s attention, the real global agenda might be quietly implementing a Unified Ledger network on a large-scale. This article explores the potential implications, the risks of centralized real-time control, and the need for vigilance in safeguarding personal freedoms and financial autonomy.
Awake-In-3D:
FedNow, Unified Ledgers, Asset Tokenization and CBDCs: A Hidden Agenda of Total Control?
On July 20, 2023 By Awake-In-3D
Current plans for Digital Unified Ledgers and Central Bank Digital Currencies (CBDCs) could create a system of unprecedented power and control, tokenizing all assets and properties, and imposing surveillance reminiscent of Orwell’s “1984.” While the focus on CBDCs captures the public’s attention, the real global agenda might be quietly implementing a Unified Ledger network on a large-scale. This article explores the potential implications, the risks of centralized real-time control, and the need for vigilance in safeguarding personal freedoms and financial autonomy.
Author’s Note: In exploring the topic of blockchain centralized (unified) ledgers and their potential implications, it is important to approach the topic with a balanced perspective. I want to clarify that my intention is not to come across as an alarmist or spread undue fear. Rather, my goal is to convey information that requires careful monitoring and conscious awareness.
Indeed, these digital tokens and networks are merely tools, and like any tool, their impact depends on the hands that control them. The concept of a unified ledger offers undeniable conveniences and efficiencies, potentially streamlining various transactions and processes. However, it also raises questions about the concentration of power and control, which necessitates a thoughtful and vigilant approach.
As we explore the possibilities of such systems, it becomes apparent that the key lies in striking a careful balance between convenience and the preservation of personal freedoms and privacy. Transparency, accountability, and safeguards against potential misuse must be established to ensure that these systems are used for the greater good rather than malevolent purposes.
Engaging in due diligence and staying informed about the developments in this area is essential. By keeping a close eye on how these technologies are implemented and regulated, we can help shape a future that harnesses their potential while safeguarding the rights and liberties of individuals.
It is essential to remain vigilant and responsible stewards of these tools. With a conscious and balanced approach, we can collectively steer these advancements in a positive direction, fostering a world where innovation coexists harmoniously with personal freedoms and privacy.
By the end of this article, you will understand:
The Global Central Bank Digital Currency (CBDC) and the associated unified ledger system
Potential unknown consequences of the CBDC system
Surveillance implications and social credit scoring
Advantages and disadvantages of the unified ledger system
Challenges in opposing the implementation of the unified ledger
While the focus on CBDCs captures the public’s attention, the real global agenda might be quietly implementing a Unified Ledger network on a large-scale.
Now that the new FedNow Instant Payment Service is coming online, it is the first Federal Financial Product that used a purely digital Unified Ledger. After reading the recent release from the BIS (Bank for International Settlements) about their plan for a Global Central Bank Digital Currency (CBDC), I couldn’t help but feel alarmed by the potential implications. This article outlines the details of this agenda, why it may concern you, and what actions we can take to push back against it. I’ll explain what this CBDC is, its mechanism, and how it could profoundly impact our lives.
Understanding the Unified Ledger and CBDCs
What is a blockchain centralized (unified) ledger? In simple terms, it is like a giant digital database or platform that keeps a record of all kinds of assets and transactions. Imagine it as a massive, secure book that stores information about everything you own and do, but in a digital form.
In this ledger, instead of just having one copy owned by a single organization, it is controlled and managed by a group of powerful entities, like governments or big companies. This group works together to make decisions about the rules and data stored in the ledger.
The interesting thing about this ledger is that it represents real-world items, like money, properties, or even personal information, as digital tokens. Each token is like a unique digital representation of something you own or have, and it comes with specific rules attached to it.
This unified ledger system allows for quick and convenient transactions between these digital tokens. For example, if you want to buy a house in another country, you could do it almost instantly with just a few clicks, without all the usual paperwork and bank processes.
Imagine a world where everything you own, from dollars in your bank account to your home and car, becomes tokenized on this unified ledger.
However, the downside is that because this ledger is controlled by a group of powerful entities, they have a lot of say in how things work. They can decide the rules that apply to your assets, which might affect your financial well-being and privacy. It’s like a powerful group of people playing a video game with all our possessions and making decisions that impact our lives.
So, while a blockchain centralized (unified) ledger can bring convenience and efficiency, it also raises questions about control, surveillance, and the potential impact on our fundamental rights and freedoms.
The Global CBDC, as described by the BIS, is a unified ledger featuring a tokenized and programmable platform. This might sound complex, but it’s crucial to understand its implications. In simple terms, it’s like turning real-world assets and private properties into digital tokens represented on a single database.
Imagine a world where everything you own, from dollars in your bank account to your houses and cars, becomes tokenized on this unified ledger. Tokenizing means creating a digital representation of an asset, along with specific rules attached to it, determining its use and ownership.
Control and Surveillance in the Hands of Elites
These rules and data are decided and controlled by global elites, like Klaus Schwab, and central planners. The information gathered from real-world transactions and activities is fed into the tokens on the platform.
This unified ledger is like a massive video game, where all these tokenized assets and properties exist. Just like trading items in a game, these assets can be exchanged instantly. However, what is happening today is not in a video game. What makes this alarming is the actions being taken have very real-world and legal implications.
The implications of this CBDC/Unified Ledger construct are concerning. Your ownership and control over your assets and property could be at the mercy of central planners and elites. They would dictate the rules, which might impact your financial well-being, privacy, and even basic rights.
The Threat of Surveillance and Social Scoring
This CBDC extends the surveillance of Big Brother, reminiscent of George Orwell’s “1984.” Creditworthiness would no longer depend on your financial merit but your narrative, political affiliations, and connections. Crony capitalism and favoritism could take over, leading to unfair advantages for certain groups while disadvantaging others.
There are numerous potential unknown consequences of such a system. For instance, social scores or climate scores might be assigned, affecting various aspects of life beyond financial transactions.
The Temptation of Convenience
Amidst all the concerns, the Global CBDC does offer some undeniable conveniences. Transactions would be lightning-fast, extremely cheap, and incredibly convenient. An example given is purchasing property in a foreign country, which could be done instantly with a click of a button, eliminating the hassles of paperwork and bank procedures.
The Global Central Bank Digital Currency is a powerful and transformative concept that could reshape the world as we know it. While it offers the allure of convenience, the potential implications for personal freedom, privacy, and financial autonomy are concerning. As individuals, we must be vigilant, informed, and engaged in pushing back against any system that compromises our fundamental rights and freedoms.
Examples of CBDCs Enforcing Control and Compliance on a Unified Ledger
Social Credit Scores: The implementation of social credit scores could determine an individual’s access to financial services and opportunities within the unified ledger system. Those with lower social credit scores might face restricted access or higher transaction fees, limiting their financial freedom.
Climate Scoring: To enforce environmental compliance, a climate scoring system could be integrated into the unified ledger, rewarding eco-friendly behaviors and penalizing those deemed harmful to the environment. This could affect an individual’s access to loans, investments, and even travel options.
Taxation and Asset Seizure: The unified ledger allows for real-time tracking of financial activities. Governments could implement automated tax collection based on transaction data, potentially leading to unjust asset seizure or loss of funds due to minor errors.
Geopolitical Influence: Countries with significant control over the unified ledger’s central infrastructure could exert substantial geopolitical influence. They might impose sanctions on specific individuals or nations by restricting their access to the ledger system.
Resistance and Pushing Back has Challenges – Yet Not Futile
Pushing back against the implementation of a blockchain centralized (unified) ledger and its associated systems presents significant challenges that require careful consideration. One of the primary obstacles is the centralized control spread across multiple entities and jurisdictions. Unlike decentralized systems where no single authority holds absolute power, a unified ledger’s governance structure places decision-making in the hands of a select few. This concentration of power makes it difficult for individuals or societies to identify specific entities to oppose effectively.
The allure of convenience and efficiency offered by the unified ledger system may overshadow concerns about potential control and surveillance. As individuals become accustomed to seamless and lightning-fast transactions, they may be more inclined to accept a loss of privacy and freedom in exchange for the ease of use. This gradual acceptance can create a situation where individuals become increasingly dependent on the system, making it challenging to resist further encroachments on personal liberties.
Additionally, the gradual implementation of a unified ledger might not be presented as a centralized digital currency system initially. Instead, it could be introduced as a more efficient and secure banking and payment system, concealing its true nature and implications. By the time individuals become fully aware of the scope of its control and surveillance, they may already be deeply integrated into the system, making it harder to opt-out or resist.
The influence of powerful stakeholders, such as governments and large corporations, cannot be underestimated. These entities have the resources and influence to shape public perception and regulatory policies, potentially limiting the ability of dissenting voices to be heard effectively.
To address these challenges, awareness and education become crucial. Promoting a deeper understanding of the implications of a unified ledger system and its potential impact on personal freedoms and privacy can empower individuals to make informed decisions and advocate for responsible and transparent implementation. Engaging in open and inclusive discussions about the risks and benefits of these systems is vital in creating a more balanced and equitable future for such technologies.
Overall, pushing back against the implementation of a blockchain centralized (unified) ledger requires a concerted effort from informed and vigilant individuals, regulatory bodies, and civil society. By fostering transparency, safeguarding individual rights, and advocating for responsible governance, we can ensure that technological advancements serve humanity’s greater good without compromising our fundamental liberties.
Other Articles You May be Interested in:
IMF’s Global CBDC Platform: Another Step Towards an Elitist Global Currency Reset?
FedNow Unleashed: A Sinister Creation in the Shadows of Our Financial Freedom
Ai3D Website: Ai3D.blog
Ai3D on Telegram: GCR_RealTimeNews
Ai3D on Twitter: @Real_AwakeIn3D
Awake-In-3D: RFK Jr. Wants to Back the Dollar with Hard Assets – A GCR/NESARA White Hat?
Awake-In-3D:
RFK Jr. Wants to Back the Dollar with Hard Assets – A GCR/NESARA White Hat?
On July 20, 2023 By Awake-In-3D
In a groundbreaking announcement that has sent shockwaves through the financial world, RFK Jr. has revealed his bold plan to support returning the US Dollar to an asset-backed currency. Drawing inspiration from his late uncle, President John F. Kennedy, RFK Jr. envisions a future where hard assets, including Bitcoin, gold, silver, and platinum, will back a portion of the country’s debt obligations.
This visionary move aims to rein in inflation, restore strength to the dollar, and challenge the corrupt fiat currency system controlled by “Banksters” and Global Elitists. Additionally, Kennedy has promised to exempt Bitcoin-to-dollar conversions from capital gains taxes, fostering innovation, ensuring privacy, and encouraging domestic investment. Is RFK Jr. the champion who will lead the charge towards a Global Currency Reset (GCR) when the time comes?
Awake-In-3D:
RFK Jr. Wants to Back the Dollar with Hard Assets – A GCR/NESARA White Hat?
On July 20, 2023 By Awake-In-3D
In a groundbreaking announcement that has sent shockwaves through the financial world, RFK Jr. has revealed his bold plan to support returning the US Dollar to an asset-backed currency. Drawing inspiration from his late uncle, President John F. Kennedy, RFK Jr. envisions a future where hard assets, including Bitcoin, gold, silver, and platinum, will back a portion of the country’s debt obligations.
This visionary move aims to rein in inflation, restore strength to the dollar, and challenge the corrupt fiat currency system controlled by “Banksters” and Global Elitists. Additionally, Kennedy has promised to exempt Bitcoin-to-dollar conversions from capital gains taxes, fostering innovation, ensuring privacy, and encouraging domestic investment. Is RFK Jr. the champion who will lead the charge towards a Global Currency Reset (GCR) when the time comes?
The Importance of Hard Currency and Lessons from History
“My uncle, President Kennedy, when he was in office, understood the importance of hard currency and the dangers of having pure fiat currency with no other option,” asserted RFK Jr. In drawing parallels with his uncle’s legacy, he recognized that fiat currency, detached from any tangible backing, can lead to disastrous consequences. Historically, unbacked paper currencies have been used to fund wars without requiring the approval of citizens or specific government taxation. The ease with which governments can print money to finance conflicts and quietly tax the public through inflation has perpetuated a cycle of economic imbalance and wealth disparity.
JFK Jr.’s Proposal: A Hard Asset-Backed Dollar
In a bold and strategic move, RFK Jr. proposes to start small, with perhaps 1% of issued Treasury bills backed by hard assets like gold, silver, platinum, and Bitcoin. This allocation would be increased annually based on the outcomes of the initial phase. The intention behind this visionary policy is to strengthen the US dollar by tethering it to finite assets with intrinsic value, like Bitcoin, which holds a reputation for absolute scarcity and sound monetary principles. The idea is to restore confidence in the dollar and usher in a new era of financial stability, peace, and prosperity.
Bitcoin as a Catalyst for Change
RFK Jr.’s enthusiasm for Bitcoin extends beyond its role as a hard asset for backing the dollar. He envisions Bitcoin as an instrument for change and progress, defending its right to self-custody, the freedom to run nodes at home, and advocating for industry-neutral regulation of energy. By exempting Bitcoin-to-dollar conversions from capital gains taxes, RFK Jr. aims to incentivize investments and technological ventures within the United States. Furthermore, he believes that such a policy will safeguard citizens’ privacy and obstruct governments from weaponizing currency against free speech, a core objective close to his heart.
Challenging the Current Regulatory Landscape
In opposition to the prevailing regulatory environment, RFK Jr. adamantly declares that Bitcoin is not a security and should not be treated as one. He promises to end the Biden administration’s policies that resemble Choke Point 2.0, which punishes banks dealing with Bitcoin. By taking this stance, RFK Jr. aims to create a supportive atmosphere for the adoption and development of Bitcoin and blockchain technologies in the United States.
Facing the Debt Crisis: The Road to Fiscal Stability
RFK Jr.’s visionary proposals come at a crucial time in American history. With the national debt steadily growing at 6.5% over the past decade, the need for comprehensive fiscal strategies is more urgent than ever. His plan to acquire hard assets like Bitcoin and precious metals offers an insurance policy against mounting debt and potential economic crises. This forward-looking approach seeks to secure the nation’s fiscal future and attract intellectual capital to US shores.
The Paradigm Shift: Bitcoin as a Policy Tool
RFK Jr.’s unwavering support for Bitcoin marks a paradigm shift in the political landscape. Beyond being viewed solely as an asset, he recognizes Bitcoin’s potential as a powerful policy tool. By backing the dollar with Bitcoin and other hard assets, RFK Jr. aims to challenge the current fiat currency system controlled by corrupt “Banksters” and Global Elitists. His proposal seeks to provide a strong foundation for the US dollar, ensuring its stability and credibility in the global financial market.
What it Means
RFK Jr.’s visionary plan to back the US dollar with hard assets like Bitcoin reflects a deep understanding of the pitfalls of a fiat currency system. Inspired by his uncle’s legacy, RFK Jr. aims to restore strength to the dollar, rein in inflation, and promote American financial stability, peace, and prosperity. By fostering Bitcoin adoption and encouraging domestic investment, he envisions a future where the US leads in technological advancements and intellectual capital. As the world faces economic uncertainties, RFK Jr.’s proposals provide a beacon of hope, offering a way to navigate the challenges of a debt-ridden financial system and champion a sustainable and prosperous future for the nation. The question remains: Will RFK Jr. be ready to lead the charge when the time for the Global Currency Reset arrives? Only time will tell.
Ai3D Website: Ai3D.blog
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https://ai3d.blog/rfk-jr-wants-to-back-the-dollar-with-hard-assets-a-gcr-nesara-white-hat/
Awake-In-3D: Mind-blowing US Debt Growth Statistic
Awake-In-3D: Mind-blowing US Debt Growth Statistic
On July 20, 2023 By Awake-In-3D
In Fiat Debt System Collapse Articles
US DEBT UP BY SAME AMOUNT IN LAST 5 YEARS AS THE FIRST 221 YEARS
The latest financial crisis started in September 2019 when the US banking system came under serious pressure and the Fed injected major liquidity into the near bankrupt system. Since that time, total US debt has increased by $21 trillion.
Let’s put this into perspective. It took the US 221 years to go from Zero debt in 1776 to $21 trillion in 1997 and just in the last 4 years, debt has gone up by that same $21 trillion.
Awake-In-3D: Mind-blowing US Debt Growth Statistic
On July 20, 2023 By Awake-In-3D
In Fiat Debt System Collapse Articles
US DEBT UP BY SAME AMOUNT IN LAST 5 YEARS AS THE FIRST 221 YEARS
The latest financial crisis started in September 2019 when the US banking system came under serious pressure and the Fed injected major liquidity into the near bankrupt system. Since that time, total US debt has increased by $21 trillion.
Let’s put this into perspective. It took the US 221 years to go from Zero debt in 1776 to $21 trillion in 1997 and just in the last 4 years, debt has gone up by that same $21 trillion.
Whether this cycle is the end of a 100, 300 or 2000 year era, only future historians will know the answer to.
Awake-In-3D: PAPSS Payment System and AfreximBank Paving Way to Pan-African De-Dollarized Sovereignty
Awake-In-3D:
PAPSS Payment System and AfreximBank Paving Way to Pan-African De-Dollarized Sovereignty
On July 19, 2023 By Awake-In-3D
In Fiat Debt System Collapse Articles
In a transformative effort, Africa’s financial landscape is undergoing a revolutionary shift, spearheaded by the African Import-Export Bank (AfreximBank) and its groundbreaking Pan-African Payment and Settlement System (PAPSS). This visionary initiative is rapidly propelling the entire African continent away from its historical reliance on US dollars and towards a future where local African currencies take center stage in intra-continental payments and capital investments.
Awake-In-3D:
PAPSS Payment System and AfreximBank Paving Way to Pan-African De-Dollarized Sovereignty
On July 19, 2023 By Awake-In-3D
In Fiat Debt System Collapse Articles
In a transformative effort, Africa’s financial landscape is undergoing a revolutionary shift, spearheaded by the African Import-Export Bank (AfreximBank) and its groundbreaking Pan-African Payment and Settlement System (PAPSS). This visionary initiative is rapidly propelling the entire African continent away from its historical reliance on US dollars and towards a future where local African currencies take center stage in intra-continental payments and capital investments.
More than just a financial system upgrade, PAPSS and AfreximBank are playing a crucial role in aligning Africa with the ambitious plans of the BRICS Alliance. The BRICS nations are determined to create a massive global trading block that operates independently of the Western Financial System and Monetary Institutions, thereby unlocking Africa’s vast economic potential and fostering genuine financial sovereignty.
With Africa losing an estimated $5 billion annually due to the absence of an intra-African payment system, the need for change has become undeniable. Fragmented payment systems and multiple currencies have hindered cross-border trade within the continent, leaving businesses facing considerable currency exchange challenges and lengthy payment processing times. However, AfreximBank’s PAPSS is a game-changer that seeks to eradicate these obstacles, empowering African nations to conduct instant and secure cross-border transactions in local currencies.
As the African Continental Free Trade Area (AfCFTA) agreement opens up unprecedented opportunities for intra-African trade, the timing of PAPSS’s arrival could not be more opportune. By providing a reliable and cost-effective platform for intra-continental payments, PAPSS is set to fuel economic growth, bolster regional cooperation, and create new avenues for prosperity throughout Africa.
From promoting financial inclusion and empowering small and medium size businesses, to reducing sovereign debts and driving economic growth, the transformative impact of AfreximBank and PAPSS sets the stage for Africa’s financial renaissance on the global stage.
As Africa moves steadily towards becoming an economic powerhouse with the backing of the BRICS alliance, the future holds immense promise for a continent that is finally stepping out from the shadows of foreign currency dominance and embracing its own financial destiny.
Africa’s Intra-African Trade: Challenges and Opportunities
In recent years, the potential for intra-African trade has become a topic of intense discussion among policymakers, economists, and businesses across the continent. Africa is a vast and resource-rich continent with diverse economies, yet its trade with other African countries has been hindered by various challenges, including fragmented payment systems and the reliance on foreign currencies. As a result, the continent has been losing an estimated $5 billion annually, making intra-African trade complex and time-consuming.
The Absence of a Unified Payment System
The lack of a unified payment system has been a significant obstacle to intra-African trade. Africa currently boasts around 42 currencies, each with its own regulatory framework and exchange rates, making cross-border transactions cumbersome and expensive. Business transactions often require conversion from one currency to another, resulting in unnecessary costs and delays.
The Role of AfreximBank: Driving Financial Sovereignty
Recognizing the urgency and importance of addressing these challenges, the African Import-Export Bank (AfreximBank) has taken a pioneering role in reshaping Africa’s financial landscape. Established in 1993, AfreximBank has steadily grown its presence in 52 member countries and has been instrumental in supporting trade finance activities across the continent. Its mission of stimulating African trade and development has driven its commitment to promoting a single payment infrastructure for the continent.
Introducing the Pan-African Payment and Settlement System (PAPSS)
AfreximBank’s vision culminated in the development and commercial launch of the Pan-African Payment and Settlement System (PAPSS). PAPSS is a groundbreaking initiative aimed at enabling instant and secure cross-border payments in local African currencies, thereby reducing reliance on foreign currencies like the US dollar and Euro.
Yes, PAPSS uses the ISO20022 “messaging” standard for inter-bank transfer notifications.
Empowering Businesses with PAPSS
PAPSS provides a real-time payment infrastructure that connects Africa’s central banks, commercial banks, payment service providers, and fintech companies as participants. This revolutionary system allows for immediate validation, compliance checks, and near-instant payment processing within 120 seconds. With PAPSS, businesses can conduct cross-border transactions efficiently, securely, and at a reduced cost.
PAPSS and the African Continental Free Trade Area (AfCFTA)
PAPSS could not have come at a more opportune time. With the implementation of the African Continental Free Trade Area (AfCFTA) agreement, which aims to create a single market for goods and services across the continent, the demand for seamless cross-border transactions is set to skyrocket. PAPSS is poised to play a vital role in facilitating the expected surge in intra-African trade and promoting economic growth.
Driving Financial Inclusion and Empowerment
Beyond enhancing intra-African trade, PAPSS also has significant implications for financial inclusion. As cross-border payments become more accessible, businesses of all sizes can participate in regional and continental trade, stimulating economic growth and job creation. Moreover, PAPSS fosters economic empowerment by reducing transaction costs and improving financial efficiency, particularly for small and medium-sized enterprises (SMEs).
Africa’s Financial Renaissance Begins
Africa’s financial system is on the cusp of a transformative shift, one that will see it moving away from reliance on foreign currencies and embracing the power of its local currencies. AfreximBank’s Pan-African Payment and Settlement System (PAPSS) is a critical step towards achieving this financial sovereignty, unlocking the continent’s vast economic potential, and driving intra-continental trade.
As businesses, governments, and individuals embrace this new era of financial empowerment, Africa’s financial renaissance will become a catalyst for economic growth and prosperity for all.
Ai3D Website: Ai3D.blog
Ai3D on Telegram: GCR_RealTimeNews
Ai3D on Twitter: @Real_AwakeIn3D
Awake-In-3D: Checkmate (Part 3) – A Currency Duel to Avert a Real War
Awake-In-3D
Checkmate (Part 3) – A Currency Duel to Avert a Real War
On July 19, 2023 By Awake-In-3D
Continued from the Checkmate Series Part 1 and Part 2
In this final article of my three-part Checkmate series, I examine the key players on the chessboard, their roles and motivations, and the significant economic consequences that the Western fiat system players will face if the new Eastern Alliances establish and launch a gold-backed currency. My conclusion is that dueling financial system currency systems is a far more acceptable and stable solution that would likely prevent a actual, real kinetic war. Leading to Our GCR.
Awake-In-3D:
Checkmate (Part 3) – A Currency Duel to Avert a Real War
On July 19, 2023 By Awake-In-3D
Continued from the Checkmate Series Part 1 and Part 2
In this final article of my three-part Checkmate series, I examine the key players on the chessboard, their roles and motivations, and the significant economic consequences that the Western fiat system players will face if the new Eastern Alliances establish and launch a gold-backed currency. My conclusion is that dueling financial system currency systems is a far more acceptable and stable solution that would likely prevent a actual, real kinetic war. Leading to Our GCR.
China’s Role as the “Tactical” Game Player
As tensions escalate, China remains strategically prepared to join the financial war. China has been cautious in destabilizing the dollar to protect its export interests, but now it recognizes the threat to emerging economies, particularly those in Africa and Latin America. Embracing a gold-backed currency and a preemptive attack on the dollar would align with China’s motivations to safeguard its economic interests.
As the BRICS nations lay the groundwork for a gold-backed trade currency that challenges the dominance of the dollar, China’s strategic response becomes crucial in this unfolding global economic transformation.
In this article, we explore how China has carefully assessed the economic consequences of the proposed gold-backed currency and its potential impact on the US dollar. Drawing from the analysis of General Qiao Liang, a high-ranking figure in China’s military intelligence, we uncover China’s motivations and strategies to preemptively counter the perceived threats against emerging economies. With China ready to mount an attack on the dollar by embracing a gold standard, the balance of power in the global financial landscape may soon experience a seismic shift.
Assessing the Threat
China has long been threatened by the US over access to markets, but with the advent of the BRICS gold-backed currency proposal, the stakes have been raised. However, China appears to have anticipated potential economic consequences and evaluated the experiences of nations like Russia during periods of sanctions. General Qiao Liang’s analysis sheds light on the US’s previous actions with respect to foreign national debts, indicating a pattern of weakening and destabilizing economies through strategic manipulation of interest rates.
A Target on Dollar-Indebted Nations
While China itself does not rely on borrowing dollars, it recognizes that the real threat lies in the impact on dollar-indebted nations that participate in trade with China. The US’s likely strategy of raising interest rates even after taming inflation could aim to bring these nations back under American control. This poses a significant challenge for emerging economies in Africa, Latin America, and other regions that have received substantial Chinese investment.
The Preemptive Attack on the Dollar
To address this potential threat, China has devised a preemptive attack on the dollar by exposing its weakness as a fiat currency. With the power to do so since the Lehman crisis, China and Russia now have the means to challenge the dollar’s status quo. As they plan a return to the gold standard for trade and their own currencies, the BRICS nations seek to counter the US’s strategy of “harvesting” assets in foreign countries.
The Role of the New Development Bank
The New Development Bank, headquartered in Shanghai, is poised to play a pivotal role in China’s response. Offering credit in yuan or the new BRICS currency at lower interest rates, the bank can help alleviate the strains imposed on BRICS members by rising US interest rates. This strategic move strengthens the BRICS’ position and enhances their ability to withstand potential sanctions.
China’s Motivation and Strategy
Understanding China’s motivations and strategies is vital to grasp the implications of this evolving economic landscape. While some may question General Qiao Liang’s analysis, it is evident that his views are ingrained in China’s government thinking. This positions China to join forces with Russia in a concerted attack on the dollar’s fiat nature and advocate for a return to a gold standard for trade, thereby challenging the existing global financial order.
As the BRICS nations lay the groundwork for a new gold-backed trade currency, China’s proactive response becomes a critical factor in the unfolding global economic transformation. By assessing potential threats and drawing insights from General Qiao Liang’s analysis, China is prepared to counter the US’s strategies aimed at emerging economies. Embracing a gold standard for trade and their currencies, China and Russia signal their readiness to challenge the dominance of the dollar and push for a more equitable and stable financial system. The stage is set for a momentous shift in the global economic landscape, with gold re-assuming its ancient role as a bedrock of value and stability in an ever-changing financial world.
Russia’s Role as the “Strategic” Game Player
The world stands at the precipice of a potential global conflict as tensions escalate between Russia, America, and their respective allies. While the focus has primarily been on military maneuvers and proxy wars, a new front is emerging – a financial war with far-reaching implications. In this article, we explore the origins of the current trade currency plans, which originated in Russia, and the role of China as events unfold. As NATO tightens its grip on Eastern Europe, Putin faces an intractable dilemma, with compromise seemingly impossible. To avert a catastrophic global conflict, Russia appears to prioritize undermining the dollar’s dominance, while China is ready to join in this strategic battle. A financial war may offer a way forward, but the consequences for the global economy remain uncertain.
The Genesis of the New Trade Currency Plan
The idea of a new trade currency with a gold-backed system originated in Russia, marking a shift in focus away from China. Until recently, China hesitated to destabilize the currencies of Western nations due to her significant export interests. However, escalating tensions over Taiwan, coupled with America’s plans to raise interest rates and bankrupt BRICS members, have led to a dramatic deterioration in Sino-US relations. The specter of direct conflict between Russia and America over Ukraine and China’s potential entanglement in a Taiwan conflict makes it imperative to avert World War 3.
NATO’s Determination and Russia’s Response
NATO, under the influence of the US, is determined to defeat Russia, remove Putin from power, and gain control of Russia’s vast natural resources. Proxy wars, such as the one in Ukraine, have so far failed to achieve NATO’s goals. As the theater of operational strategy shifts to Poland and the Baltics, the build-up of military personnel and missiles in the region becomes evident. Putin is unlikely to accept compromise, as it would require withdrawing missiles and American bases from Eastern and Central Europe, a non-negotiable condition for Russia’s security.
A Conundrum for the Biden Administration and America
For President Biden, backing down in Eastern Europe would carry severe political consequences, especially after the Afghanistan withdrawal. The influence of neo-conservatives in American policy-making adds further pressure to defeat Putin, expand US influence, and isolate China. Russia’s peace terms are unacceptable to America, leaving both sides at a standstill with potential dire consequences.
Undermining the Dollar’s Dominance
Given the impasse, Russia’s priority seems to be undermining the dollar’s dominance, presenting an economic front to counter America’s aggression. Attacking the dollar financially could weaken the alliance’s military capabilities and create divisions among its members. Additionally, a Russian attack on currencies’ credibility would benefit Russia’s financial position, which is already facing pressure.
The Uncertain Outcome
Engaging in a financial war offers a relatively discreet option, avoiding an official declaration of victory or the need for post-war reconciliation. While it remains unclear whether undermining the dollar would avert a nuclear conflict, it is evident that the world teeters dangerously close to the brink. The consequences for the global economy are uncertain, and the potential for price inflation and financial instability looms large.
As geopolitical tensions reach boiling point, the prospect of a financial war emerges as an alternative to direct conflict. Originating in Russia and embraced by China, this unconventional approach aims to undermine the dollar’s dominance and challenge America’s aggression indirectly. A delicate balance hangs in the air, and the global economy faces an uncertain future. Averting World War 3 requires careful navigation, with the financial landscape becoming an uncharted battleground in the struggle for power and control. The coming days will reveal whether a financial war can offer a reprieve or if the world inches ever closer to catastrophe.
Golden Stability: A New Currency System to Prevent Further Physical Conflict Escalation
Amidst escalating global tensions, the proposal for a new gold-backed trade currency gains momentum. Originating in Russia and designed to facilitate cross-border trade settlement, this currency aims to provide a stable, institutionally acceptable alternative to fiat currencies. With the groundwork laid by Sergei Glazyev, the currency could soon become a reality, pending approval in August. Let’s examine the key elements of this new currency and its potential impact on participating nations, focusing on long-term practicality and the preservation of economic stability. As the stage is set for a financial transformation, the focus shifts to gold as the foundation for a new era of secure and credible trade finance.
Building a Politically Acceptable, Inclusive and Peaceful Solution
The proposed trade currency is strategically designed to garner support from all involved nations and alliances serving as a practical solution for realizing the ambitions of the Russian-Chinese axis. By facilitating an Asian industrial revolution encompassing Africa and Latin America, free from external interference, the new, gold-backed currency aligns with the aspirations of all participating countries.
A Path to Non-Inflationary Economic Growth
The new trade currency aims to provide a foundation for trade finance and cross-border settlements based on sound money principles. By tying credit growth to economic activity and gold, the currency seeks to avoid inflationary consequences and maintain purchasing power. Gold’s role as a substitute will impart pricing certainty to trade and investment, leading to stable, low-interest rates and fostering economic development in emerging economies.
Potential for Greater Currency Stability
Participating nations may place greater emphasis on their own currencies’ stability, seeking a safe haven from the consequences of the dollar’s fiat nature. As the new currency gains acceptance, Russia may consider returning the ruble to its own gold standard, with China potentially following suit with the renminbi.
An Inherent Currency Resilience
Designed with a 40% gold backing, the new currency adheres to the principles set by Sir Isaac Newton, providing a metallic monetary standard. As confidence in the scheme grows, participating central banks may retain minimal gold reserves, swapping the balance for the new currency. This approach would bolster their balance sheet equity and add to the currency’s credibility.
The proposal for a new gold-backed trade currency heralds a potential financial transformation in cross-border trade and settlement. Designed to be politically acceptable and practical for participating nations, the currency promises a path to non-inflationary economic growth and greater currency stability. By placing gold at the heart of the financial system, this currency seeks to safeguard against the pitfalls of fiat currencies and usher in a new era of financial stability. As August approaches, the world awaits the outcome of this groundbreaking proposal and its potential to redefine global finance.
The Consequences for Western Fiat Currencies and Their Debt System
The historical relationship between money and gold has been undeniable, with gold serving as the anchor of value for centuries. However, the detachment of credit from gold in recent times has had profound consequences for the global financial system. Let’s examine the implications of reintroducing gold into currency systems, particularly in the context of a new BRICS gold-backed currency. As the Asian superpowers seek stability and independence from fiat currencies, a seismic shift in the global economic landscape is imminent. Yet what will be the potential effects on major currencies, economies, interest rates, as gold returns to its rightful place in the financial world?
The Historical Gold-Dollar Divergence
In the post-Bretton Woods era, fiat currencies have steadily lost value relative to gold, exemplified by the dollar’s 98% depreciation. The erosion of purchasing power has surpassed the 2% annual target set by official policies, underscoring the importance of gold as a stable medium of exchange. The potential introduction of a new gold-backed BRICS currency could accelerate the devaluation of fiat currencies, triggering a race for tangible assets and further undermining their credibility.
The Underappreciated Role of Gold in Financial Markets
Throughout history, gold’s role as money has been poorly understood in financial markets, leading to misguided assumptions about its true value. Despite being treated as a trading counter, gold’s return as the anchor for credit values among Asian hegemons will force a reassessment of its significance. The move towards a gold-backed currency will bring stability to export values and create a conducive environment for low-interest rates, benefiting the economies of participating nations.
Significant Implications for Western Fiat Currencies
The introduction of a BRICS gold-backed currency will have far-reaching consequences for western fiat currencies, including the dollar, euro, and pound.
The Dollar’s Predicament: The reliance on inward foreign investment has enabled the US to fund continuous trade deficits and government debt. However, a shift to a gold-backed currency could lead to central banks exchanging their dollar reserves for the new currency, triggering devaluation and foreign liquidation of Treasuries. Rising bond yields and funding costs for the government are inevitable, posing significant funding hurdles.
Eurozone Turmoil: A gold-backed BRICS currency may drive Germany towards sound money regimes, exacerbating economic and political divisions within the eurozone. The euro’s credibility, already strained, will face further challenges, leading to potential recapitalization needs for the ECB and national central banks.
The UK’s Dilemma: The UK, burdened with a debt trap similar to the US, also suffers from increasing taxes and limited gold reserves. As the international financial center, London will be at the epicenter of the fiat currency crisis, complicating any efforts to escape the fiat currency trap.
The Call for a Return to “Classical” Economics
The emergence of a gold-backed currency and its implications will expose the inadequacy of Keynesian (constant fiat currency creation out of thin air) macroeconomics, which has shaped policies during the fiat currency era. Western governments must embrace classical economic theories and adapt swiftly to the changing economic landscape. The combination of credit crunch from the bank credit cycle and deteriorating fiat currency purchasing power will lead to rising interest rates, challenging the traditional control exerted by central banks.
Wrap Up
The return of gold as a cornerstone of the global financial system signifies a momentous shift in the balance of economic power. The introduction of a BRICS gold-backed currency and potential adoption by Russia and China could lead to a cascading effect on fiat currencies worldwide. As investors seek tangible assets and foreign exchanges witness a weakening of major fiat currencies, The United States, Europe and other Western governments will be forced to reassess their debt-based economic and monetary policies.
This transition will require a departure from Keynesian economics and a return to classical, sound money principles, laying the groundwork for a resilient, fair and stable global financial economic landscape.
This would be Our GCR.
Ai3D Website: Ai3D.blog
Ai3D on Telegram: GCR_RealTimeNews
Ai3D on Twitter: @Real_AwakeIn3D
https://ai3d.blog/checkmate-part-3-a-currency-duel-to-avert-a-real-war/
Awake-In-3D: Checkmate (Part 2) – A Global US Dollar Divorce and Re-Monetizing Gold to Support Our RV/GCR
Awake-In-3D:
Checkmate (Part 2) – A Global US Dollar Divorce and Re-Monetizing Gold to Support Our RV/GCR
On July 18, 2023 By Awake-In-3D
Continued from Checkmate (Part 1)
The world’s financial landscape is undergoing a seismic shift, departing from the traditional US dollar-centric system towards a multi-polar era.
In this new epoch, various currencies are vying for dominance, and central banks are exploring innovative solutions such as central bank digital currencies (CBDCs). This tectonic movement is driving a re-monetization of gold and fueling speculation of gold’s revaluation against existing fiat currencies, particularly the US dollar and the Euro. In this latest installment of my “Checkmate GCR” article series, we explore the reasons and facts behind this global transition, and how it could reshape the entire monetary order.
Awake-In-3D:
Checkmate (Part 2) – A Global US Dollar Divorce and Re-Monetizing Gold to Support Our RV/GCR
On July 18, 2023 By Awake-In-3D
Continued from Checkmate (Part 1)
The world’s financial landscape is undergoing a seismic shift, departing from the traditional US dollar-centric system towards a multi-polar era.
In this new epoch, various currencies are vying for dominance, and central banks are exploring innovative solutions such as central bank digital currencies (CBDCs). This tectonic movement is driving a re-monetization of gold and fueling speculation of gold’s revaluation against existing fiat currencies, particularly the US dollar and the Euro. In this latest installment of my “Checkmate GCR” article series, we explore the reasons and facts behind this global transition, and how it could reshape the entire monetary order.
The once-unchallenged supremacy of the US dollar in the global financial system is beginning to wane. As Zoltan Poszar, the former Credit Suisse expert, points out, we are witnessing a “monetary divorce” from the US dollar hegemony, leading to a more multi-polar world. This shift is driven by factors such as de-dollarization, the rise of central bank digital currencies, and the strategic goals of nations to reduce dependency on the dollar and diversify their reserves.
What You Will Learn Here in Part 2:
De-dollarization in a multi-polar financial world
The re-monetization and re-valuation of gold in the changing financial system landscape
Gold’s increasing importance in a changing geo-economic landscape
Central bank digital currencies (CBDCs) as a potential game-changer
The rise of correspondent central banks and its implications
De-dollarization and a Multi-polar World
The concept of “Bretton Woods III” signifies a shift away from the traditional unipolar world, dominated by the US dollar. Instead, the global economy is embracing a multi-polar approach, where various currencies gain significance. This paradigm shift is driven by Western countries seeking to reduce reliance on Chinese supply chains and Eastern nations aiming to de-risk their relationships with Western financial institutions and the US dollar.
Re-monetization of Gold
One of the key themes emerging in this monetary divorce is the resurgence of gold as a viable monetary asset. Nations that are not geopolitically aligned with the US are increasingly diversifying their reserves and shunning US Treasuries in favor of gold. This trend indicates a growing desire to achieve monetary sovereignty and distance themselves from the uncertainties associated with the US dollar.
The re-monetization of gold is a compelling aspect of the ongoing transition towards a multi-polar world and away from the US dollar-centric global financial system. As countries seek monetary sovereignty and reduce their dependence on the dollar, gold emerges as a strategic and time-tested asset, capable of providing stability and protection amidst economic uncertainties.
While the potential revaluation of gold against existing fiat currencies remains speculative, the growing demand for gold from central banks and the strategic moves made by countries to diversify their reserves speak volumes about gold’s allure in the changing financial landscape.
As the world navigates this transformative period, the role of gold in the global economy may continue to evolve, opening new possibilities and challenges. The journey towards a more multi-polar financial system is underway, and gold’s glimmering path to stability and security is one that warrants close attention from policymakers, investors, and financial observers alike.
Re-valuation of Gold Against Fiat Currencies
As the global fiat currency debt system undergoes a monetary divorce from the US dollar, speculation is rife about a potential revaluation of gold against existing fiat currencies, especially the US dollar and the Euro.
The increasing demand for gold from central banks and the growing trend of countries buying gold instead of accumulating dollars suggest a possible shift in the relative value of gold compared to fiat currencies. If this trend continues, it could lead to a reassessment of gold’s worth in relation to traditional paper currencies.
While it is essential to approach these possibilities with caution, the re-monetization of gold and the shifting dynamics of the global financial system warrant careful observation. Gold’s historical significance and its intrinsic value make it an asset that cannot be easily dismissed, and its potential revaluation may have far-reaching consequences for the entire monetary order.
Gold as a Strategic Hedge
The changing dynamics of global trade and finance have led countries to rethink their approach to financial security. With the re-monetization of gold, central banks can diversify their holdings and insulate their economies from potential shocks in the global financial system.
Moreover, as the world moves toward a multi-polar approach to currencies, gold emerges as a valuable hedge against currency fluctuations. This flexibility grants nations greater control over their financial destiny and mitigates risks associated with over-reliance on a single currency.
Central Bank Digital Currencies (CBDCs) as Cross-border Payment Game-changers
CBDCs represent a disruptive force in the global financial system. As countries explore the possibilities of creating their own digital currencies, the need for correspondent central banks arises. This network of correspondent central banks could potentially provide an alternative system for international transactions, lessening dependence on Western financial centers and the US dollar.
Correspondent central banks may soon become an integral part of the international financial system. By facilitating direct settlement of transactions between central banks, they offer an alternative to the current dollar-based system. This shift could have profound implications for dollar funding and rates markets.
For instance, CBDCs can play a significant role in boosting the internationalization of the Chinese Renminbi (RMB). Countries planning or piloting CBDCs are often linked to the People’s Bank of China (PBOC) through swap lines. The growing share of RMB in trade finance and commodity settlements suggests that the currency’s importance will likely increase in the years to come.
What it Means
The global fiat currency debt system is indeed experiencing a monetary divorce from the US dollar. As countries diversify their reserves and explore alternatives like central bank digital currencies, gold is poised to regain its historical status as a monetary anchor. The emergence of a multi-polar world is reshaping the financial landscape, creating a catalyst for gold to be revalued against existing fiat currencies, particularly the US dollar and the Euro.
As we navigate this transformative period in monetary history, it is crucial to understand the factors propelling this shift and the potential consequences for the global financial system. The journey ahead is both uncertain and full of promise, and the revaluation of gold may be the fulcrum upon which the future of the global economy pivots.
To be continued in Checkmate (Part 3) …
Related Articles:
Checkmate (Part 1) – How the BRICS Gold Currency will Force USA/Europe to an RV/GCR
The Global Financial System is Being Restructured to Create a New Asset-Backed Currency System
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Awake-In-3D: Checkmate (Part 1) – How the BRICS Gold Currency will Force USA/Europe to an RV/GCR
Awake-In-3D:
Checkmate (Part 1) – How the BRICS Gold Currency will Force USA/Europe to an RV/GCR
On July 17, 2023 By Awake-In-3D
The introduction of the new gold-backed currency by the BRICS nations represents a pivotal moment in global finance, setting the stage for a potential seismic shift that could ultimately force the United States and Europe to adopt their own gold-backed currencies. As the BRICS consortium spearheads this move towards a sound money system, the impact on major fiat currencies, particularly the US dollar and the Euro, is bound to be profound.
The emergence of a credible gold-backed currency challenges the very foundation of the global fiat currency debt system, which has been plagued by persistent devaluation and erosion of purchasing power. With participating central banks exchanging their reserve dollars for the new gold-backed currency, the dollar’s devaluation is inevitable, prompting foreign entities to reduce their exposure to the beleaguered fiat currency.
Awake-In-3D:
Checkmate (Part 1) – How the BRICS Gold Currency will Force USA/Europe to an RV/GCR
On July 17, 2023 By Awake-In-3D
The introduction of the new gold-backed currency by the BRICS nations represents a pivotal moment in global finance, setting the stage for a potential seismic shift that could ultimately force the United States and Europe to adopt their own gold-backed currencies. As the BRICS consortium spearheads this move towards a sound money system, the impact on major fiat currencies, particularly the US dollar and the Euro, is bound to be profound.
The emergence of a credible gold-backed currency challenges the very foundation of the global fiat currency debt system, which has been plagued by persistent devaluation and erosion of purchasing power. With participating central banks exchanging their reserve dollars for the new gold-backed currency, the dollar’s devaluation is inevitable, prompting foreign entities to reduce their exposure to the beleaguered fiat currency.
This run on the dollar into gold echoes the events following the suspension of Bretton Woods in 1971, when the market initially seemed unperturbed before the implications became evident, and gold’s price skyrocketed.
As a gold-backed currency gains traction in the BRICS nations and beyond, it becomes increasingly evident that the reliance on fiat currencies for trade and investment is unsustainable. The need for economic stability, interest rate certainty, and a sound monetary foundation will drive the US and Europe to seriously consider adopting their own gold-backed currencies. The revaluation of all international fiat currencies under a balanced, asset-backed monetary system will become increasingly attractive, offering protection against inflation and fostering genuine economic progress.
Such a Global Currency Reset would herald a new era of financial responsibility and prudence, ensuring that currencies are backed by tangible assets and not subject to the whims of central banks. Investors and nations worldwide would be more inclined to adopt gold as a safe haven, adding further pressure on the US and Europe to transition towards a sound money system. As the world witnesses the success of the gold-backed currency model in the BRICS nations, the momentum for a global adoption of this monetary framework would become irresistible, ushering in a new era of financial stability and prosperity for all economies on a level playing field.
The Proposed BRICS Gold-Backed Currency Threatens the Western Fiat Debt System
The emergence of a new gold-backed currency by the BRICS nations presents a serious challenge to the global fiat currency debt system. As the foundation of this alternative currency is laid, the stage is set for gold’s revaluation against existing fiat currencies, particularly the US dollar and the Euro. The mechanics behind the establishment of the gold-backed currency and its potential implications for major currencies, economies, interest rates, and investor behavior are critical aspects to consider in understanding this paradigm shift in the global financial landscape. Policymakers and investors alike must reassess their economic strategies to adapt to the forthcoming changes, making way for a more resilient and stable financial future.
This multi-part article details the impending challenge to the global fiat currency debt system posed by the emergence of a new gold-backed currency. As the BRICS nations lead the way in introducing this alternative, the global financial landscape is set for a seismic shift, with gold poised to be revalued against existing fiat currencies, especially the US dollar and the Euro. This comprehensive analysis highlights the mechanics behind the establishment of the new gold-backed currency and its potential impact on major currencies, economies, interest rates, and investor behavior.
Key Details to be Unpacked in this Article Series
The Global Fiat Currency Debt System:
The historical detachment of credit from gold and its consequences for the global financial system.
The devaluation of fiat currencies relative to gold since the end of the Bretton Woods system.
The implications of the 2% annual target for currency purchasing power and its actual erosion.
The Emergence of a New Gold-Backed Currency:
The role of the BRICS nations in leading the transition towards a gold-backed currency.
The significance of gold as a stable medium of exchange in contrast to fiat currencies.
The potential consequences for western fiat currencies, including the US dollar, euro, and pound.
Understanding the Mechanics:
The mechanics of how participating central banks will exchange reserve dollars for the new gold-backed currency.
The devaluation of the dollar as central banks and foreign entities seek to reduce exposure.
The impact on interest rates, bond yields, and funding costs for the US government and other western nations.
Reassessing Economic Policies:
The need for western governments to embrace classical economic theories amid the changing economic landscape.
The potential challenges for the Eurozone and the credibility of the euro.
The implications for the UK pound and its limited gold reserves.
Gold as the Anchor for Credit Values:
The historical under-appreciation of gold’s role in financial markets and its return as a key anchor for credit values.
The stability gold-backed currencies can bring to export values and interest rates.
The impact on the global financial system and investor behavior as gold becomes a sought-after asset.
Checkmate (Part 1): The Rise of a New Gold-Backed Currency Challenging the Global Fiat Debt System
As the world’s major economies join forces to challenge the dominance of the dollar and the euro, a groundbreaking announcement has gone largely unnoticed by mainstream media. Russia and China, determined to break free from the grip of fiat currency, are laying the groundwork for a new gold-backed trade currency that will revolutionize the global financial landscape. In this article, we delve into the mechanics behind this ambitious project, exploring how it could reshape the global economy and bring about a revaluation of gold against existing fiat currencies, particularly the US dollar and the Euro. As the movement gains momentum and key alliances are formed, we may soon witness the dawn of a new era, one where gold re-assumes its ancient role as a bedrock of value and stability in the ever-changing financial world.
The idea of a new gold-backed currency has recently been propelled into the limelight by an announcement made during a BRICS meeting in Johannesburg. The proposal, which aims to create a currency supported by 41 influential economies, poses a significant threat to fiat currencies, particularly the US dollar and the Euro. While mainstream media has largely ignored this development, it carries immense implications for the global financial system.
Why a Gold-Backed Currency is Desirable
The appeal of a gold-backed currency lies in its potential to undermine fiat currencies, which have often been detrimental to oil-producing nations. Additionally, individuals holding gold are expected to experience an increase in wealth. The decision to introduce such a currency, supported by BRICS members Brazil, Russia, India, China, and South Africa, carries implications far beyond their immediate borders.
The Evolution Away from Fiat
The shift away from fiat currency has been underway for quite some time, with de-dollarization being a key objective for Asian economic giants. Observers have noticed a steady migration of gold from the West to the East, with China and Russia increasing their gold mine output and central banks across Asia accumulating substantial gold reserves. This accumulation indicates a concerted effort to safeguard their currencies in the face of a potential demise of the US dollar.
The Role of Sergei Glazyev
Sergei Glazyev, a key figure in Russia’s macroeconomic policy, has been instrumental in laying the groundwork for the gold-backed currency project. As a board member of the Eurasian Economic Union Commission, Glazyev was entrusted by Putin to design a trade settlement currency for the EAEU. His early proposals involved a basket of commodities, but it became clear that gold would be the most practical and stable solution.
A Trojan Horse for Something Bigger
What may have initially seemed like a currency proposal limited to the SCO and EAEU members has expanded to include BRICS nations. The ambitious plan aims to create a supersized trading block, combining the SCO, EAEU, and BRICS. With their combined population and GDP, this formidable alliance poses a significant challenge to the Western alliance’s hegemony, centered around the US dollar.
The US Treasury’s Response
The US Treasury has been quick to respond to the potential threat posed by the gold-backed currency. Janet Yellen, the US Treasury Secretary, flew to Beijing to discuss the implications of the proposal and its potential impact on the US economy. The US is wary of any shift away from the dollar’s dominance, as it could impact their ability to finance budget deficits and influence global trade.
The Mechanics of the Gold-Backed Currency
The successful implementation of a gold-backed currency requires meticulous planning and cooperation among the participating nations. While some skeptics dismiss the idea, citing practical challenges and a lengthy timeline, others believe that events will unfold more rapidly than anticipated.
Creating the Foundation
Before introducing the new currency, the participating nations must lay the foundation for its smooth operation. This includes setting up the necessary institutions and mechanisms for trade settlement, currency exchange, and gold storage.
Gold Reserves and Valuation
A key aspect of the new currency is its gold backing, which must be substantial enough to inspire confidence and provide stability. The participating nations will need to increase their gold reserves, and the value of gold against existing fiat currencies, particularly the US dollar and the Euro, will need to be reevaluated.
Consolidating Trade Partners
To ensure the success of the gold-backed currency, the participating nations must consolidate their trade partnerships. By forming a formidable bloc that encompasses most of Asia, Africa, and Latin America, they can collectively challenge the dominance of the dollar and the Euro in global trade.
Challenges and Opportunities
Implementing a new gold-backed currency will not be without challenges. Some of the hurdles include convincing member states to participate fully, managing currency exchange rates, and navigating potential geopolitical conflicts. However, the benefits of a stable, gold-backed currency could far outweigh the challenges, leading to increased economic resilience and global influence.
What It Means
The rise of a new gold-backed currency supported by influential economies such as China and Russia poses a serious challenge to the global fiat currency debt system. As the groundwork for this ambitious project is laid, it is becoming increasingly clear that events will unfold more rapidly than anticipated. This currency shift could lead to the revaluation of gold against existing fiat currencies, particularly the US dollar and the Euro, while also reshaping the global economic landscape. Whether this new gold-backed currency will emerge as a formidable challenger to the existing financial order remains to be seen, but its potential implications cannot be ignored. As the world moves towards a new era of monetary policies, one thing is certain: the reintroduction of gold as a bedrock of value and stability has always supported economic prosperity, equal opportunity and wealth creation in free-market financial systems.
To be continued in Checkmate (Part 2) …
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Awake-In-3D: ENDGAME (Part 2) – United States Drowning in Debt Tsunami
Awake-In-3D:
ENDGAME (Part 2) – United States Drowning in Debt Tsunami
On July 15, 2023 By Awake-In-3D
In Fiat Debt System Collapse Articles
[ Continued from: Endgame (Part 1) ]
As interest rates skyrocket and the United States careens towards a debt tsunami, shocking evidence reveals an alarming reality. With a record-breaking $652 billion in gross debt interest already accumulated in just nine months, the nation grapples with a 25% surge compared to the previous year.
The Federal Reserve’s frantic attempts to rectify its past mistakes have only fueled the deficit, with interest rates soaring and borrowing costs escalating. Brace yourself for the catastrophic consequences as interest payments on the staggering $32.3 trillion debt threaten to surpass major government expenditures. The United States stands at the precipice of financial ruin, demanding immediate action to save the sinking ship.
Awake-In-3D:
ENDGAME (Part 2) – United States Drowning in Debt Tsunami
On July 15, 2023 By Awake-In-3D
In Fiat Debt System Collapse Articles
[ Continued from: Endgame (Part 1) ]
As interest rates skyrocket and the United States careens towards a debt tsunami, shocking evidence reveals an alarming reality. With a record-breaking $652 billion in gross debt interest already accumulated in just nine months, the nation grapples with a 25% surge compared to the previous year.
The Federal Reserve’s frantic attempts to rectify its past mistakes have only fueled the deficit, with interest rates soaring and borrowing costs escalating. Brace yourself for the catastrophic consequences as interest payments on the staggering $32.3 trillion debt threaten to surpass major government expenditures. The United States stands at the precipice of financial ruin, demanding immediate action to save the sinking ship.
What You Will Learn Here in Part 2
The United States is already accumulating a record-breaking $652 billion in gross debt interest in the first nine months of the current fiscal year.
This figure represents a staggering 25% increase compared to the interest expense payment in the same period a year ago, reaching $521 billion.
Soaring interest rates, driven by the Federal Reserve’s attempt to rectify its policy failure of keeping rates at zero for too long while injecting trillions into asset bubbles, have been a key driver of the deficit.
The Federal Reserve has raised its benchmark rate by 5% since March last year, resulting in higher borrowing costs for the US government.
As lower-yielding securities mature, the Treasury faces steady increases in the rates it pays on newly issued debt obligations.
The weighted average interest for total outstanding debt has risen from 1.80% to 2.76% within a year, and it could surpass 4% in one year if rates continue to rise.
If interest rates continue to climb, interest payments on the total US debt of $32.3 trillion could reach $1.3 trillion within 12 months, potentially surpassing other major government expenditures such as social security.
The United States is facing an imminent financial debt disaster, as evidenced by alarming figures in the latest Treasury Monthly Statement. This article delves into the definitive evidence that highlights the severity of the situation. The key factors contributing to the crisis include soaring interest rates, escalating interest payments, and the potential for interest on the debt to surpass other major government expenditures.
Record Accumulation of Gross Debt Interest
In the first nine months of the current fiscal year, the United States has accumulated a record $652 billion in gross debt interest. This figure represents a staggering 25% increase compared to the interest expense payment in the same period a year ago, which amounted to $521 billion. The escalating interest payments indicate the growing burden of servicing the national debt.
Soaring Interest Rates and Federal Reserve Actions
The Federal Reserve’s attempt to reverse its policy failure of 2020 and 2021 has led to soaring interest rates. The Fed’s decision to keep rates at zero for too long while injecting trillions into asset bubbles has contributed to the current crisis. The Federal Reserve has raised its benchmark rate by 5% since March last year, resulting in higher borrowing costs for the US government.
Impact on Deficit and Debt
Soaring interest rates have become a key driver of the budget deficit. As lower-yielding securities mature, the Treasury faces steady increases in the rates it pays on outstanding debt. The weighted average interest for total outstanding debt has risen from 1.80% to 2.76% within a year, and if rates continue to rise, it could surpass 4% in one year.
Implications of Rising Interest Payments
If interest rates continue to climb, interest payments on the total US debt of $32.3 trillion could reach $1.3 trillion within 12 months. This would potentially make interest on the debt the largest government expenditure, surpassing social security payments. The escalating interest payments will have significant implications for the US economy and the federal budget.
Concerns and Arguments
Treasury Secretary Janet Yellen has downplayed concerns about higher rates, highlighting the historically low ratio of interest payments to GDP after adjusting for inflation. However, this argument overlooks the potential decline in GDP after the next recession, while US debt remains high and continues to grow. The statements made by Yellen fail to acknowledge the gravity of the situation and the long-term consequences of the escalating debt burden.
The Only Way Out is Our GCR
The United States is on the brink of a financial debt disaster, with soaring interest rates, escalating interest payments, and the potential for interest on the debt to surpass other major government expenditures. The record accumulation of gross debt interest and the implications for the federal budget are clear signs of the severity of the crisis. It is crucial for the US to address the escalating debt burden and explore sustainable solutions to ensure the stability of the economy and the country’s financial future.
Our GCR is coming straight at us.
Related Ai3D Articles
ENDGAME (Part 1) – United States Plunging Headlong into Financial Debt Disaster
The Connection Between Inflation, Financial Collapse and Our GCR
The Inescapable Financial System Collapse and The Elitist Reset Solution
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https://ai3d.blog/endgame-part-2-united-states-drowning-in-debt-tsunami/