Currency System Failure: The Japanese Yen Will be the First to Collapse: Awake-In-3D

Currency System Failure: The Japanese Yen Will be the First to Collapse

On June 1, 2024 By Awake-In-3D

Japan’s Record Spending Unable to Stop Yen’s Destruction

In This Article:

• Japan’s Record Yen Intervention

• Persistent Weakness of the Yen

• Potential Global Currency Crisis

• Expert Predictions on Future Interventions

The global fiat currency system faces unprecedented challenges, and signs of an accelerating collapse are becoming increasingly evident.

Central banks worldwide are grappling with inflation, volatile markets, and economic instability. Among these currencies, the Japanese yen stands on the brink of a historic downfall.

As the first major fiat currency to face a potential collapse, the yen’s struggles could mark the beginning of a broader crisis, signaling the final phase of the global fiat currency debt system’s demise.

Japan’s Record Yen Intervention

Japan’s finance ministry disclosed spending ¥9.8 trillion ($62.2 billion) from April 26 to May 29 to support the yen.

The intervention, focused on April 29 and May 1, exceeded estimates of ¥9.4 trillion. Despite this massive expenditure, the yen’s value remains critically low. The yen’s rapid decline forced Japan to take drastic measures, highlighting the severe instability of the currency.

THIS CHART SHOWS HOW JAPAN’S MASSIVE YEN INTERVENTION IN EARLY MAY (GREEN ARROW) HAS COMPLETELY FAILED OVER THE PAST 30 DAYS (RED ARROW).

Persistent Weakness of the Yen

Despite significant intervention efforts, the yen remains weak. During the interventions, the yen briefly dropped to 153 against the dollar but soon returned to around 157.

This continued decline indicates the diminishing power of such interventions. Factors like the strong U.S. economy and delayed Federal Reserve rate cuts contribute to the yen’s persistent weakness.

The currency’s instability poses a serious risk to Japan’s economic health.

Potential Global Currency Crisis

The yen’s decline could signal broader issues in the global fiat currency system. Japan’s intervention highlights the challenges of defending a weakening currency amid global economic pressures.

As the yen struggles, speculators may push it further down, testing the Bank of Japan’s (BOJ) limits. This situation could trigger a significant currency crisis, affecting global markets and economic stability.

Expert Predictions on Future Interventions

Experts are divided on the effectiveness of Japan’s interventions. Hideo Kumano, a former central bank official, believes that while interventions have not reversed the yen’s decline, they have slowed it. Daisaku Ueno, chief FX strategist at Mitsubishi UFJ Morgan Stanley Securities, expects continued spending to prop up the yen, emphasizing Japan’s resolve to mitigate imported inflation.

Finance Minister Shunichi Suzuki has issued warnings of further interventions to counter excessive volatility. With the yen trading around 157.235 per dollar, the effectiveness of additional interventions remains uncertain.

Analysts, including Mizuho Securities’ Masafumi Yamamoto, suggest that Japan might intervene again if the yen experiences sharp declines. The potential for further interventions raises concerns about the yen’s long-term stability.

The Bottom Line

Japan’s unprecedented $62 billion intervention to support the yen has failed, highlighting the currency’s vulnerability.

As global economic pressures mount, the yen’s decline could signify a broader crisis in the fiat currency system.

Japan may continue its intervention efforts, but the long-term outlook for the yen remains bleak, marking the onset of a significant currency crisis. The global economy must prepare for the repercussions of this instability.

Supporting Article: https://www.markets.com/news/japanese-yen-weakness-persists-despite-dollar62bn-intervention/

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States Ready for Fiat Currency Collapse: Gold is “Real Money”

States Ready for Fiat Currency Collapse: Gold is “Real Money”

On June 2, 2024   By Awake-In-3D

Is the Fiat Currency System Doomed? Louisiana Thinks So

Across the United States, a growing number of states are passing legislation reaffirming gold and silver as legal tender while also rejecting Central Bank Digital Currencies (CBDCs) as valid money.

This legislative trend underscores a profound skepticism towards the stability of the fiat currency system and a proactive approach to safeguarding economic stability.

By embracing sound money principles and constitutional directives, these states are positioning themselves to withstand potential financial upheavals and protect their citizens’ wealth.

In This Article

• Louisiana’s New Legislation on Gold and Silver

• Constitutional Foundation for Sound Money

• Growing Trend Against Fiat Currency and CBDCs

• Implications for the Future of State Economies

Louisiana has made a significant legislative move as Governor Jeff Landry signed a new law on May 31, 2024, reaffirming gold and silver as legal tender.

This action reflects a broader state-level trend anticipating a collapse of the fiat currency system.

Louisiana’s New Legislation on Gold and Silver

Senate Bill 232, sponsored by Senator Mark Abraham, declares that any gold or silver coin, specie, or bullion issued by the United States government is legal tender when agreed upon by both parties in a contract.

The bill enjoyed overwhelming support, receiving only one dissenting vote in the Louisiana House and Senate.

Constitutional Foundation for Sound Money

This legislative move aligns with the U.S. Constitution. Article 1, Section 10 states: “No state shall…coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts.”

This principle, rooted in the nation’s founding document, highlights the enduring importance of sound money policies.

Growing Trend Against Fiat Currency and CBDCs

Louisiana is part of a growing national trend where states are moving away from the fiat currency system and rejecting Central Bank Digital Currencies (CBDCs) as valid money. In 2024, Alabama, Utah, Wisconsin, Nebraska, and Kentucky passed similar legislation.

These states have taken steps to eliminate sales and capital gains taxes on precious metals and empower state treasurers to invest in gold and silver. This movement underscores a deepening distrust in the stability of the fiat currency system.

Implications for the Future of State Economies

The 53-year experiment with a purely fiat currency system in the United States has resulted in significant economic challenges.

The Federal Reserve note “dollar” has lost purchasing power, leading to inflation and economic instability. By reaffirming gold and silver as legal tender, states like Louisiana are proactively protecting their citizens’ wealth and preparing for a potential collapse of the fiat currency system.

This legislative trend suggests a broader shift towards economic self-reliance and stability at the state level, highlighting a growing recognition of the need for sound money policies.

The Bottom Line

Louisiana’s reaffirmation of gold and silver as legal tender is a clear indication of a broader state-level trend towards sound money policies.

As more states join this movement, it signals increasing skepticism about the long-term viability of the fiat currency system and a proactive approach to ensuring financial stability.

By embracing precious metals and rejecting CBDCs, states are positioning themselves to safeguard their economies and citizens against the potential collapse of the fiat currency debt system.

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How to Predict the Collapse of the Global Financial System Before It Happens

How to Predict the Collapse of the Global Financial System Before It Happens

On May 24, 2024  By Awake-In-3D

These simple early warning signs in US Dollar markets will help you know before it’s too late.

In This Article

• Bond Market Instability as a Warning Sign

• Central Bank Interventions: A Prelude to Collapse

• The US Dollar’s Surge: A Harbinger of Crisis

• Recognizing the Final Indicators of Systemic Failure

We all know that the global fiat financial system is approaching the edge of collapse.

Of course, it is simply not possible to predict the actual date.

Yet, there are some fundamental warning signs to look for ahead of the inevitable crash.

Understanding a few simple indicators like the bond market instability, central bank’s taking desperate measures, and a record-breaking surge of the US dollar’s value against other major currencies will help you predict that the system is about to fail sooner rather than later.

I explain each of these basic warning signs below.

Sovereign Bond Market Instability: The First Warning Sign

The bond market is a barometer of economic health, and its instability signals impending disaster.

During periods of growing financial system stress, the bond market can experience a very weak demand (bids) as investors scramble for safety.

The high probability of weak bond sales during an accelerating crises will trigger central bank intervention.

However, massive central bank intervention will present a double-edged sword.

When risk can’t be contained within the sovereign debt market, it spills over into corporate bonds or credit spreads, indicating the credit markets are heading into a global dollar credit freeze.

Dramatic Central Bank Interventions: A Prelude to Collapse

Central banks are often seen by mainstream news outlets as saviors in times of crisis, but their interventions.

When central banks rush to stabilize the bond market, they expose the system’s inherent weaknesses.

As risk migrates from the sovereign debt market to other areas, such as corporate bonds or the currency market, the fragility of the entire system becomes publicly apparent and creates a self-fulfilling panic prophecy.

A Record-breaking Surge of the US Dollar: The Final Sign

In times of global financial stress, the US dollar emerges as the ultimate safe haven. It literally is the cleanest dirty shirt in the currency laundry basket.

However, the dollar’s final earth-shattering surge won’t be a sign of dollar strength, but actually the last phase of the global fiat system collapse.

Non-US countries hold massive amounts of dollar-denominated debt, and when crises hit, they struggle to refinance these obligations. This causes huge demand for dollars globally resulting in a worldwide dollar shortage.

Especially in the global EuroDollar shadow banking market.

The resulting dollar scarcity drives up its value, particularly in the offshore Eurodollar market. There will be no dollars to be had and a parabolic surge in the US dollar’s value will result (supply and demand basics).

As capital flees emerging markets and returns to the US, the dependency on the US dollar becomes a glaring weakness.

The global financial system, tightly wound around the dollar, will be pushed to its breaking point.

This final dollar surge is not a sign of confidence but a desperate grasp for stability as the global financial system completely unravels.

Recognizing the Final Indicators of Systemic Failure

To predict the impending collapse of the global fiat financial system, watch for these ominous signs:

1. Desperate Central Bank Interventions: Large-scale, frequent efforts by central banks to prop up the bond market signal deep-seated instability.

2. US Dollar Scarcity: A sharp increase in demand for US dollars, especially in offshore markets, indicates severe stress.

3. Volatile Currency Movements: Wild fluctuations in exchange rates, with the US dollar soaring against other currencies, reflect panic and instability.

4. Emerging Market Crises: Early liquidity crises in emerging markets can quickly escalate, engulfing major economies and signaling a global meltdown.

As the crisis reaches its zenith, the US dollar will experience a euphoric surge, reaching record-breaking highs.

This final rally is the ultimate warning sign of the fiat financial system’s imminent collapse. When the world fixates on the US dollar as the last bastion of value, the system is on the brink of failure.

The Bottom Line

The collapse of the global fiat financial system is not a question of if, but when. By recognizing the bond market’s instability, central bank interventions, and the US dollar’s historic surge, one can foresee the impending disaster.

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Zimbabwe to Establish New Gold-Backed Currency Exchange Rate Value

Zimbabwe to Establish New Gold-Backed Currency Exchange Rate Value

On May 23, 2024   By Awake-In-3D

The Reserve Bank of Zimbabwe (RBZ) has taken a significant move to solidify the Zimbabwe Gold (ZiG) as a standalone currency by applying for an International Organisation for Standardisation (ISO) code.

“The stability of the exchange rate will reflect the true value of the economy and the purchasing power of the currency, boosting domestic demand and supporting industrialisation in trade.”
Zimbabwe central bank deputy governor, Innocent Matshe

This step, announced by central bank deputy governor Innocent Matshe, aims to enhance the currency’s credibility and facilitate its integration into global financial systems.

ISO currency codes are critical in international finance, providing unique alphanumeric identifiers for currencies used in cross-border transactions.

Common examples include USD (United States Dollar), GBP (British Pound), and EUR (Euro).

These codes, established by the ISO, ensure accuracy and efficiency in global payments.

Speaking at a breakfast meeting organized by the Zimbabwe Economics Society in Harare, Matshe elaborated on the strategic importance of securing an ISO code for ZiG.

He emphasized that the success of ZiG hinges on a tightly managed monetary policy, strict control over money supply, and the creation of domestic demand for the currency.

The introduction of ZiG is seen as a pivotal measure to address economic instabilities, including currency fluctuations, exchange rates, and inflation, which have plagued Zimbabwe’s economy.

Matshe highlighted the necessity of having a stable base currency to support sustained economic growth and industrialization.

“It is essential to have an affordable base currency. We cannot sustain a dual currency situation indefinitely. Zimbabwe’s economy has been growing despite past instabilities, including currency fluctuations, exchange rates and inflation. However, we need to address these issues,” he remarked.

He stressed that the digital financial landscape is crucial for a modern economy, enabling long-term planning and investment.

Addressing concerns about foreign currency availability, Matshe assured that the country has sufficient reserves to meet legitimate demands, provided proper documentation is presented.

He also noted that the gradual introduction of ZiG into the economy was a deliberate strategy to avoid overwhelming the market and to mitigate the impacts of a parallel market that dominates a significant portion of economic activities.

 “Due to the situation in our country, where a parallel market drove approximately 80% of economic activities, it was crucial to ensure that we did not supply all the new currency at once. Therefore, we limited the amount of cash injected into the economy,” he explained.

“Although challenges persist, they will evolve. Most financial institutions have received sufficient small denominations of the currency to address these issues,” he said. “The stability of the exchange rate will reflect the true value of the economy and the purchasing power of the currency, boosting domestic demand and supporting industrialisation in trade.”

In conclusion, the pursuit of an ISO code for ZiG marks a crucial step in Zimbabwe’s broader economic strategy. By establishing ZiG as a recognized and standalone currency, the RBZ aims to stabilize the economy, build trust in the new currency, and pave the way for sustainable growth and industrialization.

Contributing article: https://www.newsday.co.zw/business/article/200027220/zim-applies-for-iso-code-for-zig

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Humanity’s Inevitable Path to a Global Currency System Reset (RV/GCR): Awake-In-3D

Humanity’s Inevitable Path to a Global Currency System Reset (RV/GCR)

On May 25, 2024   By Awake-In-3D

The signs are all around us as the world stands on the brink of a profound financial transformation.

In This Article:

• Historical Context Leading to the RV/GCR

• The Flaws in the Fiat Currency System

• Indicators of an Impending Financial Reset

• The Path to a More Stable Economic Future

Humanity is witnessing an unprecedented shift in the global economic landscape.

Technological advancements, geopolitical shifts, and inherent vulnerabilities in the current fiat currency financial system drive the imperative for a comprehensive global financial/currency reset (GFR/GCR), underpinned by the revaluation of currencies (RV) with tangible asset backing – Gold.

Total global government debt, and its unsustainable interest payment burdens, will rise to over $326 trillion in 2024.

Every government leader, financial and economic expert knows that this ever-increasing debt can never be paid off … Ever.

The current financial system will implode. It is only a matter of time.

There will be a total financial and currency system reset. There must be. It is inevitable.

Historical Context Leading to the RV/GCR

Throughout history, monetary systems have evolved to meet the changing needs of societies.

From barter to various forms of currency, humanity has continually sought efficient means of exchange. This evolution reflects the cyclical nature of monetary systems: they rise, fall, and transform.

The current era of global fiat currencies, which derive value from government decree rather than intrinsic worth, marked a significant departure from previous systems anchored by tangible assets such as gold and silver.

The abandonment of the gold standard in the early 20th century epitomized this shift, bringing flexibility and control for central banks but also sowing the seeds of inherent vulnerabilities.

The Flaws in the Fiat Currency System

The advantages of fiat currencies—flexibility and economic stimulation—have also introduced significant risks.

Governments’ propensity to accumulate debt without restraint has led to skyrocketing global debt levels. By the end of 2024, the United States alone will have amassed over $35 trillion in debt, highlighting a collision course with a fiscal and currency collapse.

Such debt burdens constrain future generations and limit economic maneuverability.

Furthermore, the continuous monetary easing by central banks to stimulate economies has resulted in significant inflationary pressures, eroding the value of currencies and diminishing purchasing power.

This inflationary spiral exacerbates socioeconomic disparities and undermines financial security.

A critical flaw in the fiat currency system is the environment it creates for moral hazard among governments and central banks.

With the ability to print money at will, there is little incentive for fiscal responsibility.

Global governments continue to accrue unsustainable levels of debt, knowing they can rely on central banks to monetize this debt.

Central banks, in turn, implement policies that prioritize short-term economic gains over long-term stability, perpetuating a cycle of irresponsible financial behavior.

Indicators of an Impending Financial Reset

Several indicators point to the necessity of a global financial reset.

The relentless ascent of global debt levels highlights the unsustainable nature of the current system.

Many nations grapple with alarmingly high debt-to-GDP ratios, creating a debt trap that stifles economic growth. Additionally, the volatility in financial markets and the limitations of central bank interventions reveal the fragility of the current paradigm.

Exchange rate volatility within the global fiat currency markets are at unprecedented levels. When the end comes, the US Dollar will be the last fiat currency standing before it too collapses.

Recent losses in traditionally “safe” long-term bonds, reminiscent of past financial crises, underscore the intrinsic, systemic risks associated with a debt-based system.

The political and social ramifications of these economic vulnerabilities further underscore the need for a coherent and long-term financial strategy.

The Path to a Global Financial System Reset

A comprehensive global financial reset must address the unsustainable debt burdens, inflationary pressures, and systemic risks that imperil economic stability.

This reset involves a calculated departure from the fiat currency system, embracing a transformative vision for the global financial overhaul.

Recognizing the approaching fiat system collapse, the growing BRICS Alliance is well on the way towards a gold-backed currency and new financial system infrastructure. They don’t want to go down with the global fiat system ship of fools.

The revaluation of currencies with tangible gold backing is a crucial step toward a more stable and equitable financial future. By anchoring currencies to tangible assets, the global economy can achieve greater stability and reduce the risks associated with debt-based financial systems.

The Bottom Line

Humanity stands at a pivotal moment in economic history. The vulnerabilities of the current fiat currency system and the mounting global debt crisis necessitate a comprehensive financial reset.

By understanding the historical context, recognizing the flaws in the existing system, and identifying the indicators of an impending reset, we can chart a path toward a more stable and equitable financial future.

The global financial reset, underpinned by the revaluation of currencies with tangible asset backing, offers a transformative vision that addresses the systemic risks and economic challenges we face today.

The signs of this profound shift are evident, signaling that humanity is indeed on the brink of a significant financial transformation.

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High Level Talks Indicate Vietnam Poised to Join BRICS: Great News for VND

High Level Talks Indicate Vietnam Poised to Join BRICS: Great News for VND

On May 26, 2024 By Awake-In-3D

Vietnam’s anticipated membership in BRICS+ highlights its growing global economic influence and benefits for the Vietnamese Dong (VND).

In This Article

• Overview of Vietnam’s Economic Growth

• Insights from the Recent High-Level Talks

• Strategic Importance of BRICS+ Expansion

• Future Prospects for Vietnam within BRICS+

• Benefits to the VND from BRICS Membership

Vietnam’s potential membership in the BRICS+ alliance marks a significant milestone in its global economic status.

This development comes as the country continues to strengthen its economic ties with major global powers and emerges as a key player in the international arena.

Overview of Vietnam’s Economic Growth

Vietnam’s economy has been one of the fastest-growing in the world, characterized by robust GDP growth, increasing foreign direct investment, and expanding industrial sectors.

Its strategic location, coupled with a young and dynamic workforce, has attracted numerous multinational corporations seeking to diversify their supply chains. This economic boom positions Vietnam as a prime candidate for inclusion in influential global groups like BRICS+.

Insights from the Recent High-Level Talks

During a recent visit to Vietnam, Dr. YKOVLEV ARTEM ALEXANDROVICH, Director of the Center for Russian Strategy in Asia, engaged in discussions with the Vietnamese Prime Minister.

The talks focused on potential economic collaborations between Vietnam and the Russian Federation and explored the feasibility of expanding BRICS membership to include Vietnam.

Dr. Alexandrovich emphasized the resilience of the Russian economy despite extensive sanctions and highlighted the strategic partnerships Russia has forged with China and other Asian countries.

He noted that these alliances have been instrumental in sustaining economic growth and stability. The discussions underscored the mutual benefits that Vietnam’s inclusion in BRICS+ would bring, aligning with the shared objectives of fostering economic cooperation and development.

Strategic Importance of BRICS+ Expansion

BRICS represents a coalition of emerging economies with significant global influence. The proposed expansion under the BRICS+ model aims to include other rapidly growing economies, enhancing the group’s geopolitical and economic clout.

Vietnam’s inclusion would not only bolster its own economic ambitions but also contribute to the collective strength of BRICS+.

Dr. Alexandrovich highlighted that the expansion of BRICS is crucial for reshaping the global geopolitical and geo-economic landscape, promoting a multipolar world order.

When asked if Vietnam would be a good candidate to join BRICS, Dr. Alexandrovich replied, “Vietnam’s economic trajectory aligns well with the goals of BRICS+, making it a valuable addition to the alliance.”

This membership would open up new avenues for trade, investment, and technological collaboration, benefiting all member countries.

Future Prospects for Vietnam within BRICS+

As Vietnam prepares to join BRICS+, the country stands to gain significantly from increased access to markets, resources, and technology from other member nations.

Also read: Why the Vietnam Dong (VND) Will Likely RV First

This membership would accelerate Vietnam’s economic growth, enhance its global trade relations, and provide a platform for greater influence in international economic policies.

Furthermore, Vietnam’s participation in BRICS+ aligns with its long-term strategic goals of diversifying economic partnerships and reducing dependency on any single market. By joining forces with other emerging economies, Vietnam can strengthen its position in global value chains and contribute to shaping the future of international economic governance.

Key Benefits to the VND from BRICS Membership

Today, the expanded BRICS+ nations collectively represent over 40% of the world’s population and around 25% of global GDP.

Stabilized Exchange Rate: As part of BRICS+, Vietnam could benefit from a more stable Vietnamese Dong (VND). The economic collaboration within the bloc, including trade settlements in local currencies, could reduce Vietnam’s reliance on the US dollar, leading to less volatility in the VND exchange rate.

Stronger Financial Support: Vietnam would have access to financial resources from the BRICS New Development Bank (NDB). This can help support infrastructure projects and other development initiatives without the stringent conditions often imposed by Western financial institutions. Enhanced financial stability and support can bolster investor confidence in the VND.

Enhanced Foreign Exchange Reserves: Trade within the BRICS+ framework can lead to increased foreign exchange reserves for Vietnam. As trade grows, so does the inflow of foreign currencies, which can help stabilize and strengthen the VND.

Increased Investment: Membership in BRICS+ can attract more foreign direct investment (FDI) into Vietnam. Investors often view membership in such influential groups as a sign of economic stability and growth potential. Increased FDI can further strengthen the economy and, consequently, the VND.

The Bottom Line

Vietnam’s anticipated entry into the BRICS+ alliance signals a pivotal moment in its economic evolution.

The country’s impressive growth, strategic partnerships, and alignment with BRICS+ objectives position it as a key player in this expanding coalition.

As BRICS+ continues to shape the global economic landscape, Vietnam’s membership promises to bring mutual benefits, drive collective prosperity for all member nations, and enhance the stability and strength of the Vietnamese Dong.

Contributing article: https://dttc.sggp.org.vn/advantages-of-vietnams-involvement-in-brics-post113437.html

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International Monetary Units: How SDRs Lead to Our GCR

International Monetary Units: How SDRs Lead to Our GCR

On May 21, 2024 By Awake-In-3D

The quest for a global currency reset leads us back to the origins of international monetary units, marking the SDR architecture as the critical starting point.

This is Part 1 of a 2-Part examination of mapping the GCR Gold Monetary Unit

In This Article:

1. The Birth of Special Drawing Rights (SDRs)

2. Challenges Faced by SDRs

3. The Rise of Gold-Backed Stablecoins

4. The Future of International Monetary Units

Does GCR stand for Global Currency Reset or Golden Currency Reset?

Actually, it could stand for both.

The concept of international monetary units has evolved significantly over time, reflecting changes in the global financial landscape.

From the introduction of the Special Drawing Rights (SDRs) by the International Monetary Fund (IMF) in 1969 to the advent of gold-backed digital stablecoins today, these units have undergone substantial transformation.

“At last… the elusive GCR is within reach!” Source: Disney Entertainment

 The Birth of Special Drawing Rights (SDRs)

In 1969, the IMF introduced SDRs as a novel international monetary unit. The goal was to supplement gold and currency reserves of member countries.

The SDR was conceived as a potential global currency, aiming to stabilize the global economy and provide liquidity.

This international unit of value was designed for exchange between central banks and to act as a buffer against economic crises.

Challenges Faced by SDRs

Despite its promising start, the SDR faced several challenges.

The primary issue was that SDRs were not anchored by any tangible asset like gold, making them fiat in nature. This lack of real backing made it difficult for SDRs to establish a stable value against other fiat currencies.

Consequently, the SDR failed to gain widespread acceptance as a currency and became more of a tool for international debt management rather than a functional global currency.

The Rise of Gold-Backed Stablecoins

With advancements in financial technology (FinTech), the landscape of international monetary units began to shift.

Digital innovations have paved the way for the creation of gold-backed stablecoins, offering a more reliable and practical solution.

Unlike SDRs, these stablecoins are backed by physical gold, providing a tangible asset that helps maintain their value and stability in the international market.

The Future of International Monetary Units

The journey from SDRs to gold-backed stablecoins highlights the evolution of international monetary units in response to technological advancements and economic needs.

While SDRs represented a bold experiment, their shortcomings underscored the importance of backing currencies with tangible assets.

The emergence of digital, gold-backed stablecoins marks a significant advancement, offering a promising future for international trade and financial stability.

The Bottom Line

The evolution of international monetary units from SDRs to gold-backed stablecoins illustrates the continuous search for a stable and reliable global currency.

As technology advances, the possibility of a global currency reset becomes more attainable, with gold-backed stablecoins leading the charge towards a more stable and secure financial future.

The quest for a global currency reset finds its starting point in the SDR architecture, marking a significant milestone in the journey towards financial stability.

SDRs Explained: https://www.investopedia.com/terms/s/sdr.asp

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Why the Federal Reserve Fears This New Bill to End Its Power: Awake-In-3D

Why the Federal Reserve Fears This New Bill to End Its Power

On May 21, 2024   By Awake-In-3D

Opening the door for an American MONETARY AND CURRENCY RESET that ends the Fiat Financial System

In This Article

• Ending the FED: This is the Way

• H.R. 8421 and its Purpose

• Representative Thomas Massie’s Motivations

• Key Supporters and Historical Context

• Potential Impact on the Economy

A strong argument can be made that the Federal Reserve Central Banking system has enabled every financial crisis since its creation in 1913.

Initially established to stabilize the American monetary system, the Federal Reserve’s primary goal has been to control the U.S. dollar.

Over the years, the Federal Reserve has implemented strategies such as removing the dollar from the gold standard and monetizing the national debt issued by the U.S. Treasury.

Despite its significant monetary control, the Federal Reserve is not a government entity; it is a private bank owned by a collective of private board members and the largest banks in the United States.

This private ownership raises concerns about the Federal Reserve’s true motivations and accountability.

The introduction of the Federal Reserve Board Abolition Act faces formidable opposition from these powerful Banksters, who will undoubtedly fight to prevent this bill from becoming law.

This bill, sponsored by Representative Thomas Massie (R-KY), seeks to dismantle the Federal Reserve System, aiming to address the inflationary pressures that have plagued the American economy.

With substantial support in the House of Representatives, this legislation could significantly alter the nation’s financial landscape.

Introduction of H.R. 8421 and its Purpose

H.R. 8421 proposes the abolition of the Board of Governors of the Federal Reserve System and the Federal Reserve banks.

It also calls for the repeal of the Federal Reserve Act of 1913, the law that established the Federal Reserve System.

This significant move aims to dismantle the central bank, which Rep. Massie and his supporters argue has been responsible for severe economic issues, particularly inflation.

Representative Thomas Massie’s Makes His Case

Rep. Massie has been vocal about his concerns regarding the Federal Reserve’s role in the economy. He argues that the central bank’s policies during the COVID-19 pandemic, which included creating trillions of dollars and lending them to the Treasury Department, have led to unprecedented deficit spending.

According to Massie, this “monetizing of the debt” has devalued the dollar and fueled the inflation that is now impacting millions of Americans.

 “Americans are suffering under crippling inflation, and the Federal Reserve is to blame,” said Massie.

He believes that ending the Federal Reserve is the most effective way to curb inflation and protect the financial well-being of retirees and savers.

Key Supporters and Historical Context

The Federal Reserve Board Abolition Act is backed by several prominent members of the House, including Rep. Andy Biggs (R-AZ), Rep. Lauren Boebert (R-CO), and Rep. Josh Brecheen (R-OK), among others.

This legislation echoes previous efforts by former Representative Ron Paul (R-TX), who first introduced a similar bill in 1999 and continued to champion the cause until 2013.

Rep. Massie’s reintroduction of this bill is also complemented by his Federal Reserve Transparency Act of 2023, which aims to audit the Federal Reserve.

This dual approach seeks to both dismantle and scrutinize the central bank, reflecting a broader movement among certain lawmakers to reduce the power and influence of the Federal Reserve.

Impact on the US Economy

If enacted, H.R. 8421 would initiate a one-year period during which the Federal Reserve System would be dismantled.

During this time, employees would receive compensation, and the assets and liabilities of the Federal Reserve would be managed and liquidated. The Director of the Office of Management and Budget would oversee this process, ensuring an orderly transition.

The abolition of the Federal Reserve could lead to significant changes in the U.S. financial system. Proponents argue that it would eliminate the inflationary policies that have eroded the value of savings and increased economic inequality.

Critics, however, warn that such a drastic move could destabilize financial markets and lead to economic uncertainty.

As if we are not already in unprecedented times of financial uncertainty?

The Bottom Line

The introduction of the Federal Reserve Board Abolition Act by Rep. Thomas Massie is a bold proposal aimed at fundamentally restructuring the U.S. financial system.

With significant support in the House, this legislation represents a critical juncture for economic policy and monetary independence in America.

We all need to support this Bill with passion. Let your congressional representatives know you want to END THE FED.

• Read the full text of the Bill here: https://massie.house.gov/UploadedFiles/EndTheFed.pdf

• Read Representative Massie’s Press Release here: https://massie.house.gov/news/documentsingle.aspx?DocumentID=395644

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How Deleting Three Zeros Will Change the Iraqi Dinar: Awake-In-3D

How Deleting Three Zeros Will Change the Iraqi Dinar

On May 20, 2024 By Awake-In-3D

The critical differences between currency re-denominations and exchange rate purchasing power explained.

In This Article

• Introduction to Currency Re-Denominations

• IQD: Practical Examples and Misconceptions

• The Impact on Salaries and Real-Life Scenarios

• Kuwaiti Dinar: Understanding Currency Exchange Rates and Purchasing Power

Currency re-denominations and exchange rate purchasing power are essential concepts to clearly understand in a global financial system.

They influence how money is valued and used in different economies.

Introduction to Currency Re-Denominations

Currency re-denomination involves changing the face value of a country’s currency by removing zeros from the notes. They are not rare.

Romania, for instance, re-denominated their currency in 2005 by deleting five zeros. Both the old and new notes remained in circulation together.

Romania deleted five zeros from their currency in 2005

This process does not alter the currency’s actual purchasing power. It is typically undertaken to simplify transactions and accounting.

Practical Examples and Misconceptions

Example: Iraq

Consider Iraq, where a 1,000 IQD note currently buys a single loaf of bread.

If Iraq re-denominates its currency by removing three zeros, the new note would be a 1 IQD note. Despite this change, the new 1 IQD note would still buy the same loaf of bread.

The purchasing power remains unchanged because the value of the currency relative to goods and services stays the same.

Common Misconceptions

Some people believe that removing zeros from a currency increases its purchasing power.

For example, they might think that the new 1 IQD note would buy 1,000 loaves of bread instead of one. This misconception ignores the fundamental principle that re-denomination is merely a cosmetic change.

The actual value of the currency, and what it can buy, does not increase.

The Impact on Salaries and Real-Life Scenarios

To further clarify, let’s consider a salary scenario.

If an individual in Iraq earns 100,000 IQD per month, a re-denomination removing three zeros would change their salary to 100 IQD per month.

The new 100 IQD salary would still have the same purchasing power as the old 100,000 IQD salary, allowing them to buy the same amount of goods and services.

Historical Context: Zimbabwe

Zimbabwe’s experience with re-denomination provides a similar example in reverse.

During periods of hyperinflation, Zimbabwe repeatedly added zeros to its currency, creating notes worth trillions of ZIM.

Zimbabwe 2008 100 Trillion note.

However, these new notes did not buy more than the previous billion ZIM notes, illustrating that re-denominations do not enhance purchasing power.

Understanding Currency Exchange Rates and Purchasing Power in Kuwaiti Dinar (KWD)

Determining a currency’s purchasing power relative to other currencies involves complex calculations, especially with fiat currencies.

For example, Kuwait’s dinar (KWD) has the highest exchange rate against the US dollar. However, this does not mean that the average Kuwaiti has higher international purchasing power than the average American.

Salaries in Kuwait are lower in KWD terms, reflecting the exchange rate’s impact.

Example: Moving from the USA to Kuwait

If someone earning $100,000 per year in the USA moves to Kuwait for work reasons, they cannot expect to earn 100,000 KWD per year.

This would be equivalent to earning $260,000 per year instead of the previous $100,000/year.

It would be great for the person moving to Kuwait, yet it is a completely unrealistic scenario.

Instead, their salary in Kuwait would be adjusted to match the KWD/USD exchange rate, likely around 38,000 KWD per year at current rates.

This ensures that their salary purchasing power remains reasonably consistent across currencies.

The Bottom Line

Currency re-denominations and exchange rates are vital in understanding how money functions globally.

Re-denomination changes the face value of money but not its purchasing power.

Similarly, exchange rates impact how much goods and services can be bought in different currencies.

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VND Update: U.S. Trade Upgrade Promises Stronger Exchange Rate

VND Update: U.S. Trade Upgrade Promises Stronger Exchange Rate

On May 18, 2024
By Awake-In-3D

New Market Economy Status Could Transform Economic and Trade Relations

In This Article:

1. Overview of the U.S. Department of Commerce Review

2. Advocates’ Arguments for Vietnam’s Market Economy Status

3. Concerns from U.S. Industries

4. Broader Economic and Geopolitical Implications

The United States is considering a significant economic move for upgrading Vietnam from a non-market economy (NME) to a market economy.

This change seeks to end high anti-dumping and countervailing duties on Vietnamese imports, while boosting Vietnam’s economy and its struggling VND currency exchange rate with the US Dollar.

Overview of the U.S. Department of Commerce Review

The U.S. Department of Commerce is set to complete its review of Vietnam’s economic status by late July 2024.

Currently, Vietnam is among 12 countries designated as NMEs, subjecting its goods to higher duties. Proponents argue that Vietnam has made substantial progress in currency convertibility, labor rights, and openness to foreign investment, qualifying it for an upgrade.

Advocates’ Arguments for Vietnam’s Market Economy Status

Vietnam’s Ministry of Industry and Trade (MOIT) and other proponents highlight several key improvements.

They point to enhanced currency convertibility, improved labor rights, and increased openness to foreign investments.

Major investors such as Samsung, Intel, and Nike have significantly contributed to Vietnam’s economic landscape, demonstrating confidence in its market reforms.

Concerns from U.S. Industries

Opponents, including U.S. steelmakers and agricultural groups like the Southern Shrimp Alliance, express concerns about potential negative impacts on American industries.

They argue that ongoing state intervention and unfair trade practices in Vietnam could harm U.S. businesses.

The decision also faces scrutiny from U.S. domestic politics, particularly in swing states like Pennsylvania, where the impact on local industries is a critical consideration.

Broader Economic and Geopolitical Implications

Changing Vietnam’s status holds broader implications beyond trade.

Economically, it would strengthen the VND and enhance Vietnam’s position in the global market. Geopolitically, it could counterbalance China’s influence in the region, fostering closer U.S.-Vietnam economic relations.

The potential upgrade also reflects Vietnam’s infrastructural and business reforms, offering growth prospects for U.S. firms and increasing foreign direct investment, which rose to $3.5 billion in 2022.

The Bottom Line

The potential upgrade of Vietnam’s economic status by the U.S. Department of Commerce could significantly impact trade relations and strengthen the Vietnamese dong.

The decision, expected by late July 2024, will play a crucial role in shaping the future of U.S.-Vietnam economic and geopolitical dynamics.

Supporting article: Vietnam Briefing MAY 9th 2024

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How Gold Could RV To $27,374 Against The Fiat Dollar: Awake-In-3D

How Gold Could RV To $27,374 Against The Fiat Dollar

On May 19, 2024   By Awake-In-3D

Understanding the Revaluation of Gold in the Face of Fiat Currency Debt Implosion and Gold-Backing the US Dollar

In This Article:

• Gold’s Path to $27,000

• The Underlying Analysis: Why Gold Could Surge

• Historical Precedents and Lessons

• The Supply and Demand Dynamics

• Doing the Math

The intrinsic value of gold is set to revalue significantly against the fiat currency system, particularly the US Dollar.

As global economic uncertainties rise, gold’s stability offers the only safe haven.

Here’s why one globally recognized financial expert believes that gold would exceed $27,000 per ounce in the near future.

Gold’s Path to $27,000

A rather straight forward and simple analysis now indicates that gold might surpass $27,000.

This forecast isn’t speculative but grounded in historical data and economic models.

While no forecast guarantees certainty, the tools and methodologies applied here have proven accurate across various contexts.

The Underlying Analysis: Why Gold Could Surge

The analysis starts with a crucial question: What’s the implied non-deflationary price of gold under a new gold standard?

Central bankers currently control fiat currencies and have little interest in a gold standard. However, should confidence in fiat currencies collapse due to factors like excessive money creation, Bitcoin competition, or a new financial crisis, a return to gold will become necessary.

Under such a scenario, determining the proper price for gold becomes essential to maintain economic equilibrium.

Historical Precedents and Lessons

Historical events provide valuable lessons. The UK’s return to the gold standard at an unrealistic price in 1925 led to an early entry into the Great Depression.

Conversely, the US devalued the dollar against gold in 1933, spurring commodity price rises and aiding economic recovery.

The key policy goal is to find the “just right” price to balance gold and dollars, something the US is well-positioned to achieve with its substantial gold reserves.

The Supply and Demand Dynamics

The supply side of gold shows a significant decline in new mining output.

Despite rising gold prices, US mine production has decreased by 28% over seven years.

This trend suggests that while output could potentially expand, current conditions support higher prices.

On the demand side, central banks, ETFs, hedge funds, and individual purchases drive demand. Notably, central bank gold demand has surged by 1,000% from 2010 to 2022, with no signs of slowing down in 2024.

This scenario of flat supply and rising demand supports the forecast of higher gold prices.

The Bottom Line

The revaluation of gold against the US Dollar is not just a possibility but a plausible outcome based on rigorous analysis.

As economic conditions fluctuate and confidence in fiat currencies potentially wanes, gold stands to gain significantly.

The recent discussion that BRICS is creating a new currency based on 40% gold-backing, the math for the same gold-backing of the US Dollar.

Doing the math for gold reaching $27,374 per ounce

1. Current M1 Money Supply: The U.S. M1 money supply today is $17.9 trillion.

2. Gold Backing Ratio: Assume a 40% gold backing for the money supply (historical precedent from 1913–1946).

3. Gold Required for 40% Coverage: Calculate 40% of $17.9 trillion, which equals $7.16 trillion.

4. Total U.S. Gold Reserves: The U.S. Treasury holds 261.5 million troy ounces of gold.

5. Implied Gold Price Calculation: Divide the required gold value by the total gold reserves: $7.16 trillion divided by 261.5 million troy ounces equals approximately $27,374 per troy ounce.

Thus, based on these calculations, the implied non-deflationary equilibrium price of gold under a new gold standard could exceed $27,000 per ounce.

Supporting article: https://dailyreckoning.com/27000-gold/

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