RV/GCR Heading to the Launchpad: Prepare for a Currency Reset

RV/GCR Heading to the Launchpad: Prepare for a Currency Reset

On June 10, 2024 By Awake-In-3D

BRICS’ new currency will launch a global REVALUATION and challenge RESET the financial system once and for all.

The fiat currency financial landscape stands on the edge of a major shift with the potential for a significant revaluation (RV) and a global currency reset (GCR).

This transformative change is closely tied to the ongoing initiative by the BRICS Alliance to introduce a new gold-backed common trade currency.

ALSO READ: BRICS Now Dominates Global Oil, Gold and Energy Supplies

The BRICS bloc is increasingly seeking to reduce its reliance on Western G7 currencies, particularly the US dollar, for international trade. The quest for economic sovereignty and financial stability drives these nations to consider a common trade currency.

A significant revaluation of currencies will be a key result of this initiative, profoundly impacting the global financial system.

In This Article

• Reducing Reliance on G7 Currencies

• The Inadequacy of Existing BRICS Currencies

• The Need for a Globally Acceptable Currency

• Integration into the Forex Market

• Benefits of Gold Backing

Reducing Reliance on G7 Currencies

The dominance of the US dollar and the euro in international trade presents significant challenges for BRICS nations.

Dependence on these currencies exposes BRICS economies to the monetary policies and economic fluctuations of Western nations. This dependence often results in economic instability, as decisions made by the Federal Reserve or the European Central Bank can have far-reaching, negative effects on BRICS economies.

For instance, interest rate hikes in the US can lead to capital outflows from BRICS nations, causing currency devaluations and economic turmoil.

A common trade currency would mitigate these vulnerabilities, providing BRICS members with greater control over their economic destinies and reducing the influence of G7 monetary policies on their economies.

The Inadequacy of Existing BRICS Currencies

None of the individual BRICS currencies—the Chinese yuan, Russian ruble, Indian rupee, Brazilian real, or South African rand—have the global acceptance or liquidity of the US dollar or euro. Each of these currencies has its own set of challenges, including limited international use, lower levels of liquidity, and susceptibility to domestic economic issues.

Relying solely on a basket of these currencies would not solve the problem, as these currencies lack the widespread use and trust needed for efficient international trade.

Additionally, the volatility and varying economic policies of the BRICS nations can lead to instability in the value of these currencies, making them less reliable for international transactions.

The Need for a Globally Acceptable Currency

For BRICS to enhance trade efficiency and efficacy, a new, globally acceptable currency is essential.

This common trade currency (CTC) would be used by all BRICS members for trade among themselves and potentially accepted by many non-BRICS countries, promoting smoother and more reliable cross-border transactions. The CTC would serve as a stable and reliable medium of exchange, reducing transaction costs and exchange rate risks associated with using multiple currencies.

This stability would encourage more countries to engage in trade with BRICS nations, fostering economic growth and cooperation.

Establishing a New Central Bank and Clearing House

To manage the new currency, BRICS would need to establish a central bank facility dedicated to the CTC. This institution would oversee the issuance and regulation of the currency, ensuring its stability and trustworthiness.

The central bank would implement monetary policies to maintain the value of the CTC and manage its reserves of gold and BRICS currencies.

Additionally, a central clearing house similar to the Bank for International Settlements (BIS) would be necessary to facilitate efficient and secure transactions. This clearing house would act as a financial intermediary, ensuring that cross-border transactions are settled smoothly and reducing the risk of fraud and financial mismanagement.

The Structure of the Common Trade Currency

To ensure high fungibility and acceptance, the proposed CTC would be backed by 40% gold and a basket of major BRICS member currencies. This backing would lend stability and credibility to the CTC, making it an attractive option for international trade partners.

Gold, a universally recognized store of value, would enhance the currency’s stability, while the inclusion of BRICS currencies would reflect the economic strengths of the member nations.

The 40% gold backing would provide a solid foundation for the CTC, reducing the risk of inflation and currency devaluation.

The remaining 60% would be backed by a diversified basket of BRICS currencies, ensuring that the CTC reflects the collective economic power of the member nations.

Attracting Non-Member Nations

The gold-backed CTC would appeal to many countries outside the BRICS bloc, except for G7 nations like the US, EU, England, and Canada, which may resist such a shift.

The stability and value offered by gold backing would make the CTC an attractive medium for trade, enhancing its acceptance and use worldwide.

Non-member nations, particularly those in developing regions, would find the CTC to be a reliable alternative to the volatile G7 currencies, fostering economic ties with BRICS nations and reducing their reliance on Western financial systems.

Integration into Forex Markets

The CTC would soon find its way into the Forex market, further solidifying its acceptance and convertibility.

As a stable and reliable currency, it would offer an alternative to the volatile and inflation-prone fiat currencies of the G7 nations.

The integration of the CTC into Forex markets would provide traders and investors with a new instrument for hedging and investment, increasing its liquidity and global acceptance.

Over time, the CTC would become a significant player in the global currency market, challenging the dominance of the US dollar and euro.

Benefits of Gold Backing

Backing the CTC with gold would provide significant advantages.

Gold is a stable store of value, which would reduce inflation and offer superior stability compared to major G7 fiat currencies. The gold backing would make the CTC a reliable hedge against economic uncertainty, attracting international confidence and FDI (Foreign Direct Investment).

Historically, gold has been seen as a safe haven asset during times of economic turmoil. By backing the CTC with gold, BRICS nations can ensure that their currency remains stable and retains its value even during global financial crises.

Stronger BRICS Member Currencies Drives the RV/GCR

A crucial benefit of the Common Trade Currency (CTC) is the significant revaluation (RV) and global currency reset (GCR) it would trigger for BRICS member currencies.

By linking their currencies to a gold-backed CTC, BRICS nations would experience a substantial appreciation (RV) in their exchange rates against G7 fiat currencies.

This revaluation would be driven by the intrinsic value and stability provided by the gold backing, enhancing the global standing of BRICS currencies.

The RV and GCR process would logically unfold as follows:

1. Gold-Backed Stability: The gold component would provide a stable foundation, reducing inflation and increasing confidence in BRICS currencies. Investors and global markets would recognize the inherent value of a currency backed by a tangible asset like gold.

2. Increased Demand: As the CTC gains acceptance in international trade, demand for BRICS currencies would rise. This increased demand would naturally lead to an appreciation of their values.

3. Market Adjustments: Forex markets would adjust to the new reality of a stable, gold-backed currency. Traders and investors would shift their portfolios to include more BRICS currencies, further driving up their values.

4. Global Acceptance: The widespread acceptance of the CTC would reduce the dominance of the US dollar and euro. As more countries and businesses start using the CTC, the reliance on G7 currencies would diminish, causing a shift in global currency dynamics.

5. Economic Benefits: The strengthened exchange rates would lead to lower import costs for BRICS nations. This reduction in costs would increase the purchasing power of BRICS citizens and businesses, fostering economic growth and development.

6. Long-Term Stability: The consistent value provided by the gold backing would ensure long-term stability for BRICS currencies. This stability would attract further investment and trade, reinforcing the positive cycle of currency revaluation and economic growth.

Overall, the introduction of a gold-backed CTC would not only stabilize and strengthen BRICS currencies but also initiate a broader RV and GCR across the global financial system against all purely fiat currencies.

ALSO READ: BRICS Now Dominates Global Oil, Gold and Energy Supplies

This strategic move would reduce dependence on G7 fiat currencies, enhance the economic sovereignty of BRICS nations, and contribute to a more balanced and multipolar global economy.

The Bottom Line

Introducing a common trade currency backed by 40% gold and a basket of BRICS member currencies is a strategic move that could transform international trade for BRICS nations. It would provide economic stability, reduce reliance on G7 currencies, and enhance the global standing of BRICS economies.

The creation of this new currency, supported by robust financial institutions, would mark a significant step towards a more balanced and multipolar global financial system.

The resulting RV of BRICS currencies would have far-reaching implications, including the rapid adoption of gold-backed currencies and the hyperinflation of any remaining fiat currencies – a planet wide GCR.

© GCR Real-Time News

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https://ai3d.blog/how-brics-will-drive-a-global-rv-gcr-explained-in-simple-steps/

Will Texas Exit the United States and Join BRICS? Awake-In-3D

Will Texas Exit the United States and Join BRICS?

On June 9, 2024 By Awake-In-3D

Could Texas and BRICS Create A Gold-Backed Financial Future Beyond the Fiat Currency System?

If Texas were to secede, an intriguing possibility is that it might only accept gold-backed dollars for cross-border trade, rejecting fiat currency – including the US Dollar – entirely.

This stance could align Texas with the BRICS Alliance, which is currently developing a new gold-backed common trade currency and sovereign financial system.

Also Read: Texas Takes the Lead: A Gold-Backed Future for Sovereign Digital Currency

Joining the BRICS Alliance could bolster Texas’ economic independence and offer a robust alternative to traditional financial systems dominated by fiat currencies.

This potential alignment with BRICS nations would significantly impact global geopolitics and economics, positioning Texas as a key player in a shifting international monetary landscape.

In This Article

• Texas GOP’s call for a secession vote and state sovereignty

• Historical context of Texas’ independence movement

• Key arguments and criticisms of the TEXIT movement

• Economic and political implications of potential secession

The Texas Republican Party’s recent convention has reignited discussions about the state’s potential secession from the United States.

With the adoption of platform planks advocating for a secession referendum and stronger resistance to federal overreach, the question of Texas’ independence is gaining renewed attention.

Texas GOP Advocates for State Sovereignty

At the 2024 Republican Party of Texas Convention in San Antonio, the party adopted two significant platform planks.

The first asserts that the federal government has overstepped its bounds, infringing on powers reserved to the states. It calls for the Texas government to oppose, refuse, and nullify unwarranted federal laws, affirming Texas’ right to secede. The second plank directs the Texas Legislature to schedule a secession referendum for the next general election.

“This historic vote at the 2024 Republican Party of Texas Convention represents a substantial shift towards enhancing state sovereignty and exploring the potential for Texas to operate as an independent nation,” stated the Texas Nationalist Movement (TNM).

Historical Context of Texas’ Independence Movement

The location of the convention, San Antonio, holds historical significance as the site of the Alamo, a key chapter in Texas’ fight for independence from Mexico.

The 1836 Battle of the Alamo, though a setback, played a crucial role in Texas becoming a self-governing republic. From 1836 to 1845, Texas was an independent nation before joining the United States.

The first plank of the new platform cites Article 1, Section 1, of the Texas Constitution, claiming federal government actions have impaired Texas’ right to local self-government. It calls for a referendum on secession and the passing of the Texas Sovereignty Act.

Arguments and Criticisms of the TEXIT Movement

Supporters of the TEXIT movement argue that secession would protect Texas’ rights against federal overreach.

They believe that greater autonomy would allow Texas to better manage its resources and address its residents’ needs without federal interference. The Texas Nationalist Movement’s Nate Smith defended the platform at the convention, countering claims of treason and emphasizing the right to self-determination.

Critics, however, argue that secession is unconstitutional and impractical.

They point to the Pledge of Allegiance’s reference to “one nation…indivisible” as evidence against the legitimacy of secession.

Brian McGlinchey, in making a case against the pledge, argues that the concept of indivisibility contradicts the foundational human right to political divisibility, as demonstrated by the United States’ own secession from the British Empire.

Economic and Political Implications

Texas’ potential secession poses significant economic and political implications.

As the largest oil producer in the United States, Texas accounts for 42% of American production, with extensive agriculture, deep-water ports, and a burgeoning high-tech industry. These resources position Texas well for economic independence.

Also Read: Calls for Gold-backed Dollar on the Rise Across USA

The recent decision by BlackRock, Citadel Securities, and other investors to back the Texas Stock Exchange further underscores the state’s economic potential. Rising dissatisfaction with federal regulations and compliance costs has fueled this move, highlighting Texas’ attractiveness as an independent economic entity.

The Bottom Line

The Texas GOP’s call for a secession vote and increased state sovereignty marks a significant shift in the state’s political landscape.

While the TEXIT movement faces substantial legal and practical challenges, its growing support reflects a deepening desire for autonomy and local governance.

As Texans continue to explore the growing desire for sovereign independence, the question of whether it will actually secede from the United States remains open, with significant implications that could reshape the state’s future and its relationship within the global financial and geopolitical landscape.

Supporting article: https://www.zerohedge.com/political/new-texas-gop-platform-calls-secession-vote-resistance-federal-infringements  

Full text of Texas HB 384 Texas Sovereignty Act: https://capitol.texas.gov/tlodocs/88R/billtext/pdf/HB00384I.pdf

© GCR Real-Time News

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https://ai3d.blog/will-texas-exit-the-united-states-the-answer-may-surprise-you/

Central Bank Gold RV Accounts Are Real: What Are They Planning?: Awake-In-3D

Central Bank Gold RV Accounts Are Real: What Are They Planning?

On June 6, 2024  By Awake-In-3D

Discover the Secret Tool Central Banks Might Use to Avert Financial Collapse. Perhaps Even a Total Money Reset.

The question remains: will a dramatic revaluation of gold really solve the fiat currency debt system death trap? In the case of the United States, a practical scenario would not only require a sky-high revaluation of gold but also utilizing gold to outright back the ever-devaluing dollar.

This hypothetical approach raises several issues.

First, the price of gold would need to soar to unprecedented levels to cover the national debt, as shown by the required valuation of over $133,000 per ounce (as explained below).

Such a leap would fundamentally alter the global economic landscape and could undermine trust in the existing financial system. Additionally, backing the dollar with gold would necessitate a complete overhaul of current monetary policies and financial practices, potentially leading to significant economic upheaval.

This scenario forces us to confront the limitations of relying on fiat currency and question whether a return to a gold standard could truly provide a stable solution or merely shift the nature of economic challenges faced by modern economies.

In This Article:

1. What Are Gold Revaluation Accounts?

2. How GRAs Work for Central Banks

3. Using GRAs to Turn Gold Value into Money

4. How GRAs Can Help Cancel Government Debt

5. The Impact of U.S. Debt on Gold Prices

Gold Revaluation Accounts (GRAs) might sound complex, but they play an essential role in the financial strategies of central banks. They record the increase in the value of a country’s gold reserves as gold prices go up. This article will explain what GRAs are and how they can help countries like the United States reset their monetary systems and reduce their debt.

What Are Gold Revaluation Accounts?

A Gold Revaluation Account (GRA) is a special account used by central banks to track the increased value of their gold reserves over time.

When the price of gold rises, the GRA records these unrealized gains. For instance, if a central bank bought gold years ago at a lower price and the price of gold increases today, the difference in value is recorded in the GRA.

How GRAs Work for Central Banks

Let’s take the United States as an example. The US Treasury has 261,498,926 troy ounces of gold.

Originally, this gold was valued at $11,041,059,958. However, with today’s gold price at $2,400 per ounce, the value has increased significantly.

To calculate the current value of the US gold reserves:

• Current Gold Value: 261,498,926 ounces × $2,400 per ounce = $627,597,422,400

The difference between the original book value and the current value is:

• Unrealized Gain: $627,597,422,400 (current value) – $11,041,059,958 (original value) = $616,556,362,442

This $616 billion gain is recorded in the GRA, reflecting the increased value of the US gold reserves.

Using GRAs to Turn Gold Value into Money

Central banks can use the unrealized gains in their GRAs to improve their financial situation. They can move some of these gains to their capital accounts, essentially turning this “paper gain” into usable money without selling any gold.

For example, if the US Treasury needed funds, it could transfer part of the $616 billion gain from the GRA to cover expenses or increase its financial buffers.

This process involves adjusting the accounting records, not physically moving any gold.

How GRAs Can Help Cancel Government Debt

GRAs can also help reduce government debt. Central banks can use the gains in the GRA to pay off government bonds. This method reduces the debt without creating new money.

For instance, the US could use the $616 billion gain to cancel some of its outstanding government bonds. By doing this, the government reduces its debt burden, easing financial pressure without increasing the money supply.

The Impact of U.S. Debt on Gold Prices

The U.S. national debt currently stands at approximately $35 trillion. To understand the magnitude of this debt, consider the gold reserves of the U.S. Treasury and what would be required to pay off this debt using those reserves.

Currently, the U.S. has 261,498,926 troy ounces of gold. At the present gold price of $2,400 per ounce, the total value of the U.S. gold reserves is about $627.6 billion. This is a small fraction of the $35 trillion debt.

To pay off the entire $35 trillion debt with gold, the value of gold would need to rise dramatically. Specifically, each ounce of gold would need to be valued at around $133,837. This means that the price of gold would need to increase by over 55 times its current value to cover the national debt with the existing gold reserves.

This enormous required increase in gold prices highlights the severity of the U.S. debt situation. It shows just how far the financial system would need to stretch to resolve the debt through gold revaluation alone. The drastic measures required to achieve this highlight the scale of financial challenges faced by the government.

The Bottom Line

Gold Revaluation Accounts offer a practical way for countries to handle financial challenges. By using the increased value of their gold reserves, central banks can support government budgets and reduce debt.

For the United States, leveraging the $616 billion in unrealized gains from its gold reserves could provide significant financial relief.

However, the requirement for gold to be valued at $133,837 per ounce to cover the national debt highlights the catastrophic level of debt and the drastic measures needed to address it. This approach shows how gold, beyond being a precious metal, plays a vital role in modern financial management.

Supporting article: https://www.gainesvillecoins.com/blog/how-central-banks-can-use-gold-revaluation-accounts-in-times-of-financial-stress

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GCR Proof: Gold Replacing US Dollar in One Chart: AWake-In-3D

GCR Proof: Gold Replacing US Dollar in One Chart

On June 4, 2024  By Awake-In-3D

If a picture is worth a thousand words, this chart is worth exactly that.

If one subscribes to the thesis that the Global Currency Reset (GCR) and the revaluations of currencies (RV) employs gold at its very foundation, than this chart is proof of that.

This chart below shows the different currencies and gold being held globally as international reserves from 1900 to 2023.

There are several key takeaways in the chart and I will break it down here, one piece at a time.

Bretton Woods: The Beginning of Global Dollar Domination

Before WW2, countries worldwide held physical gold as their primary monetary reserve. However, the 1945 Bretton Woods Agreements changed all that.

The black rectangle in the chart below highlights the dramatic sell-off of gold in favor of countries loading up on US Dollars.

It is important to remember that the Dollar was on the Gold Standard back then. Since the Dollar was backed by gold, holding Dollars as a Reserve was the same as holding gold.

The end of WW2 and the Bretton Woods Agreements begin the era of a global King Dollar

But then, the USA abandoned the Gold Standard officially in 1971. This caused a modest resurgence in buying gold once again as a Reserve asset.

Rise of the PetroDollar and EuroDollar Market

However, beginning in the late 1970’s, the PetroDollar and the offshore EuroDollar Market became the dominant, Dollar-denominated financial force worldwide.

The chart below highlights the rise of the PetroDollar and EuroDollar Market. Notice the dramatic expansion of the Dollar (red bars in the chart) and contraction of gold (gold bars in the chart) as a percentage of global international reserves.

The Great Global Fiat Currency Experiment begins: The PetroDollar and EuroDollar System create the largest expansion and global adoption of a single fiat currency (US Dollar) in global history.

Reversing Course: Dollars Now Being Sold to Buy Gold

Moving forward in the chart from 2014 to 2023, we see a complete reversal in gold vs. Dollar holdings as a percentage of global international reserves.

Notice in the highlighted area of the chart below how the US Dollar (red bars) have been contracting while physical gold holdings (gold bars) are increasing significantly as a percentage of global international reserves.

As the Great Global Fiat Currency Experiment reaches its logical conclusion, the replacement of Dollars for Gold as international reserves paves the way for the RV/GCR.

Furthermore, preliminary indications are showing that gold purchases for international reserves are continuing to accelerate in 2024. US Dollars are being sold to purchase more and more physical gold.

What is this Telling Us?

The bottom line is that the world is very aware that the Great Global Fiat Currency Experiment has run its course and the era of King Dollar is reaching its logical conclusion.

The RV/GCR is coming.

It will be based on a complete revaluation of Gold and once again, anchoring national currencies to a single Monetary UNIT of value. The Monetary Unit will be gold.

This is exactly what the BRICS Alliance is doing regarding their new Common Trade Currency and the new BRICS Monetary UNIT.

Supporting article: https://www.gainesvillecoins.com/blog/gold-overtakes-euro-in-global-international-reserves

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© GCR Real-Time News

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Zimbabwe’s New Gold-Backed ZiG Currency: A Record Financial Turnaround

Zimbabwe’s New Gold-Backed ZiG Currency: A Record Financial Turnaround

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

Rapid improvement in Zimbabwe’s currency stability thanks to the new gold-backed ZiG currency.

In This Article

1. The Troubled History of Zimbabwe’s Currency

2. Introduction of the Gold-Backed ZiG Currency

3. How the ZiG Currency Stabilized the Economy

4. Future Prospects for Zimbabwe’s Financial Stability

Zimbabwe has faced one of the most turbulent currency crises in history.

The introduction of the ZiG currency, backed by gold, has brought a surprising and rapid turnaround, stabilizing the economy and reducing inflation.

The Troubled History of Zimbabwe’s Currency

Zimbabwe’s currency woes began in the early 1980s.

The Zimbabwe dollar replaced the Rhodesian dollar but started losing value significantly in the 1990s. By 2006, hyperinflation forced the government to redenominate the currency at an exchange rate of 1,000 to one.

The situation worsened in 2008 when the currency was redenominated again at 10 billion to one. By 2015, a U.S. dollar equaled 35 quadrillion Zimbabwe dollars.

In 2016, bond notes backed by U.S. dollars were introduced but failed to stabilize the currency due to excessive printing. Inflation soared, and foreign currencies became the main medium for transactions.

Introduction of the Gold-Backed ZiG Currency

In a bold move, Zimbabwe introduced the Zimbabwe Gold (ZiG) currency, converting domestic dollar balances into ZiG balances.

This currency is backed by significant gold reserves, a shift from highly inflated fiat money to a more stable, specie-backed currency. The central bank recalibrated the main interest rate to 20%, down from 130%.

Central Bank Governor John Mushayavanhu highlighted the reserves, including 1.1 tons of gold stored domestically and another 1.5 tons abroad. This reserve-backed approach aimed to restore confidence in the local currency.

How the ZiG Currency Stabilized the Economy

The immediate impact of the ZiG currency was significant. Consumer prices dropped by 2.4% in May, a month after the ZiG was introduced.

This deflation marked a stark contrast to the hyperinflation that had plagued Zimbabwe for years. The ZiG currency appreciated by 1.9% against the U.S. dollar within a month of its launch, reflecting newfound stability.

The ZiG currency was issued in various denominations, ensuring ease of use in daily transactions. By converting old currency to ZiG, the government aimed to curtail inflation and stabilize the economy. The introduction of ZiG coins helped address the shortage of small change in the market.

Future Prospects for Zimbabwe’s Financial Stability

The introduction of the ZiG currency has set Zimbabwe on a path to financial stability.

With inflation rates expected to stabilize between 2% and 5% by year-end, the economic outlook is promising. This turnaround is attributed to the disciplined approach of backing the currency with tangible assets like gold.

Economists emphasize the need for continued discipline and prudent financial management to sustain this positive trend. The gold-backed ZiG currency serves as a foundation for rebuilding trust in Zimbabwe’s monetary system.

The Bottom Line

Zimbabwe’s new gold-backed ZiG currency has brought remarkable improvement to a country long marred by hyperinflation and currency instability.

By anchoring the currency with gold reserves and implementing stringent monetary policies, Zimbabwe has achieved a rare and rapid economic stabilization.

The future looks hopeful as the country embraces this new era of financial stability.

Zimbabwe’s Currency History in a Nutshell

1. 1980: Zimbabwe dollar replaced the Rhodesian dollar at par.

2. 2006: Currency redenominated at 1,000 to one.

3. 2008: Further redenomination at 10 billion to one.

4. 2009: 12 zeroes removed from bank notes; foreign currencies legalized.

5. 2015: $1 USD = 35 quadrillion Zimbabwe dollars.

6. 2016: Introduction of bond notes backed by U.S. dollars.

7. April 2024: Introduction of ZiG (Zimbabwe Gold) currency.

8. April 2024: ZiG currency appreciated by 1.9% against the USD within one month.

9. May 2024: Consumer prices dropped by 2.4%.

10. Projected 2024: Inflation expected to stabilize between 2% and 5%.

Contributing articles:

• https://www.biznews.com/africa/2024/05/30/zimbabwe-deflation-zig-stabilises-economy

• https://www.numismaticnews.net/paper-money/zimbabwe-currency-zigs-then-zags

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Could the Government Confiscate Your Gold when the Financial System Crashes?

Could the Government Confiscate Your Gold when the Financial System Crashes?

On June 2, 2024   By Awake-In-3D

Historical Precedents and Current Implications of Gold Confiscation Explained

The idea of gold confiscation by the government creates significant debate within the RV/GCR community, especially in the context of a potential collapse of the fiat currency system.

Could a scenario similar to the 1933 Executive Order 6102, which required the surrender of privately held gold, happen again today?

To answer this question, let’s examine the historical context of EO 6102, its actual impact, and whether such drastic measures could be realistically implemented in the modern financial landscape.

In This Article

• Historical Analysis of Executive Order 6102

• Mechanics and Enforcement of the Order

• Potential for Modern-Day Gold Confiscation

• Comparative Legal and Economic Perspectives

In 1933, President Franklin D. Roosevelt issued Executive Order 6102, which mandated the surrender of most privately held gold to the U.S. government.

Historical Analysis of Executive Order 6102

Executive Order 6102 was issued during the Great Depression to address severe economic instability and a lack of confidence in paper currency.

Under the authority of the Trading with the Enemy Act of 1917, as amended by the Emergency Banking Act in March 1933, EO 6102 aimed to prevent the hoarding of gold, which was seen as a barrier to economic recovery.

The order required citizens to surrender gold coins, gold bullion, and gold certificates to the Federal Reserve by May 1, 1933.

Exceptions included up to $100 in gold coins and gold for industrial, professional, or artistic uses, as well as rare and collectible coins. In return, individuals received paper currency valued at $20.67 per ounce of gold.

Mechanics and Enforcement of the Order

EO 6102 is often described as a gold confiscation order, but it was more accurately a nationalization of gold.

The government offered compensation for surrendered gold, thus avoiding outright confiscation without remuneration. The public’s compliance was largely voluntary, driven by trust in the government, patriotism, and fear of penalties.

Despite the order, enforcement was relatively minimal.

Economist Milton Friedman and Anna Jacobson Schwartz estimated that only 20-25% of private gold was surrendered. The government did not aggressively pursue those who ignored the order, focusing instead on achieving compliance through public cooperation.

Potential for Modern-Day Gold Confiscation

Given the historical precedent set by EO 6102, could a similar order be issued today if the fiat currency debt system collapses? While it is theoretically possible, several factors make it less likely:

1. Legal and Political Climate: The current legal framework and political environment differ significantly from those in 1933. Any attempt to confiscate gold would face substantial legal challenges and political opposition.

2. Public Reaction and Compliance: Today’s public is more informed and potentially more resistant to such measures. Trust in government institutions is generally lower, making voluntary compliance less likely.

3. Economic Alternatives: Modern economies have diverse financial instruments and mechanisms to address monetary crises. Measures such as quantitative easing and other monetary policies can be employed without resorting to gold confiscation.

4. Global Financial System: The global financial system is more interconnected and complex. The impact of a unilateral gold confiscation by one country could have broader international repercussions, making it a less viable option.

Comparative Legal and Economic Perspectives

The legal basis for gold confiscation today would require substantial legislative action.

The original EO 6102 was supported by amendments to existing laws that granted extraordinary powers during a national emergency. Replicating such a framework today would necessitate new legislation or amendments to current laws, which could be a contentious process.

The Bottom Line

Executive Order 6102 did mandate the surrender of most privately held gold in 1933, but it was not an outright confiscation without compensation.

The context of the Great Depression and the legal framework at the time facilitated this extraordinary measure. In today’s complex and interconnected financial environment, a similar gold confiscation order is unlikely.

The potential for such an action would face significant legal, political, and public resistance, making it an improbable solution to a fiat currency debt collapse.

Contributing Reference Links:

• Full text of Executive Order 6102 from 1933.

• https://www.moneymetals.com/news/2024/05/31/did-fdr-really-confiscate-everybodys-gold-003226

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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.

© GCR Real-Time News

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